Earnings call transcript Q3 2023

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Operator

Thank you all for joining. I would like to welcome you all to the Valvoline Third Quarter 2023 Earnings Conference Call and Webcast. My name is Brika, and I will be your moderator for today's call. All lines are on mute for presentation portion of the call today with an opportunity for questions-and-answers at the end. [Operator Instructions]

to today's to call. like Russell host, now begin to would hand your over Elizabeth I

So please Elizabeth, go ahead.

Elizabeth Russell

a Investor at and Thanks to Brika. for our with This available This the call XX, ended released in conjunction presentation Valvoline's welcome is at AM release, morning webcast. website on XXXX. third quarter third that Time, Good fiscal copy XXXX results morning Valvoline which approximately Relations investors.valvoline.com. X:XX and should of June, viewed Eastern quarter conference earnings be

the Please CEO; until note morning's that we of CFO. file these Mitchell, and and results Flees, Lori are our preliminary Form Exchange Services; XX-Q Securities Sam Meixelsperger Retail this On Commission. President call is Mary with

certain remarks historical are the statements are As shown today actual assumes as materially current on that uncertainties facts by are and that forward-looking and risks statements law. forward-looking obligation to slide of cause no such statements. subject based from These on statements update any may of unless presentation this forward-looking differ required of assumptions our not to date X are statements. of to any results Valvoline

to provided companies. used non-GAAP by measures use other A the approach basis measures management and the results adjusted which on in is we our remarks, in an non-operational enhances results our presentation reported or is noted. GAAP reconciliation management's business unusual, business. information be are by are may We of otherwise appendix. will not our our discussing of key this of adjusted understanding nature. be this amounts used In The adjusted comparable believe and presentation a our for items, non-GAAP unless and similar under Non-GAAP and results key in ongoing restructuring to non-GAAP discussion included of

Global of the discontinued As a operations company's GAAP the operations for purposes Services is former the business Retail as the segment reporting. Products and represents continuing reminder, classified

sale Products. the update for begin of Global of agenda by see X, slide the today's providing We'll an return the from on you'll On call. proceeds

We end of will third third about and quarter review quarter a highlights results. and talk our our then operational with

I'd over to call Now, turn to Sam. like the

Sam Mitchell

Thanks, Elizabeth, and us joining all today. you thank for

earlier offer repurchasing current the leaves $X the we approximately completed tender million announced by of we share and repurchases, repurchased million transaction. the the XX this to market of the of successfully shares. authorization year. tender sale billion and shares repurchase original months This just we business returned auction XX.X a Dutch commitment As this shareholders on offer and over open market we over the $X.X next proceeds billion net deliver have returned in quarter, $XXX time close line XX to Products conditions. Global months This of subject on expect our post substantial the would that from of be to Between return amount the line with to

X. slide to Turning

Let's look highlights take from the a at key some quarter.

continues to a network million is growth and to continue across increase. sales compared year. see be with growth which store line XX.X% strong XX% this quarter, to strong System-wide same-store the prior increase of $XXX overall almost with We system-wide an top sales consistent

We total a to prior quarter, over again growth a EBITDA once in outpaced perspective, saw this which the the for our system-wide increase From bringing profit XX.X% year, adjusted quarter. revenue XX we X,XXX. added locations

metrics key recent over shows X Slide our years. growth in

growth the and preventive maintenance the continue our potential. business to resiliency We of see

us year in XXXX. quarter performance in for full Our outlook the fiscal third year confidence gives our

