ABM INDUSTRIES INC DE

Previous wording

We actively monitor the economic environment and its potential impact on demand for our services and our financial condition. Largely driven by the lingering effects of the Pandemic, especially the normalization of hybrid work, the commercial real estate industry, particularly multi-tenant and owner-occupied commercial office buildings, is experiencing an increase in vacancy rates. Given that Class A and high-quality commercial office buildings are a key end market for the Company, we expect a decline in demand for janitorial services and work orders in these markets near-term. As a result, we expect our B&I industry to experience muted growth in the near-term. Longer term, we expect the vacancy rates of Class A and high-quality buildings to gradually decrease and our volume of work to stabilize.

Current wording

On an ongoing basis, we monitor changes to the macro-economic environment and their potential impact on demand for our services and our financial conditions. One such impact is the softness of the commercial real estate industry, especially multi-tenant and owner-occupied commercial office buildings. These conditions are primarily attributable to the lingering effects of the Pandemic, especially the normalization of hybrid work, which has resulted in higher office vacancy rates. Given that Class A and high-quality commercial office buildings are a key end market for the Company, we have experienced modest declines in demand for janitorial services and work orders in these markets. Looking forward, we expect the occupancy rates of Class A and high-quality buildings to gradually improve over time and our volume of work to stabilize.

Previous wording

A large M&D client has completed rebidding and is now rebalancing a portion of its work needs as part of its normal procurement process. We expect M&D’s financial results to be adversely impacted in the near-term.

Current wording

A large M&D client is now rebalancing a portion of its work needs as part of its normal procurement process. We expect M&D’s financial results to be adversely impacted in the near-term.

Previous wording

During the second quarter of 2024, we performed an interim actuarial update of the majority of our casualty insurance programs that considered changes in claims development and claims payment activity for the period of November 1, 2023, through January 31, 2024 (the “Interim Update”). This Interim Update was abbreviated in nature based on actual versus expected developments during the periods analyzed and relied on the key assumptions in the Actuarial Review (most notably loss development patterns, trend assumptions, and underlying expected loss costs).

Current wording

During the third quarter of 2024, we performed a comprehensive actuarial review of the majority of our casualty insurance programs that considered changes in claims development and claims payment activity for the period of November 1, 2023, through April 30, 2024 (the “Actuarial Review”). The Actuarial Review was comprehensive in nature and was based on loss development patterns, trend assumptions, and underlying expected loss costs during the period analyzed.

Previous wording

Based on the results of the Actuarial Review and Interim Update at April 30, 2024, we increased our total reserves related to prior years for known claims as well as our estimate of the loss amounts associated with IBNR claims by $9.7 million during the six months ended April 30, 2024. During the six months ended April 30, 2023, it was determined that there was no adjustment required for our total reserves related to prior year. We will continue to assess ongoing developments, which may result in further adjustments to reserves.

Current wording

Based on the results of the Actuarial Review and Interim Update at April 30, 2024, we increased our total reserves related to prior years for known claims as well as our estimate of the loss amounts associated with IBNR claims by $17.9 million during the nine months ended July 31, 2024. During the nine months ended July 31, 2023, we decreased our total reserves related to prior years’ claims by $5.3 million. We will continue to assess ongoing developments, which may result in further adjustments to reserves.

Previous wording

Technical Solutions specializes in facility infrastructure, mechanical and electrical services, including EV power design, installation and maintenance, as well as microgrid systems design and installation. These services can also be leveraged for cross-selling across all of our industry groups, both domestically and internationally. Contracts for this segment are generally structured as electrical contracting services for energy related products such as the installation of solar solutions, battery storage, distributed generation, and other specialized electric trade.

Current wording

Technical Solutions specializes in facility infrastructure, mechanical and electrical services, including EV power design, installation and maintenance, as well as microgrid systems design and installation and uninterrupted power supply services. These services can also be leveraged for cross-selling across all of our industry groups, both domestically and internationally. Contracts for this segment are generally structured as electrical contracting services for energy related products such as the installation of solar solutions, battery storage, distributed generation, and other specialized electric trade.

