Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, greetings. And welcome to the Americold Realty Trust Second Quarter 2023 Earnings Conference Call [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Scott Henderson, Chief Investment Officer. Please go ahead, sir.

Scott Henderson

afternoon. Good joining conference Americold call. for quarter Trust today earnings XXXX us you Realty for second Thank

comments, additional results, In by this Investor Chappelle; Chief www.americold.com. filed will with This afternoon, to Relations we on today's George addition may the Officer, your Chief which prepared Financial make Marc Web call Executive Rob to have and a forward-looking Commercial contain open press section Chief Chambers; on afternoon's supplemental call, site will in conference is Management Officer, Americold's available which Smernoff. release some call our remarks up after distributed we Officer, detail statements. management's the the our prepared at package hosted On is questions.

matters to risks may to those address materially statements A and differ those subject results are actual anticipated. cause of discussed that actual differ that number cause from today. to results from could uncertainties factors Forward-looking

current are assumptions update beliefs, as of management and Forward-looking light any statements at the to expectations, information in time no future new obligation and or undertakes as of and are them they as date information speak of this only publicly us available made, on events. to based well

information comparable will the financial available GAAP definitions EBITDA on and financial of During are discuss AFFO. package certain this to site. measures, measures call, in Full and the measures these we non-GAAP including supplemental the reconciliations core company's non-GAAP Web contained financial

call will turn the Now to over George. I

George Chappelle

quarter operational of an quarter outlook comment for I year. of will growth Marc our second XXXX year. update for an then commentary for and metrics our on of our key quarter afternoon, the customer conference also thank on the update earnings our remainder a call. all you Thank some results and the This remainder our the and for financial and guidance on walkthrough will provide activity. And the our additional joining you, results detailed on Rob Scott. second recent discuss some initiatives provide will second

comment event. quarter's from event cybersecurity Before begin, standpoint. am is let to me quickly that I pleased on this behind us an report last operational I

in how our is the contained We are account. cybersecurity to going the on us the that on largely remainder second year. provide are detailed impact per and for the and that the we guidance share bridge the it second how account Marc during will of our event a of forward into quarter additional taking any AFFO this impacted guidance quarter confident into our impacts takes

characterized As AFFO operating view a direct our to clean provide note, have we performance. below cybersecurity of costs a

we priorities, our to which last since our have core Turning call. progress on business made

to a key First, customer be service priority Americold. continues for

record a strong For setting quarter, to economic quarter store our the second XX.X%, occupancy very increased second level. same

rent derived another second Americold. which XX.X% revenue than storage XXX basis sets fixed for is at contracts and We the of commitment quarter, higher quarter's also level from storage first metric and in this record the points

churn rates. event Lastly, customers. the at remain metrics to key consistent our total despite historical perform levels These high of revenues low churn X.X% our cybersecurity warehouse to with operational able continue at that illustrate for approximately rate we're

commitment our Kentucky launch to we The of Last provide one award is strong of like service. recognition successful supply Chicken for a received customer Brands in customer from company's Link partners the new KFC Fried Australian example to Yum! the given links a Let provide for month, from demonstrate KFC strong strong Award chain. this sites. service. with customer our a me an handful of Acknowledgements who to contract

management. around priorities Second, turning our labor to

improved and temp achieved is our X by basis, quarter This points of higher XXXX X we During a levels, we point second first perm second quarter ratio XXXX than levels. a XX:XX. quarter, hours to the of the sequential on

an prior June we to we Additionally, points On the June a turnover of approximately improved of approximately sequential XXXX XX percentage a X our compared than lower basis, XX rate percentage pre-COVID at trend Compared approximately was higher. percentage year, at the from year. ended pre-COVID annualized March, end points we of which higher to ended levels. of XXXX points turnover end

on making data we these temp are show, ratios and to As points improvements continued our rates. turnover perm

in we Russellville, in live begin ramping we in projects. process stabilization. We the facility our went up dedicated automated our continue progress development recently to and are Arkansas. as in-bounding make the Third, now completed customer we This of product project

recently facility manufacturing food also committed Georgia, and space. to two automated a completed of our this customers have already strategic Atlanta, in We phase few taking

