Q1 2024 Cintas Corp Earnings Call

September 26, 2023

Operator: Good day, everyone, and welcome to the Cintas Corporation Announces Fiscal 2024 First Quarter Earnings Release Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Mr. Jared Mattingly, Vice President, Treasurer, and Investor Relations. Please go ahead, sir.

Operator: Good day, everyone and welcome to the Cintas Corporation announces fiscal 2024 first quarter earnings release Conference call. Today's call is being recorded at this time I would like to turn the call over to Mr. Jared Mattingly, Vice President Treasurer and Investor Relations. Please go ahead.

Sure.

Jared Mattingly: Thank you for joining us. With me is Todd Schneider, President and Chief Executive Officer, and Mike Hansen, Executive Vice President and Chief Financial Officer. We will discuss our Fiscal 2024 First Quarter results. After our commentary, we will open the call to questions from analysts. The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. This conference call contains forward-looking statements that reflect the company's current views as to future events and financial performance. These forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss. I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission. I'll now turn the call over to Todd.

Jared S. Mattingley: Thank you for joining US with me is Todd Schneider, President and Chief Executive Officer, and Mike Hansen, Executive Vice President and Chief Financial Officer, who will discuss our fiscal 2024 first quarter results. After our commentary we will open the call to questions from analysts. Securities Litigation Reform Act of $19 95 provides a safe harbor from Civil litigation for forward looking statements. This conference call contains forward looking statements that reflect the company's current views as to future events and financial performance. These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission. Now I'll turn the call over to Todd.

Securities Litigation Reform Act of $19 95 provides a safe harbor from Civil litigation for forward looking statements. This conference call contains forward looking statements that reflect the company's current views as to future events and financial performance. These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission. Now I'll turn the call over to Todd.

Now I'll turn the call over to Todd.

Todd Schneider: Thank you, Jared. We are pleased with our start to Fiscal Year 2024. Q1 total revenue grew 8.1% to $2.34 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth in revenue flowed through to our bottom line. Operating income margin increased 110 basis points to an all-time high of 21.4%, and Diluted EPS grew 9.1% to $3.70. I thank our employees, whom we call partners, for their continued focus on our customers, our shareholders, and each other. Uniform Rental and Facility Services operating segment revenue for Q1 of Fiscal 2024 was $1.83 billion compared to $1.7 billion last year. The organic revenue growth rate was 7.6%. While price increases move near historical levels, revenue growth continues to be driven mostly from increased volume.

Todd M. Schneider: Thank you, Jared. We are pleased with our start to fiscal year 2024. First quarter total revenue grew 8.1% to $2.34 billion. Each of our businesses continue to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all-time high of 21.4%, and diluted EPS grew 9.1% to $3.70. I thank our employees, whom we call partners, for their continued focus on our customers, our shareholders and each other. Uniform Rental and Facility Services operating segment revenue for the first quarter of fiscal '24 was $1.83 billion compared to $1.7 billion last year. Their organic revenue growth rate was 7.6%. While price increases moved near historical levels, revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross-sell our existing customer base. Businesses prioritize all we provide, including image, safety, cleanliness and compliance. Our First Aid and Safety Services operating segment revenue for the first quarter was $260.7 million compared to $234.2 million last year. The organic revenue growth rate was 11%. Our value proposition continues to resonate in our First Aid and Safety Services operating segment. Health and safety of employees remains top of mind. We provide businesses with access to quick and effective products and services that promote health and well-being in the workplace. Our Fire Protection Services and Uniform Direct Sale businesses are reported in the All Other segment. All Other revenue was $254.8 million compared to $234.5 million last year. The Fire business revenue was $174.3 million, and their organic revenue growth rate was 14.2%. The Uniform Direct Sale business revenue was [$80.5 million,] which was down 2.7% organically compared to last year. Now before I turn the call over to Mike to provide details of our first quarter results, I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9.35 billion to $9.5 billion to a range of $9.4 billion to $9.52 billion, a total growth rate of 6.6% to 8%. Also, we are raising our annual diluted EPS expectations from a range of $13.85 to $14.35 to a range of $14 to $14.45, a growth rate of 7.8% to 11.2%. Mike?

We are pleased with our start to fiscal year 2024. First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continue to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty four was $1 83 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our salesforce continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Health and safety of employees remains top of mind. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million compared. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continue to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty four was $1 83 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our salesforce continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Health and safety of employees remains top of mind. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million compared. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

Each of our businesses continue to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty four was $1 83 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our salesforce continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Health and safety of employees remains top of mind. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million compared. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty four was $1 83 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our salesforce continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Health and safety of employees remains top of mind. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million compared. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

Todd Schneider: Our sales force continues to add new customers and penetrate and cross-sell our existing customer base. Businesses prioritize all we provide, including image, safety, cleanliness, and compliance. Our First Aid and Safety Services operating segment revenue for Q1 was $260.7 million compared to $234.2 million last year. The organic revenue growth rate was 11%. Our value proposition continues to resonate in our First Aid and Safety Services operating segment. Health and safety of employees remains top of mind. We provide businesses with access to quick and effective products and services that promote health and well-being in the workplace. Our Fire Protection Services and Uniform Direct Sale businesses are reported in the all-other segment. All-other revenue was $254.8 million compared to $234.5 million last year. The fire business revenue was $174.3 million, and the organic revenue growth rate was 14.2%.

Our sales force continues to add new customers and penetrate and cross-sell our existing customer base. Businesses prioritize all we provide, including image, safety, cleanliness, and compliance. Our First Aid and Safety Services operating segment revenue for Q1 was $260.7 million compared to $234.2 million last year. The organic revenue growth rate was 11%. Our value proposition continues to resonate in our First Aid and Safety Services operating segment. Health and safety of employees remains top of mind. We provide businesses with access to quick and effective products and services that promote health and well-being in the workplace. Our Fire Protection Services and Uniform Direct Sale businesses are reported in the all-other segment. All-other revenue was $254.8 million compared to $234.5 million last year. The fire business revenue was $174.3 million, and the organic revenue growth rate was 14.2%.

Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Health and safety of employees remains top of mind. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million compared. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

<unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Health and safety of employees remains top of mind. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million compared. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

Our value proposition continues to resonate in our first aid and safety services operating segment. Health and safety of employees remains top of mind. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million compared. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

Health and safety of employees remains top of mind. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million compared. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million compared. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

All other revenue was $254 8 million compared. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

On the organic revenue growth rate was 14, 2%. Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

Todd Schneider: The Uniform Direct Sale business revenue was $80.5 million, which was down 2.7% organically compared to last year. Now, before I turn the call over to Mike to provide details of our first quarter results, I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9.35 billion to 9.5 billion to a range of $9.4 billion to 9.52 billion, a total growth rate of 6.6% to 8%. Also, we are raising our annual diluted EPS expectations from a range of $13.85 to 14.35 to a range of $14.00 to 14.45, a growth rate of 7.8% to 11.2%. Mike?

The Uniform Direct Sale business revenue was $80.5 million, which was down 2.7% organically compared to last year. Now, before I turn the call over to Mike to provide details of our first quarter results, I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9.35 billion to 9.5 billion to a range of $9.4 billion to 9.52 billion, a total growth rate of 6.6% to 8%. Also, we are raising our annual diluted EPS expectations from a range of $13.85 to 14.35 to a range of $14.00 to 14.45, a growth rate of 7.8% to 11.2%. Mike?

Inform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

So a range of $9 4 billion. To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

To $9 $5 2 billion. The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

The total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

To $14 35 to. So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

So a range of $14 to $14 45. Our growth rate of seven eight to 11, 2%. Mike.

Our growth rate of seven eight to 11, 2%. Mike.

Mike Hansen: Thanks, Todd. Good morning. Our Fiscal 2024 Q1 revenue was $2.34 billion compared to $2.17 billion last year. The organic revenue growth rate, adjusted for acquisitions and foreign currency exchange rate fluctuations, was 8.1%. Gross margin for the Q1 of Fiscal 2024 was $1.14 billion compared to $1.03 billion last year, an increase of 11%. Gross margin as a percent of revenue was an all-time high, excuse me, of 48.7% for the Q1 of Fiscal 2024, compared to 47.5% last year, an increase of 120 basis points. Strong volume growth and continued operational efficiencies helped generate this record gross margin. Energy expenses, comprised of gasoline, natural gas, and electricity, were a tailwind, decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit is the result of efficiencies we've created with our proprietary SmartTruck technology.

Mike.

J. Michael Hansen: Thanks, Todd, and good morning. Our fiscal 2024 first quarter revenue was $2.34 billion compared to $2.17 billion last year. The organic revenue growth rate, adjusted for acquisitions and foreign currency exchange rate fluctuations was 8.1%. Gross margin for the first quarter of fiscal '24 was $1.14 billion compared to $1.03 billion last year, an increase of 11%. Gross margin as a percent of revenue was an all-time high of 48.7% for the first quarter of fiscal '24, compared to 47.5% last year, an increase of 120 basis points. Strong volume growth and continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline, natural gas and electricity were a tailwind, decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit is the result of efficiencies we've created with our proprietary SmartTruck technology. Certainly, we've also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48.1% for Uniform Rental and Facility Services, 55.9% for First Aid and Safety Services, 49% for Fire Protection Services and 38.7% for Uniform Direct Sale. Operating income of $500.6 million compared to $440.1 million last year. Operating income as a percentage of revenue was 21.4% in the first quarter of fiscal '24 compared to 20.3% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19.2% compared to 14.8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation. Net income for the first quarter was $385.1 million compared to $351.7 million last year. This year's first quarter diluted EPS of $3.70 compared to $3.39 last year, an increase of 9.1%. Cash flow remains strong. Net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15, we paid shareholders $138.3 million in quarterly dividends, an increase of 17.8% from the amount paid the previous September. Todd provided our annual financial guidance. Related to the guidance, please note the following: fiscal '24 interest expense is expected to be $98 million compared to $109.5 million in fiscal '23, predominantly as a result of lower variable rate debt; our fiscal '24 effective tax rate is expected to be 21.3%. This compares to a rate of 20.4% in fiscal '23. The higher effective tax rate negatively impacts fiscal '24 EPS guidance by about $0.16 and diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal '24 compared to fiscal '23. This extra work day comes in our fiscal third quarter. Jared?

Compared to $2 1 billion to $1 $7 million last year. Revenue growth rates adjusted for acquisitions, and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty, four was 114 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. <unk> 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $441 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Revenue growth rates adjusted for acquisitions, and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty, four was 114 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. <unk> 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $441 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Gross margin for the first quarter of fiscal 'twenty, four was 114 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. <unk> 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $441 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. <unk> 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $441 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. <unk> 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $441 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Mike Hansen: Certainly, we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48.1% for Uniform Rental and Facility Services, 55.9% for First Aid and Safety Services, 49% for Fire Protection Services, and 38.7% for Uniform Direct Sale. Operating income of $500.6 million compared to $440.1 million last year. Operating income as a percentage of revenue was 21.4% in Q1 of Fiscal 2024, compared to 20.3% in last year's Q1, an increase of 110 basis points. Our effective tax rate for Q1 was 19.2% compared to 14.8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation. Net income for Q1 was $385.1 million compared to $351.7 million last year.

Certainly, we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48.1% for Uniform Rental and Facility Services, 55.9% for First Aid and Safety Services, 49% for Fire Protection Services, and 38.7% for Uniform Direct Sale. Operating income of $500.6 million compared to $440.1 million last year. Operating income as a percentage of revenue was 21.4% in Q1 of Fiscal 2024, compared to 20.3% in last year's Q1, an increase of 110 basis points. Our effective tax rate for Q1 was 19.2% compared to 14.8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation. Net income for Q1 was $385.1 million compared to $351.7 million last year.

<unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. <unk> 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $441 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Gross margin percentage by business was 48, 1% for uniform rental and facility services. <unk> 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $441 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

<unk> 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $441 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $441 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Operating income of $506 million compared to $441 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year the. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Mike Hansen: This year's Q1 diluted EPS of $3.70 compared to $3.39 last year, an increase of 9.1%. Cash flow remained strong. Net cash provided by operating activities in the Q1 grew 13% over the prior year. On 15 September, we paid shareholders $138.3 million in quarterly dividends, an increase of 17.8% from the amount paid the previous September. Todd provided our annual financial guidance. Related to the guidance, please note the following: Fiscal 2024 interest expense is expected to be $98 million compared to $109.5 million in Fiscal 2023, predominantly as a result of lower variable rate debt. Our Fiscal 2024 effective tax rate is expected to be 21.3%. This compares to a rate of 20.4% in Fiscal 2023. The higher effective tax rate negatively impacts Fiscal 2024 EPS guidance by about $0.16 and diluted EPS growth by about 120 basis points.

This year's Q1 diluted EPS of $3.70 compared to $3.39 last year, an increase of 9.1%. Cash flow remained strong. Net cash provided by operating activities in the Q1 grew 13% over the prior year. On 15 September, we paid shareholders $138.3 million in quarterly dividends, an increase of 17.8% from the amount paid the previous September. Todd provided our annual financial guidance. Related to the guidance, please note the following: Fiscal 2024 interest expense is expected to be $98 million compared to $109.5 million in Fiscal 2023, predominantly as a result of lower variable rate debt.

This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

On September 15th we paid shareholders $138 $3 million in quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Fiscal 'twenty for interest expense is expected to be $98 million compared to $109 5 million in fiscal 'twenty three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Our Fiscal 2024 effective tax rate is expected to be 21.3%. This compares to a rate of 20.4% in Fiscal 2023. The higher effective tax rate negatively impacts Fiscal 2024 EPS guidance by about $0.16 and diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more workday in Fiscal 2024 compared to Fiscal 2023. This extra workday comes in our Fiscal Third Quarter. Jared?

Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Mike Hansen: Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more workday in Fiscal 2024 compared to Fiscal 2023. This extra workday comes in our Fiscal Third Quarter. Jared?

Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure.

This extra workday comes in our fiscal third quarter. Sure.

Sure.

Jared Mattingly: That concludes our prepared remarks. Now we are happy to answer questions from the analysts. Please ask just one question and a single follow-up if needed. Thank you.

Operator: That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you.

Operator: If you would like to ask a question, please press star one on your phone now, and you will be placed in the queue. Please be prepared to ask your question when prompted. Once again, if you would like to ask a question, please press star one on your phone now. Our first question comes from Faiza Alwi from Deutsche Bank. Please go ahead.

Operator: (Operator Instructions)

You will be placed in the queue into order received.

Please be it.

Please be prepared to ask your question when prompted.

Once again, if you would like to ask a question. Please press star one on your phone now.

And our first question comes from Faiza Alwy from Deutsche Bank.

<unk> from Deutsche Bank. Please go ahead.

Faiza Alwi: Yes. Hi, thank you, and good morning. Wanted to see if you could provide a bit more color on the new business environment and if you've noticed any change in terms of the macro environment. Certainly, you guys are talking to your customers every day. So just a bit more perspective around what you're seeing out there in the marketplace.

Faiza Alwy: Yes. Hi, thank you, and good morning. Wanted to see if you could provide a bit more color on the new business environment and if you've noticed any change in terms of the macro environment. Certainly, you guys are talking to your customers every day. So just a bit more perspective around what you're seeing out there in the marketplace.

Faiza Alwy: I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any change in terms of the macro environment. Certainly, you guys are talking to your customers every day. So just a bit more perspective around what you're seeing out there in the marketplace.

Wanted to see if you could provide a bit more color on the new business environment and if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace.

The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace.

Todd Schneider: Great. Good morning, Faiza. Yeah, our new business pipeline is quite good. We love the state of our sales organization, the focus that they have, the scope. So new business is quite good. And that's a big driver of our growth that you're seeing. And we see that continuing. As far as macro environment, it is. We haven't seen any real change in our customer's behavior, I would say, since we reported last. So it's pretty consistent with what we've seen over the past few quarters. And we are watching it very, very closely and monitoring it as we move forward.

Great. Yes, our new business pipeline is quite good. We love the state of our sales organization, the focus that they have, the scope. And so new business is quite good, and that's a big driver of our growth that you're seeing and we see that continuing. As far as macro environment, it is -- we haven't seen any real change in our customers' behavior, I would say, since we reported last. So it's pretty consistent with what we have seen over the past few quarters. And we are watching it very, very closely and monitoring it as we move.

Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the scope. And so new business is quite good and Thats, a big driver of our growth that youre that youre seeing. And we see that continuing as far as our macro environment. <unk>. It is but we haven't seen any real change in our customers behavior. Hey. And since that we reported last so pretty. Pretty consistent what we've seen. Over the past few quarters, and we are watching it very very closely and. Monitoring it as we move forward.

We love the state of our sales organization. There the focus that they have the scope. And so new business is quite good and Thats, a big driver of our growth that youre that youre seeing. And we see that continuing as far as our macro environment. <unk>. It is but we haven't seen any real change in our customers behavior. Hey. And since that we reported last so pretty. Pretty consistent what we've seen. Over the past few quarters, and we are watching it very very closely and. Monitoring it as we move forward.

There the focus that they have the scope. And so new business is quite good and Thats, a big driver of our growth that youre that youre seeing. And we see that continuing as far as our macro environment. <unk>. It is but we haven't seen any real change in our customers behavior. Hey. And since that we reported last so pretty. Pretty consistent what we've seen. Over the past few quarters, and we are watching it very very closely and. Monitoring it as we move forward.

And so new business is quite good and Thats, a big driver of our growth that youre that youre seeing. And we see that continuing as far as our macro environment. <unk>. It is but we haven't seen any real change in our customers behavior. Hey. And since that we reported last so pretty. Pretty consistent what we've seen. Over the past few quarters, and we are watching it very very closely and. Monitoring it as we move forward.

And we see that continuing as far as our macro environment. <unk>. It is but we haven't seen any real change in our customers behavior. Hey. And since that we reported last so pretty. Pretty consistent what we've seen. Over the past few quarters, and we are watching it very very closely and. Monitoring it as we move forward.

<unk>. It is but we haven't seen any real change in our customers behavior. Hey. And since that we reported last so pretty. Pretty consistent what we've seen. Over the past few quarters, and we are watching it very very closely and. Monitoring it as we move forward.

It is but we haven't seen any real change in our customers behavior. Hey. And since that we reported last so pretty. Pretty consistent what we've seen. Over the past few quarters, and we are watching it very very closely and. Monitoring it as we move forward.

Hey. And since that we reported last so pretty. Pretty consistent what we've seen. Over the past few quarters, and we are watching it very very closely and. Monitoring it as we move forward.

And since that we reported last so pretty. Pretty consistent what we've seen. Over the past few quarters, and we are watching it very very closely and. Monitoring it as we move forward.

Pretty consistent what we've seen. Over the past few quarters, and we are watching it very very closely and. Monitoring it as we move forward.

Over the past few quarters, and we are watching it very very closely and. Monitoring it as we move forward.

Monitoring it as we move forward.

Faiza Alwi: Great. Thank you.

Faiza Alwy: Great. Thank you.

Great. Thank you.

Todd Schneider: Thank you.

Thank you.

Operator: Our next question comes from Manav Patnaik from Barclays. Please go ahead, Manav.

Operator: And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Manav Patnaik: Thank you. Good morning. I just wanted to see if you could give us a little bit more color, I think, in terms of the pricing strategy and then also the strong volume growth. So I think you said pricing is back to historical levels. So I'm guessing that's down in that low single-digit camp versus almost every other company talking about still, I guess, pricing higher than above an average. So just maybe the first question is just how do we think about your pricing strategy here?

Manav Shiv Patnaik: I just wanted to see if you could give us a little more color, I think, in terms of the pricing strategy and then also the strong volume growth. So I think you said pricing is back to historical levels. So I'm guessing that's down in that low single-digit camp versus almost every other company talking about still, I guess, pricing higher than above and average. So it just maybe the first question is just how do we think about your pricing strategy here?

If you could give us a little more color I think in terms of the pricing strategy and then also the strong volume growth. So I think you said pricing is back to historical levels. So im guessing thats down in that low single digit comp versus. Almost every other company you're talking about still I guess pricing higher than above an average. So just maybe the first question is just how do we think about your pricing strategy here.

Almost every other company you're talking about still I guess pricing higher than above an average. So just maybe the first question is just how do we think about your pricing strategy here.

Todd Schneider: Yes. Good morning, Manav. Yeah, it is certainly closer to historical levels. And we like that. That's, we think, appropriate based upon our cost inputs. But we are very proud of the fact that we're growing our business attractively, and we think we can continue this based upon new business being robust and our customer retention levels being very good as well. And we're seeing that in our customer satisfaction scores as well. And then the status of our customers is they're continuing on in the operating environment as they have in the past. So we like where we're positioned. We like the momentum in our business, and we like how we're growing it as well. And we think it bodes well for the future.

Todd M. Schneider: Yes, it is certainly closer to historical levels, and we like that. That's, we think, appropriate based upon our cost inputs. But we're very proud of the fact that we're growing our business attractively, and we think we can continue this based upon new business being robust and our customer retention levels, being very good as well. And we're seeing that in our customer satisfaction scores as well. And then the status of our customers is -- they're continuing on in the operating environment as they have in the past. So we like where we're positioned. We like the momentum in our business, and we like how we're growing it as well, and we think it's -- it bodes well for the future.

Yes, it is certainly closer to historical levels and. We like that as we think appropriate. Based upon our cost inputs. But we are we are. We're proud of the fact that we're growing our business attractively. And we think we can continue this. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future.

We like that as we think appropriate. Based upon our cost inputs. But we are we are. We're proud of the fact that we're growing our business attractively. And we think we can continue this. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future.

Based upon our cost inputs. But we are we are. We're proud of the fact that we're growing our business attractively. And we think we can continue this. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future.

But we are we are. We're proud of the fact that we're growing our business attractively. And we think we can continue this. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future.

We're proud of the fact that we're growing our business attractively. And we think we can continue this. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future.

And we think we can continue this. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future.

So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future.

Jared Mattingly: Manav, I might just add to that. You ask about our pricing strategy. And as we've talked in the past, our goal is operating margin improvement, right? And pricing can be a lever within that, but we have other levers. It's not the only way for us to improve margins. And so as we think about the operating margin strategy of increasing, we've got a lot of good things going on. And this is a great quarter that shows where pricing is sort of returning back to that historical level. We still increased margins quite nicely, even to record levels. And again, it's just, pricing is a part of that strategy.

J. Michael Hansen: Manav, I might just add -- Manav, I might just add to that, you asked about our pricing strategy. And as we've talked in the past, our goal is operating margin improvement, right? And pricing can be a lever within that, but we have other levers. It's not the only way for us to improve margins. And so as we think about the operating margin strategy of increasing, we've got a lot of good things going on. And this is a great quarter that shows where pricing is sort of returning back to that historical level. We still increased margins quite nicely even to record levels. And again, it's just that pricing is a part of that strategy.

Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement right in pricing can be a lever within that but we have other levers it's not the only way for us to improve improve margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy.

Our goal is operating margin improvement right in pricing can be a lever within that but we have other levers it's not the only way for us to improve improve margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy.

Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy.

And. Again, it's just pricing is a part of that strategy.

Again, it's just pricing is a part of that strategy.

Manav Patnaik: Yeah, that makes sense. That's quite impressive. And then maybe just on the strong volume growth, could you just help provide some color on how much of that is new business, cross-selling, maybe share gains, any color around that?

Todd M. Schneider: Yes. Good question, Manav. I mean, it's everything. As I mentioned, our new is quite good. Our retention levels, we're very happy with, and we're cross-selling. And we've -- we're continuing to make good progress there. We're never satisfied. But our value proposition is resonating with our customers, and we're trying to make it easier to do business with us through various technologies. And I think it's showing up in our results, and we're again bullish.

Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that.

Todd Schneider: Yeah. Good question, Manav. I mean, it's everything. As I mentioned, our new is quite good. And our retention levels, we're very happy with. And we're cross-selling. And we're continuing to make good progress there. We're never satisfied. But our value proposition is resonating with our customers. And we're trying to make it easier to do business with us through various technologies. And I think it's showing up in our results. And we're, again, bullish.

Yes, good question Manav I mean, it's it's everything. As I mentioned, our newest quite good on our retention levels were very happy with and. And we're cross selling and. We're continuing to make good progress there. We're never satisfied but. But our value proposition is resonating with our customers and and we're trying to make it easier to do business with us through various technologies and and I think it's showing up in. Our results and. We're again bullish.

As I mentioned, our newest quite good on our retention levels were very happy with and. And we're cross selling and. We're continuing to make good progress there. We're never satisfied but. But our value proposition is resonating with our customers and and we're trying to make it easier to do business with us through various technologies and and I think it's showing up in. Our results and. We're again bullish.

And we're cross selling and. We're continuing to make good progress there. We're never satisfied but. But our value proposition is resonating with our customers and and we're trying to make it easier to do business with us through various technologies and and I think it's showing up in. Our results and. We're again bullish.

We're continuing to make good progress there. We're never satisfied but. But our value proposition is resonating with our customers and and we're trying to make it easier to do business with us through various technologies and and I think it's showing up in. Our results and. We're again bullish.

We're never satisfied but. But our value proposition is resonating with our customers and and we're trying to make it easier to do business with us through various technologies and and I think it's showing up in. Our results and. We're again bullish.

But our value proposition is resonating with our customers and and we're trying to make it easier to do business with us through various technologies and and I think it's showing up in. Our results and. We're again bullish.

Our results and. We're again bullish.

We're again bullish.

Operator: Got it. Thanks a lot.

Manav Patnaik: Got it. Thanks a lot.

Got it thanks for that.

Todd Schneider: Thank you.

Thank you.

Operator: Our next question comes from Josh Chan from UBS. Please go ahead, Josh.

Operator: And our next question comes from Josh Chan from UBS. Please go ahead Josh.