Previous wording

•We had a decrease in operating profit of $11.4 million, to $81.3 million during the three months ended April 30, 2024, as compared to the prior year period. The decrease was primarily attributed to:

Current wording

•We had a decrease in operating profit of $101.5 million, to $37.4 million, during the three months ended July 31, 2024, as compared to the prior year period. The decrease was primarily attributed to:

Previous wording

◦labor efficiencies across most of our industry groups, as well as contract mix within M&D and Technical Solutions; and

Current wording

◦labor efficiencies within Aviation and Education, as well as contract mix within M&D and Technical Solutions; and

Previous wording

•Net cash provided by operating activities was $116.9 million during the six months ended April 30, 2024. Our total net cash provided by operating cash flows was higher compared to the prior year period, primarily due to the timing of working capital requirements, including customer payments and absence of a $66.0 million payment of previously deferred payroll taxes made during the three months ended January 31, 2023.

Current wording

•Net cash provided by operating activities was $196.3 million during the nine months ended July 31, 2024. Our total net cash provided by operating cash flows was higher compared to the prior year period, primarily due to the timing of working capital requirements, including customer payments and the absence of a $66.0 million payment of previously deferred payroll taxes made during the three months ended January 31, 2023.

Previous wording

•Dividends of $28.3 million were paid to shareholders, and dividends totaling $0.45 per common share were declared during the six months ended April 30, 2024.

Current wording

•Dividends of $42.4 million were paid to shareholders, and dividends totaling $0.675 per common share were declared during the nine months ended July 31, 2024.

Previous wording

•At April 30, 2024, total outstanding borrowings under our Amended Credit Faci lity were $1.3 billion. At April 30, 2024, we had up to $501.1 million of borrowing capacity.

Current wording

•At July 31, 2024, total outstanding borrowings under our Amended Credit Facility were $1.3 billion. At July 31, 2024, we had up to $427.6 million of borrowing capacity.

Previous wording

Operating expenses increased by $48.3 million, or 2.8%, to $1,763.5 million during the three months ended April 30, 2024, as compared to the prior year period. Gross margin decreased by 93 bps to 12.6% in the three months ended April 30, 2024, from 13.6% in the prior year period. The decrease in gross margin was primarily driven by $12.6 million in revenue recognized for the Aviation parking project during the three months ended April 30, 2023, whereby all the direct labor and related costs were recognized prior to January 31, 2023, and a $4.3 million unfavorable self-insurance reserve adjustment related to prior year claims from actuarial evaluations completed in the three months ended April 30, 2024, partially offset by labor efficiencies across most of our industry groups and the contract mix within M&D and Technical Solutions.

Current wording

Operating expenses increased by $65.2 million, or 3.7%, to $1,831.0 million during the three months ended July 31, 2024, as compared to the prior year period. Gross margin decreased by 37 bps to 12.6% in the three months ended July 31, 2024, from 12.9% in the prior year period. The decrease in gross margin was primarily driven by an $8.3 million unfavorable self-insurance reserve adjustment related to prior year claims from actuarial evaluations completed in the three months ended July 31, 2024, as compared to a favorable $5.3 million adjustment recorded in the three months ended July 31, 2023, partially offset by labor efficiencies within Aviation and Education and the contract mix within M&D and Technical Solutions.

Previous wording

Selling, general and administrative expenses increased by $3.3 million to $159.9 million during the three months ended April 30, 2024, as compared to the prior year period. The increase in selling, general and administrative expenses was primarily attributable to:

Current wording

Selling, general and administrative expenses increased by $107.5 million to $211.8 million during the three months ended July 31, 2024, as compared to the prior year period. The increase in selling, general and administrative expenses was primarily attributable to:

Previous wording

•a $2.8 million decrease in compensation and related expenses primarily due to headcount reduction at the end of October 2023, partially offset by an increase in compensation under certain incentive plans.

Current wording

•a $3.0 million increase in compensation and related expenses primarily due to an increase in certain incentive plans, partially offset by the headcount reduction at the end of October 2023.

Previous wording

Amortization of intangible assets decreased by $5.9 million, or 30.5%, to $13.6 million during the three months ended April 30, 2024, as compared to the prior year period. The decrease was primarily due to the lower amortization of intangibles, primarily intangibles acquired as part of the RavenVolt Acquisition.