single launch today North the we United City Lincoln, line partner quarter, are Canadian our owns and States CPKC project of Dubai. the Also, expansion an only plans the largest companies. Canada, agreement an announced railroad in America's to JV with Kansas we or one first and transnational RSA, announcing with Additionally, Mexico. CPKC railroad Pacific during

with land CPKC’s on build, on CPKC storage a collaboration network. strategic operate the located in facilities eailroad agreement which will Our cold and Americold is own

our our CPKC the to value chain. leaders ability agreement create global Similar collaborating by recent Americold's supply unique to in DP with illustrates with World announcement,

we demand a platform, our be best-in-class we and the the coupled turning cold additional Given operating expansions in the the high growth metrics storage, announce for operating customer to strong are year. remainder and of quality to to throughout position expect significant with

our warehouse our we pressures dollars margin offset continue to warehouse to protect cost and margin to continue move reprice business back towards historical inflationary and effectively to to percentages. structure Lastly,

same basis economic by year. Service currency the versus increased prior occupied storage constant X.X% and increased pallet revenue second per throughput by X%. store the For rent pallet [indiscernible] per quarter, a on revenue

inflationary and During the power pressures broadly in moderate markets. we saw business surcharges begin quarter, second sequentially, reduced our in certain to we

as high a inflation decades high the third cycle as dollars power to in reduced we continue year's pricing last and quarter, be and we period, continue moderating, pricing to expect to inflationary showing signs also our is percent. Please of surcharges the will drive approach markets. to continue lap we growth certain begin through moderate to take will Moving margin initiatives our to surgical note, margin increase

Turning to per same was currency of growth warehouse AFFO our This primarily NOI XX.X% pool, of prior global revenue year, basis. share second X.X% driven results. and performance versus which $X.XX. on growth constant of We store by generated delivered our a both quarter

and store throughput has strong same growth stocking consumer, food cybersecurity partially occupancy and offset pantry been by pool the several end by pricing reduced the volumes, which Our by manufacturers large results retailers. meaningful initiatives, economic driven recently were event by by reduced mentioned and driven

XXX second quarter second same quarter, the basis occupancy XXXX XX.X%. over to our For store points increased economic

have occupancy points to decline quarter, expected sequentially economic quarter As occupancy we roughly discussed, second economic first we XXX slightly increased. versus to instead XXX and basis

this fixed smooth certainty bulk the quarter. key win our customer while our seasonality combination providing our manufacturing their customers better service to commitment levels, decrease the continue second, mission our drivers to continued to new customers; on structures occur and is expect food economic ensuring as The with enabling inventory in in now follows: continue during this us contract critical and strategically infrastructure strong for first, support are third also year-over-year we However, out located third, focus increase our service occupancy, customers; our for business. to levels economic for of business occupancy overall the increase

some to with this $X.XX. This and are term near guidance the progress result of store around coupled Marc economic we discuss to $X.XX made that share we incorporates same our we per our we pool, pricing AFFO the that year to full have occupancy later have made increasing year will continue guidance the range in expect a progress to of As the call. progress date in and headwinds XXXX

careful comment after decisions strategic me we some let have on made Next, that consideration. very

our second was develop formed countries Brazil. assets LATAM quarter, exited we than to in position Latin ownership in our JV, the other during and American acquire First, which

CPKC and Our invest approaches with recently lower the opportunities and risk agreements in to announced provide better DP region. World

regarding we our had ownership JV to to JV requiring who on interest transaction Second, with regulatory purchase and their Brazil, in put in all our required JV. partner exercised us Comfrio the previously their we of close we’re the approval received Comfrio This option Comfrio, not strategic came of the as to of the significant Americold year estate in is Agro core lacks process through aligned been with model our for the exploring business XXXX. ownership. end, have Since real business JV alternatives which acquisition Merchants in

in Affairs Finally, well essentials and families insecurity ESG to Americold nearly stress initiative. let Atlanta's partnership families the me XX,XXX goal as face Atlanta The of to initiative together efforts feed Children a was worked food we of Public Atlanta that completed of Mayor's food Recently, these Immigrant in the the help with month Schools. as reduce and where pounds on comment an of to International four Office daily. across provide

operate. work communities the and which in of in proud live We we are very associates do Americold and our the that

that, will to Rob. it turn I With over

Rob Chambers

Thank you, George.