Joshua K. Chan: Hi. Good morning, Todd, Mike, and Jared. Thanks for taking my question. I guess, could I ask about inflation and what you're seeing across your different cost buckets, labor, energy, material, and how you expect that to kind of transpire over the coming quarters as well?

Josh Chan: Hi. Good morning, Todd, Mike, and Jared. Thanks for taking my question. I guess, could I ask about inflation and what you're seeing across your different cost buckets, labor, energy, material, and how you expect that to kind of transpire over the coming quarters as well?

Joshua K. Chan: Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh I'll start if Mike wants to chime in as well.

Todd Schneider: Yeah. Good morning, Josh. Yeah, I'll start if Mike wants to chime in as well. Yeah. So, what we're seeing from an input cost standpoint, labor is still higher than historical. But to Mike's point earlier, we're finding ways to improve operating margin in that environment still. And part of it is because productivity is quite attractive. And we're trying to position our employee partners so that they can be more successful in the marketplace, which is good for them, and it's good for ourselves. And obviously, with that retention levels of our employee partners being very close to historical levels, that's good for our customers as well. Other input costs, you saw where energy was down a year or prior. That is really a Q1 subject because if you recall last year, the price at the pump was very high. And so a little bit of a tailwind there.

Yes, good morning, Josh I'll start if Mike wants to chime in as well.

Todd M. Schneider: Yes, I'll start, and Mike wants to chime in as well. Yes, so what we're seeing from an input cost standpoint. Labor is still higher than historical. But to Mike's point earlier, we're finding ways to improve operating margin in that environment still. And part of it is because productivity is quite attractive. And we're trying to position our employee partners so that they can be more successful in the marketplace, which is good for them and it's good for ourselves. And obviously, with that retention levels of our employee partners being much back -- very close to historical levels. That's good for our customers as well. Other input costs, you saw where energy was down year over prior. That is really a Q1 subject because if you recall last year, the price at the pump was very high. And so we got a little bit of a tailwind there. But we think that will be pretty muted through the balance of the fiscal year. And then last, material costs. Our global supply chain team is doing one heck of a job in trying to make sure that we're well positioned to have very competitive prices and access to all that product. And we've spoken in the past about how a very small percentage of our products are single sourced. So that positions us well as far as having access to product, but also being giving them at very competitive rates.

What we're seeing from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mikes point earlier, we're finding ways to improve operating margin in that environment still and part of it's because our productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down year. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the. For the fiscal year. And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

Labor is still. Higher than historical. But. To Mikes point earlier, we're finding ways to improve operating margin in that environment still and part of it's because our productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down year. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the. For the fiscal year. And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

Higher than historical. But. To Mikes point earlier, we're finding ways to improve operating margin in that environment still and part of it's because our productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down year. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the. For the fiscal year. And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

But. To Mikes point earlier, we're finding ways to improve operating margin in that environment still and part of it's because our productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down year. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the. For the fiscal year. And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

To Mikes point earlier, we're finding ways to improve operating margin in that environment still and part of it's because our productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down year. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the. For the fiscal year. And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down year. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the. For the fiscal year. And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

That's good for our customers as well. Other input costs. You saw where energy was down year. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the. For the fiscal year. And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

Other input costs. You saw where energy was down year. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the. For the fiscal year. And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

You saw where energy was down year. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the. For the fiscal year. And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the. For the fiscal year. And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

Todd Schneider: But we think that will be pretty muted through the balance of the fiscal year. And then last, the material cost. Our global supply chain team is doing one heck of a job in trying to make sure that we're well positioned to have very competitive prices and access to all that product. And we've spoken in the past about how a very small percentage of our products are single source. So that positions us well as far as having access to product, but also giving them at very competitive rates.

But we think that will be pretty muted through the balance of the fiscal year. And then last, the material cost. Our global supply chain team is doing one heck of a job in trying to make sure that we're well positioned to have very competitive prices and access to all that product. And we've spoken in the past about how a very small percentage of our products are single source. So that positions us well as far as having access to product, but also giving them at very competitive rates.

For the fiscal year. And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

And then last material costs, our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

Very competitive prices. And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

And access to all of that product. And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

And we've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that they're very competitive rates.

That positions us well as far as having access to product, but also being given them that they're very competitive rates.

Operator: Thanks for the color, Todd. I guess for my follow-up, could you talk about what your CapEx expectations are this year and kind of the types of projects that you're investing in? Thank you.

Josh Chan: Thanks for the color, Todd. I guess for my follow-up, could you talk about what your CapEx expectations are this year and kind of the types of projects that you're investing in? Thank you.

Joshua K. Chan: And I guess for my follow-up, could you talk about what your CapEx expectations are this year and kind of the types of projects that you're investing in?

Todd Schneider: Sure. We did see a little bit of an increase in CapEx in Q1. As we've talked, we are in the midst of implementing SAP for our fire protection business. And that adds a little bit of CapEx. In the first quarter, we also saw, over the last couple of years, supply chains; our vendors have had some disruption in their ability to deliver trucks being the best example. And in the first quarter, we saw a little bit of a catch-up in terms of us receiving more of those trucks. And so we saw a bit of an increase there too in the first quarter. I expect for the year that we're going to likely be right around 4%. Longer term, we still believe 3.5% to 4%. But because of SAP and sort of that catch-up, might be a little closer to 4% this year.

Mike Hansen: Sure. We did see a little bit of an increase in CapEx in Q1. As we've talked, we are in the midst of implementing SAP for our fire protection business. And that adds a little bit of CapEx. In the first quarter, we also saw, over the last couple of years, supply chains; our vendors have had some disruption in their ability to deliver trucks being the best example. And in the first quarter, we saw a little bit of a catch-up in terms of us receiving more of those trucks. And so we saw a bit of an increase there too in the first quarter. I expect for the year that we're going to likely be right around 4%. Longer term, we still believe 3.5% to 4%. But because of SAP and sort of that catch-up, might be a little closer to 4% this year.

J. Michael Hansen: Sure. We did see a little bit of an increase in CapEx in Q1. We are -- as we've talked, we are in the midst of implementing SAP for our Fire Protection business and that adds a little bit of CapEx. In the first quarter, we also saw -- over the last couple of years, supply chains, our vendors have had some disruption in their ability to deliver trucks being the best example. And in the first quarter, we saw a little bit of a catch-up in terms of us receiving more of those trucks. And so we saw a bit of an increase there too in the first quarter. I expect for the year that we're going to likely be right around 4%. Longer term, we still believe 3.5% to 4%. But because of SAP and sort of that catch-up might be a little closer to 4% this year.

Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year.

Joshua K. Chan: Great. Thank you, Mike. Thanks both for your time.

Josh Chan: Great. Thank you, Mike. Thanks both for your time.

Operator: And our next question comes from Heather Balsky from Bank of America.

Todd Schneider: Thank you.

Mike Hansen: Thank you.

Jared Mattingly: My pleasure.

Todd Schneider: My pleasure.

Pleasure.

Operator: Our next question comes from Heather Balsky from Bank of America. Please go ahead, Heather.

And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather.

Faiza Alwi: Hi. Thank you for taking my questions. I was hoping first you could talk about your exposure to the auto sector and any exposure you may have to, I guess, some of the current disruption. And then, two, if you could talk about sort of the end markets, are there any areas where just in this macro you're seeing softness and areas where you're seeing strength? That would be great. Thanks.

Heather Balsky: Hi. Thank you for taking my questions. I was hoping first you could talk about your exposure to the auto sector and any exposure you may have to, I guess, some of the current disruption. And then, two, if you could talk about sort of the end markets, are there any areas where just in this macro you're seeing softness and areas where you're seeing strength? That would be great. Thanks.

Heather Nicole Balsky: Hi, Thank you for taking my question.

Heather Nicole Balsky: I was hoping, first, you could talk about your exposure to the auto sector and any exposure you may have to, I guess, some of the current disruption? And then two, if you could talk about through the end markets, are there any areas where just in this macro, you're seeing softness and areas where you're seeing strength would be great?

Your exposure to the auto sector and any exposure you may have to I guess some of the current disruption and then two if you could. Talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks.

Talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks.

Todd Schneider: Good morning, Heather. Yeah, we're certainly watching what's going on with the auto workers' strike. But it is not affecting us in any material way whatsoever. We have a very broad-based customer base. And as a result of that, it's not affecting us to any material degree whatsoever. And keeping in mind that we have no one customer that's greater than 1% of our revenue and no even sector that's greater than 10% for three-digit NAIC codes. So that helps us and insulates us a bit from all that. As far as the macro environment, it varies based upon the sector, geography, whether they're goods producing or services providing. But the labor market is a little easier, but still not easy. And you see that through what we're reading with the job openings, still 9.5 million job openings.

Todd M. Schneider: Good morning, Heather, Yes, we're certainly watching what's going on with the autoworkers strike, but it is not affecting us in any material way whatsoever.

Heather. Yes, we're certainly watching what's going on with the auto worker strike, but it is not affecting us in any material way whatsoever. We have a very broad-based customer base. And as a result of that, it's not affecting us to any material degree whatsoever. And keeping in mind that we have no one customer that's greater than 1% of our revenue and no even sector that's greater than 10% for 3-digit NAICS codes. So that helps us and insulates us a bit from all that. As far as the macro environment, it really -- it varies based upon the sector, geography, whether they're goods producing or services providing. But the labor market is a little easier, but still not easy. And you see that through the -- what we've -- what we're reading with the job openings, still 9.5 million job openings. And that affects our customer base from a standpoint of them trying to attract and retain people. We would love to see those jobs filled because we think that would be really good for our customers and for the economy in general.

Customer. Our base and as a result of that. It's not affecting us to any material degree whatsoever. And keeping in mind that we have no one customer that's greater than 1% of our revenue and no even sector. That's. A greater than 10% for three digit Nick codes. So. That that helps us on Insulates us a bit. From all that as far as the macro environment. It really it varies based upon. The sector or geography. Whether the goods producing or services providing. But the the. The labor market is a little easier, but still not easy. And you see that through the <unk>. What we've what we're reading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain depot. Would love to see those. <unk>, because we think that'd be really good for our customers. And for the economy in general.

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A greater than 10% for three digit Nick codes. So. That that helps us on Insulates us a bit. From all that as far as the macro environment. It really it varies based upon. The sector or geography. Whether the goods producing or services providing. But the the. The labor market is a little easier, but still not easy. And you see that through the <unk>. What we've what we're reading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain depot. Would love to see those. <unk>, because we think that'd be really good for our customers. And for the economy in general.

That that helps us on Insulates us a bit. From all that as far as the macro environment. It really it varies based upon. The sector or geography. Whether the goods producing or services providing. But the the. The labor market is a little easier, but still not easy. And you see that through the <unk>. What we've what we're reading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain depot. Would love to see those. <unk>, because we think that'd be really good for our customers. And for the economy in general.

As far as the macro environment, it varies based upon the sector, geography, whether they're goods producing or services providing. But the labor market is a little easier, but still not easy. And you see that through what we're reading with the job openings, still 9.5 million job openings. That affects our customer base from a standpoint of them trying to attract and retain people. We would love to see those jobs filled because we think that'd be really good for our customers and for the economy in general.

From all that as far as the macro environment. It really it varies based upon. The sector or geography. Whether the goods producing or services providing. But the the. The labor market is a little easier, but still not easy. And you see that through the <unk>. What we've what we're reading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain depot. Would love to see those. <unk>, because we think that'd be really good for our customers. And for the economy in general.

The sector or geography. Whether the goods producing or services providing. But the the. The labor market is a little easier, but still not easy. And you see that through the <unk>. What we've what we're reading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain depot. Would love to see those. <unk>, because we think that'd be really good for our customers. And for the economy in general.

Whether the goods producing or services providing. But the the. The labor market is a little easier, but still not easy. And you see that through the <unk>. What we've what we're reading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain depot. Would love to see those. <unk>, because we think that'd be really good for our customers. And for the economy in general.

But the the. The labor market is a little easier, but still not easy. And you see that through the <unk>. What we've what we're reading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain depot. Would love to see those. <unk>, because we think that'd be really good for our customers. And for the economy in general.

The labor market is a little easier, but still not easy. And you see that through the <unk>. What we've what we're reading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain depot. Would love to see those. <unk>, because we think that'd be really good for our customers. And for the economy in general.

And you see that through the <unk>. What we've what we're reading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain depot. Would love to see those. <unk>, because we think that'd be really good for our customers. And for the economy in general.

What we've what we're reading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain depot. Would love to see those. <unk>, because we think that'd be really good for our customers. And for the economy in general.

Todd Schneider: That affects our customer base from a standpoint of them trying to attract and retain people. We would love to see those jobs filled because we think that'd be really good for our customers and for the economy in general.

Would love to see those. <unk>, because we think that'd be really good for our customers. And for the economy in general.

<unk>, because we think that'd be really good for our customers. And for the economy in general.

And for the economy in general.

Heather Balsky: Appreciate the color. Thank you.

I appreciate the color. Thank you.

Todd Schneider: Thank you.

Thank you.

Operator: Our next question comes from Justin Hauke from RW Baird. Please go ahead, Justin.

Operator: And our next question comes from Justin Hauke from RW Baird.

Justin Hauke: Yeah. Hi, good morning. I wanted to ask about the first aid margins because they've kind of sustainably been higher than they have been historically, and really more comparable to the uniform rental and the facility services segment. I guess the question is, I mean, for years, that was kind of a scale business where you were building it out and it had lower margins. Are you at the point now where that business has reached a point where it has very comparable margins sustainably to the uniform rental business?

Justin P. Hauke: Yes, hi, good morning. I wanted to ask about the first aid margins because that's kind of sustainably then. Higher than they have been remarkably and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business.

I wanted to ask about the first aid margins because that's kind of sustainably then. Higher than they have been remarkably and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business.

Higher than they have been remarkably and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business.

Todd Schneider: Yeah. Good morning, Justin. Yeah, we really like the first aid business. I mean, it resonates with our customer base. The strong value proposition is helping our revenue growth. The mix has returned closer to historical with first aid and safety. Justin, just like our other businesses, we're using various technologies to extract inefficiencies out of our business. And there's certainly no exception to that. I mentioned that our global supply chain team is doing a great job in sourcing product, and we're benefiting from sourcing there. But yeah, we see certainly there is running a business is not linear. But that being said, we certainly think that gross margins in excess of 50% are sustainable in that business.

Todd M. Schneider: Yes, we really like the First Aid business. I mean it's -- that it resonates with our customer base. They -- a strong value proposition is helping our revenue growth. The mix has returned closer to historical with First Aid and Safety. And Justin, just like our other businesses, we're using various technologies to extract inefficiencies out of our business. And there's certainly no exception to that. I mentioned that our global supply chain team has done -- doing a great job in sourcing product, and we're benefiting from sourcing there. But yes, we see -- certainly, there is -- running a business is not linear. But that being said, we certainly think that gross margins in excess of 50 are sustainable in that business.

Yes, we are. We really liked the first aid business I mean, it's that. Got it. Resonates with our customer base. The strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product in and we're benefiting from sourcing there. But yes, we see certainly there. There is no. We're running a business is not linear but that being said, we certainly think that. Gross margins in excess of 50 are sustainable in that business.

We really liked the first aid business I mean, it's that. Got it. Resonates with our customer base. The strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product in and we're benefiting from sourcing there. But yes, we see certainly there. There is no. We're running a business is not linear but that being said, we certainly think that. Gross margins in excess of 50 are sustainable in that business.

Got it. Resonates with our customer base. The strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product in and we're benefiting from sourcing there. But yes, we see certainly there. There is no. We're running a business is not linear but that being said, we certainly think that. Gross margins in excess of 50 are sustainable in that business.

Resonates with our customer base. The strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product in and we're benefiting from sourcing there. But yes, we see certainly there. There is no. We're running a business is not linear but that being said, we certainly think that. Gross margins in excess of 50 are sustainable in that business.

The strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product in and we're benefiting from sourcing there. But yes, we see certainly there. There is no. We're running a business is not linear but that being said, we certainly think that. Gross margins in excess of 50 are sustainable in that business.

I mentioned that our global supply chain team has done a great job in sourcing product in and we're benefiting from sourcing there. But yes, we see certainly there. There is no. We're running a business is not linear but that being said, we certainly think that. Gross margins in excess of 50 are sustainable in that business.

But yes, we see certainly there. There is no. We're running a business is not linear but that being said, we certainly think that. Gross margins in excess of 50 are sustainable in that business.

There is no. We're running a business is not linear but that being said, we certainly think that. Gross margins in excess of 50 are sustainable in that business.

We're running a business is not linear but that being said, we certainly think that. Gross margins in excess of 50 are sustainable in that business.

Gross margins in excess of 50 are sustainable in that business.

Justin Hauke: Okay. Great. And then I guess the last one is kind of more procedural, I guess. But you did, it looks like in the cash flow, about $56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys typically do. Do you have any comments on kind of where that was, where we should see the revenue flow from it?

Justin P. Hauke: Okay. Great. And then I guess the last one is kind of more procedural, I guess. But you did -- it looks like on the cash flow about $56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys typically do. Do you have any comments on kind of where that was, where we should see the revenue flow from it?

You did it looks like in the cash flow about $56 million. Spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that.

Spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that.

We should see the revenue flow from that.

Todd M. Schneider: Well, I'll start, and Mike can chime in. The -- Justin, as you know, we love leveraging our balance sheet for M&A. And we think it's a great use of cash, and we're very happy with the fact that we were able to deploy some of the cash to leverage that opportunity. And we are acquisitive in all 3 of our operating segments that are route-based. And we made acquisitions in all 3, so -- in Q1. So we're pleased with that, and we think that will -- is a great opportunity for us to bring those customers into the fold, those partners, those employee partners into the fold and provide more value and cross-sell to those customers that are now part of Cintas.

Todd Schneider: Well, I'll start, and Mike can chime in. Justin, as you know, we love leveraging our balance sheet for M&A. And we think it's a great use of cash. And we're very happy with the fact that we were able to deploy some of the cash to leverage that opportunity. And we are acquisitive in all three of our operating segments that are route-based. And we made acquisitions in all three in Q1. So we're pleased with that. And we think that is a great opportunity for us to bring those customers into the fold, those employee partners into the fold, and provide more value and cross-sell to those customers that are now part of Cintas.

Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash and where we are. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. <unk>. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of centers.

Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash and where we are. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. <unk>. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of centers.

We love leveraging our balance sheet for M&A. We think it's a great use of cash and where we are. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. <unk>. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of centers.

We think it's a great use of cash and where we are. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. <unk>. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of centers.

Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. <unk>. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of centers.

To leverage that opportunity and we are. <unk>. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of centers.

<unk>. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of centers.

US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of centers.

To those those customers that are now part of centers.

Justin Hauke: Okay. Thank you very much.

Okay. Thank you very much.

Todd Schneider: Thank you.

Operator: Our next question comes from George Tong from Goldman Sachs. Please go ahead, George.

Thank you.

Operator: And our next question comes from George Tong from Goldman Sachs. Please go ahead George.

Jared Mattingly: Hi. Thanks. Good morning. In the past, we've talked about strong demand from the healthcare, education, and government verticals in driving uniform rentals growth. Can you discuss the latest trends you're seeing in these end markets and what's fueling the growth?

George Tong: Hi. Thanks. Good morning. In the past, we've talked about strong demand from the healthcare, education, and government verticals in driving uniform rentals growth. Can you discuss the latest trends you're seeing in these end markets and what's fueling the growth?

Keen Fai Tong: Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth.

Todd Schneider: Good morning, George. Yeah, those are three great verticals for us. I mean, there are three great segments of the North American economy. And so yeah, we're still seeing outsized growth in those markets. And as we've chatted about in the past, it's more than just a sales effort. We've organized around them. We've got products for them. We've got technologies for them. And that is resonating with that customer base. So we think we've chosen them quite well. And there's plenty of runway in all of them. So we're, again, quite bullish on the future of those segments.

Good morning, George Yes, those are.

Todd M. Schneider: Yes, those are 3 great verticals for us. I mean, they're 3 great segments of the North American economy. And so, yes, we're still seeing outsized growth in those markets. And as we've chatted about in the past, it's more than just a sales effort. We've organized around them. We've got products for them. We've got technologies for them. And that is resonating with that customer base. So we think we've chosen them quite well, and there's plenty of runway in all of them. So we're, again, quite bullish on the future of those segments.

Segments of. The North American economy. And so yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments.

The North American economy. And so yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments.

And so yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments.

It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments.

And that is resonating with that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments.

And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments.

Again quite quite bullish on the future of those segments.

Jared Mattingly: Got it. And then with respect to margins, your gross margins expanded 60 basis points year over year in your uniform segment. Most of that appears to be driven by lower energy costs. Can you discuss puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwinds you're seeing from lower energy costs?

George Tong: Got it. And then with respect to margins, your gross margins expanded 60 basis points year over year in your uniform segment. Most of that appears to be driven by lower energy costs. Can you discuss puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwinds you're seeing from lower energy costs?

Keen Fai Tong: Got it. And then with respect to margins, your gross margins expanded 60 bps year-over-year in your Uniform segment. Most of that appears to be driven by lower energy costs. Can you discuss puts and takes around Uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwinds you're seeing from lower energy costs?

<unk> for additional margin expansion over the remainder of this year. Above and beyond tailwind just seeing from lower energy costs.

Above and beyond tailwind just seeing from lower energy costs.

Todd Schneider: Yes. George, the nature of the math around our business is the rental business is obviously a large percentage of it. And we're guiding towards margin expansion for the year. And we do not see energy being a tailwind for the balance of the year. So we expect margin expansion based upon, certainly, leverage on revenue growth. That's going to be helpful. But we're extracting those inefficiencies out of our business. And as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels. But we're still able to grow gross margin and operating margin at very attractive levels and to levels that are all-time highs. So that's part of our plan. And our team is executing at a very high level. And we expect that that will continue.

Todd M. Schneider: Yes. George, we're -- the nature of the math around our businesses, the Rental business is obviously a large percentage of it. And we're guiding towards margin expansion for the year. And we do not see energy being a tailwind for the balance of the year. So we expect margin expansion based upon certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business. And as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin -- gross margin and operating margin at very attractive levels and to levels that are all-time highs. So that's part of our plan. And our team is actually treating at a very high level, and we expect that, that will continue.

The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. <unk>. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and up two. To levels that are all time highs so. So that's part of our plan. <unk>. Our team is executing at a very high level and we expect that that will continue.

The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. <unk>. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and up two. To levels that are all time highs so. So that's part of our plan. <unk>. Our team is executing at a very high level and we expect that that will continue.

And we're guiding towards margin expansion for the year. <unk>. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and up two. To levels that are all time highs so. So that's part of our plan. <unk>. Our team is executing at a very high level and we expect that that will continue.

<unk>. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and up two. To levels that are all time highs so. So that's part of our plan. <unk>. Our team is executing at a very high level and we expect that that will continue.

To levels that are all time highs so. So that's part of our plan. <unk>. Our team is executing at a very high level and we expect that that will continue.

So that's part of our plan. <unk>. Our team is executing at a very high level and we expect that that will continue.

<unk>. Our team is executing at a very high level and we expect that that will continue.

Our team is executing at a very high level and we expect that that will continue.

Jared Mattingly: George, I might just reiterate what I mentioned in the prepared remarks, that keeping in mind that the energy benefit that we are getting is partly because we are working really hard at things like our SmartTruck initiative. So in other words, as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past. And that creates then better fuel efficiency, if you will, throughout our network. And so it is a proactive initiative to get energy down. And one of those proactive ways is through that SmartTruck technology.

George Tong: George, I might just reiterate what I mentioned in the prepared remarks, that keeping in mind that the energy benefit that we are getting is partly because we are working really hard at things like our SmartTruck initiative. So in other words, as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past. And that creates then better fuel efficiency, if you will, throughout our network. And so it is a proactive initiative to get energy down. And one of those proactive ways is through that SmartTruck technology.

J. Michael Hansen: George, I might just reiterate what I mentioned in the prepared remarks that keeping in mind that the energy benefit that we are getting is partly because we are working really hard at things like our SmartTruck initiative. So in other words, as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past, and that creates then better fuel efficiency, if you will, throughout our network. And so that's a -- it is a proactive initiative to get energy down. And one of those proactive ways is through that SmartTruck technology.

It's partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology.

Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology.

It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology.

Initiative to get energy down and one of those proactive ways is through that smart truck technology.

Todd Schneider: And Mike, I might add that when we extract those inefficiencies out, that's better for our customers because we're able to spend more time in front of them instead of on the road. It's certainly better for our employee partners because it makes them that much more productive. And that's good for them and our organization. And it's really good for the environment. So we think it's that there's a lot of boxes checked there. And we've worked hard on that technology over the years. And it's showing up. And it's benefiting not just the P&L in a more simplistic fashion, but in many ways.

Todd M. Schneider: And Mike, I might add that when we extract those inefficiencies out, that's better for our customers because we're able to spend more time in front of them instead of on the road. It's certainly better for our partners, our employee partners because it makes them that much more productive, and that's good for them and our organization. And it's really good for the environment. So we think -- let's say there's a lot of boxes checked there, and we've worked hard on that technology over the years, and it's showing up. And it's benefiting not just the P&L in a more simplistic fashion, but in many ways.

And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up in. And it's it's benefiting not just. The P&L. More simplistic fashion, but in many ways.

We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up in. And it's it's benefiting not just. The P&L. More simplistic fashion, but in many ways.

Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up in. And it's it's benefiting not just. The P&L. More simplistic fashion, but in many ways.

And it's showing up in. And it's it's benefiting not just. The P&L. More simplistic fashion, but in many ways.

And it's it's benefiting not just. The P&L. More simplistic fashion, but in many ways.

The P&L. More simplistic fashion, but in many ways.

More simplistic fashion, but in many ways.

Jared Mattingly: Very helpful. Thank you.

