Atlas Ontario L.P. (d/b/a Allied Universal) reported favorable performance in the second quarter of 2023, driven by acquisition contributions, pricing actions, and new business wins. Meanwhile, its S&P Global Ratings-adjusted EBITDA margin sequentially expanded over 100 basis points from the first quarter, reflecting underlying improvements that we believe will lead to better performance through the remainder of the year. We expect its nonbilled overtime (NBOT; 6.0% in the second quarter) to continue to improve and likely decline below the prepandemic average of 5.5% as its technological enhancements drive better labor management. However, the turnover rate (73% annualized in the second quarter) will likely remain elevated relative to its prepandemic average of 61%. The company completed a $175 million term loan