quarter, improvement setting and quarter $XXX basis XX.X% an the mentioned, As revenue levels our million storage total store commitment dollar quarter for George combined second from the pro contracts, for is fixed occupancy of within XXXX. economic segment, on over including On second pool of during to of segment. rent and company end XXXX. basis, and which we our a million warehouse our warehouse strong second to fixed quarter delivered XXX an setting second At same rent record of record end at the increased commitment derived another percentage the from point basis compared level XX.X% at contracts commitment fixed storage forma quarter the $XXX results absolute approximately a revenue global of quarter storage

no XX% forma material particular, revenue are customers in transition global this for We on who to a in European that our the to warehouse commitment has recommercializing fixed our basis. segment, this account XX continued of of composition progress we pro made as structure. platform we that our Within top our business approximately the pleased progress, meaningful our had global of changes more very with been warehouse year

at churn approximately with Our low historical be revenues X.X% continued consistent rates. rate of total churn to warehouse

to expansion and operating these a strengthened on and evaluating conventional to us opportunities. major opportunities, platform strong which dedicated Given backdrop development Combined and capitalize automated include facilities. with and potential projects, positions along macro greenfield of well our continuing distribution this underwriting development accelerate process customer the in our centers we're market metrics, mix

in our plans investment over X of approximately about total $XX which million are will JV, be expansion feet. approximately excited multi We XX,XXX $X.X Americold’s RSA share positions which estimate approximately Dubai rata million. to be customer our in site We to pallet build pro project cubic announcing on this is a million, our conventional

the formation and we RSA a are quarter's this reminder, JV. we of on owner investment into XX% a and the As last call announced JV

in XXXX. We of expect half second to break ground on the this expansion

automated our facility current project our Atlanta. facilities in-bounding in recently for these process and we towards We two in began As in automated into ramping developments, dedicated and customer stabilization. Russellville of product our phase completed

For manufacturing one to manufacturing Russellville, into strategic pleased both are we're excited a of food and continue very multi-year facility have automated two customer for phases and food of this with facility. phase phase national we this entered the handful with report of both we that large customers agreements to Atlanta, growing for

with let of on At connecting in North by is supply to services operators. of storage me cold Americold's announcement, best global railroad CPKC America's announcement bring port largest together illustrates Anchored service, this owner agreement announcement recent such one comment CPKC, value solutions the the American recent with class with in the unique value to by intermodal markets. this and point, as ability our North and create railroad added collaborating DP key Similar Americold's chain, goal World railroad and railroad leaders companies.

Americold’s rail and jointly friendly customers the Mexico In the Americold of and case enable of will one in between supply solution mutual products a chain a short, our both kind Canada, and having the railway building its company. by frozen collaboration railway rail storage CPKC the increased basis, for cold build, costs own This will gets and traveling on and meaningfully serve Americold long CPKC transportation. On pre-clearance strategic lease agreement Concurrent access provides cold railroad facilities opportunities. which lower a efficient, gets both with nodes CPKC’s the a usage into term cold to entering network. the a both benefit to Americold facility, our storage exclusive within mutual operate by and customers, result will and US, of more Specifically mode environmentally we facilities. by anticipate CPKC right with of and these case our Americold utilizing transportation. its storage ground CPKC customers exclusive

basis. at by While case each deal discretion respective each decided a case will on be will company the of and be

with working on excited are forward look CPKC and We this very about to these announcement opportunities.

entry approximately currently Next, to significantly multi we our previously one for during that of versus the an attractive below $XX Wisconsin completed the we acquisition in quarter, purchase as represented million. cost operate leased This Bay, facility we an infrastructure. we of lease customer replacement Green asset own prefer point

of X% to next subsequent three of the total area a quarter million. Lastly, facilities for Australia years. the and one property range facility approximately over Americold in owns demand significant completed already the to of a distribution acquisition at AUDXX of the have to Brisbane, in expect and We acquired XX% end, we portfolio. the this capacity we investment seen in excess our facility vacant existing stabilize of multiple we

over it turn I'll Now to Marc.