George Tong: Very helpful. Thank you.

Very helpful. Thank you.

Todd Schneider: Thank you.

Thank you.

Operator: Our next question comes from Tim Mulroney from William Blair. Please go ahead, Tim.

Operator: Our next question comes from Tim Mulrooney from William Blair.

Sam Kusswurm: Hey, this is Sam Kusswurm from Tim. Thanks for taking our questions here. I guess I want to start with another healthcare question here. As it relates to your healthcare clients, you've talked a lot about the opportunity here, especially as more non-programmers convert. I guess I'd like to know for those healthcare operators who already use a service partner, what do you think your penetration rate is? And how might that compare to some of your other customer verticals?

Samuel Kusswurm: This is Sam Kusswurm on for Tim. I guess I want to start with another health care question here. But as it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers convert. But I guess I'd like to know for those health care operators who already use a service partner, what do you think your penetration rate is? And how might that compare to some of your other customer verticals?

I guess I wanted to start with another health care question here. As it relates to your health care clients, you've talked a lot about the option here, especially as more no programmers convert but I guess I'd like to know if you have health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals.

As it relates to your health care clients, you've talked a lot about the option here, especially as more no programmers convert but I guess I'd like to know if you have health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals.

Todd Schneider: Sam, that's a good question. I don't have that in front of me. We know this. We're in the early innings with healthcare. We're coming up with more products and services that they find attractive. That's part of our culture. We will enter into a business. Then we get out from behind our desk and we go spend time with our customers. We find that the answers to what they are most interested in by speaking to them and our customers and our employee partners. We're hearing from them in various areas where we can help them. We're taking action there. Again, a very long runway in that vertical. That's, again, part of our culture and will be part of how we go to market moving forward.

Todd M. Schneider: Sam, that's a good question. I don't have that in front of me. But we know this. We're in the early innings with health care. And we're coming up with more products and services that they find attractive. And that's part of our culture. We will enter into a business. But then we get out from behind our desk and we go spend time with our customers. And when we find that we find the answers to what they are most interested in by speaking to them, and our customers and our employee partners. And we're hearing from them on various areas where we can help them, and we're taking action there. So again, a very long runway in that vertical, and that's again part of our culture and will be part of how we go to market moving forward.

And we're coming up with more products and services that. They. They find attractive. And that's part of our culture. We will enter into a business. But then we get out from behind our desk and we go spend time with our customers and we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. And we're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway in that vertical. And that's again part of our culture and will be part of how we go to market moving forward.

They. They find attractive. And that's part of our culture. We will enter into a business. But then we get out from behind our desk and we go spend time with our customers and we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. And we're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway in that vertical. And that's again part of our culture and will be part of how we go to market moving forward.

They find attractive. And that's part of our culture. We will enter into a business. But then we get out from behind our desk and we go spend time with our customers and we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. And we're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway in that vertical. And that's again part of our culture and will be part of how we go to market moving forward.

And that's part of our culture. We will enter into a business. But then we get out from behind our desk and we go spend time with our customers and we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. And we're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway in that vertical. And that's again part of our culture and will be part of how we go to market moving forward.

We will enter into a business. But then we get out from behind our desk and we go spend time with our customers and we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. And we're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway in that vertical. And that's again part of our culture and will be part of how we go to market moving forward.

But then we get out from behind our desk and we go spend time with our customers and we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. And we're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway in that vertical. And that's again part of our culture and will be part of how we go to market moving forward.

And we're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway in that vertical. And that's again part of our culture and will be part of how we go to market moving forward.

And that's again part of our culture and will be part of how we go to market moving forward.

Sam Kusswurm: Gotcha. Appreciate it. Maybe just another quick one on the margins. I see SG&A as a percentage of sales picked up again in the quarter compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly some of the selling and branding investments you've talked about previously. Maybe you could just help break that out for us a little bit more.

Samuel Kusswurm: Got you. Appreciate it. Maybe just another quick one on the margins. I see SG&A as a percentage of sales picked up again in the quarter compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses? Or if it was mainly some of the selling and branding investments you've talked about previously? Maybe you could just help break that out for us a little more.

Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly some of the selling and branding divestments you've talked about previously maybe you could just help break that out for us a little more.

Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly some of the selling and branding divestments you've talked about previously maybe you could just help break that out for us a little more.

I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly some of the selling and branding divestments you've talked about previously maybe you could just help break that out for us a little more.

Okay.

Todd Schneider: Nothing unusual in the quarter. We did see that we talked in the fourth quarter about some claims getting higher, but not structural. We saw those come back down to something more normal. But as it relates to the quarter, just some puts and takes, nothing of any significance. Our goal is to continue to leverage, particularly the G&A piece of that. We're going to continue to work at that.

J. Michael Hansen: Nothing unusual in the quarter. We did see the -- we talked in the fourth quarter about some claims getting higher, but not structural. We saw those come back down to something more normal. But as it relates to the quarter, just some puts and takes, nothing of any significance. Our goal is to continue to leverage particularly the G&A piece of that, and we're going to continue to work at that.

Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that.

As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that.

Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that.

A piece of that and we're going to continue to work at that.

Sam Kusswurm: Awesome. Appreciate it. Thank you.

Tim Mulrooney: Awesome. Appreciate it. Thank you.

I appreciate it thank you.

Todd Schneider: Thank you.

Okay.

Operator: Our next question comes from Andrew Steinerman from J.P. Morgan Securities. Please go ahead, Andrew.

Thank you.

Operator: And our next question comes from Andrew Steinerman from JPMorgan Securities.

Andrew Steinerman: Hi. I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year-over-year basis. I surely know Cintas historically has targeted 20% to 30% as a range for incremental margins. But kind of given where we are right now, it definitely feels like that kind of low end of the range, the 20, might not be as appropriate. And so my question is, has your medium-term range for incremental margins been creeping up?

Andrew Charles Steinerman: I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year-over-year basis. I surely know, Cintas historically has targeted 20% to 30% as a range for incremental margins. But kind of given where we are right now, it definitely feels like that kind of low end of the range, the 20%, might not be as appropriate. And so my question is, has your medium-term range for incremental margins been creeping up?

It feels like. That kind of low end of the range of 20 might not be as appropriate. My question is. Has your medium term range for incremental margins been creeping up.

That kind of low end of the range of 20 might not be as appropriate. My question is. Has your medium term range for incremental margins been creeping up.

My question is. Has your medium term range for incremental margins been creeping up.

Has your medium term range for incremental margins been creeping up.

Todd Schneider: Good morning, Andrew. Yeah, 20% to 30% is our target. Q1 was very attractive incremental margins. There's always puts and takes in every quarter. As I mentioned, running a business is not linear. We will expect that we will be in that 20% to 30% range. I certainly like higher in the range than lower. I think our guide speaks to where attractive margin improvement for the year as well.

Good morning, Andrew.

Todd M. Schneider: Yes. 20% to 30% is our target. We -- Q1 was a very attractive incremental margins. And there's always puts and takes in every quarter as I mentioned. Running a business is not linear. But we will expect that we will be in that 20% to 30% range. I certainly like higher in the range than lower. And we are -- and I think our guide speaks to where attractive margin improvement for the year as well.

Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range then than lower end. And I think our guide speaks to where. Attractive margin improvement for the year as well.

And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range then than lower end. And I think our guide speaks to where. Attractive margin improvement for the year as well.

As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range then than lower end. And I think our guide speaks to where. Attractive margin improvement for the year as well.

That we will be in that 20% to 30% range I certainly like higher than the range then than lower end. And I think our guide speaks to where. Attractive margin improvement for the year as well.

And I think our guide speaks to where. Attractive margin improvement for the year as well.

Attractive margin improvement for the year as well.

Sam Kusswurm: Okay. Thank you.

Andrew Steinerman: Okay. Thank you.

Okay. Thank you.

Todd Schneider: Thank you.

Thank you.

Operator: Our next question comes from Seth Weber from Wells Fargo. Please go ahead, Seth.

Operator: And our next question comes from Seth Weber from Wells Fargo.

Seth Weber: Hey, guys. Good morning. I wanted to ask just about the small tickdown in Uniform Direct Sales organic growth here in the quarter. It's the first, I think, decline that we've seen there in a while. I know the comp was hard. Is there anything else that you'd call out there for that business? Thanks.

Seth Robert Weber: I wanted to ask just about the small tick down in Uniform Direct Sales organic growth here in the quarter. It's the first, I think, decline that we've seen there in a while. I know the comp was hard. Is there anything else that you'd call out there for that business?

Wanted to ask just about the small tick down in uniform direct sales organic growth so hearing a quarter. That's the first thing. Decline that we've seen there in a while I know the comp was hard is there anything else that you'd call out there. For that business. Thanks.

That's the first thing. Decline that we've seen there in a while I know the comp was hard is there anything else that you'd call out there. For that business. Thanks.

Decline that we've seen there in a while I know the comp was hard is there anything else that you'd call out there. For that business. Thanks.

For that business. Thanks.

Todd Schneider: Yeah. Good morning, Seth. Certainly, we have seen outstanding performance from that business over the past really two years. But it is, as we've spoken about in the past, the Uniform Direct Sale business tends to be a little bit lumpier based upon rollouts of large programs, whether it's hospitality or a Fortune 1000 type customer. So nothing more than that. We still are bullish on the future of that business for the year and moving forward.

Yeah, Good morning, Seth.

Todd M. Schneider: Certainly, what we have seen outstanding performance from that business over the past really 2 years. And -- but it is -- as we've spoken about in the past, the Uniform Direct Sale business tends to be a little bit lumpier based upon rollouts of large programs, whether it's hospitality or a Fortune 1000-type customer. So nothing more than that. We still are bullish on the future of that business and for the year and moving forward.

Nothing more than that. Still are. Bullish on the. The future of that business and for the year and moving forward.

Still are. Bullish on the. The future of that business and for the year and moving forward.

Bullish on the. The future of that business and for the year and moving forward.

The future of that business and for the year and moving forward.

Seth Weber: Do you think, Todd, do you think that business could be up for the year? Or do you think that's kind of flattish or down?

Seth Robert Weber: Do you think, Todd, do you think that business could be up for the year? Or do you think that's kind of flattish or down?

For the year or do you think that's kind of flattish. We're down.

We're down.

Todd Schneider: Well, we expect all of our businesses to grow. So I would suspect that we would see that up. But just the comps are set with the level of what we dealt with with hospitality in that vertical and Fortune 1000, the level of where employees came back so strongly. I wouldn't suspect that you'll see anywhere near the level of growth that we've seen in the last couple of years. But we expect it to grow.

Yeah.

Todd M. Schneider: I would suspect -- well, we expect all of our businesses to grow. So I would suspect that we would see that up. But just the comps are set with the level of what we dealt with hospitality in that vertical, in Fortune 1000, the level of where employees came back so strongly. I wouldn't suspect that you'll see anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

So I would suspect that. We would see that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And. In that vertical and fortune 1000. The level of. Our employees came back so. So strongly. I wouldn't suspect that Youll see. Anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

We would see that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And. In that vertical and fortune 1000. The level of. Our employees came back so. So strongly. I wouldn't suspect that Youll see. Anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

SaaS with. The level of what we dealt with with hospitality. And. In that vertical and fortune 1000. The level of. Our employees came back so. So strongly. I wouldn't suspect that Youll see. Anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

The level of what we dealt with with hospitality. And. In that vertical and fortune 1000. The level of. Our employees came back so. So strongly. I wouldn't suspect that Youll see. Anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

And. In that vertical and fortune 1000. The level of. Our employees came back so. So strongly. I wouldn't suspect that Youll see. Anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

In that vertical and fortune 1000. The level of. Our employees came back so. So strongly. I wouldn't suspect that Youll see. Anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

The level of. Our employees came back so. So strongly. I wouldn't suspect that Youll see. Anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

Our employees came back so. So strongly. I wouldn't suspect that Youll see. Anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

So strongly. I wouldn't suspect that Youll see. Anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

I wouldn't suspect that Youll see. Anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

Anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

Jared Mattingly: Seth, I might point out that the last two years, they have been a significant recapture of what we sort of lost in that pandemic period of time. In our fiscal 2022, that business grew organically over 50%. In fiscal 2023, it was almost 30%. So there was a lot of recapture going on. But keep in mind that our longer-term goal for that business, Todd expects it to grow. But it's probably more of a low single-digit to mid-single-digit grower in our portfolio.

Mike Hansen: Seth, I might point out that the last two years, they have been a significant recapture of what we sort of lost in that pandemic period of time. In our fiscal 2022, that business grew organically over 50%. In fiscal 2023, it was almost 30%. So there was a lot of recapture going on. But keep in mind that our longer-term goal for that business, Todd expects it to grow. But it's probably more of a low single-digit to mid-single-digit grower in our portfolio.

J. Michael Hansen: Seth, I might point out that the last 2 years have -- they have been a significant recapture of what we sort of lost in that pandemic period of time. In our fiscal '22, that business grew organically over 50%; in fiscal '23, it was almost 30%. So there was a lot of recapture going on, but keep in mind that our longer-term goal for that business, Todd expects it to grow, but it's probably more of a low single-digit to mid-single-digit grower in our portfolio.

Mike. Now. That last two years have they have been. A significant recapture of what we sort of lost in that pandemic period of time. In our fiscal 'twenty, two that business grew organically over 50%. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expect it to grow, but it's probably more of a low single digit. Mid single digit grower. In our portfolio.

Now. That last two years have they have been. A significant recapture of what we sort of lost in that pandemic period of time. In our fiscal 'twenty, two that business grew organically over 50%. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expect it to grow, but it's probably more of a low single digit. Mid single digit grower. In our portfolio.

That last two years have they have been. A significant recapture of what we sort of lost in that pandemic period of time. In our fiscal 'twenty, two that business grew organically over 50%. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expect it to grow, but it's probably more of a low single digit. Mid single digit grower. In our portfolio.

A significant recapture of what we sort of lost in that pandemic period of time. In our fiscal 'twenty, two that business grew organically over 50%. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expect it to grow, but it's probably more of a low single digit. Mid single digit grower. In our portfolio.

In our fiscal 'twenty, two that business grew organically over 50%. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expect it to grow, but it's probably more of a low single digit. Mid single digit grower. In our portfolio.

In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expect it to grow, but it's probably more of a low single digit. Mid single digit grower. In our portfolio.

Mid single digit grower. In our portfolio.

In our portfolio.

Seth Weber: Right. Okay. Understood. Thank you. And then maybe just on the first-aid safety business, given the margin strength that you're seeing there, can you talk about are you seeing any incremental competition in that space? Are you seeing any bigger players trying to get into that space or just smaller regional players getting more active? Thank you.

Seth Robert Weber: Right. Okay. Understood. And then maybe just on the First Aid and Safety business, given the margin strength that you're seeing there, can you talk about are you seeing any incremental competition in that space? Are you seeing any bigger players trying to get into that space or just smaller regional players getting more active?

Bigger players trying to get into that space or just smaller regional players getting more active thank you.

Todd Schneider: Yeah. Good question, Seth. Certainly, it's a very competitive marketplace. And first-aid products, safety products, there are hundreds of competitors out there. There's many, many ways to procure those products, whether it be van-delivered or e-commerce, you name it, we see it there. But as a result of that, it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs, certainly, it attracts plenty of people into the marketplace because the value proposition of taking great care of employees is resonating with folks. And so yeah, it's a very competitive environment. And I'm sure it'll continue to be.

Todd M. Schneider: Yes. Good question, Seth. Certainly, it's a very competitive marketplace and First Aid products, Safety products, there is hundreds of competitors out there. There's many, many ways to procure those products, whether it be van delivered or e-commerce, you name it, we see it there. But as a result of that, it's a very competitive market. And we've talked about the health and safety of employees being the #1 item that businesses are focused on. And when that occurs, there's certainly -- it attracts plenty of people into the marketplace because the value proposition of taking great care of employees is resonating with folks. And so yes, it's a very competitive environment, and I'm sure it will continue to be.

First aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market and. And we've talked about the health and safety of employees being the number one item that businesses are focused on. When that occurs there's certainly it attracts plenty of people into the marketplace because the the value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be.

E Commerce. You name it we see it there. But as a result of that it's a very competitive market and. And we've talked about the health and safety of employees being the number one item that businesses are focused on. When that occurs there's certainly it attracts plenty of people into the marketplace because the the value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be.

You name it we see it there. But as a result of that it's a very competitive market and. And we've talked about the health and safety of employees being the number one item that businesses are focused on. When that occurs there's certainly it attracts plenty of people into the marketplace because the the value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be.

But as a result of that it's a very competitive market and. And we've talked about the health and safety of employees being the number one item that businesses are focused on. When that occurs there's certainly it attracts plenty of people into the marketplace because the the value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be.

And we've talked about the health and safety of employees being the number one item that businesses are focused on. When that occurs there's certainly it attracts plenty of people into the marketplace because the the value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be.

When that occurs there's certainly it attracts plenty of people into the marketplace because the the value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be.

Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be.

Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be.

Seth Weber: Okay, guys. Thank you very much.

Okay guys. Thank you very much.

Todd Schneider: Thank you.

Thank you.

Operator: Our next question comes from Stephanie Moore from Jefferies. Please go ahead, Stephanie.

Operator: And our next question comes from Stephanie Moore from Jefferies.

Stephanie Moore: Hi. Good morning. Thank you. Actually, maybe continuing on that last question there, could you talk a little bit about what you're seeing in terms of the competitive landscape in your more core uniform ancillary products segment? As you continue to win new business, where are you seeing the majority of that new business coming from? Is it non-programmers, some of the regional players, larger players? Any color there would be helpful. Thank you.

Stephanie Lynn Benjamin Moore: Actually, maybe continuing on that last question there. Could you talk a little bit about what you're seeing in terms of the competitive landscape and your more core Uniform ancillary product segment? As you continue to win new business, where are you seeing the majority of that new business coming from? Is it nonprogrammers, some of the regional players, larger players? Any color there would be helpful.

<unk>. We continue to win new business, where are you seeing the majority of that new business coming from is it non programmer retail players larger players any color there would be helpful. Thank you.

We continue to win new business, where are you seeing the majority of that new business coming from is it non programmer retail players larger players any color there would be helpful. Thank you.

Todd Schneider: Yes. Good morning, Stephanie. So I've been in the Uniform Rental and Facility Services business my entire career, 34 years. It's been highly competitive my entire career. And I'm sure it'll continue to be that way. But we haven't seen a change in the landscape. It's always really competitive. So that being said, our sales organization is highly skilled. And what we know is there is a massive opportunity with the no-program market. And for years, our organization has been focused on expanding the pie. And they are continuing to do exactly that. And when we talk about expanding the pie, those employees at a no-programmer, I mean, they're wearing garments, right? But they may be buying it themselves. They may be buying it through a catalog. It might be a centralized program for the company, but they're purchasing them.

Todd M. Schneider: So I've been in the Uniform Rental and Facility Services business my entire career, 34 years. It's been highly competitive my entire career, and I'm sure it will continue to be that way. But we haven't seen a change in the landscape. It's always really competitive. So that being said, we -- our sales organization is highly skilled. And what we know is, there is a massive opportunity with the no program market. And for years, our organization has been focused on expanding the pie, and they are continuing to do exactly that. And when we talk about expanding the pie, they are -- those employees at a no programmer mean -- they're wearing garments, right? It's -- but they are -- they may be buying it themselves. They may be buying it through a catalog, it might be a centralized program for the company, but they're purchasing them. And then we provide more value to them with the products and services that we offer, whether they're unique products like Carhartt or Chef Works or Landau, great branded programs. But the no-program market is really attractive for us, and we find that market sees really good value in what we're offering. So we're focused on expanding that high, and that will continue.

So. I've been in the uniform rental. So the services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. What we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. Wherein garments. But they are they may be buying it themselves they may be buying it through. Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

I've been in the uniform rental. So the services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. What we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. Wherein garments. But they are they may be buying it themselves they may be buying it through. Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

So the services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. What we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. Wherein garments. But they are they may be buying it themselves they may be buying it through. Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. What we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. Wherein garments. But they are they may be buying it themselves they may be buying it through. Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

That being said, we our sales organization. Is a highly skilled and. What we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. Wherein garments. But they are they may be buying it themselves they may be buying it through. Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

Is a highly skilled and. What we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. Wherein garments. But they are they may be buying it themselves they may be buying it through. Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

What we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. Wherein garments. But they are they may be buying it themselves they may be buying it through. Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

And when we when we talk about expanding the pie they are. Those employees at a no programmer. Wherein garments. But they are they may be buying it themselves they may be buying it through. Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

Those employees at a no programmer. Wherein garments. But they are they may be buying it themselves they may be buying it through. Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

Wherein garments. But they are they may be buying it themselves they may be buying it through. Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

But they are they may be buying it themselves they may be buying it through. Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

They may be buying it through a catalog. It might be a centralized program for the company, but they're purchasing them. And then we provide more value to them with the products and services that we offer, whether they're unique products like Carhartt or ChefWorks or Landau, great branded programs. But the no-program market is really attractive for us. And we find that that market sees really good value in what we're offering. So we're focused on expanding that pie. And that will continue.

Through a catalog. It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

It might be a centralized program for the company, but there they are purchasing them. And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

Todd Schneider: And then we provide more value to them with the products and services that we offer, whether they're unique products like Carhartt or ChefWorks or Landau, great branded programs. But the no-program market is really attractive for us. And we find that that market sees really good value in what we're offering. So we're focused on expanding that pie. And that will continue.

And then we provide more value to them with <unk>. Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

Products and services that we offer whether there. <unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

<unk> unique product side carhartt or chef works are Landau. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

But no program market is really attractive for us. And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

And we find that our that market seems really good value and what we're offering so we're focused on expanding the pie and that will continue.

Stephanie Moore: Got it. Just a follow-up, if I may. You noted that retention levels continue to be really high. I'm just curious, in this current environment, what do you think is resonating the most with your customers? As your sales force kind of goes in, is it kind of the willingness to work with them on price? Is it the product offering, your scale? Would love to just get your thoughts on what do you think is resonating the most to drive such a nice retention level? Thanks.

Stephanie Lynn Benjamin Moore: Got it. And just a follow-up, if I may. You noted that retention level continue to be really high. I'm just curious, in this current environment, what do you think is resonating the most with your customers that your sales force kind of goes in? Is it kind of the willingness to work with them on price? Is it the product offering, your scale? I'd love to just get your thoughts on what do you think is resonating the most to drive such a nice retention level.

Willingness to work with them on price is it the product offering your scale love to just get your thoughts on what do you think any of the boats to drive this such as a nice retention level.

Todd Schneider: Yeah. Great question, Stephanie. That's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers and attracting and retaining the very best people, but then giving them products, services, and tools so that they can not only have the intent to take great care of our customers, but do just exactly that. And that gets into great products that I mentioned earlier, the service focus that we're or the tools that we're making it to make it easier to do business with us. But it gets down to our people and positioning them to take really, really good care of our customers and them executing on that. And they're executing at a really high level.

Todd M. Schneider: Yes. Great question, Stephanie. That's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers and attracting and retaining the very best people. But then giving them product, services, tools so that they can not only have the intent to take great care of our customers, but do just exactly that. So -- and that gets into great products that I mentioned earlier, the service -- focus that we -- or the tools that we're making that make it easier to do business with us. But it gets down to our people and positioning them to take a really, really good care of our customers and then executing on that. And they're executing at a really high level. And we talk often about when markets -- when things are challenging, when it's hard to attract people, when it's hard to procure products, when it's hard to operate in the marketplace, it gives us a chance to shine. And our culture is shining through. And our people are doing one heck of a job in taking care of our customers.

And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making at the make it easier to do business with us. But but it gets down to our people and positioning them to take a really really good care of our customers.

That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making at the make it easier to do business with us. But but it gets down to our people and positioning them to take a really really good care of our customers.

The service. Focus that we are the tools that we're making at the make it easier to do business with us. But but it gets down to our people and positioning them to take a really really good care of our customers.

Focus that we are the tools that we're making at the make it easier to do business with us. But but it gets down to our people and positioning them to take a really really good care of our customers.

But it gets down to our people and positioning them to take really, really good care of our customers and them executing on that. And they're executing at a really high level. And we talk often about when things are challenging, when it's hard to attract people, when it's hard to procure products, when it's hard to operate in the marketplace, it gives us a chance to shine. And our culture is shining through. And our people are doing one heck of a job in taking care of our customers.

But but it gets down to our people and positioning them to take a really really good care of our customers.

And and then executing on that and they are executing at a really high level.

Todd Schneider: And we talk often about when things are challenging, when it's hard to attract people, when it's hard to procure products, when it's hard to operate in the marketplace, it gives us a chance to shine. And our culture is shining through. And our people are doing one heck of a job in taking care of our customers.

And we talk often about when markets when things are challenging it is hard to attract people when it's hard to.

To procure products when it's hard to.

Operating in the marketplace. It gives us a chance to shine and our culture is shining through. Great. Thank you so much.

And our people are doing one heck of a job in taking care of our customers.

Stephanie Moore: Great. Thank you so much.

Great. Thank you so much.

Todd Schneider: Thank you.

Okay. Thank you.

Operator: Our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead, Scott.

Thank you.

Operator: And our next question comes from Scott Schneeberger from Oppenheimer.

Jared Mattingly: Thanks. Good morning. Guys, it sounds like you really want to speak to SmartTruck because that's been going very well. I was hoping you could add also on automation to facilities. And where I'm going here, just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies, and you still see more room to run. Is there any quantification you can put on that? I know you're looking for margins up this year overall business. But maybe just help us get an idea of what's at play there and how much you can do. Thanks.

Scott Schneeberger: Thanks. Good morning. Guys, it sounds like you really want to speak to SmartTruck because that's been going very well. I was hoping you could add also on automation to facilities. And where I'm going here, just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies, and you still see more room to run. Is there any quantification you can put on that? I know you're looking for margins up this year overall business. But maybe just help us get an idea of what's at play there and how much you can do. Thanks.