Current wording

Amortization of intangible assets decreased by $5.2 million, or 27.3%, to $14.0 million during the three months ended July 31, 2024, as compared to the prior year period. The decrease was primarily due to the lower amortization of intangibles, primarily intangibles acquired as part of the RavenVolt Acquisition.

Previous wording

Interest expense decreased by $0.5 million to $20.6 million during the three months ended April 30, 2024, as compared to the prior year period, and was driven by lower borrowings from our Amended Credit Facility.

Current wording

Interest expense increased by $0.3 million to $21.2 million during the three months ended July 31, 2024, as compared to the prior year period, and was driven by higher borrowings from our Amended Credit Facility to fund the Quality Uptime Acquisition.

Previous wording

Our effective tax rates from income on operations for the three months ended April 30, 2024, and April 30, 2023, were 29.9% and 28.2%, respectively, resulting in provisions for taxes of $18.7 million and $20.4 million, respectively.

Current wording

Our effective tax rates from income on operations for the three months ended July 31, 2024, and July 31, 2023, were 74.0% and 17.7%, respectively, resulting in provisions for taxes of $13.3 million and $21.2 million, respectively.

Previous wording

We had a gain of $10.3 million on interest rate swaps during the three months ended April 30, 2024, as compared to a loss of $2.5 million during the three months ended April 30, 2023, primarily due to underlying changes in the fair value of our interest rate swaps.

Current wording

We had a loss of $12.4 million on interest rate swaps during the three months ended July 31, 2024, as compared to a gain of $12.8 million during the three months ended July 31, 2023, primarily due to underlying changes in the fair value of our interest rate swaps.

Previous wording

We had a foreign currency translation loss of $1.7 million during the three months ended April 30, 2024, as compared to a foreign currency translation gain of $2.3 million during the three months ended April 30, 2023. This change was due to fluctuations in the exchange rate between the U.S. dollar (“USD”) and the British pound sterling (“GBP”). Future gains and losses on foreign currency translation will be dependent upon changes in the relative value of foreign currencies to the USD and the extent of our foreign assets and liabilities.

Current wording

We had a foreign currency translation gain of $2.7 million during the three months ended July 31, 2024, as compared to a foreign currency translation gain of $3.1 million during the three months ended July 31, 2023. This change was due to fluctuations in the exchange rate between the U.S. dollar (“USD”) and the British pound sterling (“GBP”). Future gains and losses on foreign currency translation will be dependent upon changes in the relative value of foreign currencies to the USD and the extent of our foreign assets and liabilities.

Previous wording

B&I revenues decreased by $8.9 million, or 0.9%, to $989.6 million during the three months ended April 30, 2024, as compared to the prior year period. The revenue decrease was primarily driven by the soft commercial office market conditions and attrition of certain engineering clients, partially offset by client expansions and increases in revenue in the sports sector and parking. Management reimbursement revenues for this segment totaled $68.6 million and $65.7 million for the three months ended April 30, 2024 and 2023, respectively.

Current wording

B&I revenues decreased by $10.8 million, or 1.1%, to $1,010.6 million during the three months ended July 31, 2024, as compared to the prior year period. The revenue decrease was primarily driven by the attrition of certain engineering clients and soft commercial office market conditions, partially offset by client expansions both domestic and international. Management reimbursement revenues for this segment totaled $69.9 million and $70.1 million for the three months ended July 31, 2024 and 2023, respectively.

Previous wording

Operating profit increased by $1.4 million, or 1.8%, to $77.6 million during the three months ended April 30, 2024, as compared to the prior year period. Operating profit margin increased by 21 bps to 7.8% in the three months ended April 30, 2024, from 7.6% in the prior year period. The increase in operating profit margin was primarily driven by contract and service mix and labor efficiencies.

Current wording

Operating profit decreased by $1.1 million, or 1.3%, to $77.8 million during the three months ended July 31, 2024, as compared to the prior year period. Operating profit margin decreased by 2 bps to 7.7% in the three months ended July 31, 2024, from 7.7% in the prior year period. The decrease in operating profit margin was primarily driven by contract and service mix and higher bad debt expense, partially offset by lower amortization of intangible assets.

