everyone. Good morning,
September share reflect XXXX like everyone expense, review dive of higher overall industry Technical count results I'd GCA except On that our into groups reminding details Solutions. a my the our I acquisition of preface resulting interest quarter GCA from Group. by of segment the dilution all call, impacted Before and basis, our today's to for for Services amortization,
second sold from XXXX. May include we our quarter business, addition, in Government results contribution the not Services In which do our
& quarter GZA roughly to last billion, XX.X% Industry Business driven the million good the Total and $XXX up within Turning results. and growth by versus of Aviation year, organic revenues for $X.X revenues segments. were
measure new realized throughout Specifically, was XX% from business new year. tracking driven low mid the and retention to our expansions which stemming revenue by by we growth X.X% and organic sales
we $XXX annualized first of comprised had the in million business half is new expansions. year, which new and of approximately bookings For fiscal
management On in the revenue from diluted our million due continuing share. share per reduction $X.XX Industry approximately addition, versus income or $XX reimbursement share $X.XX million $X.XX $X positively or primarily a last basis, approximately per impacted GAAP million year. federal The diluted $XX.X by quarter or segments. per higher and our income corporate Business was growth & In our our of was $XX.X operations of to Aviation tax million of
are of GCA. each is Our and diluted within and interest million. results an following expense of impacted basis a items million average $XX also Higher the predominantly in outstanding our higher reportable approximately weighted related million, amortization on segment, $XX.X to shares of to $XX.X reflect embedded which acquisition increase
quarter the results and basis, Manufacturing, Business Education, & $XX.X related related or & revenue predominantly diluted from our of segments. continuing operations Technology income Excluding benefited for an share. the from GCA operational the Industry was impact adjusted segment overall amortization, On million per $X.XX within
wanted for we and moving a minutes pressures the a million labor EBITDA as adjusted of to up I X.X% spend $XX had to a to began we discussed During on X.X% we through quarter. and labor-related Prior providing have quarter, pick direct brief last segments developments summary that seen. of progressed each, compared the Scott at The to margin labor few to year. rate the
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full measures, be other the year basis impact to and mitigation roughly XX cost the points. Given anticipate we
Now, XX on let which segment the me described into for dive of are the quarter today's slide results presentation.
comparable basis. remapping provided and allocations will performance As To on amortization, and overhead can additional first and a operating work. our easily expenses assess not discussed we operating for million you our today's to GCA last result to during a year last operating updated including our $XX found additional as year Revenues results year-over-year the by segment, the of full GCA presentation. margin segment year, acquisition quarter, in year of versus help the services be the of grew have in million related vehicle $XX $XXX XX.X% driven guidance first fiscal million revenue including we which largest B&I, have be
for to $X from in As margin quarter of expansions the including onetime with addition Operating from expected, UK organic a of items. growth to million year key B&I clients. approximately exhibited X% due profit large janitorial million was strong win last $XX.X
labor this higher has labor of than industry a in lower are where rates segment turnover While proportion other present in high certain is areas, are unionized and challenges wage groups.
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to parking million, end the the more an employee Excluding pass-through period customer generally X.X% was for low expect margin as relatively amortization, of operating protocol, profit service was and and mitigation difficult. X.X% more their operating approximately cost is range. acute reported acute this which million revenue the we segment. $X.X to pricing concentrated industry. increase at some was year which in is during more inherent this this management TSA of in in base margins take onboarding complex pressures partially labor came B&I that transportation X% reimbursement onboarding are within impact due strategies Aviation a $X GCA-related base decline this clearance client growth continue $XXX.X X.X%. Therefore, industry margin and The and had revenues more in organic than to power, groups. labor is pricing small revenue our as with be more GCA related million to and to for Operating a XX% and in To total due quarter a specific, of of rigorous pressures, longer speaking, increase other of year-over-year line. in the a with well primarily
continue and forward. cost the margin we year, for outlook improve X% look operating to Our to anticipates the at leverage full going this on
opportunities we we the in in while to more we types market pursuing. are seem addition, are continue discerning In the of contracts becoming segment,
X%. $XXX Operating Our GCA-related $XX newest largely by growth of at segment, versus was quarter to came Manufacturing, million year for last for million line in of janitorial million achieved expansions the & of Technology revenue $XX service revenue. driven with XX% clients. for margin profit growing Organic the quarter, due key a
have the been GCA-related amortization, margin operating profit would Excluding X.X%.