Scott Andrew Schneeberger: Guys, you've certainly -- it sounds like you really want to speak to a SmartTruck because that's been going very well. I was hoping you could add also on automation to facilities. And where I'm going here, just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run. Is there any quantification you can put on that? I know you're looking for margins up this year overall business. But maybe just help us get an idea of what's at play there and how much you can do.

Hey, guys you've certainly. It sounds like you really want to speak to. Smart truck because thats been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall busy. But. Maybe just help us get an idea of what's at play there and how much you can do things.

It sounds like you really want to speak to. Smart truck because thats been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall busy. But. Maybe just help us get an idea of what's at play there and how much you can do things.

Smart truck because thats been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall busy. But. Maybe just help us get an idea of what's at play there and how much you can do things.

But. Maybe just help us get an idea of what's at play there and how much you can do things.

Maybe just help us get an idea of what's at play there and how much you can do things.

Todd Schneider: Scott, I'll start. Mike, if you would like to chime in there. We're deploying technology. You can call it automation. You can call it digital. We're deploying that across all of our businesses and across all areas of our business as well. We've been focused on that for years. But there certainly is. We're seeing some real benefits there with our investment with SAP, with our investments, our partnerships with Google, and with Verizon. And those, we see, that there's plenty of opportunity still to come there to improve in the efficiencies of our business and to automate certain functions. And we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers.

Mike Hansen: Scott, I'll start. Mike, if you would like to chime in there. We're deploying technology. You can call it automation. You can call it digital. We're deploying that across all of our businesses and across all areas of our business as well. We've been focused on that for years. But there certainly is. We're seeing some real benefits there with our investment with SAP, with our investments, our partnerships with Google, and with Verizon.

Todd M. Schneider: Scott, I'll start. Mike, if you would like to chime in there. We're deploying technology, and you can call it automation, you can call it technology, you can call it digital. We're deploying that across all of our businesses and across all areas of our business as well, and we've been focused on that for years. But there certainly is -- we're seeing some real benefits there with our investment with SAP, with our investments -- our partnerships with Google and with Verizon. And it's -- those are -- we see that there's plenty of opportunities still to come there to improve in the efficiencies of our business and to automate certain functions. And we call it -- make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can invest there, we think it's an incredibly good use of our balance sheet because it positions us well for not just the short term, but the long term as well.

Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Partnerships with with. With Google and. And with Verizon and its. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Partnerships with with. With Google and. And with Verizon and its. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Partnerships with with. With Google and. And with Verizon and its. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

We're seeing some real benefits there with our investment with SAP. With our investments. Partnerships with with. With Google and. And with Verizon and its. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

With our investments. Partnerships with with. With Google and. And with Verizon and its. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

Partnerships with with. With Google and. And with Verizon and its. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

With Google and. And with Verizon and its. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

And those, we see, that there's plenty of opportunity still to come there to improve in the efficiencies of our business and to automate certain functions. And we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can invest there, we think it's an incredibly good use of our balance sheet because it positions us well for not just the short term, but the long term as well.

And with Verizon and its. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

<unk> of our business and to. Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

Until automate certain functions, we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

Todd Schneider: The more we can invest there, we think it's an incredibly good use of our balance sheet because it positions us well for not just the short term, but the long term as well.

The more we can. Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

Can invest there we think it's an incredibly good use of our balance sheet. That positions us well for. Not just the short term, but the long term as well.

That positions us well for. Not just the short term, but the long term as well.

Not just the short term, but the long term as well.

Jared Mattingly: Yeah. There are so many details that go into all of the things that Todd just talked about that it's really hard to put a number on it. Our goal is, as you've heard us say, to continue to improve margins. We have a number of different levers to do so. Our goal is incrementals in that 20% to 30% range, recognizing we're at the bottom of that range today. But it's hard to put a specific number on what's left because we're always working on what more can we do. And there are so many details and so many different projects we're working on. So our guide certainly does imply continued margin improvement over last year. That's the way we think about it. Great. Thanks, guys. Appreciate that. You just referenced SAP.

Todd Schneider: Yeah. There are so many details that go into all of the things that Todd just talked about that it's really hard to put a number on it. Our goal is, as you've heard us say, to continue to improve margins. We have a number of different levers to do so. Our goal is incrementals in that 20% to 30% range, recognizing we're at the bottom of that range today. But it's hard to put a specific number on what's left because we're always working on what more can we do. And there are so many details and so many different projects we're working on. So our guide certainly does imply continued margin improvement over last year. That's the way we think about it. Great. Thanks, guys. Appreciate that. You just referenced SAP.

J. Michael Hansen: Yes. There are so many details that go into all of the things that Todd just talked about, that it's really hard to put a number on it. Our goal is, as you've heard us say, is continue to improve margins. We have a number of different levers to do so. Our goal is incrementals in that 20% to 30% range, recognizing we're at the bottom of that range today. But it's hard to put a specific number on what's left because we're always working on what's -- what more can we do. And there are so many details and so many different projects we're working on. So our guide certainly does imply for continued margin improvement over last year, and that's the way we think about it.

That it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals in that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always on we're always working on what's what more can we do and there are also there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. Here and that's the way we think about it.

Our goal is incrementals in that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always on we're always working on what's what more can we do and there are also there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. Here and that's the way we think about it.

Put a specific number on what's left because we're always on we're always working on what's what more can we do and there are also there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. Here and that's the way we think about it.

Here and that's the way we think about it.

Scott Andrew Schneeberger: Great. Appreciate that. The -- you just referenced SAP, and you mentioned CapEx may be high end of the range this year, working on some implementation in the Fire segment. Could you just speak to -- would that have a tail to next year? How much more -- I mean, are we going to see SAP projects for years to come? Just a sense of what you have on the spend side going forward.

You just referenced that's AP and you mentioned Capex may be high end of the range. This year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks.

Jared Mattingly: You mentioned CapEx may be high into the range this year, working on some implementation in the fire segment. Could you just speak to will that have a tail to next year? How much more, I mean, are we going to see SAP projects for years to come? Just a sense of what you have on the spend side going forward. Thanks.

Scott Schneeberger: You mentioned CapEx may be high into the range this year, working on some implementation in the fire segment. Could you just speak to will that have a tail to next year? How much more, I mean, are we going to see SAP projects for years to come? Just a sense of what you have on the spend side going forward. Thanks.

Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks.

Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks.

Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks.

Would that have a tail to next year, how much more. I mean are we going to see projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks.

I mean are we going to see projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks.

Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks.

<unk>. What you have on the spend side going forward. Thanks.

What you have on the spend side going forward. Thanks.

Todd Schneider: From a fire perspective, we are in the midst of the early innings of the implementation. So we'll see some pressure in the fire margins a little bit this year and a little bit next year. The synergies and the benefits don't come overnight. It's not a flip of the switch. So just like we did with the rental business and the first-aid business before that, we need to get onto the platform. It takes a little bit of time to get really good at using the platform. Then we really start to see the benefits accelerate, just like we have in first-aid and rental. Now, fire is a smaller part of our business, but we certainly expect that those benefits will come. As it relates to SAP, SAP is not, it's a journey, right?

Mike Hansen: From a fire perspective, we are in the midst of the early innings of the implementation. So we'll see some pressure in the fire margins a little bit this year and a little bit next year. The synergies and the benefits don't come overnight. It's not a flip of the switch. So just like we did with the rental business and the first-aid business before that, we need to get onto the platform. It takes a little bit of time to get really good at using the platform. Then we really start to see the benefits accelerate, just like we have in first-aid and rental. Now, fire is a smaller part of our business, but we certainly expect that those benefits will come. As it relates to SAP, SAP is not, it's a journey, right?

J. Michael Hansen: From a Fire perspective, the -- we are in the midst of the early innings of the implementation. And so we'll see some pressure in the Fire margins a little bit this year and a little bit next year. The synergies and the benefits don't come overnight. It's not a flip of the switch. And so we -- just like we did with the Rental business and the First Aid business before that, we need to get onto the platform. It takes a little bit of time to get really good at using the platform, and then we really start to see the benefits accelerate just like we have in First Aid and Rental. Now that's a -- Fire is a smaller part of our business, but we certainly expect that those benefits will come. As it relates to SAP, SAP is not -- it's a journey, right? And we are -- even though we are on SAP and will be for most of our business after the Fire Protection business gets on, there are constant things to learn from SAP. There are new initiatives in working with SAP and Google and Verizon that create new and different things. And so we look at this -- I think Todd's talked about it as one of his largest initiatives in terms of technology. And it's a journey. It's not a flip of the switch. We turn on new systems here and there. So we're in the midst of that. We'll continue to invest in all of that. And our expectation is, it's going to continue to bring benefits into the future.

We will see some some pressure in the fire margins a little bit this year. And a little bit next year, though the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott.

And a little bit next year, though the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott.

That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott.

It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott.

Todd Schneider: And even though we are on SAP and will be for most of our business after the fire protection business gets on, there are constant things to learn from SAP. There are new initiatives in working with SAP, Google, and Verizon that create new and different things. And so we look at this, I think Todd's talked about it as one of his largest initiatives in terms of technology. And it's a journey. It's not a flip of the switch. We turn on new systems here and there. So we're in the midst of that. We'll continue to invest in all of that. And our expectation is it's going to continue to bring benefits into the future. Yeah. Scott, to expand upon what Mike said, it is a journey. But when you're on that journey, there are benefits, a long, long tail of benefits as well.

And even though we are on SAP and will be for most of our business after the fire protection business gets on, there are constant things to learn from SAP. There are new initiatives in working with SAP, Google, and Verizon that create new and different things. And so we look at this, I think Todd's talked about it as one of his largest initiatives in terms of technology. And it's a journey. It's not a flip of the switch. We turn on new systems here and there. So we're in the midst of that. We'll continue to invest in all of that. And our expectation is it's going to continue to bring benefits into the future.

There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott.

The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott.

Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott.

Todd Schneider: Yeah. Scott, to expand upon what Mike said, it is a journey. But when you're on that journey, there are benefits, a long, long tail of benefits as well. And so we will continue to invest appropriately. We have relationships at a very high level in each of those organizations. And it's going to bear fruit for us. And that's part of our plan. It's not easy. It's very challenging to go through these processes. But our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

Todd M. Schneider: Scott, to expand upon what Mike said, it is a journey. But when you're on that journey, there is benefits -- a long, long tail of benefits as well. And so we will continue to invest appropriately. We have relationships at a very high level in each of those organizations, and it's going to bear fruit for us. And that's part of our plan. It's not easy. It's very challenging to go through these processes. But our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it is going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it is going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

Todd Schneider: And so we will continue to invest appropriately. We have relationships at a very high level in each of those organizations. And it's going to bear fruit for us. And that's part of our plan. It's not easy. It's very challenging to go through these processes. But our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it is going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

In each of those organizations. And it is going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

And it is going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

Operator: Great. Thanks, guys.

Scott Schneeberger: Great. Thanks, guys.

Great. Thanks, guys.

Todd Schneider: Yes, sir.

Operator: And our next question comes from Shlomo Rosenbaum.

Operator: Our next question comes from Shlomo Rosenbaum. Please go ahead, Shlomo.

Yes, Sir.

And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo.

Mike Hansen: Hi. Thank you for taking my questions. Hey, Todd, maybe you can just peel the onion back a little bit more on that margin on the first-aid side. I know you pointed to some sourcing and stuff like that. But it seems like the business is going from mid-teens to low 20s in the course of the year. And I was wondering if there's something to do with route optimization? Is it mix-related pricing? Anything else that operationally made such a significant difference? And after that, I have just a question on the labor environment for you guys yourselves. Is it easier for you guys to source people for what you need?

Shlomo Rosenbaum: Hi. Thank you for taking my questions. Hey, Todd, maybe you can just peel the onion back a little bit more on that margin on the first-aid side. I know you pointed to some sourcing and stuff like that. But it seems like the business is going from mid-teens to low 20s in the course of the year. And I was wondering if there's something to do with route optimization? Is it mix-related pricing? Anything else that operationally made such a significant difference? And after that, I have just a question on the labor environment for you guys yourselves. Is it easier for you guys to source people for what you need?

Shlomo H. Rosenbaum: Todd, maybe you can just peel the onion back a little bit more on that margin on the First Aid side? I know you pointed to some sourcing and stuff like that. But it seems like the business has gone from mid-teens to low 20s in the course of the year. And I was wondering if there -- is there something to do with the route optimization? Is it mix related, pricing? Anything else that operationally made such a significant difference? And after that, I have just a question on the labor environment for you guys yourselves? Are you -- is it easier for you guys to source people for what you need?

It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there is is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the labor environment for you guys or solve that. Easier for you guys to source people for what you need.

After that I have just a question on the labor environment for you guys or solve that. Easier for you guys to source people for what you need.

Easier for you guys to source people for what you need.

Todd Schneider: Good question, Shlomo. Yeah. Again, we love the first-aid business. But there's so many inputs to margin expansion. And we're leveraging them all. It starts with really good revenue growth. And we're seeing that. And that's in a big way because the value proposition is resonating. The products, the services that we offer in the marketplace, trying to attract and retain people is still challenging. And customers are trying to take really good care of their people. And we're benefiting from that. And we're helping them accomplish exactly that. We're helping them run their business better. So that's helpful. The mix, as you know, has. Back during the pandemic, it was certainly so much more focused on safety products, a lot of gloves, and a lot of sanitizer and those types of items. And that has abated a bit.

Todd M. Schneider: Good question, Shlomo. Yes. Again, we love the First Aid business. But we're -- there's so many inputs to margin expansion, and we're leveraging them all. It starts with really good revenue growth, and we're seeing that. And that's in a big way because the value proposition is resonating, the products, the services that we offer in the marketplace, trying to attract and retain people is still challenging. And people are trying to -- customers are trying to take really good care of their people. And we're benefiting from that and we're helping them accomplish exactly that. We're helping them run their business better. So that's helpful. The mix, as you know, has -- back during the pandemic, it was certainly so much more focused on safety products, a lot of clubs and a lot of sanitizer and those types of items. And that has abated a bit, and the mix is back focused on First Aid and those types of products, more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners, our employee partners to provide more value to our customers. And SmartTruck is a component of that. We did have a little bit of energy tailwind, 40 basis points. But as Mike cited earlier, not all that's because of the price at the pump. That is also because we are extracting the inefficiencies out. And we always talk around here about how we don't make money when the wheels are moving. We make money when the wheels stop. That's better for our customers, that's better for our employee partners. And all that is contributing. And then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there. The larger we get in that business, the more leverage they have, and they're executing at a high level. And -- so many inputs that are contributing to it, and -- but the -- what's really encouraging is, we see those having an opportunity to continue in the future. So certainly, no event is more of a process.

Love the first aid business. But there's so many inputs to margin expansion. We're leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. To attract and retain people is still challenging and. And people are trying to customers are trying to take really good care of their people and we're benefiting from that. And we're helping them accomplish exactly that we're helping them run that business their business better. So that's helpful. The mix as you know has. Back during the pandemic. It was certainly it's so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abated. Abated a bit. And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

But there's so many inputs to margin expansion. We're leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. To attract and retain people is still challenging and. And people are trying to customers are trying to take really good care of their people and we're benefiting from that. And we're helping them accomplish exactly that we're helping them run that business their business better. So that's helpful. The mix as you know has. Back during the pandemic. It was certainly it's so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abated. Abated a bit. And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

We're leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. To attract and retain people is still challenging and. And people are trying to customers are trying to take really good care of their people and we're benefiting from that. And we're helping them accomplish exactly that we're helping them run that business their business better. So that's helpful. The mix as you know has. Back during the pandemic. It was certainly it's so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abated. Abated a bit. And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. To attract and retain people is still challenging and. And people are trying to customers are trying to take really good care of their people and we're benefiting from that. And we're helping them accomplish exactly that we're helping them run that business their business better. So that's helpful. The mix as you know has. Back during the pandemic. It was certainly it's so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abated. Abated a bit. And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

In the marketplace. To attract and retain people is still challenging and. And people are trying to customers are trying to take really good care of their people and we're benefiting from that. And we're helping them accomplish exactly that we're helping them run that business their business better. So that's helpful. The mix as you know has. Back during the pandemic. It was certainly it's so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abated. Abated a bit. And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

To attract and retain people is still challenging and. And people are trying to customers are trying to take really good care of their people and we're benefiting from that. And we're helping them accomplish exactly that we're helping them run that business their business better. So that's helpful. The mix as you know has. Back during the pandemic. It was certainly it's so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abated. Abated a bit. And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

And people are trying to customers are trying to take really good care of their people and we're benefiting from that. And we're helping them accomplish exactly that we're helping them run that business their business better. So that's helpful. The mix as you know has. Back during the pandemic. It was certainly it's so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abated. Abated a bit. And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

And we're helping them accomplish exactly that we're helping them run that business their business better. So that's helpful. The mix as you know has. Back during the pandemic. It was certainly it's so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abated. Abated a bit. And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

So that's helpful. The mix as you know has. Back during the pandemic. It was certainly it's so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abated. Abated a bit. And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

Back during the pandemic. It was certainly it's so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abated. Abated a bit. And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

Todd Schneider: And in the mix is back focused on first aid and those types of products, more recurring revenue type. And yeah, we are absolutely leveraging technology to make it easier to do business, but also to position our employee partners to provide more value to our customers. And SmartTruck is a component of that. We did have a little bit of energy tailwind, 40 basis points. But as Mike cited earlier, not all that's because of the price at the pump. That is also because we are extracting the inefficiencies out. And we always talk around here about how we don't make money when the wheels are moving. We make money when the wheels stop. That's better for our customers. That's better for our employee partners. And all that is contributing. And then lastly, as I mentioned, our supply chain team has done a great job.

And in the mix is back focused on first aid and those types of products, more recurring revenue type. And yeah, we are absolutely leveraging technology to make it easier to do business, but also to position our employee partners to provide more value to our customers. And SmartTruck is a component of that. We did have a little bit of energy tailwind, 40 basis points. But as Mike cited earlier, not all that's because of the price at the pump. That is also because we are extracting the inefficiencies out. And we always talk around here about how we don't make money when the wheels are moving. We make money when the wheels stop.

Abated a bit. And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

And the mix is back. Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

Focused on first aid in. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

That's better for our customers. That's better for our employee partners. And all that is contributing. And then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there. The larger we get in that business, the more leverage they have. They're executing at a high level. So many inputs that are contributing to it. But what's really encouraging is we see those having an opportunity to continue in the future. So certainly, no event. It's more of a process.

That's better for our customers, that's better for our employee partners and. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

Todd Schneider: They are leveraging the opportunities there. The larger we get in that business, the more leverage they have. They're executing at a high level. So many inputs that are contributing to it. But what's really encouraging is we see those having an opportunity to continue in the future. So certainly, no event. It's more of a process.

They are leveraging the opportunities there the larger we get in that business the more leverage they have and in there and they are executing at a high level and so many inputs that are contributing to it and. What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

What's really encouraging is we see those having. An opportunity to continue in the future. So certainly no event. It's more of a process.

An opportunity to continue in the future. So certainly no event. It's more of a process.

It's more of a process.

Operator: Just the labor environment on your own, for the people that you're sourcing?

Shlomo Rosenbaum: Just the labor environment on your own, for the people that you're sourcing?

Shlomo H. Rosenbaum: And then just the labor environment on your own, like for the people that you're sourcing?

Todd Schneider: Yeah. Pardon me. So from a labor standpoint, yeah, as I mentioned earlier, it is easier, but not easy. And we are looking for great people. We want to hire not only people that are employed somewhere else, but happily employed, which is very challenging. But we think we have a great employee value proposition as well. And so we're highly focused on that. But yes, easier than it was a year ago. But I'd say, Shlomo, throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was, a year ago or so.

Todd M. Schneider: Yes. Pardon me. So from a labor standpoint, yes. As I mentioned earlier, it is easier, but not easy. And we are looking for great people. We want to hire not only people that are employed somewhere else, but happily employed, which is very challenging. And -- but we think we have a great employee value proposition as well. And so we're highly focused on that. So -- but yes, easier than it was a year ago. But Shlomo, throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so.

So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for. Great people. We want a higher not only people that are employed somewhere else, but happily employed which is very challenging. And but we think we have. Right. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically. It's not what it once was a year ago or so. Thank you. Thank you.

Yes, as I mentioned earlier, it is easier but not easy. And we are looking for. Great people. We want a higher not only people that are employed somewhere else, but happily employed which is very challenging. And but we think we have. Right. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically. It's not what it once was a year ago or so. Thank you. Thank you.

And we are looking for. Great people. We want a higher not only people that are employed somewhere else, but happily employed which is very challenging. And but we think we have. Right. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically. It's not what it once was a year ago or so. Thank you. Thank you.

Great people. We want a higher not only people that are employed somewhere else, but happily employed which is very challenging. And but we think we have. Right. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically. It's not what it once was a year ago or so. Thank you. Thank you.

We want a higher not only people that are employed somewhere else, but happily employed which is very challenging. And but we think we have. Right. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically. It's not what it once was a year ago or so. Thank you. Thank you.

And but we think we have. Right. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically. It's not what it once was a year ago or so. Thank you. Thank you.

Right. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically. It's not what it once was a year ago or so. Thank you. Thank you.

So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically. It's not what it once was a year ago or so. Thank you. Thank you.

But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically. It's not what it once was a year ago or so. Thank you. Thank you.

Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically. It's not what it once was a year ago or so. Thank you. Thank you.

It's a little bit more challenging than it has been historically. It's not what it once was a year ago or so. Thank you. Thank you.

It's not what it once was a year ago or so. Thank you. Thank you.

Operator: Thank you.

Shlomo Rosenbaum: Thank you.

Thank you. Thank you.

Todd Schneider: Thank you.

Thank you.

Operator: Our next question comes from Kartik Mehta from North Coast Research. Please go ahead, Kartik.

Operator: And our next question comes from Kartik Mehta from Northcoast Research.

Mike Hansen: Hey, good morning. I know there's a lot of questions and maybe thoughts on what happens to new sales. I'm wondering if you go back to kind of 2008, 2009, and hopefully never have that recession again. If you look at new sales back then, how did Cintas perform for new sales? Any lessons from that you would take as we move forward?

Kartik Mehta: Hey, good morning. I know there's a lot of questions and maybe thoughts on what happens to new sales. I'm wondering if you go back to kind of 2008, 2009, and hopefully never have that recession again. If you look at new sales back then, how did Cintas perform for new sales? Any lessons from that you would take as we move forward?

Kartik Mehta: I know there's a lot of questions and maybe thoughts on what happens to new sales. And I'm wondering, if you go back to kind of 2008, 2009 and hopefully never have that recession again. But if you look at new sales back then, how did Cintas perform for new sales? And any lessons from that you would take as we move forward?

There's a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008 2009 and hopefully. That recession again, but if you look at new sales back then how did how did cintas perform. For new sales and any lessons from that you would take. As we move forward.

If you go back to kind of 2008 2009 and hopefully. That recession again, but if you look at new sales back then how did how did cintas perform. For new sales and any lessons from that you would take. As we move forward.

That recession again, but if you look at new sales back then how did how did cintas perform. For new sales and any lessons from that you would take. As we move forward.

For new sales and any lessons from that you would take. As we move forward.

As we move forward.

Todd Schneider: Yes, Kartik. Well, first of all, we're a really different company today than we were in 2008, 2009. We have a much more diversified customer base. Now, today, 70% of our customers are services providing, 30% are goods producing. We have significant verticals that we didn't have as well: healthcare, education, government. So we think we're really well positioned for whenever the next recession is. I remember '08, '09 because I was running the sales organization back then. Our value proposition still resonated with people. We still sold new business. We did so at attractive rates. As I mentioned, it's not always are we asking for new monies. Sometimes it's just a redirection of those from somewhere else to us, not only in maybe a direct competitor standpoint, but also they're purchasing clothing. They're purchasing items to take care of the facilities.

Todd M. Schneider: Yes, Kartik. First of all, we're a really different company today than we were in 2008, 2009. We have a much more diversified customer base. We're now -- today 70% of our customers are service is providing, 30% are goods producing. We have significant verticals that we didn't have as well, health care, education, government. So we think we're really well positioned for whenever the next recession is. And I remember '08, '09 because I was running the sales organization back then. And our value propositions still resonated with people, and we still sold new business. And we did so at attractive rates. As I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those from somewhere else to us, not only in a -- maybe a direct competitor standpoint, but also they're purchasing clothing, they're purchasing items to take care of the facilities. So we think we're well positioned. I might also mention, you didn't ask specifically about it, but we love having a pristine balance sheet. And we think whenever the next recession is that might open up opportunities for us. And just the fact that we've -- our organization is focused on fighting through whatever the economic environment is, taking great care of our customers, taking great care of our employee partners. And we've grown sales in 52 of the last 54 years. And we suspect that whatever the economic environment is, we believe we're going to be successful in it.