Valvoline. of Leading I'd our to like to section, news this the year. this highlight years at will this the always people of I I we be grateful address working XX up leadership company wrap has with at morning. succession the been retire experience my for from and plans and have last end announced this of the As over career, my the dedicated talented fiscal

ability the of with thinker, of to incredible focuses its delivery I The had high-growth, time right Valvoline, high-margin, the current CEO. incoming drive Flees, services year. working experiences. to I've results she been a President great has Board and customer retail Retail unite franchisee side-by-side, and Lori a the in leader career and proven be for has together, a Lori pure-play working Services she with teams Throughout natural as future as including on for that business. strategic our her named privilege and our the the have confidence of company past is

with to Lori. that, turn I over it And will

Lori Flees

be honored I'm Valvoline. you, of Thank to and Sam. named CEO next the excited

through our a team. have growth. to and for business continue experience franchise want deliver value I customer talented people critical incredible change thank and strategically trust to best-in-class trusted I easy of a deliver creation and investing XX,XXX want for over shareholders. of We while Valvoline team to strong of thank time and partners, quick we'll our the an Working leadership with together for to me, Board in his mentorship successful their and Sam our

XX. performance let's third on turn our to Now Slide quarter

improvement efficiency XXX improved As related drive the store operations. primary is summer Leverage sequential due sequentially EBITDA to improvement. season Compared of labor margin contributor margin year-over-year. EBITDA margins in basis the expected, both and to to and we saw points QX, the improved volume from primarily increased

oil summer point benefit were We year declines, price offset drove than the improved onetime items. labor mentioned XXX some due is headwinds position basis prior and improvement much minimal year, of scale drive to that prior our business to is were entering our largely the quarter. efficiency of margin The the that staffing improved this in oil SG&A the gross of seen increased EBITDA a margin leverage from Compared from being better consistent and season leverage. we over the price years rate recent was declines base QX, majority improvement. by the waste largely because from

driving products. grow QX, and experience we in-store our and on are customers customers returning to Slide same-store demand traffic transactions franchise the increase and continues our and Turning coming XX.X% XX. system-wide, trusted miles The The increased driven. to XX% are our Valvoline teams easy approximately quick, for talent from increased from In to growth. customer of service balanced a sales saw delivering new

the we to all On and increases. change see to service pricing, ticket non-oil continue penetration, ticket contributing premiumization revenue side,

lap As the actions balanced material we pricing begin more to in anticipate taken transactions to XXXX, we tickets. continue will growth and be our between

for our XX, Slide of on growth, to unit an part Moving an algorithm. our new update growth important

This quarter units. total XX there were additional

saw we store franchise side, acquisitions this quarter, ground-up with openings, company two additions the On and eight XX XX conversions.

company-operated to on We continue our markets key drive capital network. on return to new pipeline invested unit strong from focus our

offset are for the franchise we units, drive a conversions geographically three typically are for from done company. high stores that do four shareholders. We company have can where which plan were by For but two this openings, proximate saw to for These normally conversion, new year. return we had to franchise not operations

that fourth and permitting into franchisees fiscal we to had some and quarter year slipped franchise delays construction the expected third Due XXXX. our both experiencing, quarter the of unit early the are from new

low While new the our XXXX franchise year we're of very pushouts. the these strong, fiscal given unit trending end pipeline for guidance is towards

by positive franchise fiscal unit we of strong We on the remainder accelerate QX our year to to unit target per anticipate years XXX growth to continue the prior consistent year. long-term close for a with additions year be XXXX. And out to

discuss over financials I'll our in more it to to detail. now Mary turn

Mary Meixelsperger

Lori. Thanks,

EBITDA talent the XX. during summarized just the to on profit for in quarter by improvements results QX $XXX Slide quarter. transactions non-oil premiumization actions Our XX.X% quarter largely million higher average million. are Adjusted by advertising and the SG&A from and penetration. driven improved to Gross over impacted continued third increased ticket $X.X continued change related growth pricing and investments adjusted support to future primarily revenue investments in EBITDA service

by increased improved sales volume. continuing leverage SG&A to We the driven are see

EPS We per adjusted strong share quarter. for also with the saw growth in $X.XX

Turning to Slide XX.

an Let's take at position. look cash and balance sheet the updated

substantial progress on proceeds mentioned of shareholders. commitment the As product our global amount a Sam making we to to the sale of return are

and of proceeds the We remaining be strong the position Global have months. of the the the following a offer anticipate in tender use complete Product coming to cash completion

of ratio X.Xx are to X.Xx EBITDA. We target our reiterating leverage

operations as a million the changes net prior in growth trade million. the working of flow to $XXX benefit is onetime to Global higher due sale the driven capital cash year by result over $XXX favorable payables as Our This increase of in cash well as Products. increased from the approximately earnings of

continue we pure-play benefit the capital nature will light retail of the to business, a from As working business.

