VVV - Earnings call 1 2024

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Operator

Hello, everyone, and welcome to the Valvoline's First Quarter 2021 Earnings Conference Call and Webcast. My name is Nadia, and I will be coordinating the call today. [Operator Instructions]

I will now hand over to your host, Elizabeth Russell, Senior Director Investor Relations to begin. Elizabeth, please go ahead.

Elizabeth Russell

to Quarter welcome Call XXXX and Webcast. and morning, Valvoline's Fiscal First Conference Good released the results December Valvoline morning, This for XX, first XXXX. ended quarter earnings which This a investors.valvoline.com. Investor should be in at with presentation viewed Relations website copy available is that of on our conjunction release, XX-Q that note Form are Securities and we file preliminary Please the until Exchange results our these with Commission. Lori President; and our CFO. On and this Mary CEO morning's Flees, our call is Meixelsperger,

fact X, Slide assumptions not any of and forward-looking and adjusted not and companies. today are statements a our comparable management's other results remarks statements. required discussion forward-looking unusual, noted. non-GAAP we are reconciliation may adjusted under to which believe restructuring the historical statements that materially reported unless business. date nature. in understanding in as discussing our to key or this ongoing non-GAAP of GAAP cause no measures in differ current by will on our use statements Non-GAAP key adjusted of similar used law. this We are be is any that to for our appendix. of basis, amounts from Valvoline information are A be results of of enhances risks our provided and by presentation, management shown certain this nonoperational non-GAAP The are items, business the measures presentation the in on are included In our forward-looking uncertainties is used of unless approach by results These statements. such otherwise remarks, and As presentation actual obligation may based to on subject results assumes to an update of

to begin Retail will and from classified that, the discontinued will financial company's then the business GAAP reminder, a is first results. With for former the over operations, continuing quarter, turn look Mary Global our a I our reporting. Today, key operations the Lori as highlights Products with of at Lori. will segment the purposes and represents it cover As Services

Lori Flees

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

first for with line the $XX growing adjusted system-wide track spend capital. stores. franchise. growth the full our We were saw started the will improving our growth. store we standpoint, million. the we in capital strong XX% EBITDA XX% share. expect high was expectations the $X.XX our EPS which brings year per a additions, the sales capital on drive invested XX network across improving on XX.X% with continue million and our For XXXX, to From top to Profitability quarter continue with half a line guidance. year This to We return we remain with $XXX of which store X,XXX towards to with total at adjusted from of of to new focus adding to quarter, network majority

We our substantial this $XXX also from net to made portion shareholders products share over commitment to return a quarter. the million sale additional progress global on the with return through of repurchases proceeds of

the progress share Before made pillars our strategy. to our of we've I'd growth the Mary of the quarter details results, on first covers like X

continue to we First, our existing potential full business. drive the of

we from ticket X.X% coming and growth. quarter, growth, system-wide transaction sales This both delivered same-store

since also rates we experience had to We I'm XXXX our for labor December, Forbes provide have our are and Valvoline through the best-in-class service Service been Customer us the lowest allows are a for Higher proud additions. improved services. In Team to who Best as our companies On our known start store Valvoline off and in I our team And great that better best-in-class is list. customer great management. alongside training also to costs pre-COVID. XX on labor also network margins like retention rate with recognized customer November, stores they more have service. #XX recruiting that well mentioned, while stores with important their minimize and tenure ensuring our Chick-fil-A, management. retention an Instant contributor growth, guests added staffed Oil who named was every to Change XXXX accelerating members delivering attrition day franchise-operated are

We mix see XX system contributing builds healthy growth XX a ground-up to with this across and builds of continue quarter. our to ground-up and acquisitions the acquisitions

a growing pipeline franchise robust growth us that. accelerating franchise goal a with QAS network store as or work quality X,XXX this of have partner Automotive stores franchise We our to more we week, the North a just in Raleigh, our XX-year within a Carolina. store continue Services, And and towards focus than to celebrated X,XXXth and on opened

category We a our and overall top #XX as also recently Franchise-XXX. entrepreneurs were in in franchiser recognized

the our our thrilled partners fleet best priority, are in see share and business. recognition sales service to third with in favorable this On have category We them. we to revenue contribution from both franchise and non-oil-change penetration strategic continue our same-store

business, as Both separation Products fleet a our and penetration fleet service opportunity existing of continued new have R Global the will within system, fleet new NOC growth customers' our runways implemented as of ongoing our part customers has fleet the well As of CRM for from continue enable improvement. which to long team growth portfolios.