Marc Smernoff

with then event guidance. discuss accounting regard investment Today, our of on impact Rob. our by our net an second position the I'll results, and quarter capital to of full funding you, update capital the cyber our year liquidity. the followed activities, Thank I'll and discuss

As Rob two we in Brisbane, to cash facility Green the in of purchase a revolver. combination end. our and investments during of completed quarter subsequent funded and available facility these through the multi-currency quarter the facilities, mentioned, the Bay We

sold quarter, million front, the for Canada facility X.X cubic disposition foot On we CADXX million. a Montreal, in during the small

related let JV LATAM to discuss financial Next, Comfri. quarter the impact and the me joint our involving of the two during ventures, transactions

JV from option. venture, of in JV. Brazilian held put we As reflected in and assets approximately strategic our this investment the our exit to proceeds the in Comfrio our We're of initial this have subject exploring of Comfrio JV, we we're as to required result Pertaining received sale. $XX company strategic purchase alternatives a process the partner’s which joint million, for the our complete to Comfrio, classified LATAM of for basis

forward. We the results so have Americold's we'll excluded per second share quarter going Comfrio’s from and in do AFFO

end, debt to Moving outstanding At quarter billion. sheet. our total $X.X balance was

$XXX on liquidity consisting total and of availability. have of million revolver cash We hand

$XX cyber Our revolver billings a as and balance was the million result of cash our approximately delaying collections. elevated by incident

this We recovered have working in July. capital

on times. remaining we core Our on the supplemental. process projects net of on At throughout this and approximately $XX have year as have forma approximately to pro to the X.X the million XX invest development debt EBITDA was invested $XXX in IR project detailed Page point, million

We ramp completed delever stabilization. our expect and and store continues our recently same to in process portfolio developments organically as to to grow

of the comment these incident guidance core and how would bridge our which provide customer and other of to net cybersecurity I costs cyber where our we insurance on in have reported the remediation estimate recognize of of the lines. turn in the second the we quarter expenses, future through would direct and components, quarter recoveries accounted have results costs, EBITDA we incremental acquisition landed of occurred. from related outlook if We I Before not end to We second claims, all excluded line the and same event costs incident, AFFO. million for a incurred to intend to these updated item. second to and the directly would cyber quarter, inclusive event like briefly the related party $XX and third Through inefficiencies and labor were fees reported cyber the costs

event. and been this cyber that revenue. equating of Additionally, reported certain as $X.XX contribution $XX have lost incorporated not decrease throughput AFFO that volume this Thus, facilities have We per the impacted to we of same the share cyber lost impact segment, would've we summarize, the include out would've revenue, translates estimate variable normal share. these second the our lost was reducing EBITDA per the warehouse which by to store into and the share quarter our volume services estimate follows XX%, $X while the NOI would throughput XXXX, we has of approximately the AFFO. the AFFO as it for been processed. event not been approximately impact AFFO. our share which estimate store half not the in per that same AFFO margin million core of by revenue To point approximately impact incident from occurred. estimates services basis translates quarter We NOI, during reported incident the estimate into This XXX approximately million estimate driven point against We in within cybersecurity NOI the quarter lost in service loss pool. reported the our second $X.XX $X.XX if does is $X.XX second and of $X.XX, estimated we revenue per to in Within not cyber adjusted

of outlook Now let discuss our XXXX. the remainder me for

share range year underpinning George components Please full we As key XXXX to to the the guidance are XX guidance. AFFO supplemental the of see $X.XX. per IR be Page our the for mentioned, $X.XX for in of this increasing

have estimate of I'll full provide revised on been per event full to revenue previously the the year. impact relates the the provided have share. the from services of comment a AFFO to results. to bridge share corresponding represent prior would would not AFFO this approximately cybersecurity share occurred. primary blocks year lost range building described XXXX revised to For for We comparisons AFFO each At per Please if year to doubt, as range $X.XX excludes get the avoidance $X.XX comparisons the this and NOI our point, per estimate of and the note it $X.XX

for X% X.X%. for We year the to full constant in in same be X%. of be to of growth implies are range Year-to-date the the X%. X.X% of This the to to it now in growth was the year store expecting remainder currency pool range revenue the