This of million. investments the quarter we the of earning income $XX.X from the saw interest from favorable Global proceeds net Products sale

XX. to Turning Slide

metrics. for guidance range of our We a couple key are updating

For adjusted the narrowing full to see we million. to to EBITDA, QX QX similar million and results $XXX range are $XXX expect to

from Global earned the increasing the guidance largely Products. income, by net the are adjusted on interest of sale proceeds For we income driven

up. wrap I'll it over to Sam to Now turn

Sam Mitchell

more and year. a to a has had past a We over well-positioned for note, certainly our lead goals XX privilege We the Mary. Thanks, and deliver great personal quarter to come a years. been we're it Valvoline the on longways. have tremendous honour On

thank First, our and more helped miss of impressed truly quality I exchanges a your public I work questions. disciplined analysts, the cover they with company. who to been I like would Valvoline. always have us will the thoughtful as become

I in by demonstrated have am invested capital grateful investors, and VVV. the the this the trust place you for as management To in team our you company

driver and investor, priority you you our strong a been If most know The a of long-term value. important that first shareholder building have is business. sustainable

capital our pursue invested we will communications will clear consistent and Valvoline to financial Backed delivers governance dialogue with we return investors. in controls very strive on in and continue opportunities and with strategies. high-return strong by to a be strong meaningful invest our a our always

of am going delivering this am in proud I to track what Finally, say not I that will change. do. we our record we're confident on

Valvoline's You future. bullish I'm know that already on

was discussions. already of focus especially of we the to from the are While benefits operations increased Board businesses separation our challenging, seeing

talent important from our to culture. is is One advantage that the and competitive difficult outside see

team. right committed with working closely to This partnership as We includes are our together winning our a way franchisees. the and

processes Valvoline ahead. technology that each a special our company Combined in with investments our it tremendous people makes team, and who is our opportunities care customers about and other with truly our

is strong place, make company the leadership as transition. this Lori With and a hands Elizabeth? in we great in team

Elizabeth Russell

Thanks, Sam.

start line. want Brika the can everyone limit that line. to your With on the get to everyone that we one follow-up Before so Q&A, to we open the remind I please to and a question

Operator

with Gutman question Thank Simeon Morgan first Stanley. from comes you. Instructions] [Operator Our

Your line is open.

Simeon Gutman

you. maintenance you Hi, and transaction congratulations. which was that Congratulations, or the -- sounds saw great. it ticket My I guess like comp, lap the question first some The Lori. then miss Sam growth. We'll on everyone. benefit in deferred we'll

we normalize? How where going growth ticket terms that So forward? or that And should soon does where guess, pricing normalize I in of you. do happen? Thank

Lori Flees

see we on in growth driver to the Simeon transactions the of the continue transaction customer I base. a from strongest coming think

from a a significant in in a came the growth So growth sales of growth transactions base. XX% that was our same-store customer part of and

very So with that grow bodes well continue our current to as share we network.

increases number aligned with On pricing period the a stores pricing rising price still had of be We we we may our that optimize where XXXX. of price, add pricing as stores in were not over a we costs continue as made do acquisition the to particularly our and time. material

in markets. so adjust And price continue key we to

full to our We're -- growth. And the X% guidance of long-term synthetic the analyzing financial pricing year three-tiered about always end is at talked think our X% sales -- last I between we blend and same-store conventional synthetic. for

to start to be but that we I in moving QX still numbers think you'll strong. expect direction, see us