ensure building long-term fiscal that on also growth focused is XXXX algorithm. team delivering the delivery year continued our capabilities Our of while

walk to financial Now Mary our results. to turn it us QX over through I'll

Mary Meixelsperger

top Slide System-wide, growth compared year. XX.X% to sales On quarter X, we'll grew sales growth quarter. same-store growth Lori. take the a we XX.X% closer $XXX the to for first Net X.X% look prior Thanks, line for saw million. the at of our

sales. we first the That that accounts You'll later the XXXX. increases inflationary same-store year XXXX, fiscal for of of the majority deceleration year-over-year the in recall in in occurred that benefited price quarter from

franchise company about proven comp, the an This been well as driven and from contributions non-oil company base growth that and largely Transaction revenue franchisees past in and out XX% saw franchise range change to by growth implement to as service the guidance quarter, modestly practices by the within over best our customer improvements X% increase both sales side miles same-store have driven the franchise The modest X.X% driven. stores of grew growth, contributed respectively. continue as many in year. penetration with better in

As of earnings about softness see contributed we we comp shared the of the XX% customer call, quarter. some the Ticket did at for in our last beginning the quarter.

over a half non-oil service from Just with increased of from ticket growth premiumization came penetration pricing. and the change revenue balance

our call, made pricing mentioned we in we in in early our have in increased As of further and X/X adjustments last QX. about already November stores, we

some XX with of the consider from year-over-year. we Starting saw the results. rate, financial points let's gross Next, XX.X% improvement drivers other XX.X% or basis of to

that of delivery XXXX, increased fiscal gross costs. our quarter margin the was pressured You in a first by may recall additive and

gross As during we profit Lori quarter saw leverage focus our margin labor year, as to this this continue we largest cost driver. as first the benefiting on mentioned, of of sales

sales year. of basis travel. occur we timing for meetings point Sequentially, and quarter We in stand-alone our rightsizing first a an XX the in percentage continue year. net offset saw partially rate over increase of with which the XXX SG&A that to in to due the of costs basis of by annual a first each as business seasonality including SG&A from organization This our points, in an prior in was driven the quarter decrease the by structure improvement expected was see a decrease increase approximately

half EBITDA. as points at Overall, assets basis improved the EBITDA XXX new points about As causing of gross the a Depreciation million adjusted over metrics. and and we'll prior for of service, XXs store-related year. basis year. On low EBITDA is from in percentage full increased look of adjusted Slide stores first X, year the reminder, IT margin profitability margin and quarter typically basis by XXX placed in in the to deleverage prior a additional amortization year our leverage XXX an $X our adjusted the points in take the in due

the $X.XX with repurchases and expense product consistent bottom the the XX% the from the expense in of in due to the to was XX% about increasing rate of Lori balance current the in line Adjusted share interest year. net income a over by operating interest saw and million, just offset to contributed of increase tax coming the with share. change Net by the of on income with adjusted operating growth remaining year. income increase global growth count net effective As EPS course declined The under $XX.X XX% mentioned, of XX%. $X.XX investment share in per interest in prior modest the increase from sale substantial also proceeds our expectations due results effectively earned from in an driven EPS the income over were reduction the the to

X. Slide at look balance position. Turning cash We'll sheet to and the

remaining via anticipate of current on authorization near over just authorization. $XXX first in That the During billion we leaves current million million share the shareholders repurchases. quarter, $XX $X.X term. We to the completion the returned the

an repurchases we As our have being capital allocation important share strategy. before, part provided we anticipate of

We completion Products sale X.Xx by as continue expect the sale we Global XXXX after we make to leverage offer X.X current required agency will authorization by the to repurchase evaluate to as upcoming triggered rating quarter, the a In of business. the ratio. to of target the covenant the the adjusted asset an notes

due year up and the $XX.X CapEx For timing the to our in capital was resulting flow of and were million, free of investment from with QX, capital cash consistent cash was $XX.X expenditures million increased flow operating million working over activities negative $XX.X payments. prior expectations. modestly

have continue now We $X income up. during back position and interest to the to million cash wrap turn quarter. I'll strong it a to Lori earned of over

