Financial Data and Key Metrics Changes - The company's first quarter revenues were $696 million, down 5% year-over-year, and adjusted EBITDA was $58 million, down 18% year-over-year [5][18] - The decline in adjusted EBITDA was primarily due to intentional client exits and transformation-related investments [6][18] Business Line Data and Key Metrics Changes - In Branded Services, revenues were $257 million and adjusted EBITDA was $28 million, down 9% year-over-year [20] - In Experiential Services, revenues were $221 million and adjusted EBITDA was $12 million, down 12% year-over-year [21] - In Retailer Services, revenues were $218 million and adjusted EBITDA was $18 million, down 3% and 7% year-over-year, respectively [21] Market Data and Key Metrics Changes - Consumer confidence declined, leading to lower than expected consumer purchases and a reevaluation of spending levels by clients [6][18] - Retailers experienced destocking trends, impacting overall order volumes [56] Company Strategy and Development Direction - The company is focused on modernizing its tech infrastructure and enhancing analytics capabilities to drive efficiency [13][14] - A task force has been mobilized to improve labor utilization and address staffing challenges [15][17] - The company is committed to being a cost-leading solutions partner to CPGs and retailers despite a softer growth environment [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging labor market impacting event staffing and project execution [9][10] - Despite near-term challenges, management remains optimistic about long-term earnings potential and cash generation [18][28] Other Important Information - The company is lowering its revenue and adjusted EBITDA outlook to flat to down low single digits for the year [18] - The ERP implementation is expected to yield greater cash flow benefits as systems are better utilized [26] Q&A Session Summary Question: Any notable changes in the macro environment? - Management noted improvements in hiring rates and smoothing out of labor challenges in Q2 [33][35] Question: Have labor costs increased? - Management indicated that labor cost inflation is in line with the macro market, not a significant factor in staffing issues [41][42] Question: What type of debt was repurchased? - The company repurchased bonds during the quarter [46] Question: What is the impact of destocking on orders? - Destocking improved as the quarter progressed, but data for April was not yet available [72] Question: Breakdown of consumer products versus food companies? - Approximately 70% of the portfolio is in food, with strong presence in personal care and household goods [76]