ARC Document Solutions Inc (ARC) 2023 Q3 法說會逐字稿

Good day. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the ARC Document Solutions conference call. (Operator Instructions) Thank you. Vice President of Investor Relations. David Stickney, you may begin the conference.

再會。我叫喬丹，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 ARC Document Solutions 電話會議。 （操作員說明）謝謝。投資人關係副總裁。大衛史蒂克尼，你可以開始會議了。

Thank you, Jordan, and welcome, everyone on the call. With me today are Suri Suriyakumar, our CEO and Chairman; our President and Chief Operating Officer, Dilo Wijesuriya; and Jorge Avalos, our Chief Financial Officer.

謝謝喬丹，歡迎各位來電。今天與我在一起的有我們的執行長兼董事長 Suri Suriyakumar；我們的總裁兼營運長 Dilo Wijesuriya；以及我們的財務長豪爾赫·阿瓦洛斯 (Jorge Avalos)。

Our third quarter results for 2023 were publicized earlier today in a press release. The press release and other company materials are available from our investor relation pages on ARC Document Solutions website at ir.e-arc.com.

我們今天稍早在新聞稿中公佈了 2023 年第三季業績。新聞稿和其他公司資料可從 ARC Document Solutions 網站 ir.e-arc.com 的投資者關係頁面取得。

Please note that today's call will contain forward-looking statements, and they are only predictions based on information as of today, November 2, 2023, and actual results may differ materially, as a result of risks and uncertainties that we highlight in our quarterly and annual SEC filings. Any non-GAAP measures discussed today are reconciled in our press release and Form 8-K filings. I'll turn the call over to our Chairman and CEO, Suri Suriyakumar.

請注意，今天的電話會議將包含前瞻性陳述，它們只是基於截至今天（2023 年11 月2 日）資訊的預測，由於我們在季度和報告中強調的風險和不確定性，實際結果可能存在重大差異。年度 SEC 備案。今天討論的任何非公認會計原則措施均在我們的新聞稿和 8-K 表格文件中進行了調整。我會將電話轉給我們的董事長兼執行長 Suri Suriyakumar。

Thank you, David, and good afternoon, everyone. Overall sales for the quarter dropped 3% or about $2 million, adjusted for one working day, this year less than we had last year, the drop would have been just 1.3%. This puts us in a very similar situation to the sales we posted in the second quarter, and it is not surprising in the light of the continuing trends we identified in Q2.

謝謝大衛，大家下午好。該季度的整體銷售額下降了 3%，約 200 萬美元，以一個工作日調整，今年的銷售額比去年少，降幅僅 1.3%。這使我們處於與第二季度發布的銷售額非常相似的情況，鑑於我們在第二季度確定的持續趨勢，這並不奇怪。

Sales in digital color and scanning, our strategic areas of growth remain robust, as new customers continue to heavily invest in visual communications. And the demand for digitizing files is coming from every industry we sell.

隨著新客戶繼續大力投資視覺通信，我們的策略成長領域數位彩色和掃描的銷售仍然強勁。我們銷售的每個行業都對文件數位化有需求。

Volume in black-and-white 20, made up largely of the reproducing [fans], and other construction based documents fell as we predicted it would, during our second quarter report in August. This was primarily due to the sustained increase in interest rates, resulting in uncertain and volatile economic conditions in construction.

黑白 20 的銷售量（主要由複製[粉絲]組成）和其他基於建築的文件的數量正如我們在 8 月第二季報告中所預測的那樣下降了。這主要是由於利率持續上升，導致建築業經濟狀況不確定且不穩定。

That said, our margin, earnings, and cash flows will (inaudible) despite the drop in sales, and they remain more than capable of supporting our commitment to our shareholders value via annual dividend and continuing stock purchases. Using these commences framework for further discussion, I will now turn the call over to Dilo, and Jorge, for a more detailed review of the quarter. Dilo?

也就是說，儘管銷售額下降，我們的利潤、收益和現金流仍將（聽不清楚），並且仍然完全有能力透過年度股息和持續股票購買來支持我們對股東價值的承諾。使用這些開始框架進行進一步討論，我現在將把電話轉給 Dilo 和 Jorge，以便對本季度進行更詳細的審查。迪洛？

Thank you, Suri. I'm pleased to provide you with an update on ARC's recent performance and strategic direction for the third quarter. While higher interest rates, reduced investments, and cautious spending by many customers, made for challenging market condition, our company has demonstrated resilience and adaptability.