Lori Flees

Mary. Thanks,

to We across our addition both continue and strategic same-store X sales progress growth are to with transition of consistent in high-growth driven deliver we results of our pillars. retailer, stores, new a making and our all by the

partners our year hard I XXXX. continued our start team fiscal to for and we want As franchise wrap, their work to thank

Elizabeth it I'll the to Q&A. turn to back Now over begin

Elizabeth Russell

Thanks, that, [Operator the line. Lori. please With Instructions] open

Operator

Steven question Citi. to first Our Instructions] today goes [Operator of Zaccone

Steven Zaccone

more spoke when November, it the Could Our versus a versus year ticket transaction I bit has to think how in outlook elaborate was your you us on the first just question changed little performance the you in XX-XX. quarter. for more was

had same then in you just curious adjusting second that elaborate the along So lines, also? on Could And about quarter. there. pricing just comment a you those

Mary Meixelsperger

ticket. Steve. the term versus transactions. And Sure, ticket. we from from did of comp about transactions I'll balanced the more We expect see come start contribution a XX% quarter in to see do with longer

quarter by of caused was that mix transaction side. points XXX first impacted impact on a just the under day change The basis

improvements. half pricing from and X/X that with sales if came we coming been portion have but a we just are and our of change more would approach transactions expect changes, Long from transactions growth X/X revenue see half balanced service more term, non-oil from from day pricing So like penetration store from impact, the you of to ticket exclude coming still under from ticket. over to mix and ticket, premiumization some benefit just continuing coming comp we

would So I'm I more longer term tell to we ticket the a in you a see the toward for still think expecting of I heavier quarter, little a bit did balance term, tilt that short quarter. of see

of to relates your it the As question. second part

Lori Flees

I'll Yes, comment. just

said this that fiscal overweight 'XX, would getting working. long we earlier long about we First, number -- side, of would when we've talked we ticket year, a I balance or see think between an initiatives quarter, the we be last given there said a on in would been term, term transaction

improves Just mix. continued just then for on optimizing tailwind the net premium the also work which recall, and and focus discounting, NOCR on price

think store, done services multiple relates services. at optimize continue in year change we have say take across because make continue few we the on is we trying pricing we've we our benchmarked list pricing, weren't that they where Steven, pricing to well region added continually dynamics been to we target with have the all actions relative are X we which as as acquisitions coming to oil adjust competitive services, pricing or some Recently, we stores. others tiers in pricing by are rates. been to based last we're based our and our rates, just our adjustments there. to When to very the talking couple benchmarking changes stores, we've a did a our get to pricing, our recently I we stores target about all all and we it there As may I And that tests. consistent quarters. on last and And the by benchmark supply, have have target what look and and inflationary through increases of of to made for not our

So those we continue do. are things to that

X% current expect year and a our to of X% ticket and that. of roughly good ticket that. to We we will contribute same-store both future is continue -- In this be and it. between long-term sales. component years, a And to do we half year have part see very being And pricing big guidance -- we

Steven Zaccone

all Okay. That's helpful detail.

if tougher. to know the Just there the from performance a with brief quarter relative anything follow-up to be same-store we mindful a Is second then sales. in overall it's of X-year, stick choppy can in little year? I we've of the on a to bit year say relative you heard terms second then some And anything trends but retail across quarter would be helpful. about weather, the full performance

Mary Meixelsperger

the certainly some primarily start Yes, seen and Steven. of quarter. the in weather We've second related. choppiness January

a country of cold aware couple significant weeks. you're pretty we think is lasted business I for January across the arctic our that really saw Typically, some in that nondiscretionary.

pent-up impacts weather see demand And fact, now. seen in with bounce of nicely. we've kind those weather-related so that's to what weakness typically clears. our pattern some the occurs the saw we And we business, earlier we we're month in that that experiencing of January, that of see after when weather back

trending, tell we're I that the provided So guidance feeling us full the would good there sales of that are any and for surprises year. really in we've for been haven't terms where about you

Operator

next goes Simeon The Stanley. Gutman to question Morgan of

Michael Kessler

and Simeon. for unit on Kessler QX sides, in on growth, both Michael was is franchise. solid it first company This Maybe both on pretty

pipeline taken visibility franchisee So the then new actions and on ones. past improve of just for in any both in in further sourcing some to we've about the curious, updates talked the take the franchisees with visibility the year and existing side. of you've the the also pipeline to rest