So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then. Our value proposition is still resonating with people. And we still sold new business. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Tom It's just a redirection of those from somewhere else to us not only in a maybe a direct competitor Sam. Standpoint, but also their purchasing. <unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then. Our value proposition is still resonating with people. And we still sold new business. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Tom It's just a redirection of those from somewhere else to us not only in a maybe a direct competitor Sam. Standpoint, but also their purchasing. <unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then. Our value proposition is still resonating with people. And we still sold new business. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Tom It's just a redirection of those from somewhere else to us not only in a maybe a direct competitor Sam. Standpoint, but also their purchasing. <unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

And I. I remember. <unk> nine because I was running the sales organization back then. Our value proposition is still resonating with people. And we still sold new business. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Tom It's just a redirection of those from somewhere else to us not only in a maybe a direct competitor Sam. Standpoint, but also their purchasing. <unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

I remember. <unk> nine because I was running the sales organization back then. Our value proposition is still resonating with people. And we still sold new business. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Tom It's just a redirection of those from somewhere else to us not only in a maybe a direct competitor Sam. Standpoint, but also their purchasing. <unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

<unk> nine because I was running the sales organization back then. Our value proposition is still resonating with people. And we still sold new business. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Tom It's just a redirection of those from somewhere else to us not only in a maybe a direct competitor Sam. Standpoint, but also their purchasing. <unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

Our value proposition is still resonating with people. And we still sold new business. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Tom It's just a redirection of those from somewhere else to us not only in a maybe a direct competitor Sam. Standpoint, but also their purchasing. <unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

And we still sold new business. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Tom It's just a redirection of those from somewhere else to us not only in a maybe a direct competitor Sam. Standpoint, but also their purchasing. <unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Tom It's just a redirection of those from somewhere else to us not only in a maybe a direct competitor Sam. Standpoint, but also their purchasing. <unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

Tom It's just a redirection of those from somewhere else to us not only in a maybe a direct competitor Sam. Standpoint, but also their purchasing. <unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

Standpoint, but also their purchasing. <unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

<unk>. No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

No. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years and we suspect that. That whatever the economic environment is we believe we're going to be successful.

Todd Schneider: So we think we're well positioned. I might also mention you didn't ask specifically about it, but we love having a pristine balance sheet. We think whenever the next recession is, that might open up opportunities for us. Just the fact that our organization is focused on fighting through whatever the economic environment is, taking great care of our customers, taking great care of our employee partners. We've grown sales in 52 of the last 54 years. We suspect that whatever the economic environment is, we believe we're going to be successful in.

So we think we're well positioned. I might also mention you didn't ask specifically about it, but we love having a pristine balance sheet. We think whenever the next recession is, that might open up opportunities for us. Just the fact that our organization is focused on fighting through whatever the economic environment is, taking great care of our customers, taking great care of our employee partners. We've grown sales in 52 of the last 54 years. We suspect that whatever the economic environment is, we believe we're going to be successful in.

That whatever the economic environment is we believe we're going to be successful.

Jared Mattingly: Kartik, I might add, Todd might be a little modest. He was running that organization. It was a difficult environment. He and the sales team exceeded their internal goals and really continued to show that value even in tough times, as Todd mentioned. As he also talked about, our customer base is quite a bit broader than it was back then. Our sales team is a little bit different. But the really good news is, even back then, in the deepest, longest, broadest recession we'd seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have.

Mike Hansen: Kartik, I might add, Todd might be a little modest. He was running that organization. It was a difficult environment. He and the sales team exceeded their internal goals and really continued to show that value even in tough times, as Todd mentioned. As he also talked about, our customer base is quite a bit broader than it was back then. Our sales team is a little bit different. But the really good news is, even back then, in the deepest, longest, broadest recession we'd seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have.

J. Michael Hansen: Kartik, I might add, Todd might be a little modest. He was running that organization. It was a difficult environment, and he and the sales team exceeded their internal goals and really continued to show that value even in tough times, as Todd mentioned. And as he also talked about, our customer base is quite a bit broader than it was back then, and our sales team is a little bit different. But the really good news is even back then, in the deepest, longest, broadest recession we'd seen in 100 years, we still sold a lot of new business. And it's a nice reflection of the value proposition that we have.

Todd might be a little modest he was running that organization it was a difficult environment. He and the sales team exceeded their internal goals and really <unk>. <unk> to show that value even in tough times as Todd mentioned, then and. And as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit different but the really good news is even back then in the deepest longest broadest to recession, we've seen in 100 years old. We still sold a lot of new business. And it's a nice reflection of the value proposition that we have.

He and the sales team exceeded their internal goals and really <unk>. <unk> to show that value even in tough times as Todd mentioned, then and. And as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit different but the really good news is even back then in the deepest longest broadest to recession, we've seen in 100 years old. We still sold a lot of new business. And it's a nice reflection of the value proposition that we have.

<unk> to show that value even in tough times as Todd mentioned, then and. And as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit different but the really good news is even back then in the deepest longest broadest to recession, we've seen in 100 years old. We still sold a lot of new business. And it's a nice reflection of the value proposition that we have.

And as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit different but the really good news is even back then in the deepest longest broadest to recession, we've seen in 100 years old. We still sold a lot of new business. And it's a nice reflection of the value proposition that we have.

We still sold a lot of new business. And it's a nice reflection of the value proposition that we have.

And it's a nice reflection of the value proposition that we have.

Operator: Yeah. Thanks. Just as a follow-up, if you look at that first-aid and safety business, you're doing really well in it. Is there a way you would look at to say a certain percentage is recurring? Do you consider a certain percentage recurring? I know you don't have long-term contracts in that business, but just from a demand standpoint and what you've seen from a historical standpoint.

Kartik Mehta: Yeah. Thanks. Just as a follow-up, if you look at that first-aid and safety business, you're doing really well in it. Is there a way you would look at to say a certain percentage is recurring? Do you consider a certain percentage recurring? I know you don't have long-term contracts in that business, but just from a demand standpoint and what you've seen from a historical standpoint.

Kartik Mehta: Yes. And just as a follow-up, if you look at the First Aid and Safety business, you're doing really well in it. Is there a way you would look at to say a certain percentage is recurring? Do you consider a certain percentage recurring? I know you don't have long-term contracts in that business. But just from a demand standpoint and what you've seen from a historical standpoint?

What you've seen from a historical standpoint.

Todd Schneider: Yes. Kartik, it's a good question. I don't have that in front of me, but I know it has returned much closer to historical or even higher as far as what we see from a repeat, recurring type of revenue. We want to provide value to the customers, whatever product services they want. It's just the nature of it, what we provide, whether it be first-aid supplies, access to AEDs, access to Eyewash Stations, access to clean water through our WaterBreak offering. Those are all items that are really important to our customers, more so today than they were pre-pandemic. We think that that trend will continue.

Todd M. Schneider: Yes, Kartik, it's a good question. I don't have that in front of me, but I know it's -- it has returned much closer to historical or even higher as far as what we see from a repeat -- recurring type of revenue. And we want to provide value to the customers, whatever product services they want. It's just the nature of it, what we provide, whether it be First Aid supplies, access to AEDs, access to eyewash stations, access to clean water through our WaterBreak offering. Those are all items that are really important to our customers more so today than they were pre-pandemic, and we think that, that trend will continue.

It's a good question I don't have that in front of me, but. But. I know it has return much closer to historical or even higher. <unk>. As far as what we see from our repeat recurring type of revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to. Aedes access to eyewash stations. Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

But. I know it has return much closer to historical or even higher. <unk>. As far as what we see from our repeat recurring type of revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to. Aedes access to eyewash stations. Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

I know it has return much closer to historical or even higher. <unk>. As far as what we see from our repeat recurring type of revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to. Aedes access to eyewash stations. Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

<unk>. As far as what we see from our repeat recurring type of revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to. Aedes access to eyewash stations. Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

As far as what we see from our repeat recurring type of revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to. Aedes access to eyewash stations. Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to. Aedes access to eyewash stations. Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to. Aedes access to eyewash stations. Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

It's just the nature of it what we provide whether it would be. First aid supplies. Access to. Aedes access to eyewash stations. Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

First aid supplies. Access to. Aedes access to eyewash stations. Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

Access to. Aedes access to eyewash stations. Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

Aedes access to eyewash stations. Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

Access to clean water. For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

For our water brake. Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

Offering. Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

Those are all items that are really important to our customers. More so today than they were pre pandemic and we think that that trend will continue.

More so today than they were pre pandemic and we think that that trend will continue.

Operator: Thank you very much. I really appreciate it.

Kartik Mehta: Thank you very much. I really appreciate it.

Operator: And our next question comes from Toni Kaplan from Morgan Stanley.

Todd Schneider: Yes. Thank you.

Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony.

Operator: Our next question comes from Toni Kaplan from Morgan Stanley. Please go ahead, Toni.

And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony.

Faiza Alwi: Thank you so much. One of your competitors has been talking about using a strategy where they're incentivizing their drivers to cross-sell products. Can you talk about why you don't use that strategy, what the disadvantages are that you have found when doing that?

Toni Kaplan: Thank you so much. One of your competitors has been talking about using a strategy where they're incentivizing their drivers to cross-sell products. Can you talk about why you don't use that strategy, what the disadvantages are that you have found when doing that?

Toni Michele Kaplan: So one of your competitors has been talking about using a strategy where they're incentivizing their drivers to cross-sell products. Can you talk about why you don't use that strategy? What the disadvantages are that you have found when doing that?

So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that.

Talk about why you don't use that strategy. The disadvantages are that you have found when doing that.

The disadvantages are that you have found when doing that.

Todd Schneider: Yeah. Great question, Tony. I'm glad you asked because my first job 34 years ago was on the trucks. We have been cross-selling our products via our, we call them, our service sales representatives. We've been cross-selling them since I started. I'm sure it was in place well before I started as well. So we see the fact that we have 12,000 or so trucks that roll out of our parking lots every single day that are focused on taking great care of our customers. When they roll out of those parking lots, they're spending time in those businesses. They have eyes. They have ears. They have minds. They see what's going on in those businesses. They see opportunities. It always has been and always will be a key component of our growth trajectory because we see that infrastructure as a real advantage.

Todd M. Schneider: Yes. Great question, Toni. I'm glad you asked because my first job 34 years ago was on the trucks. And we have been cross-selling our products via our -- we call them our service sales representatives. We've been cross-selling them since I started, and I'm sure it was in place well before I started as well. So we see -- the fact that we have 12,000 or so trucks that roll out of our parking lots every single day that are focused on taking great care of our customers, when they roll out of those parking lots, they're spending time in those businesses. And they have eyes. They have ears, they have minds, and they see what's going on in those businesses, and they see opportunities. And it always has been and always will be a key component of our growth trajectory because we see that infrastructure as a real advantage. And we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services based upon the nature of the product that the customer might be interested in.

Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. And we have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I start as well so we see the fact that we have. 12000, or so trucks that rollout of our parking lots every single day that are focused on taking great care of our customers. <unk>. When they run out of those parking lots, they're spending time in those businesses. They have is they have years, they are mines and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because we. We see that infrastructure is a real advantage and we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Upon the nature of the product. That the customer might be interested in.

Yeah. My first job 34 years ago was on the trucks and. And we have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I start as well so we see the fact that we have. 12000, or so trucks that rollout of our parking lots every single day that are focused on taking great care of our customers. <unk>. When they run out of those parking lots, they're spending time in those businesses. They have is they have years, they are mines and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because we. We see that infrastructure is a real advantage and we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Upon the nature of the product. That the customer might be interested in.

My first job 34 years ago was on the trucks and. And we have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I start as well so we see the fact that we have. 12000, or so trucks that rollout of our parking lots every single day that are focused on taking great care of our customers. <unk>. When they run out of those parking lots, they're spending time in those businesses. They have is they have years, they are mines and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because we. We see that infrastructure is a real advantage and we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Upon the nature of the product. That the customer might be interested in.

And we have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I start as well so we see the fact that we have. 12000, or so trucks that rollout of our parking lots every single day that are focused on taking great care of our customers. <unk>. When they run out of those parking lots, they're spending time in those businesses. They have is they have years, they are mines and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because we. We see that infrastructure is a real advantage and we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Upon the nature of the product. That the customer might be interested in.

In place well before I start as well so we see the fact that we have. 12000, or so trucks that rollout of our parking lots every single day that are focused on taking great care of our customers. <unk>. When they run out of those parking lots, they're spending time in those businesses. They have is they have years, they are mines and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because we. We see that infrastructure is a real advantage and we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Upon the nature of the product. That the customer might be interested in.

12000, or so trucks that rollout of our parking lots every single day that are focused on taking great care of our customers. <unk>. When they run out of those parking lots, they're spending time in those businesses. They have is they have years, they are mines and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because we. We see that infrastructure is a real advantage and we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Upon the nature of the product. That the customer might be interested in.

<unk>. When they run out of those parking lots, they're spending time in those businesses. They have is they have years, they are mines and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because we. We see that infrastructure is a real advantage and we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Upon the nature of the product. That the customer might be interested in.

When they run out of those parking lots, they're spending time in those businesses. They have is they have years, they are mines and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because we. We see that infrastructure is a real advantage and we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Upon the nature of the product. That the customer might be interested in.

They have is they have years, they are mines and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because we. We see that infrastructure is a real advantage and we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Upon the nature of the product. That the customer might be interested in.

They see what's going on in those businesses. They see opportunities. It always has been and always will be a key component of our growth trajectory because we see that infrastructure as a real advantage. We leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services based upon the nature of the product that the customer might be interested in.

Trajectory because we. We see that infrastructure is a real advantage and we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Upon the nature of the product. That the customer might be interested in.

We see that infrastructure is a real advantage and we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Upon the nature of the product. That the customer might be interested in.

Todd Schneider: We leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services based upon the nature of the product that the customer might be interested in.

Upon the nature of the product. That the customer might be interested in.

That the customer might be interested in.

Jared Mattingly: And Toni, we've talked a lot about this over the last more than 10 years. We've got customers of all different sizes, verticals, etc. And so while we do certainly expect those service sales reps to continue to penetrate and sell, we recognize that some businesses are just more complex than others, are larger than others. And so sometimes there is a strategy to enhance that opportunity. And it might be through, for example, in healthcare, we have dedicated people that really do reach out to the decision-maker. So it's not just the service sales rep, but it's also other people that have relationship responsibilities that are looking for those new and different penetration opportunities. It's not as simple just to simply say, "We're going to go in and have a service sales rep or an SSR go into each customer and sell." All customers are so different.

Mike Hansen: And Toni, we've talked a lot about this over the last more than 10 years. We've got customers of all different sizes, verticals, etc. And so while we do certainly expect those service sales reps to continue to penetrate and sell, we recognize that some businesses are just more complex than others, are larger than others. And so sometimes there is a strategy to enhance that opportunity. And it might be through, for example, in healthcare, we have dedicated people that really do reach out to the decision-maker.

J. Michael Hansen: And Toni, we've talked a lot about this over the last -- more than 10 years, we've got customers of all different sizes, verticals, et cetera. And so while we do certainly expect those service sales reps to continue to penetrate and sell, we recognize that some businesses are just more complex than others, are larger than others. And so sometimes, there's a strategy to enhance that opportunity. And it might be through, for example, in health care. We have dedicated people that really do reach out to the decision makers. So it's not just the service sales rep, but it's also other people that have relationship responsibilities that are looking for those new and different penetration opportunities. It's not as simple just to simply say we're going to go in and have a service sales rep or an SSR go into each customer and sell it, all customers are so different. And so we need a strategy that can attack all types of customers, and we do.

We've talked a lot about this over the over the last more than 10 years. We've got customers of all different sizes. Verticals et cetera, and so and so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is. Our strategy too. Enhance. That opportunity and it might be through for example in health care, we have dedicated people that really do reach out to the decision makers. So it's not just the service sales rep, but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Service sales rep on SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do Tony we know that.

We've got customers of all different sizes. Verticals et cetera, and so and so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is. Our strategy too. Enhance. That opportunity and it might be through for example in health care, we have dedicated people that really do reach out to the decision makers. So it's not just the service sales rep, but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Service sales rep on SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do Tony we know that.

Verticals et cetera, and so and so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is. Our strategy too. Enhance. That opportunity and it might be through for example in health care, we have dedicated people that really do reach out to the decision makers. So it's not just the service sales rep, but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Service sales rep on SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do Tony we know that.

Our strategy too. Enhance. That opportunity and it might be through for example in health care, we have dedicated people that really do reach out to the decision makers. So it's not just the service sales rep, but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Service sales rep on SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do Tony we know that.

Enhance. That opportunity and it might be through for example in health care, we have dedicated people that really do reach out to the decision makers. So it's not just the service sales rep, but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Service sales rep on SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do Tony we know that.

That opportunity and it might be through for example in health care, we have dedicated people that really do reach out to the decision makers. So it's not just the service sales rep, but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Service sales rep on SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do Tony we know that.

So it's not just the service sales rep, but it's also other people that have relationship responsibilities that are looking for those new and different penetration opportunities. It's not as simple just to simply say, "We're going to go in and have a service sales rep or an SSR go into each customer and sell." All customers are so different. And so we need a strategy that can attack all types of customers. And we do.

New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Service sales rep on SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do Tony we know that.

Service sales rep on SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do Tony we know that.

Jared Mattingly: And so we need a strategy that can attack all types of customers. And we do.

Todd Schneider: Tony, we know that our customer satisfaction scores are really good, and in large part because they really like our people. They like our service providers, our frontline service providers. And we leverage that. And whether it be, as Mike mentioned, a smaller type customer, we can cross-sell via the service provider. A larger one that's a little bit more complicated, there might be a need for some air cover, for some help there. But nevertheless, that's always been an important component of our strategy and always will be.

Todd M. Schneider: Toni, we know that our customer satisfaction scores are really good. And in large part because they really like our people. They like our service providers, our frontline service providers. And we leverage that. And whether it be, as Mike mentioned, a more -- a smaller type customer, we can cross-sell via the service provider. A larger one that's a little bit more complicated. There might be a need for some air cover, for some help there. But nevertheless, that's always been an important component of our strategy and always will be.

In large part because they really like our people they like our service providers, our frontline service providers and. And we leverage that and whether it be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one. More complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. Cross sell via the service provider a larger one. More complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be.

And we leverage that and whether it be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one. More complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. Cross sell via the service provider a larger one. More complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be.

A smaller type customer we can. Cross sell via the service provider a larger one. More complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be.

Cross sell via the service provider a larger one. More complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be.

More complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be.

Faiza Alwi: That is super helpful. I wanted to also ask, I think the last few calls, you've been talking more about technology, investments, and things of the sort. Are there any, I guess, technology capabilities that you think you still need that you either are getting through hiring technology people or maybe even doing M&A? And maybe you've done it. Maybe you still have yet to do. But are there any technology capabilities that you need that basically would be helped through M&A or hiring internally new technology people?

Toni Kaplan: That is super helpful. I wanted to also ask, I think the last few calls, you've been talking more about technology, investments, and things of the sort. Are there any, I guess, technology capabilities that you think you still need that you either are getting through hiring technology people or maybe even doing M&A? And maybe you've done it. Maybe you still have yet to do. But are there any technology capabilities that you need that basically would be helped through M&A or hiring internally new technology people?

Toni Michele Kaplan: That is super helpful. I wanted to also ask, I think the last few calls, you've been talking more about technology and investments and things of this sort. Are there any, I guess, technology capabilities that you think you still need? Will -- that you either are getting through hiring technology people or maybe even doing M&A? Like -- and maybe you've done it, maybe you still have yet to do, but are there any technology capabilities that you need that basically would be helped through M&A or hiring internally new technology people?

Also ask I think the last few calls you've been talking more about technology and investments. Things of this sort. Are there any. Technology capabilities that you think you still need that you're either getting through hiring technology people.

Things of this sort. Are there any. Technology capabilities that you think you still need that you're either getting through hiring technology people.

Are there any. Technology capabilities that you think you still need that you're either getting through hiring technology people.

Technology capabilities that you think you still need that you're either getting through hiring technology people.

Todd M. Schneider: Yes, Toni, great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that we can build off of. But we know that the answer for what our customers are interested in is with spending time with our customers, and our employee partners are the ones who discern those opportunities. So we're always asking now, how do we make it easier to do business, what -- is there any void? And frankly, that's where most of our investments have come from, that information, been trying to make it easier to do business with us. So we're always in search of trying to be a world-class service provider, but having an incredibly strong technology platform that makes it easier for our customers to do business with us, that makes it easier for our employee partners, our service providers to create a world-class experience for those customers. So yes, we're in search of whether it's -- we buy it or we bolt it on to our current platform or we created ourselves, all of those are of interest to us, and we'll be moving forward.

Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. And that we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

Todd Schneider: Yeah. Toni, great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that we can build off of. But we know that the answer for what our customers are interested in is with spending time with our customers. And our employee partners are the ones who discern those opportunities. So we're always asking them, "How do we make it easier to do business? Is there any void?" And frankly, that's where most of our investments have come from, is that information and trying to make it easier to do business with us.

Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. And that we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

We think we have a really strong technology platform that. And that we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

And that we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

Todd Schneider: So we're always in search of trying to be a world-class service provider, but have an incredibly strong technology platform that makes it easier for our customers to do business with us, that makes it easier for our employee partners, our service providers to create a world-class experience for those customers. So yes, we're in search of whether we buy it or we bolt it on to our current platform or we create it ourselves. All of those are of interest to us and will be moving forward.

So we're always in search of trying to be a world-class service provider, but have an incredibly strong technology platform that makes it easier for our customers to do business with us, that makes it easier for our employee partners, our service providers to create a world-class experience for those customers. So yes, we're in search of whether we buy it or we bolt it on to our current platform or we create it ourselves. All of those are of interest to us and will be moving forward.

So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

Our customers to do business with us and makes it easier for our employee partners our service providers to. Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

Create a world class experience for those those customers so. So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

So yes, we're in search of whether it's we buy it or we. We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

We bolted on to our current platform we created ourselves. All in all of those are of interest to us and we'll be moving forward.

All in all of those are of interest to us and we'll be moving forward.

Faiza Alwi: Thank you.

Toni Kaplan: Thank you.

Thank you.

Operator: Thank you. At this time, there are no further questions. I'd like to turn the call back over to Jared Mattingly for closing remarks.

Operator: At this time, there are no further questions. I'd like to turn the call back over to Jared Mattingley for closing remarks.

Jared Mattingly: Thank you for joining us this morning. We will issue our Q2 of Fiscal 2024 financial results in December. We look forward to speaking with you again at that time. Thank you.

Jared S. Mattingley: Thank you for joining us this morning. We will issue our second quarter of fiscal '24 financial results in December. We look forward to speaking with you again at that time. Thank you.

Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

This concludes today's conference call. Thank you for your participation. You may now disconnect.

Okay.

Operator: Good day, everyone, and welcome to the Cintas Corporation announces Fiscal 2024 First Quarter Earnings Release Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Mr. Jared Mattingly, Vice President, Treasurer, and Investor Relations. Please go ahead, sir. Thank you for joining us. With me is Todd Schneider, President and Chief Executive Officer, and Mike Hansen, Executive Vice President and Chief Financial Officer. We will discuss our Fiscal 2024 First Quarter results. After our commentary, we will open the call to questions from analysts. The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. This conference call contains forward-looking statements that reflect the company's current views as to future events and financial performance.

The host has ended this call goodbye.

[music]. [music]. [music]. Good day, everyone and welcome to the Cintas Corporation announces fiscal 2024 first quarter earnings release Conference call. Today's call is being recorded at this time I would like to turn the call over to Mr. Jared Mattingly, Vice President Treasurer and Investor Relations. Please go ahead Sir. Thank you for joining US with me is Todd Schneider, President and Chief Executive Officer, and Mike Hansen, Executive Vice President and Chief Financial Officer, who will discuss our fiscal 2024 first quarter results. After our commentary we will open the call to questions from analysts the privates. <unk> Litigation Reform Act of $19 95 provides a safe harbor from Civil litigation for forward looking statements. This conference call contains forward looking statements that reflect the company's current views as to future events and financial performance. These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission I will now turn the call over to Todd. Thank you Derrick we. We are pleased with our start to fiscal year 2024. First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

[music]. [music]. Good day, everyone and welcome to the Cintas Corporation announces fiscal 2024 first quarter earnings release Conference call. Today's call is being recorded at this time I would like to turn the call over to Mr. Jared Mattingly, Vice President Treasurer and Investor Relations. Please go ahead Sir. Thank you for joining US with me is Todd Schneider, President and Chief Executive Officer, and Mike Hansen, Executive Vice President and Chief Financial Officer, who will discuss our fiscal 2024 first quarter results. After our commentary we will open the call to questions from analysts the privates. <unk> Litigation Reform Act of $19 95 provides a safe harbor from Civil litigation for forward looking statements. This conference call contains forward looking statements that reflect the company's current views as to future events and financial performance. These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission I will now turn the call over to Todd. Thank you Derrick we. We are pleased with our start to fiscal year 2024. First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

[music]. Good day, everyone and welcome to the Cintas Corporation announces fiscal 2024 first quarter earnings release Conference call. Today's call is being recorded at this time I would like to turn the call over to Mr. Jared Mattingly, Vice President Treasurer and Investor Relations. Please go ahead Sir. Thank you for joining US with me is Todd Schneider, President and Chief Executive Officer, and Mike Hansen, Executive Vice President and Chief Financial Officer, who will discuss our fiscal 2024 first quarter results. After our commentary we will open the call to questions from analysts the privates. <unk> Litigation Reform Act of $19 95 provides a safe harbor from Civil litigation for forward looking statements. This conference call contains forward looking statements that reflect the company's current views as to future events and financial performance. These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission I will now turn the call over to Todd. Thank you Derrick we. We are pleased with our start to fiscal year 2024. First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Good day, everyone and welcome to the Cintas Corporation announces fiscal 2024 first quarter earnings release Conference call. Today's call is being recorded at this time I would like to turn the call over to Mr. Jared Mattingly, Vice President Treasurer and Investor Relations. Please go ahead Sir. Thank you for joining US with me is Todd Schneider, President and Chief Executive Officer, and Mike Hansen, Executive Vice President and Chief Financial Officer, who will discuss our fiscal 2024 first quarter results. After our commentary we will open the call to questions from analysts the privates. <unk> Litigation Reform Act of $19 95 provides a safe harbor from Civil litigation for forward looking statements. This conference call contains forward looking statements that reflect the company's current views as to future events and financial performance. These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission I will now turn the call over to Todd. Thank you Derrick we. We are pleased with our start to fiscal year 2024. First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Thank you for joining US with me is Todd Schneider, President and Chief Executive Officer, and Mike Hansen, Executive Vice President and Chief Financial Officer, who will discuss our fiscal 2024 first quarter results. After our commentary we will open the call to questions from analysts the privates. <unk> Litigation Reform Act of $19 95 provides a safe harbor from Civil litigation for forward looking statements. This conference call contains forward looking statements that reflect the company's current views as to future events and financial performance. These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission I will now turn the call over to Todd. Thank you Derrick we. We are pleased with our start to fiscal year 2024. First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

<unk> Litigation Reform Act of $19 95 provides a safe harbor from Civil litigation for forward looking statements. This conference call contains forward looking statements that reflect the company's current views as to future events and financial performance. These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission I will now turn the call over to Todd. Thank you Derrick we. We are pleased with our start to fiscal year 2024. First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Operator: These forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss. I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission. I'll now turn the call over to Todd. Thank you, Jared. We are pleased with our start to Fiscal Year 2024. Q1 total revenue grew 8.1% to $2.34 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth in revenue flowed through to our bottom line. Operating income margin increased 110 basis points to an all-time high of 21.4%, and diluted EPS grew 9.1% to $3.70. I thank our employees, whom we call partners, for their continued focus on our customers, our shareholders, and each other.