Previous wording

Aviation revenues increased by $11.0 million, or 4.8%, to $238.2 million during the three months ended April 30, 2024, as compared to the prior year period. The increase was primarily attributable to new business and scope expansions with the existing clients as well as continuing recovery in travel volume. In addition, during the three months ended April 30, 2023, we recognized $12.6 million in revenue from an Aviation parking project, whereby all the direct labor and related costs were recognized prior to January 31, 2023. Management reimbursement revenues for this segment totaled $8.2 million and $7.7 million for the three months ended April 30, 2024 and 2023, respectively.

Current wording

Aviation revenues increased by $30.4 million, or 12.8%, to $268.4 million during the three months ended July 31, 2024, as compared to the prior year period. The increase was primarily attributable to new business and scope expansions with the existing clients as well as continuing recovery in travel volume. Management reimbursement revenues for this segment totaled $9.6 million and $7.7 million for the three months ended July 31, 2024 and 2023, respectively.

Previous wording

Operating profit increased by $6.1 million, or 35.3%, to $23.5 million during the six months ended April 30, 2024, as compared to the prior year period. Operating profit margin increased by 137 bps to 6.9% in the six months ended April 30, 2024, from 5.5% in the six months ended April 30, 2023. The increase in operating profit margin was primarily attributable to the contract mix and lower amortization of intangible assets.

Current wording

Operating profit increased by $6.1 million, or 51.6%, to $17.8 million for the three months ended July 31, 2024, as compared to the prior year period. Operating profit margin increased by 170 bps to 6.6% in the three months ended July 31, 2024. The operating profit margin increased primarily due to labor efficiencies, primarily due to an increase in travel volume, and contract mix.

Previous wording

Technical Solutions revenues increased by $7.8 million, or 4.6%, to $176.2 million during the three months ended April 30, 2024, as compared to the prior year period. The increase was primarily driven by higher project revenues due to the timing of certain energy solutions projects, including microgrid systems and generators installation, partially offset by a decrease in electric vehicle charging station installation sales.

Current wording

Technical Solutions revenues increased by $41.8 million, or 24.9%, to $209.7 million during the three months ended July 31, 2024, as compared to the prior year period. Revenue growth was comprised of organic growth of 20.0% and acquisition growth of 4.9%. The organic revenue growth was primarily driven by higher project revenues due to the timing of certain microgrid systems design and installation projects, partially offset by a decrease in electric vehicle charging station sales. Acquisition growth was driven by an $8.2 million revenue increase from the Quality Uptime Acquisition, which was completed in June 2024.

Previous wording

Corporate expenses increased by $10.5 million, or 15.2%, to $79.7 million during the three months ended April 30, 2024, as compared to the prior year period. The increase in corporate expenses was primarily attributable to:

Current wording

Corporate expenses increased by $114.7 million to $130.6 million during the three months ended July 31, 2024, as compared to the prior year period. The increase in corporate expenses was primarily attributable to:

Previous wording

Six Months Ended April 30, 2024, Compared with the Six Months Ended April 30, 2023

Current wording

Nine Months Ended July 31, 2024, Compared with the Nine Months Ended July 31, 2023

Previous wording

Operating expenses increased by $124.8 million, or 3.6%, to $3,589.8 million during the six months ended April 30, 2024, as compared to the prior year period. Gross margin decreased by 65 bps to 12.2% in the six months ended April 30, 2024, from 12.8% in the six months ended April 30, 2023. The decrease in gross margin was primarily driven by the $11.4 million in revenue recognized for the Aviation parking project during the six months ended April 30, 2023, whereby all the direct labor and related costs were recognized prior to October 31, 2022, and unfavorable self-insurance reserve adjustment related to prior year claims from actuarial evaluations completed in the six months ended April 30, 2024, partially offset by labor efficiencies across most of our industry groups and the contract mix within M&D and Technical Solutions.

Current wording

Operating expenses increased by $190.1 million, or 3.6%, to $5,420.8 million during the nine months ended July 31, 2024, as compared to the prior year period. Gross margin decreased by 56 bps to 12.3% in the nine months ended July 31, 2024, from 12.9% in the nine months ended July 31, 2023. The decrease in gross margin was primarily driven by the $11.4 million in revenue recognized for the Aviation parking project during the six months ended April 30, 2023, whereby all the direct labor and related costs were recognized prior to October 31, 2022, and unfavorable self-insurance reserve adjustment related to prior year claims from actuarial evaluations completed in the nine months ended July 31, 2024, partially offset by labor efficiencies within Aviation and Education and the contract mix within M&D and Technical Solutions.