provide growth. of the more around detail me drivers Let this key

implies increase XXX of the remainder full occupancy economic to basis This the occupancy year occupancy the increases increased XXX throughout XXX basis economic for approximately basis year, by XXX volumes, to expect For by Year-to-date approximately XX to by we points. occupancy and points. points. throughput economic

translating with to throughput business expect combined recent volumes. from commercialization and fixed We continue softer higher benefiting new into efforts wins commitments

year, slow portfolio, of X% continues full the of facilities now amount year volumes economic by consumer by shrink we through to end product cybersecurity the volumes our environment as basket through expect X.X%. remainder decreased by demand the For the of a decreases were implies impacted overall to the throughput to volumes This in of the X%. and approximately certain result as Year-to-date throughput decline sizes and while current moving throughput event. X.X% X.X% throughout the

year, storage be into revenue it X% currency revenue currency of XXXX. year the the of per performance For place. it we X.X%, This occupied economic in of Also, be primarily the year, growth in pricing constant increased strong pricing, throughput to the remainder of This of the wrap for range X% Year-to-date to for for of constant rent Year-to-date, expect of and X.X% increased to pallet approximately X.X%. range put the the full growth we be be the remainder the reflecting expect to the to pallet to by second to year service the implies growth due for previously half implies for growth the X%. X% to to X.X%. X.X%. X.X% in full impact approximately

same be This to dollar basis. XX.X%. For increased same We're currency growth. implies Year-to-date of an primary we from on the XX%. currency constant XX% growth occupancy. store currency metrics points constant following now NOI of to are actual approximately full is range corresponding expecting revenue Please are remainder basis, a the in NOI to of the approximately guidance year, growth for XX%, basis driver X,XXX to not be come higher X,XXX XX.X% NOI store growth to on economic which provided year note the the the than the to by constant expecting

non-same to store the Turning pool.

NOI. be expect approximately in full generated of has generate loss zero Year-to-date, NOI. remainder in store the the the non-same the non-same of to $X store range the the approximately $X year, implies in of million approximately to pool NOI. million For year we million to in to $XX pool million a $X.X This

to our segment NOI. Turning and transportation managed

million. $XX to implies $XX to the range segments these to the generate million full million to of $XX of we This generated million approximately year, the NOI. For $XX NOI. remainder million be $XX year expect Year-to-date, the these combined in segments of of approximately

Turning to SG&A expense. our

million, SG&A compensation expense. year, $XX million total of million $XX full inclusive the $XXX expense $XXX SG&A expense. we Year-to-date to to in to of For million expect range inclusive stock of of $XXX million compensation the was million of $XX be stock

what As SG&A a compensation AFFO. expense, reminder, we we at expense truly stock impacts what expense from SG&A core our exclude is which total to call derive

to $XXX $XXX was full million. For we to million of in range SG&A the Year-to-date the year, million. core be expect core $XXX SG&A

SG&A impact of Our run cybersecurity reflects to additional rate the measures. related in-year spend

expense. interest Turning to our

Onto approximately For impacts the interest cash previous to year, full that million to expense, the number which expense with expect tax AFFO. be our we is consistent $XXX $XXX million guide. our

the Year-to-date year, expense $X million. expect to this approximately we For million was it million. to be $X full $XX

Turning to our maintenance capital expenditures.

For to this the $XX expect be $XX investment it full Year-to-date, million. million. approximately million we year, was to $XX

keep We expect million. acquisitions, $XXX million previously development between impact markets Please that beyond to or of been starts to aggregating include $XXX not does has capital which that our guidance announced. the mind activity in dispositions announce

IR additional Finally, supplement in please embedded this our to guidance. for detail assumptions on refer the

the George remarks. turn me call for to some closing let Now back

George Chappelle

Thanks, Marc.

and Operator? dedication joining the our again you today, we and world future. It growth open now efforts like their their the our second business Exceptional around improve provide strategic that every on to record Pacific Americold customers time hard developments servicing contracts, of continues In call grow customer results today and core performance to City for achieving foundation operational sequentially, in financial the and and our and fixed occupancy operational alliances railroad strong is commit reflect questions. expanding to service, expectations. continuing will XX,XXX I'd and in closing, to the us quarter Canadian retention our highlight, perform the future. your launch the our hiring to day. associates As for of driving Kansas the include for Thank for work above the and thank capabilities continuing for