These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission I will now turn the call over to Todd. Thank you Derrick we. We are pleased with our start to fiscal year 2024. First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Thank you Derrick we. We are pleased with our start to fiscal year 2024. First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

We are pleased with our start to fiscal year 2024. First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

First quarter total revenue grew eight 1% to 234 billion. Each of our businesses continued to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Each of our businesses continued to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Operating income margin increased 110 basis points to an all time high of 21, 4% and diluted EPS grew nine 1% to $3 70. I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

I, thank our employees, whom we call partners for their continued focus on our customers our shareholders and each other. Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Operator: Uniform Rental and Facility Services operating segment revenue for the First Quarter of Fiscal 2024 was $1.83 billion compared to $1.7 billion last year. The organic revenue growth rate was 7.6%. While price increases move near historical levels, revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross-sell our existing customer base. Businesses prioritize all we provide, including image, safety, cleanliness, and compliance. Our First Aid and Safety Services operating segment revenue for the First Quarter was $260.7 million compared to $234.2 million last year. The organic revenue growth rate was 11%. Our value proposition continues to resonate in our First Aid and Safety Services operating segment. Health and safety of employees remains top of mind. We provide businesses with access to quick and effective products and services that promote health and well-being in the workplace.

Uniform rental and facility services operating segment revenue for the first quarter of fiscal 'twenty, four was 183 billion compared to $1 $7 billion last year. The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

The organic revenue growth rate was seven 6%. While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

While price increases move near historical levels revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Our sales force continues to add new customers and penetrate and cross sell our existing customer base. Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Businesses prioritize all we provide including image. Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Safety cleanliness and compliance. Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Our first aid and safety services operating segment revenue for the first quarter was $267 million. Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Compared to $234 $2 million last year. <unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

<unk> revenue growth rate was 11%. Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Our value proposition continues to resonate in our first aid and safety services operating segment. Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Safety of employees remains top of mind we've. We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

We provide businesses with access to a quick and effective products and services that promote health and well being in the workplace. Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Operator: Our Fire Protection Services and Uniform Direct Sale businesses are reported in the all-other segment. All-other revenue was $254.8 million compared to $234.5 million last year. The fire business revenue was $174.3 million, and the organic revenue growth rate was 14.2%. Uniform Direct Sale business revenue was $80.5 million, which was down 2.7% organically compared to last year. Now, before I turn the call over to Mike to provide details of our Q1 results, I'll provide our updated financial expectations for our Fiscal Year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9.35 to 9.5 billion to a range of $9.4 to 9.52 billion, a total growth rate of 6.6% to 8%.

Our fire protection services and uniform direct sale businesses are reported in the all other segment. All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

All other revenue was $254 8 million. Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Compared to $234 $5 million last year. The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

The fire business revenue was $174 $3 million. On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

On the organic revenue growth rate was 14, 2%. The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

The uniform direct sale business revenue was $85 million, which was down two 7% organically compared to last year. And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

And before I turn the call over to Mike to provide details of our first quarter results I'll provide our updated financial expectations for our fiscal year. We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

We are raising our annual revenue expectations from a range of $9 35 billion to $9 5 billion. So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

So a range of $9 4 billion to. To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

To nine $5 2 million. A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

A total growth rate of six 6% to 8%. Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%. Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Operator: Also, we are raising our annual Diluted EPS expectations from a range of $13.85 to $14.35 to a range of $14.00 to $14.45, a growth rate of 7.8% to 11.2%. Mike? Thanks, Todd, and good morning. Our Fiscal 2024 First Quarter revenue was $2.34 billion compared to $2.17 billion last year. The organic revenue growth rate, adjusted for acquisitions and foreign currency exchange rate fluctuations, was 8.1%. Gross margin for the First Quarter of Fiscal 2024 was $1.14 billion compared to $1.03 billion last year, an increase of 11%. Gross margin as a percent of revenue was an all-time high, excuse me, of 48.7% for the First Quarter of Fiscal 2024, compared to 47.5% last year, an increase of 120 basis points. Strong volume growth and continued operational efficiencies helped generate this record gross margin.

Also we are raising our annual diluted EPS expectations from a range of $13 85. To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%.

To $14 35 to. So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%.

So a range of $14 to $14 45. Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%.

Both rate of seven eight to 11, 2%. Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%.

Mike. Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%.

Thanks, Todd and good morning, our fiscal 2024 first quarter revenue was $2 $3 4 billion. Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%.

Compared to $2 1 billion to $1 $7 million last year. <unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%.

<unk> revenue growth rate adjusted for acquisitions and foreign currency exchange rate fluctuations was eight 1%.

Gross margin for the first quarter of fiscal 'twenty four was one <unk>, one 4 billion compared. Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Compared to $1.03 billion last year, an increase of 11%. <unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

<unk> margin as a percent of revenue was an all time high. Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Excuse me up 48, 7% for the first quarter of fiscal 'twenty four compared to 47, 5% last year, an increase of 120 basis points. Strong volume growth. And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Strong volume growth.

And continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Operator: Energy expenses, comprised of gasoline, natural gas, and electricity, were a tailwind, decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit is the result of efficiencies we've created with our proprietary SmartTruck technology. Certainly, we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48.1% for Uniform Rental and Facility Services, 55.9% for First Aid and Safety Services, 49% for Fire Protection Services, and 38.7% for Uniform Direct Sale. Operating income of $500.6 million compared to $440.1 million last year. Operating income as a percentage of revenue was 21.4% in the First Quarter of Fiscal 2024, compared to 20.3% in last year's First Quarter, an increase of 110 basis points. Our effective tax rate for the First Quarter was 19.2%, compared to 14.8% last year.

Energy expenses comprised of gasoline natural gas and electricity or a tailwind decreasing 50 basis points from last year. Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Please keep in mind that some of the energy benefit as a result of efficiencies we've created with our proprietary smart truck. <unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

<unk> <unk>. Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Certainly we have also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Gross margin percentage by business was 48, 1% for uniform rental and facility services. 55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

55, 9% for first aid and safety services. 49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

49% for fire protection services, and 38, 7% for uniform direct sale. Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Operating income of $506 million compared to $440 $1 million last year. Operating income as a percentage of revenue was 21, 4% in the first quarter of fiscal 'twenty four compared to 23% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%. Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Our effective tax rate for the first quarter was 19, 2% compared to 14, 8% last year. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock based compensation. Net income for the first quarter was $385 1 million compared to $351 $7 million last year. This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%.

Operator: The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation. Net income for Q1 was $385.1 million compared to $351.7 million last year. This year's Q1 diluted EPS of $3.70 compared to $3.39 last year, an increase of 9.1%. Cash flow remained strong. Net cash provided by operating activities in Q1 grew 13% over the prior year. On 15 September, we paid shareholders $138.3 million in quarterly dividends, an increase of 17.8% from the amount paid the previous September. Todd provided our annual financial guidance. Related to the guidance, please note the following: Fiscal 2024 interest expense is expected to be $98 million compared to $109.5 million in Fiscal 2023, predominantly as a result of lower variable rate debt. Our Fiscal 2024 effective tax rate is expected to be 21.3%.

Net income for the first quarter was $385 1 million compared to $351 $7 million last year.

This year's first quarter diluted EPS of $3 70. Compared to $3 39 last year, an increase of nine 1%.

Compared to $3 39 last year, an increase of nine 1%.

Cash flow remains strong net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

On September 15th we paid shareholders $138 3 million. And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

And quarterly dividends, an increase of 17, 8% from the amount paid to previous September . Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Todd provided our annual financial guidance related to the guidance. Please note the following. Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Fiscal 'twenty for interest expense is expected to be $98 million. Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Compared to $109 5 million in fiscal 'twenty, three predominantly as a result of lower variable rate debt. Our fiscal 'twenty four effective tax rate is expected to be 21, 3%. This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Our fiscal 'twenty four effective tax rate is expected to be 21, 3%.

Operator: This compares to a rate of 20.4% in Fiscal 2023. The higher effective tax rate negatively impacts Fiscal 2024 EPS guidance by about $0.16 and diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more workday in Fiscal 2024 compared to Fiscal 2023. This extra workday comes in our Fiscal Third Quarter. Jared? That concludes our prepared remarks. Now we are happy to answer questions from the analysts. Please ask just one question and a single follow-up if needed. Thank you. If you would like to ask a question, please press star one on your phone now, and you will be placed in the queue and do not record. Please be prepared to ask your question when prompted.

This compares to a rate of 24% in fiscal 'twenty three. The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16. And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

The higher effective tax rate negatively impacts fiscal 'twenty four EPS guidance by about 16.

And diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three. This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three.

Guidance includes the impact of having one more work day in fiscal 'twenty four compared to fiscal 'twenty three.

This extra workday comes in our fiscal third quarter. Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now. And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward.

Sure. That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received. Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now.

That concludes our prepared remarks now we are happy to answer questions from the analysts. Please ask just one question and a single follow up if needed. Thank you. If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received.

If you would like to ask a question. Please press star one on your phone now. You will be placed in the queue in the order received.

You will be placed in the queue in the order received.

Please be. Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now.

Please be prepared to ask your question when prompted once again, if you would like to ask a question. Please press star one on your phone now.

Operator: Once again, if you would like to ask a question, please press star one on your phone now. Our first question comes from Faiza Alwi from Deutsche Bank. Please go ahead. Yes. Hi, thank you, and good morning. Wanted to see if you could provide a bit more color on the new business environment and if you've noticed any change in terms of the macro environment. Certainly, you guys are talking to your customers every day. So just a bit more perspective around what you're seeing out there in the marketplace. Great. Good morning, Faiza. Yeah, our new business pipeline is quite good. We love the state of our sales organization, the focus that they have, the scope. And so new business is quite good. And that's a big driver of our growth that you're seeing. And we see that continuing.

And our first question comes from Faiza <unk> from Deutsche Bank. Please go ahead. Yes, hi, Thank you and good morning. I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so. Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward.

Yes, hi, Thank you and good morning.

I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any any change in terms of. The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza. Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so.

And if you've noticed any any change in terms of.

The macro environment uncertainty you guys are talking to your customers every day, so just a bit more perspective around what youre seeing out there in the marketplace. Great Good morning Faiza.

Great Good morning Faiza.

Yes, our new business pipeline is quite good. We love the state of our sales organization. There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment. It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so.

We love the state of our sales organization.

There the focus that they have the. <unk>. And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment.

<unk>.

And so new business is quite good and Thats, a big driver of our of our growth that youre that youre seeing. And we see that continuing as far as macro environment.

And we see that continuing as far as macro environment.

Operator: As far as macro environment, it is, we haven't seen any real change in our customer's behavior, I would say, since we reported last. So it's pretty consistent with what we've seen over the past few quarters. And we are watching it very, very closely and monitoring it as we move forward. Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead, Manav. Thank you. Good morning. I just wanted to see if you could give us a little bit more color, I think, in terms of the pricing strategy and then also the strong volume growth. So I think you said pricing is back to historical levels. So I'm guessing that's down in that low single-digit camp versus almost every other company talking about still, I guess, pricing higher than above average.

It is. We haven't seen any real change in our customers behavior. I would say. Since we reported last so.

We haven't seen any real change in our customers behavior.

I would say. Since we reported last so.

Since we reported last so.

Pretty consistent what we've seen. Over the past few quarters. We are watching it very very closely and. Monitoring it as we move forward.

Over the past few quarters.

We are watching it very very closely and. Monitoring it as we move forward.

Monitoring it as we move forward.

Great. Thank you. Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Thank you. And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

And our next question comes from Manav Patnaik from Barclays. Please go ahead manav.

Good morning. Just wanted to. See if you could give us a little more color I think in terms of the pricing strategy and then also the strong volume growth. So I think you said pricing is back to historical levels. So I am guessing thats down in that low single digit comp versus. Almost every other company you're talking about still I guess pricing higher than above average. So just maybe the first question is just how do we think about your pricing strategy here. Yes, good morning Manav. Yes, it is certainly closer to historical levels and. We'd like to add that as we think appropriate. Based upon our cost inputs. But we are. Very proud of the fact that we're growing our business attractively. And we think we can continue that. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Just wanted to. See if you could give us a little more color I think in terms of the pricing strategy and then also the strong volume growth. So I think you said pricing is back to historical levels. So I am guessing thats down in that low single digit comp versus. Almost every other company you're talking about still I guess pricing higher than above average. So just maybe the first question is just how do we think about your pricing strategy here. Yes, good morning Manav. Yes, it is certainly closer to historical levels and. We'd like to add that as we think appropriate. Based upon our cost inputs. But we are. Very proud of the fact that we're growing our business attractively. And we think we can continue that. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

See if you could give us a little more color I think in terms of the pricing strategy and then also the strong volume growth. So I think you said pricing is back to historical levels. So I am guessing thats down in that low single digit comp versus. Almost every other company you're talking about still I guess pricing higher than above average. So just maybe the first question is just how do we think about your pricing strategy here. Yes, good morning Manav. Yes, it is certainly closer to historical levels and. We'd like to add that as we think appropriate. Based upon our cost inputs. But we are. Very proud of the fact that we're growing our business attractively. And we think we can continue that. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Almost every other company you're talking about still I guess pricing higher than above average. So just maybe the first question is just how do we think about your pricing strategy here. Yes, good morning Manav. Yes, it is certainly closer to historical levels and. We'd like to add that as we think appropriate. Based upon our cost inputs. But we are. Very proud of the fact that we're growing our business attractively. And we think we can continue that. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Operator: So just maybe the first question is just how do we think about your pricing strategy here? Yes. Good morning, Manav. Yeah, it is certainly closer to historical levels. We like that. That's, we think, appropriate based upon our cost inputs. But we are very proud of the fact that we're growing our business attractively, and we think we can continue this based upon new business being robust and our customer retention levels being very good as well. We're seeing that in our customer satisfaction scores as well. The status of our customers is they're continuing on in the operating environment as they have in the past. So we like where we're positioned. We like the momentum in our business, and we like how we're growing it as well. We think it bodes well for the future.

Yes, good morning Manav. Yes, it is certainly closer to historical levels and. We'd like to add that as we think appropriate. Based upon our cost inputs. But we are. Very proud of the fact that we're growing our business attractively. And we think we can continue that. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Yes, it is certainly closer to historical levels and. We'd like to add that as we think appropriate. Based upon our cost inputs. But we are. Very proud of the fact that we're growing our business attractively. And we think we can continue that. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

We'd like to add that as we think appropriate. Based upon our cost inputs. But we are. Very proud of the fact that we're growing our business attractively. And we think we can continue that. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Based upon our cost inputs. But we are. Very proud of the fact that we're growing our business attractively. And we think we can continue that. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

But we are. Very proud of the fact that we're growing our business attractively. And we think we can continue that. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Very proud of the fact that we're growing our business attractively. And we think we can continue that. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And we think we can continue that. Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Based upon new business being robust and on. Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Our customer retention levels being very good as well. And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And we're seeing that in our in our customer satisfaction scores as well and and then the <unk>. Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Status of our customers is the. They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

They're continuing on in the operating environment as they have in the past so. So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

So we like where we're positioned we like the momentum in our business and we like how we're growing it as well and we think it bodes well for the future. Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Operator: Manav, I might just add to that. You asked about our pricing strategy. As we've talked in the past, our goal is operating margin improvement, right? Pricing can be a lever within that, but we have other levers. It's not the only way for us to improve margins. So as we think about the operating margin strategy of increasing, we've got a lot of good things going on. This is a great quarter that shows where pricing is sort of returning back to that historical level. We still increased margins quite nicely, even to record levels. Again, it's just pricing is a part of that strategy. Yeah, that makes sense. That's quite impressive.

Manav I might just add. Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Manav I might just add to that you asked about our pricing strategy and as we've talked in the past. Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Our goal is operating margin improvement and pricing can be a lever within that but we have other levers it's not the only way for us to include improved margins. And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And so as we think about the operating margin. Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Strategy of increasing we've got a lot of good things going on and this is a great quarter that shows where pricing is sort of returning back to that. Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Historical level, we still increased margins quite nicely even to record levels. And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And. Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Again, it's just pricing is a part of that strategy. Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Yes that makes sense, that's quite impressive and then maybe just on the strong volume growth could you just help. Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Operator: And then maybe just on the strong volume growth, could you just help provide some color on how much of that is new business, cross-selling, and maybe share gains, any color around that? Yeah. Good question, Manav. I mean, it's everything. As I mentioned, our new is quite good. And our retention levels, we're very happy with. And we're cross-selling. And we're continuing to make good progress there. We're never satisfied. But our value proposition is resonating with our customers. And we're trying to make it easier to do business with us through various technologies. And I think it's showing up in our results. And we're, again, bullish. Got it. Thanks a lot. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead, Josh. Hi. Good morning, Todd, Mike, and Jared. Thanks for taking my question.

Provide some color on how much of that is in our new business cross selling maybe share gains any any any color around that. Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Yes, good question Manav I mean, it's it's everything. As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

As I mentioned, our new is quite good and our retention levels were very happy with and. And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And we're cross selling and we're. We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

We're continuing to make good progress there. Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Never satisfied but. But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

But our value proposition is resonating with our customers and. And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And we're trying to make it easier to do business with us through various technologies and and I think it's showing up in our results and. We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

We're again bullish. Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Got it thanks for that. Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Thank you. And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And our next question comes from Josh Chan from UBS. Please go ahead Josh. Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Hi, Good morning, Todd Mike Jared Thanks for taking my question. I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Operator: I guess, could I ask about inflation and what you're seeing across your different cost buckets, labor, energy, material, and how you expect that to kind of transpire over the coming quarters as well? Yeah. Good morning, Josh. Yeah, I'll start if Mike wants to chime in as well. Yeah. Well, so what we're seeing from an input cost standpoint, labor is still higher than historical. But to Mike's point earlier, we're finding ways to improve operating margin in that environment still. And part of it is because productivity is quite attractive. And we're trying to position our employee partners so that they can be more successful in the marketplace, which is good for them, and it's good for ourselves. And obviously, with that retention levels of our employee partners being very close to historical levels, that's good for our customers as well.

I guess could asked about inflation and what youre seeing across your different cost buckets labor energy material and how you'd expect that to kind of transpire over the coming quarters as well. Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Yes, good morning, Josh ill start if Mike wants to chime in as well. Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Yes. What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

What we're saying from a <unk> cost standpoint. Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Labor is still. Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Higher than historical. But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

But. To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

To Mike's point earlier, we're finding ways to improve operating margin in that environment still and part of it's because productivity is quite attractive and. We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

We're trying to position our employee partners. So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

So that they can be more successful in the in the marketplace. Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Which is good for them and it's good for for ourselves and obviously with that retention levels of our employee partners being much back our back. Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Close very close to historical levels. That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

That's good for our customers as well. Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Operator: Other input costs, you saw where energy was down a year or prior. That is really a Q1 subject because if you recall last year, the price at the pump was very high. And so a little bit of a tailwind there. But we think that will be pretty muted through the balance of the fiscal year. And then last, the material cost. Our global supply chain team is doing one heck of a job in trying to make sure that we're well positioned to have very competitive prices and access to all that product. And we've spoken in the past about how a very small percentage of our products are single source. So that positions us well as far as having access to product, but also giving them at very competitive rates. Thanks for the color, Todd.

Other input costs. You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

You saw where energy was down. Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Year over prior. That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

That is really a Q1 subject because if you recall last year the price at the pump was very high. And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And so a little bit of a tailwind there, but we think that will be pretty muted through through the balance of the fiscal year. And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And then last material cost our global supply chain team has done one heck of a job in. And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And trying to make sure that we're well positioned to have. Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Very competitive prices. And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And access to all of that product. We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

We've spoken in the past about how. A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

A very small percentage of our products are single sourced so. That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

That positions us well as far as having access to product, but also being given them that very competitive rates. Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Operator: I guess for my follow-up, could you talk about what your CapEx expectations are this year and kind of the types of projects that you're investing in? Thank you. Sure. We did see a little bit of an increase in CapEx in Q1. As we've talked, we are in the midst of implementing SAP for our fire protection business. And that adds a little bit of CapEx. In the first quarter, we also saw, over the last couple of years, supply chains; our vendors have had some disruption in their ability to deliver trucks being the best example. And in the first quarter, we saw a little bit of a catch-up in terms of us receiving more of those trucks. And so we saw a bit of an increase there too in the first quarter. I expect for the year that we're going to likely be right around 4%.

Thanks for that color, Todd and I guess for my follow up. Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Could you talk about what your Capex expectations are this year and kind of the types of projects that youre investing in thank you. Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Sure, we did see a little bit of an increase in capex in Q1. We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

We are as we've talked we are in the midst of implementing SAP for our fire protection business and that adds a little bit. Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Capex in the first quarter, we also saw. Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Yes. Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Over the last couple of years. Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Supply chains are vendors have had some disruption in their ability to deliver. Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Trucks being the Best example. And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And in the first quarter, we saw a little bit of a catch up in terms of us receiving more of those trucks and so we saw a bit of an increase there too in the first quarter I expect for the year that we're going to likely be right around 4%. Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Operator: Longer term, we still believe 3.5% to 4%. But because of SAP and sort of that catch-up, might be a little closer to 4% this year. Great. Thank you, Mike. And thanks both for your time. Thank you. My pleasure. And our next question comes from Heather Balsky from Bank of America. Please go ahead, Heather. Hi. Thank you for taking my questions. I was hoping first you could talk about your exposure to the auto sector and any exposure you may have to, I guess, some of the current disruption. And then, two, if you could talk about sort of the end markets, are there any areas where just in this macro you're seeing softness, and areas where you're seeing strength? Would be great. Thanks. Good morning, Heather. Yeah. We're certainly watching what's going on with the auto workers' strike.

Longer term, we still believe three 5% to 4%, but because of SAP and sort of that catch up might be a little closer to 4% this year. Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Great. Thank you, Mike and thanks, both for your time. Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Pleasure. And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

And our next question comes from Heather <unk> from Bank of America. Please go ahead Heather. Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Hi, Thank you for taking my questions. I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

I was hoping first you could talk about your exposure to the <unk>. <unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

<unk> sector and any exposure you may have to I guess some of the current disruption and then two if you could talk about the end markets are there any areas, where just in this macro youre seeing softness in areas, where youre seeing strength would be great. Thanks. Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Good morning, Heather, Yes, we're certainly watching what's going on. With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

With the autoworkers strike, but it is not affecting us in any material way whatsoever. We have a very broad based.

Operator: But it is not affecting us in any material way whatsoever. We have a very broad-based customer base. And as a result of that, it's not affecting us to any material degree whatsoever. And keeping in mind that we have no one customer that's greater than 1% of our revenue and no even sector that's greater than 10% for three-digit NAIC codes. So that helps us and insulates us a bit from all that. As far as the macro environment, it varies based upon the sector, geography, whether they're goods producing or services providing. But the labor market is a little easier, but still not easy. And you see that through what we're reading with the job openings, still 9.5 million job openings. And that affects our customer base from a standpoint of them trying to attract and retain people.

We have a very broad based.

Customer. Base and as a result of that. Not affecting us to any material degree whatsoever. And keeping in mind that we have no one customer that's greater than 1% of our revenue and no even sector. That's. Greater than 10% for three digit <unk> codes. No. That that helps us on Insulates us a bit. From all of that as far as the. The macro environment it really is. It varies based upon. This sector or geography. Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Base and as a result of that. Not affecting us to any material degree whatsoever. And keeping in mind that we have no one customer that's greater than 1% of our revenue and no even sector. That's. Greater than 10% for three digit <unk> codes. No. That that helps us on Insulates us a bit. From all of that as far as the. The macro environment it really is. It varies based upon. This sector or geography. Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Not affecting us to any material degree whatsoever. And keeping in mind that we have no one customer that's greater than 1% of our revenue and no even sector. That's. Greater than 10% for three digit <unk> codes. No. That that helps us on Insulates us a bit. From all of that as far as the. The macro environment it really is. It varies based upon. This sector or geography. Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And keeping in mind that we have no one customer that's greater than 1% of our revenue and no even sector. That's. Greater than 10% for three digit <unk> codes. No. That that helps us on Insulates us a bit. From all of that as far as the. The macro environment it really is. It varies based upon. This sector or geography. Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Greater than 10% for three digit <unk> codes. No. That that helps us on Insulates us a bit. From all of that as far as the. The macro environment it really is. It varies based upon. This sector or geography. Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

No. That that helps us on Insulates us a bit. From all of that as far as the. The macro environment it really is. It varies based upon. This sector or geography. Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

That that helps us on Insulates us a bit. From all of that as far as the. The macro environment it really is. It varies based upon. This sector or geography. Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

From all of that as far as the. The macro environment it really is. It varies based upon. This sector or geography. Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

The macro environment it really is. It varies based upon. This sector or geography. Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

It varies based upon. This sector or geography. Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

This sector or geography. Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Whether the goods producing or services providing. But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

But the. The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

The labor market is a little easier, but still not easy. And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And you see that through the. What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

What we've. We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

We are leading with the job openings still $9 5 million job openings and that affects our customer base from a standpoint of them trying to attract and retain people and we would love to see those those jobs filled because we think that would be really good for our customers. And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Operator: And we would love to see those jobs filled because we think that'd be really good for our customers and for the economy in general. Appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead, Justin. Yeah. Hi. Good morning. I wanted to ask about the First Aid margins because they've kind of sustainably been higher than they have been historically and really more comparable to the Uniform Rental and Facility Services segment. And I guess the question is, I mean, for years, that was kind of a scale business where you were building it out and it had lower margins. Are you at the point now where that business has reached a point where it has very comparable margins sustainably to the Uniform Rental business? Yeah. Good morning, Justin. Yeah. We really like the First Aid business.