I just update going? that's So how an have on

Lori Flees

side, new even split Michael. typically and at franchise -- mentioned, We Sure. acquisition Thanks, on have least to additions strong did, a as company. total calendar with particularly on and acquisitions would start calendar to QX to strong The I between the where year. the really strong an XX tends and XXXX tends the aligned fiscal the but typically try franchise calendar side, every is be a quarter to quarter X, tend as close out, to of end their QX

we of and So full visibility expect it strong pipeline. was a the were start. These in them. had really these. did We

unlike throughout the great more to franchise the from $XX year guidance which be expect million much partners. That given should we're year, about very for You million million feel million to $XX of our we've $XXX of the $XXX new come should, you year, last will we although that QX in January lower seasonally rates good and or the can quarter. balanced, through about really we March, pretty given builds have new adds expect we've guidance a the of number feel the weather provided. But that to be balanced

make mentioned continue network We've to of you in And million units, we're units the increase per working XXX the by [ X,XXX side. progress get then very coming franchise our year to we're clear on have we clear ] just really we the of number against to over broadly, to XXXX. been that to units that. acceleration very get Now new going

conversations we we comes them very existing with them analytics, detailed we for positive. from franchise look an perspective, continue real business can been from generation some the development, our have that have M&A and pipeline ways partners And support et. with estate retail cetera. that both to Now support, more

those some a And scale handful our so or transition part just sit help is career significant in the partners been on partners. again, players in they've the the businesses good really the from and franchise areas that of who they then develop who that existing And us wealth with that about feel white cash that's existing points are created recruiting, we to want in. to regions to will franchise franchise want new ramp we the where to develop partners at second about get bring their more built space through out

And got expect going progress conversations white and to transition timing as did making. that you've the time. very feel that But progress. we again, timing we the continue was we're line those the as the take Now good is One about space well with up to conversations.

Michael Kessler

there you And even repurchase will of factors kind probably of after range healthy like the is on I where the may kind that post approach happen that of is you in the follow-up once are are big sure relevering accelerate what QX how range what capital which of returns or be buyback. I'm curious with at of lower given buyback? notes end exhaust the options think more one thinking you've returns. of the and outlined it the shareholder conservative, -- the just including guess decision that. maybe a to kind through know I is pretty a you're plays maybe the out, allocation Or just I'm the leverage today, table, But just the what as QX? I plus is see this range that on up maybe

Mary Meixelsperger

Yes, of is rating just an on as well information, or agencies operating the how everyone's ratio employee which ratio, leverage. benefit if measures, plan And S&P, Michael, rating agency I'd our for you start both terms our in adjusted just in particular, as based leases, for leverage obligations. target leverage adjusts forgot

targeted So leverage. is are which related We leases when full of sum adjustments, liabilities leverage $XXX turn the end to you actually above operating just the make is outstanding those about and of high million, range. slightly pensions a about the of those our

couple next sheet cash further So our targeted first it look time using balance will shareholders. flows here a of of short as is bit within we've as expectation us operating take well allocation little returns that we'll range that to priority us to provide in at will and then our be And My would we capital to -- the on, below we're get of the then high allocation from leverage targeting. quarters I to there expectations share the back via expect that what -- of within would, targeted leverage end capital that return our to and into get ratio. once be target on back focused that again, range we're shareholders to repurchases cash that term range

Operator

next Daniel. The goes question Inc. Stephens, Daniel to of Imbro

Daniel Imbro

bit Maybe that saw past, XQ down easy want maybe a on gross the little maybe We clears? start margins. gross you have item Can larger how with the labor? line especially that improved in to of a step side last comparison rest through on drivers we seasonally with comps margin to of year maybe using the XQ the the And year. like just you're about as thinking of the gross for margin talk

Mary Meixelsperger

that pleased of from with saw tell have I of you depreciation operating balancing, margin some Daniel. And year-over-year certainly by saw the if basis offset expenses year. one quarter. was the is will from well, actually we sales that a labor about QX you, leverage the is seasonally quarter basis a to absolutely, gross margins Yes, a the We the depreciation And if of out done very the sequentially levels modestly That's meaningful XXX perspective. impacted depreciation. And that's better managing you XX leverage the throughout saw we impact We're impact really timing higher of related would, we It labor saw of some leverage points. leverage expense as the deleverage. before impact. in QX also low of points take in things quarter. our maintenance

also, saw from as new new We deleverage well. stores with those some opening, stores

for the of would of us no how say, So I we terms the there managed, year. surprises was balance in for

expect although likely leverage saw to wouldn't first see labor the much necessarily. as quarter as at I continue we margin will leverage line, We the in to see