Operator

Evercore [Operator Our with from of comes ISI. Khanal question the Samir first line Instructions]

Samir Khanal

can for up gave year, for do I occupancy With mean you the let's XX you the idea, months. the over occupancy? mean, of mean, but about thinking next, how I call watermark I the consider it, higher the new in knowing an of year you guess should you're think high I are really balance XXXX what's back and push economic we to even 'XX? levels sort you 'XX that I sort even that this occupancy guess, already at point? the of

George Chappelle

we into Samir, we the XX% low on level we said that can at occupancy, economic get know now. because we facilities have

So at we level, know that there. based get on similar can that we facilities executing

occupancy above we I as think think commercialize fashion. And the to in said XX economic now remains business, our longer goal much our that opportunities get I higher time… a are term term, and goal Europe really starting we over short in XX% Rob, contribute to that's

Rob Chambers

Yes, well XXs… into the

George Chappelle

there's of plenty XX over So the we opportunity think months. next

Samir Khanal

guess about helped next, a NOI just on maybe would sort that maybe color quarter I of the expenses. And in bit the and And so of in know as terms provide over your think into next I color great. next six how be months the follow-up, little call expenses growth bit of you let's that year? that more it, well, on a

Marc Smernoff

the power control, mentioned stronger the heard the power of you're We since beginning look NOI I improvement to is cost labor metrics seen come you improve results. labor when starting the down actual mention you overall in as see and in us guide in growth, and both we the year. that with as in our that and So what our prepared remarks we've at then seeing see

just highs So starting come cost saw back last much markets I power some more disciplined very late see overall that from to think year. favorability the you is for extreme control, some we

overall think starting to those controls I we're things cost under. see come So

Operator

comes next the question Michael Capital Markets. RBC of line from Our with Carroll

Michael Carroll

correct, previously George, reason occur? that circle we specific there comments one regarding XQ? back I point this your expect XXX I to I decline the that to decline now XXX point expected in on Is make And occupancy. didn't occur XXX to got wanted basis want XQ sure to we a in will basis that

George Chappelle

correct. That's

that and North the partners from region in maintenance quarter. us were customers we telling the been input and downtime forward had received several As far America as that would've large pulling manufacturing was second were of

begin June. late materialize it Scott quarter, late As the said, in in did to very

we So point. happen this quarter think it the in third do believe and will it'll occur we at

Michael Carroll

sequential we still then decline to mean, XQ XQ? we're should And talked know we build looking should in seasonal at base XXX expect XXX And about higher. to point XQ when and the that I the trend, compared I be that always

a these should that maintenance So are because to expect to we going some that going into offset that's deferred of the decline XQ performing? customers of smaller going be

George Chappelle

year wash that out half third in in our guide believe You're downtime up is if thinking we quarter. quarter. about the remainder see guide of second in of probably do due XXX the the will and at the the should points happen right the And that XXX you higher it way, to third will sequential year. we it happens manufacturing the year, through to about, we inventory look in part a do increase to year the occupancy, occupancy the we talked That every Mike. for We this quarter. basis third And should of see

points be of could occur timing it will build the with XXX of XXX this So that quarter. third quarter washed now to sequentially second inventory basis the to gets out seasonal

Operator

line of Citi. from Mailman the next question Craig comes with Our

Craig Mailman

real on wanted I to, JV quick. Georg, Brazilian the hit

to that? the So asset look what like from are the of near term, buyers for kind kind the right usage this environment? process the type the markets monetize of in cash cash, capital And there what's is the here given of now

George Chappelle

interested. sale, it's there are to buyers and we're going we're Craig, held working to for -- sell intention, Our hard

all we working or But We not of have as is the and a as process intention it way we process to as now, soon with ongoing. Whether interest that have be of sale it the a to can. makes determined. the selling we're

Craig Mailman

say so it kept of hadn't you because Marc was saying guys I sounds if And the to but like been the just would've would that kind And higher AFFO. cyber happened. numbers cyber something want just excluded guys clarify you from are pulling this then

if I wanted to that's switch. So see a terminology just

how about think Brazil $X.XX, from are of I seeing? as guys it excluded of versus much you So is operations kind that better being that possibly