Simeon Gutman

if the or or higher company's debate Curious follow-up franchise mix. debate thought but side My responses a this is I curious one Thanks. company-owned is on a know been, another? Okay. one have if on goals there what there continual is mix? any versus the around and

Lori Flees

Yes.

think main I grow to is Simeon think I – our are our goal network. we

base, only We do have our get to growth level. franchise grow by base company at but units. aspiration the effectively going continuing And is to our growing aggressive growing franchise faster our that way side pretty a we're a to X,XXX to

Now time that take generate. does to

XXXX. And can that we'll why are units new XXX we franchise add accelerate multiyear can't looking the be we – new and we closer. effort units pull our within forecast that ways side team a in You at is which is on at a year. that by It's

than that's terms But network of express key We with a percentage in markets of coverage trying to fully be and an want of goal we in other where stay to goal the think to all certain -- get X,XXX. don't get we to driving have to to franchise. full

higher a we're stores demand infill when return capital marketing market where company trying markets to we market. know than because has in As that the look adding the at the is invested add you're on amount store to highest you is we a brand-new of spend a

down smart franchise while we're growing doubling growth. so the to on very And side, we're company really being we're with invest where the on

Simeon Gutman

Thank you.

Sam Mitchell

to that company We're has made to accelerate want franchise just in the looking think certain to point growth, that should beachhead first to And could have investors them for to expect both But and partners. with invest well-capitalized them Simeon from. and I potential Lori add new conversations that too grow. who we the in give sale to do and that of franchise to bring is stores a stores model. the markets include and this partners, understand to grow that company begun

expect to rate. us some mix franchise change we see So handful that strong to growth mainly new accelerated partners our would of a in with help achieve

Simeon Gutman

Thank you.

Operator

Steve comes question Citi. from from next Your Zaccone

Steve Zaccone

on congrats Hey, great. taking my the announcements. Thanks for Sam and Lori, questions.

sales. follow-up wanted same-store I So on around question Simeon's to

the quarter raise to outlook to the that on but you be fourth it year above expected quarter because the for sounds overall same-store is sales. like fourth didn't specific algo, the Just

that So expect just transaction? would you're in talk helpful. talk be we maybe Should about quarter could seeing similar between not? you ticket near Just you. something Thank fourth term a mix about why the that and

Mary Meixelsperger

quarter very sales Mary. – is in beginning to you'll high that you This the at that terms do the guiding you of the the same-store year. and we just able sales end the outlook, if tell of math provided same-store we're range fourth be Sure. back originally of of to I in

well expect strong end high see increases. see I between saw be continuing of at the would a we as transactions in and balance see to to sales. to overall pricing similar would continued the we we've in of I QX as And that ticket that range same-store in QX. So demand, terms And we're – would toward expect

range. But high end you'll think the see end year a toward good question. the us I I it's So think the of

Steve Zaccone

that follow-up clarification. I margins. guess Then Thanks Okay. to for on

gross puts the and So Would medium-term? on SG&A on I line how look we expansion do the every to the guess you think do out. margin margin modest in near think versus mix we see as about you. Thank rate here we to expect now And of quarter? leverage how some year the forward, about takes over that fourth gross from

Mary Meixelsperger

Yes.

So we quarter third fourth quarter. similar about being to fairly talked

obtaining modest from while we leverage. her the might seen some We cost is product oil leverage benefit reductions most to that So fourth re-refiners. to year-over-year saw of comments what I from gross waste reductions, because gross think sale you the offsets some price margin in Lori due in benefit leverage from we've coming we're versus will lower see of base that lower to quarter margin. oil SG&A mentioned see some

fourth we And the in so expect quarter. to that continue

five as leverage XX% In years. range terms leverage we move we EBITDA the to – to we in SG&A outlook, in XX% and three the of long-term longer-term do range provided forward in expect gross see next profit well to that as as

you're as the and the continue to take really that have see market business going think more we going in the and we business. from to in I So increases leverage sales build the we're cost we fixed footprint to share as expand strong to that benefit continue

Steve Zaccone

Thanks. Great.