謝謝你，蘇瑞。我很高興向您提供有關 ARC 最近業績和第三季度策略方向的最新資訊。儘管利率上升、投資減少以及許多客戶謹慎支出，導致市場條件充滿挑戰，但我們公司表現出了韌性和適應能力。

Despite these challenges, our strategic business lines are improving. Our digital color services, and document scanning divisions have delivered continuing growth, largely due to us diversification efforts.

儘管面臨這些挑戰，我們的策略業務線仍在改善。我們的數位色彩服務和文件掃描部門實現了持續成長，這主要歸功於我們的多元化努力。

We have secured large digital color projects in a wide variety of markets, including events, [trade shows], schools, and sports stadiums. These projects are characterized by the use of multiple graphic products and services across various locations, generating positive customer reviews and strong demand.

我們已經在各種市場中獲得了大型數位色彩項目，包括活動、[貿易展覽]、學校和體育場。這些項目的特點是在不同地點使用多種圖形產品和服務，產生正面的客戶評價和強勁的需求。

Our digital color success extends to smaller venues as well, with numerous satisfied customers further validating the demand for our services. Document scanning also experienced high demand from municipalities, cultural institutions, and historical archives, along with smaller, ongoing projects.

我們的數位色彩成功也擴展到了較小的場所，許多滿意的客戶進一步驗證了對我們服務的需求。市政當局、文化機構和歷史檔案館以及正在進行的小型專案也對文件掃描提出了很高的需求。

Midway through the year, we expanded our document scanning capabilities and increased capacity at key locations. This expansion has enhanced our efficiency and throughput, for document scanning projects. Our reputation for complex and detailed work continues to attract referrals from previous and existing clients, underpinning our growth in this segment. Our on-site services revenue declined year over year, as our return to office initiatives continue to fluctuate.

今年年中，我們擴大了文件掃描能力並增加了關鍵地點的容量。此次擴展提高了我們文件掃描專案的效率和吞吐量。我們以複雜而細緻的工作而聞名，繼續吸引以前和現有客戶的推薦，支撐我們在這一領域的成長。由於我們的重返辦公室計劃持續波動，我們的現場服務收入較去年同期下降。

However, we have successfully renewed several large on-site service agreements, using our certified equipment program, enhancing client satisfaction, and improving our margins. Additionally, our service center network has attracted overflow work from customers, further contributing to higher operating margins.

然而，我們已經成功地續簽了幾項大型現場服務協議，利用我們的認證設備計劃，提高了客戶滿意度，並提高了我們的利潤。此外，我們的服務中心網絡吸引了客戶的超額工作，進一步提高了營業利潤。

In the construction based plant printing business, we faced challenges due to low construction activity, including commercial, and residential construction, and fewer office remodels. Despite this plant printing remains a profitable service line, and we continue to streamline operations, and control capital expenditure, to keep costs in check. We have cross-trained our employees and leverage our footprint to maintain efficiency. Our efforts in production management have been fruitful, resulting in an improvement in our cost of goods sold this quarter.

在以建築為基礎的植物列印業務中，我們面臨著由於建築活動減少（包括商業和住宅建築）以及辦公室改造較少而面臨的挑戰。儘管如此，工廠印刷仍然是一項有利可圖的服務線，我們繼續簡化運營，控制資本支出，以控製成本。我們對員工進行了交叉培訓，並利用我們的足跡來保持效率。我們在生產管理方面的努力卓有成效，導致本季銷售成本有所改善。

We remain vigilant in managing material, labor, and production expenses efficiently. Our pipeline, especially in color graphics, and scanning, remains robust. Our service centers increased capacity and efficiency, position us well into capitalize on these opportunities. Our win-loss ratio for new business is improving, and our marketing efforts are yielding higher quality leads.

我們在有效管理材料、勞動力和生產費用方面保持警惕。我們的管道，尤其是彩色圖形和掃描方面，仍然保持強勁。我們的服務中心提高了容量和效率，使我們能夠很好地利用這些機會。我們的新業務盈虧比正在改善，我們的行銷努力正在產生更高品質的潛在客戶。

In summary, our team is highly motivated and actively securing new business to offset declines in the plant printing segment. Our office -- of focus remains sharp on the top line, while maintaining the financial discipline that has been a hallmark of ARC's bottom line.