And for the economy in general. I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

I appreciate the color. Thank you. Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Thank you. And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And our next question comes from Justin Hauke from RW Baird. Please go ahead Justin. Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Yes, hi, good morning. I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

I wanted to ask about the first aid margins, because that's kind of sustainably Ben. Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Higher than they have been historically and really more comparable to the uniform rental and facility services segment and I guess the question is I mean for years that was kind of the. Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Kind of a scale business, where you were building it out and had lower margins are you at the point now where like that business has reached a point, where it has very comparable margins sustainably to the uniform rental business. Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Yes, good morning, Justin. Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Yes, we are. We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

We really liked the first aid business I mean, it's that. It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Operator: I mean, it resonates with our customer base. The strong value proposition is helping our revenue growth. The mix has returned closer to historical with first-aid and safety. And Justin, just like our other businesses, we're using various technologies to extract inefficiencies out of our business. And there's certainly no exception to that. I mentioned that our global supply chain team is doing a great job in sourcing product, and we're benefiting from sourcing there. But yeah, we see certainly there is running a business is not linear. But that being said, we certainly think that gross margins in excess of 50 are sustainable in that business. Okay. Great. And then I guess the last one is kind of more procedural, I guess.

It. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you. Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Resonates with our customer base. Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Strong very strong value proposition. Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Is it is helping our revenue growth. The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

The mix is. As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

As return closer to historical. With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

With first aid and safety. And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And Justin just like our other businesses we are using. Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Various technologies to extract inefficiencies out of our business and and there is certainly no exception to that. I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

I mentioned that our global supply chain team has done a great job in sourcing product and and we're benefiting from sourcing there. But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

But yes, we see certainly. There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

There is no. We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

We're running a business is not linear. But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

But that being said, we certainly think that. Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Our gross margins in excess of 50 <unk> sustainable in that business. Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Okay, Great and then I guess last one kind of walk procedure oil and gas. You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Operator: But you did. It looks like in the cash flow, about $56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys typically do. Do you have any comments on kind of where that was, where we should see the revenue flow from it? Well, I'll start, and Mike can chime in. Justin, as you know, we love leveraging our balance sheet for M&A. We think it's a great use of cash. We're very happy with the fact that we were able to deploy some of the cash to leverage that opportunity. We are acquisitive in all three of our operating segments that are route-based. We made acquisitions in all three in Q1. So we're pleased with that.

You did it looks like in the cash flow about 56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys. Typically do do you have any comments on kind of where that was. We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

We should see the revenue flow from that. Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Okay. Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Well I'll start and Mike can chime in. Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Justin. We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

We love leveraging our balance sheet for M&A. We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

We think it's a great use of cash. Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Very happy with the fact that we were able to deploy some of the cash too. To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

To leverage that opportunity and we are. Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Is it even. And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And all three of our operating segments that our route based and and we made acquisitions in all three so in Q1. So we're pleased with that and we think that will. It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Operator: And we think that is a great opportunity for us to bring those customers into the fold, those employee partners into the fold, and provide more value and cross-sell to those customers that are now part of Cintas. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead, George. Hi. Thanks. Good morning. In the past, we've talked about strong demand from the healthcare, education, and government verticals in driving uniform rentals growth. Can you discuss the latest trends you're seeing in these end markets and what's fueling the growth? Good morning, George. Yeah. Those are three great verticals for us. I mean, there are three great segments of the North American economy. And so yeah, we're still seeing outsized growth in those markets. And as we've chatted about in the past, it's more than just a sales effort.

It's a great opportunity for us. US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

US to bring those customers into the fold those partners as employee partners into the fold and provide more value and cross sell those. To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

To those those customers that are now part of Suntrust. Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Okay. Thank you very much. Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Thank you. And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And our next question comes from George Tong from Goldman Sachs. Please go ahead George. Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Alright. Thanks, good morning in the past you've talked about strong demand from the healthcare education and government verticals and driving uniform rentals growth can you discuss the latest trends youre seeing in these end markets and what's fueling the growth. Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Good morning, George Yes, those are. It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

It was a three great verticals for us. <unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

<unk> great. Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Segments of. The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

The North American economy. So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

So, yes, we're still seeing outsize growth in those markets. As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

As we chatted about in the past. It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Operator: We've organized around them. We've got products for them. We've got technologies for them. And that is resonating with that customer base. So we think we've chosen them quite well. And there's plenty of runway in all of them. So we're, again, quite bullish on the future of those segments. Got it. And then with respect to margins, your gross margins expanded 60 basis points year over year in your uniform segment. Most of that appears to be driven by lower energy costs. Can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwinds you're seeing from lower energy costs? Yes. George, the nature of the math around our business is the rental business is obviously a large percentage of it. And we're guiding towards margin expansion for the year.

It's more than just a sales effort we've organized around them, we've got products for them, we've got technologies for them and. And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And that is resonating with that that customer base. So we think we've chosen them quite well. And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And there is plenty of runway in all of them. So. Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Again quite quite bullish on the future of those segments. Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Got it. And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And then with respect to margins your gross margins expanded 60 bps year over year in the uniforms segment. Most of that appears to be driven by lower energy costs can you discuss the puts and takes around uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwind. Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Are you seeing from lower energy costs. Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Yes George. The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

The nature of the math around our businesses. The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

The rental business is obviously, a large percentage of it. And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And we're guiding towards margin expansion for the year. And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Operator: And we do not see energy being a tailwind for the balance of the year. So we expect margin expansion based upon certainly leverage on revenue growth. That's going to be helpful. But we're extracting those inefficiencies out of our business. And as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels. But we're still able to grow gross margin and operating margin at very attractive levels to levels that are all-time highs. So that's part of our plan. And our team is executing at a very high level. And we expect that that will continue. George, I might just reiterate what I mentioned in the prepared remarks, keeping in mind that the energy benefit that we are getting is partly because we are working really hard at things like our smart truck initiative.

And. And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And we do not see energy being a tailwind for the balance of the year. So we we expect margin expansion based upon. Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business and as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin gross margin and operating margin at very attractive levels and two. To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

To levels that are all time highs so. So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

So that's part of our plan. And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And. Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Our team is executing at a very high level and we expect that that will continue. George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

George I might just reiterate what I had mentioned in the prepared remarks that that keeping in mind that the energy benefit that we are getting. Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Partly because we are working really hard at things like our smart truck. Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Operator: So in other words, as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past. And that creates then better fuel efficiency, if you will, throughout our network. And so it is a proactive initiative to get energy down. And one of those proactive ways is through that SmartTruck technology. And Mike, I might add that when we extract those inefficiencies out, that's better for our customers because we're able to spend more time in front of them instead of on the road. It's certainly better for our employee partners because it makes them that much more productive. And that's good for them and our organization. And it's really good for the environment. So we think it's a, there's a lot of boxes checked there. And we've worked hard on that technology over the years.

Initiatives. So in other words as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past and that creates than better. Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Fuel efficiency, if you will throughout our network and so it. It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

It is a proactive. Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Initiative to get energy down and one of those proactive ways is through that smart truck technology. I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

I might add that when we extract as inefficiencies out that's better for our customers because we're able to spend more time in front of them instead of on the road. Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Better for our partners our employee partners because. It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

It makes them that much more productive and that's good for them and our organization. And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And it's really good for the environment. So we. We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

We think let's say. Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Theres a lot of boxes checked there and we've worked hard on that technology over the years. And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Operator: And it's showing up. And it's benefiting not just the P&L in a more simplistic fashion, but in many ways. Very helpful. Thank you. Thank you. And our next question comes from Tim Mulroney from William Blair. Please go ahead, Tim. Hey, this is Sam Kusswurm for Tim. Thanks for taking our questions here. I guess I want to start with another healthcare question here. But as it relates to your healthcare clients, you've talked a lot about the opportunity here, especially as more non-programmers convert. But I guess I'd like to know for those healthcare operators who already use a service partner, what do you think your penetration rate is? And how might that compare to some of your other customer verticals? Sam, that's a good question. I don't have that in front of me. But we know this. We're in the early innings with healthcare.

And it's showing up and down and it's it's benefiting not just. The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

The P&L. A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

A more simplistic fashion, but in many ways. Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Very helpful. Thank you. Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Sure. And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and. And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

And our next question comes from tilt, Tim Mulrooney from William Blair. Please go ahead Tim. Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>. They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and.

Yes. Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>.

Hey, This is Sam comes from on for Tim Thanks for taking our questions here. I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>.

I guess I wanted to start with another healthcare question here. As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>.

As it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers can vary, but I guess I'd like to now turn with health care operators, who already use a service partner what do you think your penetration rate is and how might that compare to some of your other customer verticals. Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>.

Sam that's a good question I don't have that in front of me, but we know this we're in the early innings with health care. And we're coming up with more products and services that. <unk>.

Operator: We're coming up with more products and services that they find attractive. That's part of our culture. We will enter into a business. But then we get out from behind our desk and we go spend time with our customers. We find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. We're hearing from them in various areas where we can help them. We're taking action there. So again, a very long runway in that vertical. That's, again, part of our culture and will be part of how we go to market moving forward. Gotcha. Appreciate it. Maybe just another quick one on the margins. I see SG&A as a percentage of sales picked up again in the quarter compared to last year.

And we're coming up with more products and services that. <unk>.

<unk>.

They find attractive. And that's part of our culture. <unk>. We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>. We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and.

And that's part of our culture. <unk>.

<unk>.

We will enter into a business. But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>.

But then we get out from behind our desk and we got to spend time with our customers. When we find that we find the answers to what they are most interested in by speaking to them and our customers and our employee partners. <unk>.

<unk>.

We're hearing from them on various areas, where we can help them and we're taking action. There. So again, a very long runway and in that vertical. And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims. Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and.

And that's again part of our culture and will be part of how we go to market moving forward. Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims.

Got you I appreciate it maybe. Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter. Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims.

Maybe just another quick one on the margins I see SG&A as a percentage of sales ticked up again in the quarter.

Compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay. Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims.

Operator: I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly some of the selling and branding investments you've talked about previously. Maybe you could just help break that out for us a little bit more. Nothing unusual in the quarter. We did see. We talked in the fourth quarter about some claims getting higher, but not structural. We saw those come back down to something more normal. But as it relates to the quarter, just some perks and takes, nothing of any significance. Our goal is to continue to leverage, particularly the G&A piece of that. And we're going to continue to work at that. Awesome. Appreciate it. Thank you. Thank you. And our next question comes from Andrew Steinerman from J.P. Morgan Securities. Please go ahead, Andrew. Hi.

I guess I'm wondering if there was any variable costs like your insurance expenses or if it was mainly from the selling of branding divestments you've talked about previously maybe you could just help break that out for us a little more. Okay.

Okay.

Nothing nothing unusual in the quarter, we did see the we talked in the fourth quarter about. Some claims.

Some claims.

Getting higher but not structural we saw those come back down to something more normal but. As it relates to the quarter, just some puts and takes nothing. Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that. Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and.

As it relates to the quarter, just some puts and takes nothing.

Any significance our goal is to continue to leverage, particularly particularly the G&A. A piece of that and we're going to continue to work at that.

A piece of that and we're going to continue to work at that.

Also I appreciate it thank you. Thank you. Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and.

Thank you.

Our next question comes from Andrew Andrew Steinman from Jpmorgan Securities. Please go ahead Andrew. Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now. It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and.

Operator: I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year-over-year basis. I surely know Cintas historically has targeted 20% to 30% as a range for incremental margins. But kind of given where we are right now, it definitely feels like that kind of low end of the range to 20% might not be as appropriate. And so my question is, has your medium-term range for incremental margins been creeping up? Good morning, Andrew. Yeah. 20% to 30% is our target. Q1 was very attractive incremental margins. And there's always perks and takes in every quarter. As I mentioned, running a business is not linear. But we will expect that we will be in that 20% to 30% range. I certainly like higher in the range than lower.

Hi, I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year over year basis, I surely no syntax historically has targeted 20% to 30% as a range for incremental margins, but kind of given where we are right now.

It feels like. That kind of low end of the range of 20 might not be as appropriate and so my question is. Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and.

That kind of low end of the range of 20 might not be as appropriate and so my question is.

Has your medium term range for incremental margins been creeping up. Good morning, Andrew. Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and.

Good morning, Andrew.

Yes, 20%, 30% is our target. Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that. That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and.

Q1 was a very attractive incremental margins and there is there's always puts and takes. And every quarter. As I mentioned, we're running a business is not linear, but we will expect that.

And every quarter. As I mentioned, we're running a business is not linear, but we will expect that.

As I mentioned, we're running a business is not linear, but we will expect that.

That we will be in that 20% to 30% range I certainly like higher than the range, then then lower and.

Operator: I think our guide speaks to where attractive margin improvement for the year as well. Okay. Thank you. Thank you. Our next question comes from Seth Weber from Wells Fargo. Please go ahead, Seth. Hey, guys. Good morning. I wanted to ask just about the small tickdown in Uniform Direct Sale organic growth here in the quarter. It's the first, I think, decline that we've seen there in a while. I know the comp was hard. Is there anything else that you'd call out there for that business? Thanks. Yeah. Good morning, Seth. Certainly, we have seen outstanding performance from that business over the past really two years. But as we've spoken about in the past, the Uniform Direct Sale business tends to be a little bit lumpier based upon rollouts of large programs, whether it's hospitality or a Fortune 1000-type customer. So nothing more than that.

And I think our guide speaks to where. Attractive margin improvement for the year as well. Okay. Thank you.

Attractive margin improvement for the year as well.

Okay. Thank you.

Thank you. Yeah. And our next question comes from Seth Weber from Wells Fargo. Please go ahead Sir. Hey, guys good morning. Wanted to ask just about the small tick down in uniform direct sales organic growth so hearing a quarter. It's the first. The decline that we've seen there in a while I know the comp was hard or is there anything else that you'd call out there. For that business. Thanks. Yeah, Good morning, Seth. Certainly what we have seen outstanding performance from that business over the past two years. And. But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Yeah. And our next question comes from Seth Weber from Wells Fargo. Please go ahead Sir. Hey, guys good morning. Wanted to ask just about the small tick down in uniform direct sales organic growth so hearing a quarter. It's the first. The decline that we've seen there in a while I know the comp was hard or is there anything else that you'd call out there. For that business. Thanks. Yeah, Good morning, Seth. Certainly what we have seen outstanding performance from that business over the past two years. And. But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And our next question comes from Seth Weber from Wells Fargo. Please go ahead Sir. Hey, guys good morning. Wanted to ask just about the small tick down in uniform direct sales organic growth so hearing a quarter. It's the first. The decline that we've seen there in a while I know the comp was hard or is there anything else that you'd call out there. For that business. Thanks. Yeah, Good morning, Seth. Certainly what we have seen outstanding performance from that business over the past two years. And. But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Hey, guys good morning. Wanted to ask just about the small tick down in uniform direct sales organic growth so hearing a quarter. It's the first. The decline that we've seen there in a while I know the comp was hard or is there anything else that you'd call out there. For that business. Thanks. Yeah, Good morning, Seth. Certainly what we have seen outstanding performance from that business over the past two years. And. But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Wanted to ask just about the small tick down in uniform direct sales organic growth so hearing a quarter. It's the first. The decline that we've seen there in a while I know the comp was hard or is there anything else that you'd call out there. For that business. Thanks. Yeah, Good morning, Seth. Certainly what we have seen outstanding performance from that business over the past two years. And. But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

It's the first. The decline that we've seen there in a while I know the comp was hard or is there anything else that you'd call out there. For that business. Thanks. Yeah, Good morning, Seth. Certainly what we have seen outstanding performance from that business over the past two years. And. But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

The decline that we've seen there in a while I know the comp was hard or is there anything else that you'd call out there. For that business. Thanks. Yeah, Good morning, Seth. Certainly what we have seen outstanding performance from that business over the past two years. And. But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

For that business. Thanks. Yeah, Good morning, Seth. Certainly what we have seen outstanding performance from that business over the past two years. And. But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Yeah, Good morning, Seth. Certainly what we have seen outstanding performance from that business over the past two years. And. But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Certainly what we have seen outstanding performance from that business over the past two years. And. But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And. But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

But it is as we've spoken about in the past the uniform direct sale business tends to be a little bit lumpier based upon rollout some large programs, whether it's hospitality or a fortune 1000 type customer so. Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: We still are bullish on the future of that business for the year and moving forward. Todd, do you think that business could be up for the year? Or do you think that's kind of flattish or down? Well, we expect all of our businesses to grow. So I would suspect that we would see that up. But just the comps are set with the level of what we dealt with with hospitality, in that vertical, and Fortune 1000, the level of where employees came back so strongly. I wouldn't suspect that you'll see anywhere near the level of growth that we've seen in the last couple of years. But we expect it to grow. Seth, I might point out that the last two years, they have been a significant recapture of what we sort of lost in that pandemic period of time.

Nothing more than that. Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Still are. Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Bullish on the. On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

On the future of that business and for the year and moving forward. Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Do you think Todd do you think that business can be. For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

For the year or do you think that's kind of flattish. We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

We're down. Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Yeah. I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

I would suspect well, we expect all of our businesses to grow so. So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

So I would suspect that we will. See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

See that up but just the comps are. SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

SaaS with. The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

The level of what we dealt with with hospitality. And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And that vertical and fortune 1000. The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

The level of where employees came back. So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

So strongly. I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

I wouldn't suspect that Youll see. We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

We were near the level of growth that we've seen in that. In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

In the last couple of years, but we expect it to grow. Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Yes. Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Might point out. That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

That last two years have they have been a significant recapture of what we sort of lost in that pandemic period of time. Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: In our fiscal 2022, that business grew organically over 50%. In fiscal 2023, it was almost 30%. So there was a lot of recapture going on. But keep in mind that our longer-term goal for that business, Todd expects it to grow. But it's probably more of a low single-digit to mid-single-digit grower in our portfolio. Right. Okay. Understood. Thank you. And then maybe just on the first-aid safety business, given the margin strength that you're seeing there, can you talk about are you seeing any incremental competition in that space? Are you seeing any bigger players trying to get into that space or just smaller regional players getting more active? Thank you. Yeah. Good question, Seth. Certainly, it's a very competitive marketplace. And first-aid products, safety products, there are hundreds of competitors out there.

Our fiscal 'twenty, two that business grew organically over 50% in. In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

In fiscal 'twenty three it was almost 30%. So there was a lot of recapture going on but keep in mind that our longer term goal for that business Todd Todd expects it. To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

To grow, but it's probably more of a low single digit. To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

To mid single digit grower in our portfolio. Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Right. Okay understood. Thank you and then maybe just on the first aid safety business given the margin strength that youre seeing there can you talk about are you seeing any incremental competition in that space are you seeing any. No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

No. Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Bigger players trying to get into that space or just smaller regional players getting more active thank you. Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Yes. Good question, certainly, it's a very competitive marketplace and first aid products safety products. There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

There is hundreds of competitors out there there's many many ways to procure those products, whether it be banned delivered or. E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: There's many, many ways to procure those products, whether it be van-delivered or e-commerce, you name it, we see it there. But as a result of that, it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs, certainly, it attracts plenty of people into the marketplace because the value proposition of taking great care of employees is resonating with folks. And so yeah, it's a very competitive environment. And I'm sure it'll continue to be. Okay, guys. Thank you very much. Thank you. And our next question comes from Stephanie Moore from Jefferies. Please go ahead, Stephanie. Hi. Good morning. Thank you.

E Commerce. You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

You name it we see it there. But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

But as a result of that it's a very competitive market. And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And we've talked about the health and safety of employees being the number one item that businesses are focused on. And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And when that occurs there's certainly yes attract plenty of people into the marketplace because the the. The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

The value proposition. Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Taking great care of employees. Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Is resonating with folks and so yes, it's a very competitive environment and I'm sure. It will continue to be. Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Okay guys. Thank you very much. Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Thank you. And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And our next question comes from Stephanie Morph Jefferies. Please go ahead Stephanie. Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Hi, Good morning, Thank you actually maybe continuing on that last question. There can you talk a little bit about what youre seeing in terms of the competitive landscape in your more. Core uniform ancillary products. <unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: Actually, maybe continuing on that last question there, could you talk a little bit about what you're seeing in terms of the competitive landscape in your more core uniform and wear products segment? As you continue to win new business, where are you seeing the majority of that new business coming from? Is it non-programmers, some of the regional players, larger players? Any color there would be helpful. Thank you. Yes. Good morning, Stephanie. So I've been in the Uniform Rental and Facility Services business my entire career, 34 years. It's been highly competitive my entire career. I'm sure it'll continue to be that way. We haven't seen a change in the landscape. It's always really competitive. So that being said, our sales organization is highly skilled. What we know is there is a massive opportunity with the non-program market.

Core uniform ancillary products.

<unk>. As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

As you continue to win new business, where are you seeing the majority of that new business coming from is it non. Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Non programmer or some of the regional players larger players any color there would be helpful. Thank you. Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Yes, good morning, Stephanie. So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

So. I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

I've been in the uniform rental. Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Facility services business my entire career 34 years, it's been highly competitive my entire career and I am sure. It will continue to be that way. But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

But we haven't seen a change in the landscape, it's always really competitive so. That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

That being said, we our sales organization. Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Is a highly skilled and. And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And what we know is there is a massive opportunity with the no program market and. For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: For years, our organization has been focused on expanding the pie. They are continuing to do exactly that. When we talk about expanding the pie, those employees in a no-program environment, I mean, they're wearing garments, right? But they may be buying it themselves. They may be buying it through a catalog. It might be a centralized program for the company, but they're purchasing them. Then we provide more value to them with the products and services that we offer, whether they're unique products like Carhartt, ChefWorks, or Landau, great branded programs. The no-program market is really attractive for us. We find that that market sees really good value in what we're offering. We're focused on expanding that pie. That will continue. Got it. Just a follow-up, if I may. You noted that retention levels continue to be really high.

For years, our organization has been focused on expanding the pie and they are continuing to do exactly that. And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And when we when we talk about expanding the pie they are. Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Those employees at a no programmer. They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>. Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

They are wearing garments. But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>.

But they are they may be buying it themselves they may be buying it. Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>.

Through a catalog. It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>.

It might be a centralized program for the company, but they're they're purchasing them and then we provide more value to them with the <unk>.

Products and services that we offer whether there. <unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

<unk> unique product side carhartt, our chef works our land out. Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Ryan Great branded programs. But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

But no program market is really attractive for us. And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And we find that our that market seems really good value in what we're offering so we're focused on expanding the pie and that will continue. Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Got it and just a follow up if I may you do you don't noted that retention level continue to be really high I'm. Just curious in this current environment. What do you think is resonating the most with your customers with your sales force kind of goes then is that kind of. Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: I'm just curious, in this current environment, what do you think is resonating the most with your customers? As your sales force kind of goes in, is it kind of the willingness to work with them on price? Is it the product offering, your scale? Would love to just get your thoughts on what do you think is resonating the most to drive such a nice retention level? Thanks. Yeah. Great question, Stephanie. That's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers and attracting and retaining the very best people, but then giving them products, services, tools so that they can not only have the intent to take great care of our customers, but do just exactly that.

Our willingness to work with them on price is it the product offering your scale loved it just get your thoughts on what do you think thats resonating the most to drive the such as the nice retention level. Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Yes, great question, Stephanie that's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

But it starts with being highly focused on taking incredibly good care of our customers. And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And attracting and retaining the very best people. But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

But then giving them. Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Products services tools. So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

So that they. Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Can not only have the intent to take great care of our customers, but do just exactly that so. And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: And that gets into great products that I mentioned earlier, the service focus that we're or the tools that we're making it to make it easier to do business with us. But it gets down to our people and positioning them to take really, really good care of our customers and them executing on that. And they're executing at a really high level. And we talk often about when markets and when things are challenging, when it's hard to attract people, when it's hard to procure products, when it's hard to operate in the marketplace, it gives us a chance to shine. And our culture is shining through. And our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead, Scott. Thanks. Good morning.

And. That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

That gets into great products that I mentioned earlier. The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

The service. Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Focus that we are the tools that we're making to make it easier to do business with us. But but it gets down to our people and positioning them to take to really really good care of our customers. And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

But but it gets down to our people and positioning them to take to really really good care of our customers.

And and then executing on that and they are executing at a really high level. And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And we talk often about when markets when things are challenging. Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Hard to attract people when it's hard to. To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

To procure products when it's hard to operate in the marketplace. It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

It gives us a chance to shine and our culture is shining through. Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Our people are doing one heck of a job in taking care of our customers. Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Great. Thank you so much. Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Okay. Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Thank you. And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And our next question comes from Scott Schneeberger from Oppenheimer. Please go ahead Scott. Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Thanks, Good morning. Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: Guys, it sounds like you really want to speak to SmartTruck because that's been going very well. I was hoping you could add also on automation to facilities. And where I'm going here, just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies, and you still see more room to run. Is there any quantification you can put on that? I know you're looking for margins up this year, overall business. But maybe just help us get an idea of what's at play there and how much you can do. Thanks. Scott, I'll start. Mike, if you would like to chime in there. We're deploying technology. You can call it automation. You can call it technology. You can call it digital. We're deploying that across all of our businesses and across all areas of our business as well.