Lori Flees

the obviously, a I'd – There down pricing the then add – on oil leverage waste we've Yes. color the Mary's and just moves we add has be leverage is and to with the oil base that drive will which will and big with just running the component expense fixed product piece. seen get stores on cost. up expenses, margin, gross store point I'll another

rates, but do minimum On up. recognize efficiency have also wage to to we will go drive cetera et the continue that we plans labor side, labor

that initiatives counter drive to more done. the to sure that make wage. we to increases enough efficiency have are than And so the But our that's on plans work be

from think, leverage that's the about the even I coming side be talking Mary though opportunities profit why is and there So the will G&A gross on leverage side.

Steve Zaccone

Thanks much. Great. very

Operator

Thank you.

from Imbro comes Stephens. next Daniel from question Your

Daniel Imbro

Thanks congratulations for everybody. the announcement. good Lori, my Hey, and questions, Yes. morning, taking on Sam

Sam Mitchell

you. Thank

Daniel Imbro

think fourth here shifts traffic on of maybe kind summer last I follow-up or were want curious is line. focus seen a service the any we strong the on as demand look in months for top that you've demand question if continued to your Mary, through see sort And been we I'm the quarter. words then month-to-month has attachment. mean I attachment, how we did notable about it revenue service was think non-oil whether a while. trending? change I

been any on driving higher? successful that Just you how guys have update penetration

Mary Meixelsperger

quarters into two say season had been the would consistent. has volume I first shifting came demand around. a we the lot in drive pretty as demand and of And the So we the weather

a we so seen don't see month-over-month. And haven't surprises of -- we lot

to in busier. that air battery and get the obviously, as mix the relates also more service busier our people do think as summer, conditioning an and attachment changes it attachment I service of As centers service get example. less

you just attachment it that's time at rather service not in busy. another Sometimes see a slight would because do so decrease they

seeing improvement that year-over-year focused things on been we've on we're really still improvement the our rates. attach strong and But

see And up and gone call dollar our we're for. revenue looking year-over-year we so out. basis would what you'll see month-over-month unique that on has anything non-oil a But we that's change don't

Daniel Imbro

how mix business you less sensitive the change Does make maybe over evolving that that's the that higher repairs? has business in that the sensitive sensitivity? from growing follow-up that macro, the And any don't you fleet But segment prepared time more the think how how on to about any is update sensitivity and remarks. much business. Thanks. think a that to those of today? related the as you in given fleet mix my I Great. economic general fluctuations? make quarter? make the top will then heard the line does business I thoughts initiative I to Just progressed And mix guess in did small that

Mary Meixelsperger

Yes.

of So drives that than this at is faster top is The is an their roughly and fleet a still rate that portion is it say thing about to and continues about growing business overall managers overall P&L. a faster fleet asset but grow XX% line sales. our our our I small would than

And so a mix we don't healthier assets they're them the their to trying see changing for because longer period. maintenance, maintain of

our seen haven't instability any in we So base.

well accounts. In and that base is customers as really increase to a that the adding strong those have have new growing fact on within accounts of penetration our is as focus fleet we we

Daniel Imbro

Great. Appreciate of going forward. all the color and best luck

Mary Meixelsperger

question do line? Thank on have Brika, you. we the another

Operator

JPMorgan. Zekauskas have We now of Jeff

open. Your is line

Jeff Zekauskas

Thanks very much.