George Chappelle

things. few a So

I that occupancy store the driven our of in being overall we're $X.XX you reported our in think the AFFO and that core same seeing what pricing portfolio. business realizing principally saw that in by is we're we

certain $X.XX. had excluded As it forma that costs event, the relates cyber, were to directly pro related that were or we to remediation those one-time from

piece that $X.XX, from the of impact revenue not piece the can't cyber $X.XX. is the reported the the $X.XX did missing they we for that that is that actually fact our earnings. which missed AFFO profit. of The GAAP revenue from But would've revenue we $X.XX NOI taken So from up approximately to the in or and that revenue $X.XX, missing was report not

Operator

next question Baird. Thillman from comes of Nick the Our with line

Nick Thillman

Just going off that on the cybersecurity.

like But maybe like it in that On to know like would've looks service without those customer same disruption. what you of XX%. you've has about the begun the pool discussions push I trying on flat so store margins? margin you NOI kind have and pushing were been feedback? to it sequentially the talked X%, I that been service side, term guess where longer

George Chappelle

largely said back we were priced get productivity digit, services levels. have which the back related inflation now get to margin, first, single to to now The We've control. that's within the margins, our high to we the pre-COVID to

largely minor to -- complete like, I the from associates complete. and that say so challenge Productivity, at back if is you takes is So left, be to time. -- pre-COVID same throughput, that be but getting might the pricing used largely pricing work some work able to they the the real would

to to them, get The exercise. You've you've three them workforce, we train got The getting better you've hiring gone a and got got safely And well. to six said a has that's month to sequentially together. retention to year-over-year. work is better assemble both

in person those a into the productively. coming to line we So key nicely. through go and environment do comfortable and and get for to work the just two takes to safely components it training time comfortable And our are now need

X% X%. to way year second get to but the progress expect make or in the we half half year. back the the the So of probably can by doubtful, improvement Whether XX% we second see the on all is we should to of

Nick Thillman

And smaller slowing bucket, are sense. makes then the of of consumer the seeing well upper is the it just Are end any on mostly but seeing on the throughput you as that you like maybe end size obviously or from any end? just throughput, the basket on the

George Chappelle

Just mostly support to high I continued manufacturers on consumer the inventory end. levels. have mean

and less So like, outbound, income, customers if cetera. much excellent been due the the can telling their retail now just Pretty et we've to buying customers down service habits you same story and quarters. slowing disposable they two that's consumer or to customer easing to it's provide three for

Operator

of question with JPMorgan. next from Mueller line Our comes Mike the

Mike Mueller

seeing are impact, One, the $X.XX. the $X.XX ones. you more QX lingering not in cyber? any impact of talking quick Two from I'm

George Chappelle

factored are built we've would No, and reported anything we're the aware our into not We into it factored obviously -- of bulk, the We've quarter. the second percentage, results plus, we the that, I but for the anything has that remainder beyond post year. of guide the Mike. that in coming reflects cyber, our incurred QX say is been guidance with XX% large

Mike Mueller

comment should then well on -- in the expansions? be of And of comment a Is announcements was back we expansion that announcements new year. the more specific as expansions to the or that just expecting development just of tied thinking as half

George Chappelle

both of be opportunities pipeline. honest right of it in pipeline, be which of mean to you. across I is development a mix our a both, expansions very combination pipeline, geographies. I conventional robust, of our automated mix would and our is a facilities and greenfield with our say now all Yes, There's could

So be combination we're and a it'll about both. excited of it

Operator

the of comes Green Vince question Tibone Street. next line from with Our

Vince Tibone

with much you the developments World see DP the and over could Canadian Pacific partnerships how allocating these see several commencing? these just And capital years? type When next of projects through do you to

George Chappelle

we're with both underwriting developments partnerships. So actively

thing, Pacific types think coming If development to success. So operate network, they of we we'll about same have for I quarters, ports, said a that on of of in storage DP us. built we Canadian those that think I associated has both. we with think at. a the have to could cold had we've a announcements them that plus of great in the before capital facilities, XX% World they we plus ports be the XX about When in on deployed amount X% be X% kind facility those and nodes would consider the of would an partnership us network, Americold think having XX for their When those XX% nodes, success