Hey, guys. <unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

<unk>. It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

It sounds like you really want to speak to you. Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Smart truck because that's been going very well I was hoping you could add also on automation to facilities and where I'm going here just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run is there any quantification you can put on that I know you're looking for margins up this year overall. But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

But <unk>. Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Maybe just help us get an idea of what's at play there and how much you can do things. Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Scott I'll start and Mike if you would like to chime in there. Yes. We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Yes.

We are. Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Deploying technology and you can call. It automation you cough technology can talk digital. We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

We're deploying that across all of our businesses and across all areas of our business as well. Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: And we've been focused on that for years. But there certainly is, we're seeing some real benefits there with our investment with SAP, with our investments, our partnerships with Google, and with Verizon. And those are, we see that there's plenty of opportunity still to come there to improve in the efficiencies of our business and to automate certain functions. And we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can invest there, we think it's an incredibly good use of our balance sheet because it positions us well for not just the short term, but the long term as well. Yeah. There are so many details that go into all of the things that Todd just talked about that it's really hard to put a number on it.

Sure. And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And we've been we've been focused on that for years, but there certainly is. We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

We're seeing some real benefits there with our investment with SAP. With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

With our investments. Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Our partnerships with. With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

With Google and. And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And with Verizon. Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Those are we see. That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

That there is plenty of opportunities still to come there to improve the efficiencies. <unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

<unk> of our business and to. Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Until automate certain functions and we call it make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

The more we can. Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Can invest there we think it's a incredibly good use of our balance sheet. That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

That positions us well for <unk>. Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Not just the short term, but the long term as well. And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And there are so many details that go into all of the things that Todd just. Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Talked about that it's really hard to put a number on on it. Our goal is as you've heard US say is continue to improve margins, we have a number of different levers to do so. Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: Our goal is, as you've heard us say, is continue to improve margins. We have a number of different levers to do so. Our goal is incrementals in that 20% to 30% range, recognizing we're at the bottom of that range today. But it's hard to put a specific number on what's left because we're always working on what more can we do. And there are so many details and so many different projects we're working on. So our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys. Appreciate that. You just referenced SAP. And you mentioned CapEx may be high into the range this year, working on some implementation in the fire segment. Could you just speak to will that have a tail to next year?

Our goal is incrementals. In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

In that 20% to 30% range recognizing we're at the bottom of that range today, but it's hard to it's hard to. Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Put a specific number on what's left because we're always we're always working on what's what more can we do and they are all there are so many details in so many different projects. We're working on so our guide certainly does imply for continued margin improvement over last year. And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And that's the way we think about it. Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Great. Thanks, guys I appreciate that. You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

You just referenced that's AP and you mentioned. <unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

<unk> Capex may be high end of the range this year. Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Looking on some implementation. Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Higher segment. Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Could you just speak to. Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Would that have a tail to next year, how much more. I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: How much more, I mean, are we going to see SAP projects for years to come? Just a sense of what you have on the spend side going forward. Thanks. From a fire perspective, we are in the midst of the early innings of the implementation. And so we'll see some pressure in the fire margins a little bit this year and a little bit next year. The synergies and the benefits don't come overnight. It's not a flip of the switch. And so just like we did with the rental business and the first-aid business before that, we need to get onto the platform. It takes a little bit of time to get really good at using the platform. And then we really start to see the benefits accelerate, just like we have in first-aid and rental.

I mean are we going to see SAP projects. Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Projects for years to come just to just a sense of. <unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

<unk>. What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

What you have on the spend side going forward. Thanks. From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

From a from a fire perspective. The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

The. The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

The envelope we are in the midst of the early innings of the implementation and so we'll see. We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

We will see some some pressure in the fire margins a little bit this year. And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

And a little bit next year, the synergies and the benefits don't come overnight, it's not a flip of the switch and so we just like we did with the rental business and the first aid business before that we. We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

We need to get onto the platform. It takes a little bit of time to get really good at using the platform and then we really start to see the benefits accelerate just like we have in first data and rental now. That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP. It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott. Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business. But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that. That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: Now, fire is a smaller part of our business, but we certainly expect that those benefits will come. As it relates to SAP, SAP is not. It's a journey, right? And even though we are on SAP and will be for most of our business after the fire protection business gets on, there are constant things to learn from SAP. There are new initiatives in working with SAP, Google, and Verizon that create new and different things. And so we look at this. I think Todd's talked about it as one of his largest initiatives in terms of technology. And it's a journey. It's not a flip of the switch. We turn on new systems here and there. So we're in the midst of that. We'll continue to invest in all of that. And our expectation is it's going to continue to bring benefits into the future. Yeah.

That's that's a fire is a smaller part of our business, but we certainly expect that those benefits will come as it relates to SAP.

It's not it's a journey right and we are even though we are on SAP and will be for most of our business. After the fire protection business gets on. There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his. The largest initiatives in terms of technology and it's a journey, it's not a it's not a. Flip of the switch we turn on new systems here and there. So we're in the midst of that will continue to invest in and all of that and our expectation is it's going to continue to bring benefits into the future Scott.

There are constant things to learn from our new initiatives in working with us and Google and Verizon that create new and different things and so we look at this I think Todd talked about it as one of his.

Operator: Scott, to expand upon what Mike said, it is a journey. But when you're on that journey, there are benefits, a long, long tail of benefits as well. And so we will continue to invest appropriately. We have relationships at a very high level in each of those organizations. And it's going to bear fruit for us. And that's part of our plan. It's not easy. It's very challenging to go through these processes. But our team has shown the wherewithal to not only digest the change but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yes, sir. And our next question comes from Shlomo Rosenbaum. Please go ahead, Shlomo. Hi. Thank you for taking my questions. Hey, Todd, maybe you can just peel the onion back a little bit more on that margin on the first-aid side.

Scott too. To expand on what Mike said it is a journey. But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business.

To expand on what Mike said it is a journey.

But when you are on that journey there is benefits. Our long long tail of benefits as well. So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them. Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business.

Our long long tail of benefits as well.

So we will continue to invest appropriately we have relationships at a very high level. In each of those organizations. And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

In each of those organizations.

And it's going to bear fruit for us and and that's part of our plan, it's not easy it's very challenging. To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

To go through these processes, but our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

Great. Thanks, guys. Yeah. Yes, Sir. And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just. Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business.

Yeah.

Yes, Sir.

And our next question comes from Shlomo Rosenbaum. Please go ahead Shlomo. Hi, Thank you for taking my questions Hey, Todd maybe you can just.

Hi, Thank you for taking my questions Hey, Todd maybe you can just.

Peel the onion back a little bit more on net margin on the first aid side I know you pointed to some sourcing and stuff like that but. It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need. Good question Shlomo, Yes again. The first aid business.

Operator: I know you pointed to some sourcing and stuff like that. But it seems like the business is going from mid-teens to low 20s in the course of the year. I was wondering if there's something to do with route optimization. Is it mix-related pricing? Anything else that operationally made such a significant difference? And after that, I have just a question on the labor environment for you guys yourselves. Is it easier for you guys to source people for what you need? Good question, Shlomo. Yeah. Again, we love the first-aid business. But there's so many inputs to margin expansion. And we're leveraging them all. It starts with really good revenue growth. And we're seeing that. And that's in a big way because the value proposition is resonating.

It seems like the business has gone from mid teens to low <unk> in the course of the year and I was wondering if there's is there something to do with the route optimization is it mix related pricing anything else that operationally, we had such a significant difference. After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need.

After that I have just a question on the Hawaii labor environment for you guys or solve that or is it easier for you guys to source people for what you need.

Good question Shlomo, Yes again. The first aid business.

The first aid business.

But there's so many inputs to margin expansion. Leveraging them all it starts with really good revenue growth and we're seeing that.

Leveraging them all it starts with really good revenue growth and we're seeing that.

That's in a big way because the value proposition is resonating now the products the services that we offer. In the marketplace. Trying to attract and retain people is still challenging and.

Operator: The products, the services that we offer in the marketplace, trying to attract and retain people, is still challenging. Customers are trying to take really good care of their people. We're benefiting from that. We're helping them accomplish exactly that. We're helping them run their business better. So that's helpful. The mix, as you know, has, back during the pandemic, it was certainly so much more focused on safety products, a lot of gloves, a lot of sanitizer, and those types of items. That has abated a bit. The mix is back focused on first-aid and those types of products, more recurring revenue type. Yeah, we are absolutely leveraging technology to make it easier to do business, but also to position our employee partners to provide more value to our customers. SmartTruck is a component of that.

In the marketplace. Trying to attract and retain people is still challenging and.

Trying to attract and retain people is still challenging and.

And people are trying to customers, who are trying to take really good care of their people and we're benefiting from that. And we're helping them accomplish exactly that we're helping them run that business their business better. So thats helpful. The mix as you know has. Back during the pandemic. It was certainly so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abate. Abated a bit. And the mix is back focused on first aid and. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers that's better for our employee partners. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And we're helping them accomplish exactly that we're helping them run that business their business better. So thats helpful. The mix as you know has. Back during the pandemic. It was certainly so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abate. Abated a bit. And the mix is back focused on first aid and. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers that's better for our employee partners. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

So thats helpful. The mix as you know has. Back during the pandemic. It was certainly so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abate. Abated a bit. And the mix is back focused on first aid and. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers that's better for our employee partners. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Back during the pandemic. It was certainly so much more focused on safety products a lot of clubs in a lot of sanitizer and those types of items and that has abate. Abated a bit. And the mix is back focused on first aid and. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers that's better for our employee partners. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Abated a bit. And the mix is back focused on first aid and. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers that's better for our employee partners. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And the mix is back focused on first aid and. Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers that's better for our employee partners. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Those types of products more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers that's better for our employee partners. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners our employee partners to provide more value to our customers and smart truck as a component of that. We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers that's better for our employee partners. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Operator: We did have a little bit of energy tailwind, 40 basis points. But as Mike cited earlier, not all that's because of the price at the pump. That is also because we are extracting the inefficiencies out. And we always talk around here about how we don't make money when the wheels are moving. We make money when the wheels stop. That's better for our customers. That's better for our employee partners. And all that is contributing. And then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there. The larger we get in that business, the more leverage they have. And they're executing at a high level. And so many inputs that are contributing to it. But what's really encouraging is we see those having an opportunity to continue in the future. So certainly, no event.

We did have a little bit of energy tailwind 40 basis points, but as Mike stated earlier not all of that's because of the price at the pump that is also because we are extracting the inefficiencies out and we always talk around here about how we don't make money when the wheels or movement. We make money then we'll stop. That's better for our customers that's better for our employee partners. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

That's better for our customers that's better for our employee partners. And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And all of that is contributing and then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

They are leveraging the opportunities there the larger we get in that business the more leverage they have and they are executing at a high level and so many inputs that are contributing to it and what's what's really encouraging is we see those having. <unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

<unk>. An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

An opportunity to continue in the future. So certainly no event. More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Operator: It's more of a process. And then just the labor environment on your own, for the people that you're sourcing? Yeah. Pardon me. So from a labor standpoint, yeah, as I mentioned earlier, it is easier, but not easy. And we are looking for great people. We want to hire not only people that are employed somewhere else, but happily employed, which is very challenging. But we think we have a great employee value proposition as well. And so we're highly focused on that. But yes, easier than it was a year ago. But I would say, Shlomo, throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from North Coast Research. Please go ahead, Kartik. Hey, good morning.

More of a process. And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And then just the labor environment on your own like for the people that you're sourcing. Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Yes pardon me. So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

So from a labor standpoint. Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Yes, as I mentioned earlier, it is easier but not easy. And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And we are looking for great people. We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

We want a higher not only people that are employed. Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Somewhere else, but happily employed. Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Is very challenging. But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

But we think we have a great. Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Employee value proposition as well and so so we're highly focused on that. So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

So, but yes easier than it was a year ago, but. But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

But. Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Shlomo throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

It's a little bit more challenging than it has been historically, but not what it once was a year ago or so. Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Thank you. Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Thank you. And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And our next question comes from Kartik Mehta from Northcoast Research. Please go ahead kartik. Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Operator: I know there's a lot of questions and maybe thoughts on what happened to new sales. And I'm wondering, if you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then, how did Cintas perform for new sales? And any lessons from that you would take as we move forward? Yes, Kartik. Well, first, we're a really different company today than we were in 2008, 2009. We have a much more diversified customer base. Now, today, 70% of our customers are services providing, 30% are goods producing. We have significant verticals that we didn't have as well as healthcare, education, and government. So we think we're really well positioned for whenever the next recession is. And I remember 2008, 2009 because I was running the sales organization back then. And our value proposition still resonated with people.

Hey, good morning, I know Theres, a lot of questions and maybe thoughts on what happens to new sales and I'm wondering. If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

If you go back to kind of 2008, 2009, and hopefully never have that recession again, but if you look at new sales back then how did how did <unk> perform. For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

For new sales and any lessons from that you would take. As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

As we move forward. Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Yes kartik. First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

First of all we're really different company today than we were in 2008 2009. We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

We have a much more diversified customer base, we are now today. 70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

70% of our customers our services, providing 30% of our goods producing. Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Have significant verticals that we didn't have as well as the healthcare education government. So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

So. We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

We think we're really well positioned. For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

For whenever the next recession is. And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And I. I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

I remember. <unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

<unk> nine because I was running the sales organization back then and. Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Our value proposition is still resonated with people and we still sold new business than. And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Operator: And we still sold new business. And we did so at attractive rates. As I mentioned, it's not always are we asking for new monies. Sometimes it's just a redirection of those from somewhere else to us, not only in maybe a direct competitor standpoint, but also they're purchasing clothing. They're purchasing items to take care of the facilities. So we think we're well positioned. I might also mention you didn't ask specifically about it, but we love having a pristine balance sheet. And we think whenever the next recession is, that might open up opportunities for us. And just the fact that our organization is focused on fighting through whatever the economic environment is, taking great care of our customers, taking great care of our employee partners. And we've grown sales in 52 of the last 54 years.

And we did so at attractive rates and as I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Sometimes it's just a redirection of those. Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Somewhere else to us not only in a maybe a direct competitor stand standpoint, but also their purchasing. No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

No. <unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

<unk>. Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Clothing, their purchasing items to take care of the facilities. So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

So we think we're well positioned I might also mentioned you didn't ask specifically about it but. We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

We love, having a pristine balance sheet and we think whenever the next recession is that might open up opportunities for us. And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And just the fact that we have. Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Our organization is focused on. Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Fighting through whatever the economic environment is taking great care of our of our customers take great care of our employee partners and we've grown sales from 50 to 52 of the last 54 years. And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Operator: We suspect that whatever the economic environment is, we believe we're going to be successful in it. Kartik, I might add, Todd might be a little modest. He was running that organization. It was a difficult environment. And he and the sales team exceeded their internal goals and really continued to show that value even in tough times, as Todd mentioned. And as he also talked about, our customer base is quite a bit broader than it was back then. And our sales team is a little bit different. But the really good news is, even back then, in the deepest, longest, broadest recession we'd seen in 100 years, we still sold a lot of new business. And it's a nice reflection of the value proposition that we have. Yeah. Thanks.

And we suspect that. That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

That whatever the economic environment is we believe we're going to be successful. Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Kartik I might I might add. It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

It might be a little modest he was running that organization it was a difficult environment. And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And the sales team exceeded their internal goals and really continued to show that value even in tough times as Todd mentioned and as he also talked about our customer base is quite a bit broader than it was back then and our sales team is a little bit. Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Different but the really good news is even back then in the deepest longest broadest to recession. We've seen in 100 years, we still sold a lot of new business. It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

It's a nice reflection of the value proposition that we have. Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Operator: And just as a follow-up, if you look at that first-aid and safety business, you're doing really well in it. Is there a way you would look at to say a certain percentage is recurring? Do you consider a certain percentage recurring? I know you don't have long-term contracts in that business, but just from a demand standpoint and what you've seen from a historical standpoint. Yes. Kartik, it's a good question. I don't have that in front of me, but I know it has returned much closer to historical or even higher as far as what we see from a repeat, recurring type of revenue. And we want to provide value to the customers, whatever product services they want. It's just the nature of it, what we provide, whether it be first-aid supplies, access to AEDs, access to Eyewash Stations, access to clean water through our WaterBreak offering.

Yes. And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And just as a follow up if you look at that first aid and safety business doing really well in it. Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Is there a way you would look at to say a certain percentage is recurring do you consider a certain percentage of recurring I know you don't have long term contracts in that business, but just from a demand standpoint. What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

What you've seen from a historical standpoint. Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Yes, Kartik. It's a good question I don't have that in front of me, but. But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

But I know it has return much closer to historical or even higher. As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

As far as what we see from our repeat recurring type revenue. And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

And we want to provide value to the customers. Whatever product services they want. It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that. Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Whatever product services they want.

It's just the nature of it what we provide whether it would be. First aid supplies. Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products. Talk about why you don't use that strategy. The disadvantages are that you have found when doing that.

First aid supplies.

Access to <unk>. Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products.

Access to eyewash stations. Access to clean water. Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products.

Access to clean water.

Through our water break sorry. Offering. Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products.

Operator: Those are all items that are really important to our customers, more so today than they were pre-pandemic. And we think that that trend will continue. Thank you very much. I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley. Please go ahead, Toni. Thank you so much. So one of your competitors has been talking about using a strategy where they're incentivizing their drivers to cross-sell products. Can you talk about why you don't use that strategy, what the disadvantages are that you have found when doing that? Yeah. Great question, Toni. I'm glad you asked because my first job 34 years ago was on the trucks. And we have been cross-selling our products via our we call them our service sales representatives. We've been cross-selling them since I started.

Offering.

Those are all items that are really important to our customers. So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony. Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products.

So today than they were pre pandemic and and we think that that trend will continue. Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony.

Thank you very much I really appreciate it. Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony.

Yes. Thank you. And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony.

And our next question comes from Toni Kaplan from Morgan Stanley . Please go ahead Tony.

Thank you so much. So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products.

So one of your competitors has been talking about using a strategy, where they're incentivizing your drivers to cross sell products.

Talk about why you don't use that strategy. The disadvantages are that you have found when doing that.

The disadvantages are that you have found when doing that.

Yes, Great question, Tony I'm glad you asked because. Yeah. My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Yeah.

My first job 34 years ago was on the trucks and. We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

We have been cross selling our products via our we call them. Our service sales Representatives, we've been cross selling them since I started and I'm sure. It was. In place well before I started as well so we see the fact that we have.

Operator: I'm sure it was in place well before I started as well. So we see the fact that we have 12,000 or so trucks that roll out of our parking lots every single day that are focused on taking great care of our customers. When they roll out of those parking lots, they're spending time in those businesses. They have eyes. They have ears. They have minds. They see what's going on in those businesses. They see opportunities. It always has been and always will be a key component of our growth trajectory because we see that infrastructure as a real advantage. We leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services based upon the nature of the product that the customer might be interested in.

In place well before I started as well so we see the fact that we have.

12000, or so trucks that rollout of our parking lots every single day that are focused on taking great care of our customers. When they run out of those parking lots, they're spending time in those businesses. They have is they have years, they are mines and and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because. We see that infrastructure is a real advantage. And we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Based upon the nature of the product that the customer might be interested in. And Tony. We've talked a lot about this over the over the last. More than 10 years. We've got customers of all different sizes. Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

When they run out of those parking lots, they're spending time in those businesses. They have is they have years, they are mines and and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because. We see that infrastructure is a real advantage. And we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Based upon the nature of the product that the customer might be interested in. And Tony. We've talked a lot about this over the over the last. More than 10 years. We've got customers of all different sizes. Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

They have is they have years, they are mines and and they see what's going on in those businesses and they see opportunities and it always has been and always will be a key component of our growth. Trajectory because. We see that infrastructure is a real advantage. And we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Based upon the nature of the product that the customer might be interested in. And Tony. We've talked a lot about this over the over the last. More than 10 years. We've got customers of all different sizes. Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Trajectory because. We see that infrastructure is a real advantage. And we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Based upon the nature of the product that the customer might be interested in. And Tony. We've talked a lot about this over the over the last. More than 10 years. We've got customers of all different sizes. Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

We see that infrastructure is a real advantage. And we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Based upon the nature of the product that the customer might be interested in. And Tony. We've talked a lot about this over the over the last. More than 10 years. We've got customers of all different sizes. Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

And we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services. Based upon the nature of the product that the customer might be interested in. And Tony. We've talked a lot about this over the over the last. More than 10 years. We've got customers of all different sizes. Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Based upon the nature of the product that the customer might be interested in. And Tony. We've talked a lot about this over the over the last. More than 10 years. We've got customers of all different sizes. Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Operator: And Toni, we've talked a lot about this over the last more than 10 years. We've got customers of all different sizes, verticals, etc. And so while we do certainly expect those service sales reps to continue to penetrate and sell, we recognize that some businesses are just more complex than others, are larger than others. And so sometimes there is a strategy to enhance that opportunity. And it might be through, for example, in healthcare, we have dedicated people that really do reach out to the decision-maker. So it's not just the service sales rep, but it's also other people that have relationship responsibilities that are looking for those new and different penetration opportunities. It's not as simple just to simply say, "We're going to go in and have a service sales rep or an SSR go into each customer and sell." All customers are so different.

And Tony. We've talked a lot about this over the over the last. More than 10 years. We've got customers of all different sizes. Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

We've talked a lot about this over the over the last. More than 10 years. We've got customers of all different sizes. Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

More than 10 years. We've got customers of all different sizes. Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

We've got customers of all different sizes. Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Verticals et cetera. So. And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

And so while we do certainly. Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Expect those service sales reps to continue to penetrate itself. We recognize that some businesses are just more complex than others are larger than others and so sometimes there is a there is a strategy to enhance that. <unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

<unk> and it might be through for example in health care, we have dedicated people. That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

That really do reach out to the decision makers. So it's not just the service sales are up but it's also other people that have relationship responsibilities that are looking for those. New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

New and different penetration opportunities its not as simple just to simply say, we're going to go in and out. Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Ed. Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Service sales rep, or an SSR go into each customer and sell it all customers are so different and so we need a strategy that can attack all types of customers and we do too. We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Operator: And so we need a strategy that can attack all types of customers. And we do. Tony, we know that our customer satisfaction scores are really good, and in large part because they really like our people. They like our service providers, our frontline service providers. And we leverage that. And whether it be, as Mike mentioned, a smaller type customer, we can cross-sell via the service provider. A larger one that's a little bit more complicated, there might be a need for some air cover, for some help there. But nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask, I think the last few calls, you've been talking more about technology and investments and things of this sort.

We know that. Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Our customer satisfaction scores are really good at. And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

And. In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

In large part because they really like our people. Our service providers, our frontline service providers. Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Our service providers, our frontline service providers.

Can we leverage that and whether it would be as Mike mentioned, our Morris. A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

A smaller type customer we can. Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Cross sell via the service provider a larger one that's a little bit more complicated there might be a need for some some air cover for some help there, but nevertheless, that's always been an important component of our strategy and always will be. That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

That is super helpful. I wanted to also ask I think the last few calls you've been talking more about technology and investments. Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

I wanted to also ask I think the last few calls you've been talking more about technology and investments.

Operator: Are there any, I guess, technology capabilities that you think you still need that you either are getting through hiring technology people or maybe even doing M&A? And maybe you've done it. Maybe you still have yet to do. But are there any technology capabilities that you need that basically would be helped through M&A or hiring internally new technology people? Yeah. Toni, great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that we can build off of. But we know that the answer for what our customers are interested in is with spending time with our customers. And our employee partners are the ones who discern those opportunities. So we're always asking them, "How do we make it easier to do business?

Of this sort. Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Are there any I guess technology capabilities that you think you still need well that you're either getting through hiring technology people or maybe even doing. And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

And. Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people. Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Maybe you've done it maybe you still have yet to do but are there any technology capabilities that you need that. Basically would be helped through M&A or hiring internally new technology people.

Basically would be helped through M&A or hiring internally new technology people.

Yes, Tony Great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that. That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

We think we have a really strong technology platform that.

That we can build off of. But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

But. But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or. We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

But we know that the answer for what our customers are interested in is with spending time with our customers. And our and our employee partners are the ones who. Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or.

And our and our employee partners are the ones who.

Who discern those opportunities so we're always asking now. How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or.

How do we make it easier to do business with. Is there any boyd. And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or.

Operator: Is there any void?" And frankly, that's where most of our investments have come from, is that information and trying to make it easier to do business with us. So we're always in search of trying to be a world-class service provider but have an incredibly strong technology platform that makes it easier for our customers to do business with us, that makes it easier for our employee partners, our service providers, to create a world-class experience for those customers. So yes, we're in search of whether it's we buy it or we bolt it on to our current platform, or we create it ourselves. All of those are of interest to us and will be moving forward. Thank you. Thank you. At this time, there are no further questions. I'd like to turn the call back over to Jared Mattingly for closing remarks.

Is there any boyd.

And frankly, that's where most of our investments have come from. Is that information, we're trying to make it easier to do business with us so. So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or.

Is that information, we're trying to make it easier to do business with us so.

So we are we're always in search of an. Trying to be a world class service provider, but have any an incredibly strong technology platform that makes it easier for. Our customers to do business with us and makes it easier for our employee partners our service providers. To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or.

Our customers to do business with us and makes it easier for our employee partners our service providers.

To create a world class experience for those those customers. So. So yes, we are in search of whether it's we buy it or.

So yes, we are in search of whether it's we buy it or.

We bolted on to our current platform we created ourselves. All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

All of those all of those are of interest to us and we'll be moving forward. Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah. Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Thank you. Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah.

Thank you. This time at this time there are no further questions I'd like to turn the call back over to Jared medically for closing remarks. Yeah.

Operator: Thank you for joining us this morning. We will issue our second quarter of fiscal 2024 financial results in December. We look forward to speaking with you again at that time. Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect.

Yeah.

Thank you for joining us. This morning, we will issue our second quarter of fiscal 'twenty for financial results in December we look forward to speaking with you again at that time. Thank you.

This concludes today's conference call. Thank you for your participation you may now disconnect.

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