On outflow there million What flow statement there more will that the was cash discontinued was any operations. $XXX are after an of that? from that? outflows And come

Mary Meixelsperger

Yes. taxes paid part as to considered are That that of was primarily operations. the the discontinued on related transaction

the on considered So a discontinued the be Global discontinued is sale Global gain with Jeff. to along of are Products operation on sale of paid Products all part the the operations, taxes of

Jeff Zekauskas

done? to that, Is more we or there come after are

Mary Meixelsperger

be bit quarter. million past. fourth level little net paid a more there's that that the of level the be somewhere the But we've to between that proceeds in taxes, most about of there's but Federal taxes taxes and in and lap the Yes, that local need the of fourth to million quarter. We've bulk $XXX of state uses the Products still still We'll in paid. of paid is $XX the Global talked one

Jeff Zekauskas

see your the stores, Sure. you of building of lubricant volume States? as as a normal what see volume rate And growth get you follow-up you And normal of what my normal for in do rate new the exclusive from growth? the United basis, industry of on do benefits

Mary Meixelsperger

Yes.

sales really growth stores. mature we've seeing our strong been So, in same-store

that mature are maturity on faster in points growth growth XXX new a in sales mature adding we're that basis stores track than of our to probably very than the growing bit the So, fleet. same-store terms little the average stores sales same-store lower

track industry tell don't volumes your And second you overall of in continuing I usage product the lubricant the know I'll we're terms of question of very to sales address-- that closely part terms the see. to that I we in can see increases if the

Lori Flees

XXX from that interval from do-it-for-me. data the got -- just XXX that the published Lube I've and pieces of to that do-it-for-me the versus between drain -- -- Quick probably My add switch do-it-yourself growth is driven around from per basis And coming has points you've a year seen that. then externally the business miles

Mary Meixelsperger

people consumer And our to I is for more stores. convenience think the overall drive bringing

includes Our drive the consumers think quick incredibly I experience others convenient offer. we relative types share the other to continue which service is of taking experience where experience easy because growth auto of to just going centers that to we're share for believe and and dealerships trusted convenient we customer to aftermarket market from that us offer we

Jeff Zekauskas

so you Thank much. Great.

Operator

Thank now Research Mike Seaport you. from We Partners. have Harrison

Mike Harrison

Hi good morning.

Mary Meixelsperger

Good morning Mike.

Sam Mitchell

Good morning Mike.

Mike Harrison

role Valvoline. an just the my well on and I've add and I want to impressive on career to enjoyed journey with working Lori definitely you to the Sam transforming congratulations congrats ahead. as new

a cost In could bridge. quarter? on slide more we color growth price that look terms same-store million number the like pricing was you in on of there, the this much the was And bit going QX? into pure what sales that $XX.X Can that as price in year-on-year little year-on-year us get How cost that's what's your there? give on XX.X%

Mary Meixelsperger

It's increases. the question, pricing a-third Mike. a we our coming overall about perspective is Yeah. same-store good comp say bridge from pricing overall look from probably would sales of at I When a

still think lapping in you that September we fourth quarter -- here pricing if third next in quarter. about So last had the we'll that year be changes

quarter we're going the well. fourth -- see year-over-year improvements nice in help pricing in some as So comp still drive the to to to helping that's

waste offset at in from when lower cost the product oil were largely Lori some saw of So reductions the giveback we you had mentioned of look that because I recoveries for base by we lower think re-refiners. benefits cost, price getting our that that from oils

think of a in the QX cost the think can I table. but bit so price. driven little I primarily in pricing about being, -- benefit, that price by it's was There primarily on think cost you from And quarter

the in Q You'll comes see it when detail out. more

Mike Harrison

about and might hoping store maybe Perfect. just I additions what on to to I XX% fiscal discuss was modeling maybe talk question All a next is new EBITDA might margin XX% we XX% expectation but from puts we XXXX that sales different XX% EBITDA bit little how the and early look XXXX fiscal for year. of and assumptions CAGR? be broader And some your it's to around longer-term could right. CAGR thinking sales takes same-store guess, know maybe then

Mary Meixelsperger

So, good we're not nicely guide provided call we of feel our wait will have quarter fit in approach I'm long-term in we you the earnings into next guidance to position, EBITDA the into the next think Street. specific to a know But when terms as XXXX. CAGR you're the And that and fiscal really guidance afraid, to the to call. Mike get XXXX provide longer-term for guidance. specific fiscal for the revenue going long-term XXXX have about CAGR quarter's that guide, still give of in terms to I we

Mike Harrison

Understood. try. I had Thanks to very much.