Lori Flees

there's labor drop, jobs step into manage we from labor, And the pretty Yes, Daniel, as volume just have manage we have summer then transition a down starts to that add. folks QX, and as extensively. to our to back college. I'll always our

lot our the and to stores from lot of is a the the from low-hanging So that have scheduling, And when see as a testament perspective margin QX. fact coming literally how last labor. made labor although But year, you'll the through on cars improvement we that calls. optimization we recall improvements of QX just QX, previous is better balance of about talked of teams earnings that, in and were you year-over-year have compare difference we really was to and the happened management leverage year-over-year progress since some strong, would some a really, the and a the those of focused fruit

as of you'll labor year-over-year strong labor from have see So because in compare some started won't the a QX. impact management to hitting be the quite

which item. so last manage are sales cost low. the is cycle. is opportunity, the and our continue is the to we biggest still Though this largest line, attrition So that thing we of have proud rates we're And our labor of

has expectations that how technicians I is mentioned, the in talent had proud rate attrition really some got that central the with side has and As about. to our keep team and the really across since we're stores can the to put onboard effectively. lowest that attract manage testament things really tools talent ending recruiting which to And the are training place we that work team enabled train the to them in driving we for we've we operations, so we're ensure that those the and that pre-COVID, things been quarter ops also have the And then of longer. our we a doing how the that we've setting been

Daniel Imbro

follow-up appreciate maybe a Understood. then the the I color. And on growth all outlook. comp

XXX said into impact about I second calendar where positive non-oil-change of service more So from stores. demand will think here was growth? to how impacts trying revenue? the in are should a see the attachment in the the Just quarter. as tailwind winter come negative quarter ticket you higher battery you points that impact back for for us improve can a there weather a what the guess, pent-up becomes that historically basis the fiscal first That see you Would of remind you

Lori Flees

by for we impacted it in actually typically broad-based was up of all milder and we be cold think, definitely sales was as February, muted sets the that majority go the year Normally, -- But in. it was get retail December needs question, In December, get out our people regions. when I et weather their they pent-up cold Daniel. really to have January, because battery Great pushing tip fairly a That's this replaced. when of you Yes. see schools December. we that Battery into their of some and to cold closed, and can in wanting not that and arctic battery back coming pretty demand created, cetera. realize in January cars making see, being in

-- are see would and ticket is see we of So have do expected overall an things. things piece as we a our with small seasonal Battery colder we those do weather. average, but those the we as

Operator

next question And Kate to of Sachs. Goldman the McShane goes

Katharine McShane

how We this wanted should of builds guess, you to ask initiative. reducing about of as new about where are, that And on result your forward unit going costs economics think I a initiative in process? the and we

Lori Flees

Kate. Thanks,

As earnings, last internally value. add our don't elements that stores mentioned our the been of working design we add in and but both of on we've costs, design the out taking

the with in will site things We're time cycle franchise had. now of compares some they've getting and doing partners opportunities the and costs that those to around some build costs of process Some of our reviewing through. take and

still So what can opportunity, implement. that I believe would say there's is we we things

an example. We cost the an reduce of to acquisition to Valvoline store, store a are things converting as implementing

us as time locked to can there's the delta share should the But to so cost down teams the opportunity up be line that new when units. or and those share definitively new -- permitting we'll things contractors our to implement, we are have difference the will can landlords capture to cost we take and of well working Some the that builds, and for capital for as for sorry, show conversions work with capital but we the will But the expected. the companies it. everything and the new start more in builds --

Mary Meixelsperger

a to economics, with as substantially costs, relative terms up about we're the higher And and continuing builds as capital we're well, new weighted our the new still see we returns well. from franchise of growth doing really the unit of cost from continue builds in economics ground to for current than our see mid-teens construction good feel perspective unit in that company partners of Kate, average

help we benefit overall to So simply increase further. even any receive will cost us from that capital return lower