Vince Tibone

these cold production from get I'm or portfolio, of in sense supply little higher bit own, other key defer you you how Like, whether distribution. you where location? there complete the facilities some of kind like want the it's next nodes or of just the your is to is a with of one different to this rest advantage a pretty these barrier trying to just before a maybe are kind the similar one facilities start chain Just of developments storage learning

George Chappelle

say associated nuances cared we similar. that a may we of amount slightly we not would to learning where how has have sure time. I design model nuance. I facility facilities say of the mean, added facilities build one, before one they're every our But a we handle component make them next. any would I need at there's to these for. know with pretty certain build higher or We services to facility learn than and that there's These -- build value more them would to from could that one want substantial would

Operator

Truist Securities. line the with Kim from Bin comes Ki question of next Our

Ki Bin Kim

be possible wage effect if if whip full your there on raised could just employee base wondering I on wages to impact inflation? UPS or any you hour. to a workers base, $XX So an full-time had your for was thoughts and employee tenants’

George Chappelle

coming inflationary we moment. XX% going We surcharging, workforce. seem hours of more system mentioned well, permanent the back No, at now seen primarily had going and et well. in to hiring I for moderate, off said, think, impacts Marc the in moderating as to some inflation But us, coming be wage we've Europe all at power we cetera. wages, have retention corresponding ever our the than is associates permanent is our

that higher never Going was back to than XX%. pre-COVID

don't And that least the have from and we So at we is any. getting yet see at the least any is better. expect us well, being much we impact to not time that see going don't agreement UPS And normalized wages hiring for are. where retention tells

Ki Bin Kim

for And you entire the tied the dynamic if on help write you that Comfrio, SuperFrio? didn't to I like, was XX% venture there's own a to million. And similar you for was it looks joint me the have pay Can $XXX understand, was did that, that and off? basis wondering like for remaining the

George Chappelle

of roughly that XX% on business, didn't for put the saw face you we the closed when the an The incremental the we then of that entity So that made we basis capital $XX was cost through the balance had was own. million. of existing we say million, loss that $XX acquisition. Agro was flow $XX million, investment XX% that working was which And into another P&L

the of have So that very investment does arrangement in basis put in its different significant was Comfrio. amount estate real own it. arrangement business, entire our SuperFrio that of and not any

Operator

Barclays. comes question next with from Our the of Anthony Powell line

Anthony Powell

to Maybe Was for that It did CPK competitive how deal over question came come they great had fruition. to background to seems them, to a I you come about some would helpful. you? time. be that more do develop process, the a a super opportunity like

George Chappelle

was intrigued It year merger year, one a And that went as the through by process. to merger and and competitive business. was acquisition we half. process. their they a were the stayed they created that CPKC not last close Yes, of very We nurtured solution their the over through

just it to create overlap use talked and our great we that excited last value, a us collaborative something about competitive, have it and I nothing But started. And customers, over think, when value was the how so. mutual for is was customers. for be conversation that create to we this just offer, going year able we're get today, so we're we was or And create to our value solution to customer to developed going to a that could the benefit be

Anthony Powell

more competition? space Are And automation I than some newer, legacy, based, about who these who from any And I we've guess, if and of are guess, saying some maybe they're who some are are some competitors other how that clients cheaper more the of some from competitors newer answering questions got serving in you more operators? customers. the larger automated seeing so, competition you are

George Chappelle

Well, go this automated one year live we I provide three solutions, say this which year. have facility would gone already. One live of thing will automated also highly just is more

facility an build anybody than don't reliably think out automated we I So more there is that there can can.

probably you're competition the Rob, though. So closer to

Rob Chambers

to continue to occupancy, low we from to point demonstrate and fixed share. standpoint, economic our our an our just record rate gain would churn record I that commitments continued Americold

Operator

of and questions, further you. for has Trust Americold Ladies Thank gentlemen, are conference no the now Thank as participation. concluded. your there you Realty

disconnect may lines. You now your

Americold Realty Trust (COLD) 3 Aug 232023 Q2 Earnings call transcript