Previous wording

Selling, general and administrative expenses increased by $7.3 million, or 2.4%, to $314.5 million during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023. The increase in selling, general and administrative expenses was primarily attributable to:

Current wording

Selling, general and administrative expenses increased by $114.8 million, or 27.9%, to $526.3 million during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023. The increase in selling, general and administrative expenses was primarily attributable to:

Previous wording

•a $2.2 million increase in bad debt.

Current wording

•a $5.0 million increase in bad debt expense.

Previous wording

Amortization of intangible assets decreased by $10.8 million, or 27.6%, to $28.2 million during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023. This decrease was primarily due to lower amortization of intangibles, primarily intangibles acquired as part of the RavenVolt Acquisition.

Current wording

Amortization of intangible assets decreased by $16.0 million, or 27.5%, to $42.2 million during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023. This decrease was due to lower amortization of intangibles, primarily intangibles acquired as part of the RavenVolt Acquisition.

Previous wording

Interest expense increased by $1.0 million, to $41.9 million during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023. The increase was driven by higher interest rates on our Amended Credit Facility.

Current wording

Interest expense increased by $1.3 million to $63.1 million during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023. The increase was driven by higher borrowings from our Amended Credit Facility to fund the Quality Uptime Acquisition.

Previous wording

Our effective tax rates on income from operations for the six months ended April 30, 2024, and April 30, 2023, were 24.0% and 27.6%, respectively, resulting in provisions for taxes of $28.0 million and $34.5 million, respectively.

Current wording

Our effective tax rates on income from operations for the nine months ended July 31, 2024, and July 31, 2023, were 30.7% and 22.8%, respectively, resulting in provisions for taxes of $41.3 million and $55.7 million, respectively.

Previous wording

We had a loss of $5.7 million during the six months ended April 30, 2024, as compared to a loss of $15.6 million during the six months ended April 30, 2023, primarily due to underlying changes in the fair value of our interest rate swaps.

Current wording

We had a loss of $18.1 million during the nine months ended July 31, 2024, as compared to a loss of $2.7 million during the nine months ended July 31, 2023, primarily due to underlying changes in the fair value of our interest rate swaps.

Previous wording

We had a foreign currency translation gain of $3.7 million during the six months ended April 30, 2024, as compared to a foreign currency translation gain of $12.8 million during the six months ended April 30, 2023. This change was due to fluctuations in the exchange rate between the USD and the GBP. Future gains and losses on foreign currency translation will be dependent upon changes in the relative value of foreign currencies to the USD and the extent of our foreign assets and liabilities.

Current wording

We had a foreign currency translation gain of $6.4 million during the nine months ended July 31, 2024, as compared to a foreign currency translation gain of $15.9 million during the nine months ended July 31, 2023. This change was due to fluctuations in the exchange rate between the USD and the GBP. Future gains and losses on foreign currency translation will be dependent upon changes in the relative value of foreign currencies to the USD and the extent of our foreign assets and liabilities.

Previous wording

B&I revenues decreased by $12.2 million, or 0.6%, to $2,022.8 million during the six months ended April 30, 2024, as compared to the prior year period. The revenue decrease was primarily driven by the soft commercial office market conditions, and attrition of certain engineering clients, partially offset by client expansions and increases in revenue in the sports sector and parking. Management reimbursement revenues for this segment totaled $139.1 million and $130.1 million for the six months ended April 30, 2024 and 2023, respectively.

Current wording

B&I revenues decreased by $23.0 million, or 0.8%, to $3,033.4 million during the nine months ended July 31, 2024, as compared to the prior year period. The revenue decrease was primarily driven by attrition of certain engineering clients and the soft commercial office market conditions, partially offset by client expansions both domestic and international. Management reimbursement revenues for this segment totaled $209.0 million and $200.2 million for the nine months ended July 31, 2024 and 2023, respectively.

Previous wording

Operating profit increased by $5.0 million, or 3.3%, to $157.2 million during the six months ended April 30, 2024, as compared to the prior year period. Operating profit margin increased by 29 bps to 7.8% in the six months ended April 30, 2024, from 7.5% in the six months ended April 30, 2023. The increase in operating profit margin was primarily driven by the contract and service mix and labor efficiencies.

