APi Group Corporation (NYSE:APG) Q2 2023 Earnings Call Transcript

Kevin Krumm: Yes, no problem. We’re not guiding to specific segment breakouts in the back half of the year. But what I’ll tell you is sort of the specialty businesses; we’ve done a good job of managing growth as we planned, focusing on the right end markets and the right customers and driving gross margin expansion. And obviously, we talked a lot about the safety businesses and the U.S. Life Safety business and the performance we saw there in the first half. I would say as you look at our back half, those are similar expectations. We’re going to continue to moderate and manage growth from the Specialty Services side, and we’re going to continue to capture organic growth and share gain on the safety side.

Steve Tusa: Great. Thanks a lot.

Operator: And there are no further questions at this time. I’d be happy to return the call to our hosts for any concluding remarks.

James Lillie: Hey Russ, it’s Jim. Can I just jump in on one thing before you do your concluding remarks, please?

Russell Becker: Sure.

James Lillie: So there’s been a lot of conversation on the call today about M&A. So I just want to clarify the return to focus on the tuck-in deals, we think that we can live well within our leverage targets while staying more focused on these smaller acquisitions, so much so that when we were in Minneapolis this week, we talked about ramping up the spending and likely doubling it as we move into 2024 and still doing thoughtful tuck-in M&A, considering larger ones as they come across our desk because we want to remain educated on what’s out there in the world. But the real focus in the near term is on these tuck-in deals that Russ and the team have just done so well historically paying appropriate multiples for them. And as I said earlier, I believe we can ramp up our spending on that and still live well within our debt-to-EBITDA ratio goals. So with that, Russ, I’ll turn it back over to you. Thanks.

Russell Becker: Thanks, Jim, for the color. In closing, I would like to thank all of our team members for their continued support and dedication to our business. We believe our people are the foundation on which everything else is built. Without them, we do not exist. I’d also like to thank our long-term shareholders as well as those that have recently joined us for their support. We appreciate your ownership of APi, and we look forward to updating you on our progress throughout the remainder of the year. So thank you again for taking time to join the call. And to all of our APi teammates across the globe, please know that we’re grateful for everything that you do to help us win in this environment. Thank you.

Operator: This does conclude today’s conference. You may now disconnect your lines, and everyone, have a great day.