as accounts, low of expect and we full to result pressures the we seeing projected the incremental operating locations year, employee contractual inhibit attract in labor for However, for now due are of cost. labor margins more X% primarily account our ability our density range, to which a at remote lack of some
see and segment, this developing. by are foundation we in sales the we labor are we challenges operational While encouraged
in over to choice being at of which viewed are outsourcing growth prospective operating We by existing firm lead should as and clients above average time the and instances. margin better most
behind our the quarter, marginally was line million top Turning revenue to From from Education. projections. is million for $XXX benefitting a $XXX business. perspective, GCA Revenues
first prepare in awarded just sector, as generally and as May new growth the a the we in half the expect for the million was year. K the due the XX margin through of frame seasonality in quarter overall of for are to Operating through to X.X%. year However, as time in July profit accelerate $XX.X academic the schools assignments for we quarter, second stated
this largest as Excluding from margins of impact GCA. the were segment X.X% operating amortization, impacts saw the
GCA. the in where is segment in expect labor $X wage including due the a more end more geographic X% contribution for to to from low low revenues including by in amortization. prevalent. year quarter $XX range million million employee We proportionally affected is turnover the of This areas Healthcare pressures margin concentration
margins reported for operating Excluding on X.X% basis. a the and amortization, X.X% quarter GCA were
year. operating low for the in range expect the the We X% margin full
Finally, the Technical Solutions million, reported quarter. for revenues of $XXX X.X% down
will normalize anticipated half pipeline XXXX. the the pace we and saw last revenue end and of our based beginning and on the into begin head As year, of churn the second year the to of bookings we at project we as of this
months. to full to a on project up over year-over-year expect year revenue next basis the the six We churn be expected due
robust amounts. backlog and year pipeline our and confident our margin continues profit to trend addition, line to with we prospects are full will In operating historical that continue remain in and
For investment as the X% margins last as to quarter, certain underperformance year, our people U.S. the operating were well technical reflecting X% continued compared sales our UK support in by business.
year. However, X% with expect we and our reiterate back growth, hold half for target to the margins high margin operating our
million we last that operations to roughly this align cash performance. as several QX from and year, flow $XXX and fiscal service including to contribution functions the of Turning enterprise our our shared prophecies the was to collection began strategies liquidity. from Cash operations. as end contributed better At with field billings GCA, for instituting well
we accounting XX of of address some in as the While are our still we centers early past stages, country begun across months. to the have pain very process points the over the migrated we from
continue a As capital, our started units GCA. improvement our a our working driving DSOs gradual and to down to we integrate as result, we see in business
In to addition, a continue notional strategy. of a strategy, And management swaps to million as of $XX approximately with rate floating dates new with aligned subsequently part maturity of proactively value repayment with we company's rate $XXX risk we profile. more our with terminated the enter value million closely manage into fair swaps our and fixed and interest
over to free to Finally, drive with XX working our XX continue should back as next our gradually cash office on months improve efficiencies. discipline flow capital, the we our
with and quarter roughly a letters end of current credit ended assuming trend, $X.X expect the due $XXX We XXXX, total times. debt, billion with cash the to year bank-adjusted our to free we of and flow approximately fiscal ratio of leverage standby now developments aforementioned million. For the X.X including continuation DSO the of
interest our updating for also expense. are estimate We
outlook note, the swaps rate the credit to of of in life over and rate XXXX remaining and Given reduction are our $XX to $XX our increasing to provide the repositioning the rise remainder accelerated the year, be should for Please interest million expense we interest interest the our in nominal of a million. our positive rebalancing our net fiscal agreements. in expense outlook
During to quarterly of board $XX.X common paid our quarter, cash dividend consecutive to I'm share a $X.XXX we Today, million total has approved cash of pleased the XXXth dividend. our distribution for a report per shareholders. quarterly approximately
I to with outlook, integration technologically and want to moment GCA. our in Before teams our of the operationally, moving guidance to the financially, converging a take efforts on of acknowledge
to our fiscal year have begun and internal as Ultimately, During in a two practical XXXX, and platform, centralized a back to which migration will we implementing practices ERP continue and to and completed we systems strengthen our This office end-to-end process. this we taking are GCA to acclimate operate in combined IP XXXX. fiscal on approach process systems, to control to efficiencies lead move we I be with expect framework, the longer-term further framework. processes respective our our entity the
Now discuss outlook. let our me revised guidance
press non-GAAP year. the the will As costs for signs and are remainder GAAP to near-term. we this of our described for our At the guidance abate updating not pressures that see reflect release, these outlook labor higher we in in do time,
$X.XX on income adjusted range be per to we operations As expect an in continuing and now a $X.XX of diluted result, to $X.XX from GAAP basis, to share. $X.XX, the
we of some instituted labor we In measures have are have help strategies the we to containment operating initiated, cost the addition certain alleviate to facing. all headwinds
year synergies. point contract which be the XX XXXX progress costs and and labor at this expect basis process what through and and of the efficient. headwind, we could At begin minimum more to management steps the remainder have labor one planning too costs through it's this cycling look our the continue early annualize implementing current a Until is year basis strategies for by partially mitigated taken for year full XX to could to a through will contain points XXXX, to beyond. become benefit progress year, we we effect of trends, areas of fiscal have tell and we full As renegotiations
fiscal for Tax tax as Credit Our last discrete the awards referred of will year be tax XX% we for guidance XXXX This impact million to XX% Opportunity items FAS such between as tax continues the disclosed also rate stock-based than full to Work and XXXR in assume XXXX. excludes rate a quarter. $XX tax to which little a items discrete more as the
integration to ready projected now expect synergies is year a approximately proceeding we $XX realized Finally, a and of for we we to as as Scott questions. the discussed, run With on continue and that, operator, rate are to $XX planned, of our achieve million million basis rate million. $XX end at are approximately GCA to