Operator

next The Jefferies. Bret of goes to question Jordan

Bret Jordan

successful non-oil-change been of give any list? updates the that to Could product you offerings? what particularly adding or see us on What's sort you

Lori Flees

Sure.

performance the on team the store On sell year-over-year the the product non-oil-change more in revenue, getting is how how that and consistent to and is just service having a that performed. about knows more really tenured presented

So we the in we getting back is making and we gains on supply to past equipment our know, continue updated see Supply be have used. training, to issues, several you the focus as in the chain available line. chain, supply years is and to sure store service over do the had chain post-COVID as just

execution, so roughly a we team sure cabin service et cetera. opportunity. double better revenue And So our process when is right XX% And air XX% better. have quartile stores, the why making The we non-oil-change quartile the top we have right necessary. the know the from and stores that contribution we the roughly or air filters all for is understands then vehicles that trained serve, we filters, perform ticket

of to back And the the end you and our is top so of do and training how perform it part rise do quartile. the up like store tools base the

Now aging, mileage become the many given OEM park vehicle relevant the a of services up. with tailwind more of the is recommended which our is car going

break the that visually so where really, visuals, show replaced, need we preventing find we see to what filters. barriers. we the we our things of. be blades, Those the been air we've filters, to things that can is or maintenance sure customer you cabin overcome are So they to a things when training those like things, just and the those the team, either in to the -- what air We it's OEM it's necessary in we for that's servicing And us example, the store. process look of are the breakdown that's supply execution When is the about And services, team, on equipment about for basic where down it And if the chain. vehicle. we from will, is comes ahead barriers, opportunities, making tenure those see improvement. that a focus lot wiper of

battery customer battery. every this we a is example, a tester, in, check of to the For vehicle our the And to use XX-point put test. the time part which on comes read health a of requires battery us

typically the have and in one may then tell had we what is competitive, as just battery whether Now another our They us, or they been determine to a or the doesn't to learned And time. we've may is the we had on back advice competitive. take started, us very actually not pricing customer testing. their either battery they the service they then go buy to And not which for spot. with and because return come battery that issues consistent is them at issue battery a a and were and out they have

testers be test. vehicles We way casing part battery a newer in have also specific with a a and battery a to in good need get on our the placed the found that that plastic can where

newer, battery actually those younger, say attach X testers store, our years they need of we we when X to online those find we all I younger. X know issues, update make how a goes an some that through sure that or training, newer go that and franchise module training mean company-operated or and When members operated so have team of the vehicles. so or And in to we I out years

doing we're of the fruit, that while NanolChange the of things we jus would I we we've opportunity, And the improvements it's low-hanging still just are some -- disciplines. would on a lot made, still have those I and call revenue. say basic So

Bret Jordan

between then And a the Great. versus regional note I on regions dispersion regions guess, maybe any softer stronger was spread and there in comp? to Okay. performance,

Lori Flees

is Canada time this look the can we regional do Yes. year around obviously, terms differences the based No. weather volume, something at, can don't U.S. This car in see in But slide weather and performance. that volume of patterns. significant we general, any of across on

X exception or coming demographics customer for customers the -- we around demographic store, week when fairly really to that, with and push significant we differences. for the from out from also no staying We things look material But or patterns, slide next. a consistent see of weather may in look than other we

Operator

Lantz our to next And of Instructions] question Wells Fargo. goes [Operator David

David Lantz

X% could premiumization? from non-oil So you the was the expected revenues of to just building curious blocks comp outlook to change inside the if I X% and through system-wide benefits walk some

Mary Meixelsperger

In perspective, Yes then -- a nice of our from than what lesser building we mix under a benefits customer side. of the mentioned, customer impact XXX expansion unfavorable saw transaction side, day as price. change same-store the as also expansion saw benefit the the the and miles we we premiumization I sales had benefited blocks benefit the base on a ticket from from on non-oil although We certainly in perspective. point we the from benefit And revenue, as then from saw saw we of driven, well impact saw from base a basis just that from transaction

addition non-oil-change the took to for discounting course, ticket, penetration of So then system-wide benefit. includes quarter. same-store improvements increases And those system sales across of as and price a premiumization, the in in improvements saw we again, it that pricing, we from all was are well. on that revenue which some

Stephanie Benjamin

in was that year, I X% to in sorry. that to the for just the be going that's David, said about towards has basis to we've provided we ticket, going add, the last guidance premiumization, you more think X% that, driving balanced about but Sorry, you and more XXX as as we've been which have we than skewed between points. think XXX consistently year. what saw the And

will basis to driving XXX then transaction has ticket and then increase, to this We adding But when the you the any you've of ticket about have discounting, strong slightly contributor year. And optimization got why been of overall, so the to a really pricing higher at those you've in feel which be variables, you points. X% X% sales got all see same-store inclusive NOCR, can look system-wide XXX growth.