Current wording

Operating profit increased by $3.9 million, or 1.7%, to $235.0 million during the nine months ended July 31, 2024, as compared to the prior year period. Operating profit margin increased by 19 bps to 7.7% in the nine months ended July 31, 2024, from 7.6% in the nine months ended July 31, 2023. The increase in operating profit margin was primarily driven by the contract and service mix and lower amortization of intangible assets.

Previous wording

M&D revenues increased by $15.4 million, or 4.1%, to $388.6 million during the three months ended April 30, 2024, as compared to the prior year period. The increase was primarily attributable to the expansion of business with existing customers.

Current wording

M&D revenues increased by $31.1 million, or 2.7%, to $1,166.6 million during the nine months ended July 31, 2024, as compared to the prior year period. The increase was primarily attributable to the expansion of business with existing customers, partially offset by the expected rebalancing of the scope of work with an existing customer and a loss of a certain customer.

Previous wording

Operating profit increased by $3.3 million, or 4.0%, to $85.0 million during the six months ended April 30, 2024, as compared to the prior year period. Operating profit margin decreased by 8 bps to 10.8% in the six months ended April 30, 2024, from 10.8% in the six months ended April 30, 2023. The decrease in operating profit margin was primarily attributable to the change in the contract mix.

Current wording

Operating profit increased by $6.2 million, or 5.1%, to $125.9 million during the nine months ended July 31, 2024, as compared to the prior year period. Operating profit margin increased by 25 bps to 10.8% in the nine months ended July 31, 2024, from 10.5% in the nine months ended July 31, 2023. The increase in operating profit margin was primarily attributable to the change in the contract mix.

Previous wording

Education revenues increased by $14.1 million, or 3.3%, to $445.7 million during the six months ended April 30, 2024, as compared to the prior year period. The increase was primarily attributable to net new business, partially offset by a decrease in work orders.

Current wording

Education revenues increased by $23.3 million, or 3.6%, to $674.0 million during the nine months ended July 31, 2024, as compared to the prior year period. The increase was primarily attributable to net new business and expansion of business with existing customers, partially offset by a decrease in work orders.

Previous wording

Operating profit increased by $0.7 million, or 2.9%, during the six months ended April 30, 2024, as compared to the prior year period. Operating profit margin decreased by 2 bps to 5.4% in the six months ended April 30, 2024, from 5.5% in the six months ended April 30, 2023. The decrease in operating profit margin was primarily attributable to the decrease in disinfection-related work orders, which have higher margins. Operating profit margin was positively impacted by labor efficiencies and lower start-up supplies expenses.

Current wording

Operating profit increased by $2.8 million, or 7.1%, during the nine months ended July 31, 2024, as compared to the prior year period. Operating profit margin increased by 20 bps to 6.3% in the nine months ended July 31, 2024, from 6.1% in the nine months ended July 31, 2023. The increase in operating profit margin was primarily attributable to labor efficiencies and lower start-up supplies expenses.

Previous wording

Aviation revenues increased by $48.3 million, or 11.0%, to $487.8 million during the six months ended April 30, 2024, as compared to the prior year period. The increase was primarily attributable to new business and scope expansions with the existing clients as well as continuing recovery in travel volume. In addition, during the six months ended April 30, 2023, we recognized $11.4 million in revenue from an Aviation parking project, whereby all the direct labor and related costs were recognized prior to October 31, 2022. Management reimbursement revenues for this segment totaled $17.7 million and $15.6 million for the six months ended April 30, 2024 and 2023, respectively.

Current wording

Aviation revenues increased by $78.6 million, or 11.6%, to $756.1 million during the nine months ended July 31, 2024, as compared to the prior year period. The increase was primarily attributable to new business and scope expansions with the existing clients as well as continuing recovery in travel volume. In addition, during the nine months ended July 31, 2023, we recognized $11.4 million in revenue from an Aviation parking project, whereby all the direct labor and related costs were recognized prior to October 31, 2022. Management reimbursement revenues for this segment totaled $27.3 million and $23.3 million for the nine months ended July 31, 2024 and 2023, respectively.