Mary Meixelsperger

Mike. Thanks,

Operator

ready. you, Please when ahead you're now We Jefferies. have Bret Thank go of Jordan Mike.

Bret Jordan

morning, good guys. Hey,

Mary Meixelsperger

Good morning.

Bret Jordan

granular on far positive. like you change, obviously the was pretty But Was oil traffic trends any quarter? change as have pretty was out in more or push sort do it miles sounded between consistent? as It anything of there interval

Mary Meixelsperger

Yeah. which just interval X% and around for impact the very more had was than oil by miles X%. offset over in the drain very, driven We was quarter right of modest that a increase

the net-net driven drain our have little think I So netted interval very same-store out and to impact miles oil sales. on

Bret Jordan

dispersion? there Okay. And any was regional

Mary Meixelsperger

dispersion. regional little Very

franchise where very, unless between this we some our anything consistency very dispersion. see with weather processes results SuperPro the amazing training, a of in in proprietary certain we of locations fall generally, have areas winter see we -- geographic that? consistent we that But see there have just benefits Lori is great regions. Sam, our to and the might across and typically we both event different dispersion little add or the very, see with some that we or company of very happens you'd One and

Lori Flees

agree. I Yeah.

Bret Jordan

got Great. And on quick one the I franchise. question

franchisee to was or that know seeing processes sort just that franchise it base? delays of of is particular the a you the opening of doing tied that were zoning You've units, in pushed mix some multiple across just out, logistical that some was sort

Lori Flees

These a Yeah. for things of constraints. on company ahead get trying of It of franchisees are some we openings franchisees. was store across and have -- saw both our company things but to these number like side been also for distributed things the the supply

been, bay doors. well we advance supply look on transformers like. and what doors we going boxes as can is electrical order company And can the our we -- order constraints to There's for for pipeline as in bay because know

But of orders not franchisees can't for they some same kind out. those, of who are the doing multiple at time put units our

figure And can down them out process so we supply their trying them to how with slow work is constraints example. have to the help not one

site local we're we in the to timeline is some others I move of that industry and learn one understaffing the is inspections seeing have to and other The the markets as the backlog facing, been hurting process. the the know permitting try municipalities, and many from as well in through within network our

don't some can, cover side, company the where but expeditors the national we geographies. On of in firms put we some those all

some that we've year been necessary when we putting last to help working is with municipalities on when had something company since place in challenges side. local So certain get it's the

certain think through markets we continue work see in just some And And in to regions then, that. subcontractor I have shortages. you to

to priorities bit a able business, if the in out the building subcontractors again, to a multiple where the pipeline on company given lock units, of easily. you're that you're the we I as have consistent more is side subcontractor we're think subject whereas not franchisee, getting

it's the of and done that side So where support proves on just QX. are And company some that hit numbers and we're -- are just our things for things jump that the necessary on these that experiencing. that franchisees the we've trying we the franchisee the showed certain challenging and markets in to definitely more take

is push -- construction not these are just so out, still and forward. pipeline. reduction units is many moving these that of news track -- are a still These in this The on good the of are ground-ups

when of just that lack not a it's expected. online. timing It's confidence come with we they So will some of challenges

Bret Jordan

Okay, great. Thank you.

Operator

you. Thank

line. For further the have questions the time we on no constraint,

So I you may Thank you lines. would here. call And joining. to disconnect for now all conclude your the like

Valvoline (VVV) 9 Aug 232023 Q3 Earnings call transcript