David Lantz

it. Got

there the And in Was in wins a Okay. you curious performance specifics in the around top of That's average give business to contributed had you that fleet mentioned quarter? could line account any few then you versus and the comps terms helpful. chain the just more quarter. that if

Lori Flees

business. we both we see our the business on specifically We vehicle -- growing on Sure. well overall opportunity I as our quarter-to-quarter is ticket great fleet as haven't say on in a fleet don't continue faster can that -- per than the side served reporting the been out side to basis. day

to sales growth both So same-store mix contributing the growth, definitely revenue as as transaction perspective. change nano a premium the it's well from

Operator

to next Jim goes question The Chaatia Crespi, hof Hardt. Jim? Monness,

Unknown Analyst

the to that year? positive mix spread more the pressure to day is across First, in quarter, first is be quarter, or that out second going

Mary Meixelsperger

a to quarter. QX. DMC second positive We'll in from benefit reverse see the will in it No,

David Lantz

capabilities margins? the system, just then new what the terms and the CRM Okay. Great. implementation And you us transactions biggest and the then you opportunities help understand incremental the of of are see mentioned system you of where in driving can

Lori Flees

your to question was So more or think margin your CRM specific fleet also transaction, cover on and but I'll specific that is fleet, to broad. I

Unknown Analyst

CRM on the new guess I -- so was it on the system CRM fleet.

Lori Flees

Okay.

franchisees a contact in we on to work use side, of they we products, with is business all of so But we We an independents. for many system, development that well our potential it CRM we our share So One, constantly that and separated use team global the system CRM business. sales from and system, new as a as fleet used inside converted. with aspects also from them, outreaching. different have as

goes customers get, efficient. out or very we that can to can customers We have marketing allows that approach it directly them when be we come and

there because our new are had sales the standpoint, for some been system old think more we I to So And use. system. it's built from inside relative that capabilities an

new customer think us up and all sign to and fleet more up base follow fleet I follow it which sales our efficiently so with as team, accounts create existing with up And more sign of -- existing and of allows track will fleet those. our in And up keep efficiency inside accounts grows.

You system new well all up how can management as as for imagine is as do following fleet a important account on accounts. leads CRM we

to will account it sales more more efficiently. management and -- more make our team more allow do really efficient them it's and So

Unknown Analyst

going transactions then it to Okay. of you in with biggest in And the see comp becoming forward, a What acceleration drivers kind bigger implies transaction growth? growth do accelerate part as of an transactions. the the

Bret Jordan

a a store sales that to drive going done high-growth an perspective, fleet fleet, what's network a the on to on growth. doing retail we're retail perspective, obviously, as the... not -- into optimization things a marketing overall to transaction just category, is grow looking and from some those same that's leaning at same-store practice broadly. Two really being best really, think perspective, But the I around what's we So continue will our done to in growth drive we in transaction using more customers. expect And high-growth tactics of contributor be but in on

Mary Meixelsperger

increase. driven is driven. continued other of miles the to continuing We'll miles And from as just see the really to benefit And around to I think, the one, speed last we lesser but benefit Lori, continue continue piece, see add service. Yes. is

So that it's and periods. minute our of time, we go in a through continue technology customer process best-in-class we more that to and we that stores service at during our we to make process out if know look the and easier peak deliver, can to the that our and take use cars days experience can faster

a provide And that, on believe, we to going us will transactions so be forward. tailwind continue

drive X all of that So Jim, those the transaction side. things, it's will

Operator

to any questions. back further now no for will hand Elizabeth have comments. We I closing

Elizabeth Russell

today Thank to time thoughtful for ongoing your questions. This today. you concludes and look all We for forward our call for discussions. your our

Operator

you concludes This joining. Thank now today's all Thank you. call. for

your disconnect lines. now may You

Valvoline (VVV) 6 Feb 242024 Q1 Earnings call transcript