總而言之，我們的團隊積極性很高，並積極爭取新業務，以抵消植物印刷領域的下滑。我們辦公室的重點仍然是收入，同時保持財務紀律，這一直是 ARC 利潤的標誌。

We are committed to leveraging our experience and expertise over areas we can control, remaining undistracted by external factors beyond our influence. We look forward to sharing our continued progress in the coming quarters. Thank you for your trust and continued support. With that, I'll turn the call over to Jorge. Jorge?

我們致力於在我們可以控制的領域中利用我們的經驗和專業知識，不受我們影響範圍之外的外部因素的干擾。我們期待在未來幾季分享我們的持續進展。感謝您的信任與持續的支持。這樣，我會將電話轉給豪爾赫。喬治？

Thank you, Dilo. While quarterly sales fell 3%. Our overall gross margins were up 10 basis points. Our ability to leverage our sales at any level, remains a key characteristic of our business model. SG&A was essentially flat, despite inflationary pressures.

謝謝你，迪洛。而季度銷售額則下降了3%。我們的整體毛利率上升了 10 個基點。我們在任何層面上利用銷售的能力仍然是我們業務模式的關鍵特徵。儘管通膨壓力，銷售、管理及行政費用基本持平。

The quarterly earnings felt the impact of lower sales and EPS fell $0.02. Cash flow from operations of $8.7 million for the quarter, is suffering from a difficult comparison to prior year. Due to the timing of collections and payables, the first half of 2022 started out extremely slow, and momentum built significantly in the second half of the year to make up for it.

季度收益受到銷售額下降的影響，每股收益下降了 0.02 美元。本季營運現金流為 870 萬美元，與去年同期相比，情況不佳。由於收款和應付帳款的時間安排，2022 年上半年開局極度緩慢，下半年的動能明顯增強，彌補了這一不足。

Given its tendency to fluctuate throughout the year, we have always encourage an annual perspective, when reviewing cash flow from operations. As a case in point, our year to date cash flow remains very healthy at $23 million and fully capable of supporting our annual $0.2 dividend, and continued repurchasing of our shares.

鑑於其全年波動的趨勢，我們在審查營運現金流量時始終鼓勵從年度角度進行分析。舉個例子，我們今年迄今的現金流仍然非常健康，為 2300 萬美元，完全有能力支持我們每年 0.2 美元的股息，並繼續回購我們的股票。

Year to date comparisons not only better represent our performance in cash generation, but also in operating income, net income, EPS, and EBITDA. Year to date, operating income for 2023 is slightly higher than 2022. And net income and EPS are essentially flat on a year to date basis.

年初至今的比較不僅能更好地反映我們在現金生成方面的表現，而且還能更好地反映我們在營業收入、淨利潤、每股收益和 EBITDA 方面的表現。年初至今，2023 年的營業收入略高於 2022 年。淨利和每股盈餘與年初至今基本持平。

EBITDA was down 10% in the quarter, down just 5% year to date. Obviously, this performance does not reflect the expectations we had in January, but faced with the larger issues affecting the economy and constraining capital spending, we are in a much better position to resume our growth, than we would have been prior to the diversification of the business, and the reconfiguration of our cost model.

本季 EBITDA 下降了 10%，而今年迄今僅下降了 5%。顯然，這一表現並沒有反映我們一月份的預期，但面對影響經濟和限制資本支出的更大問題，我們比多元化之前更有能力恢復成長。業務以及成本模型的重新配置。

With regards to the balance sheet, we continue to maintain more than $50 million in cash, which we typically use against our revolving debt on an inter-quarter basis to save on interest costs. Net debt at $11.6 million, and our leverage rate or leverage remains well under 1 times, both very low numbers.

在資產負債表方面，我們繼續保持超過 5,000 萬美元的現金，我們通常在季度間使用這些現金來償還循環債務，以節省利息成本。淨債務為 1,160 萬美元，我們的槓桿率或槓桿率仍遠低於 1 倍，這兩個數字都非常低。

We also paid out $2.1 million in quarterly cash dividends, and we used slightly more than $1 million during the quarter to repurchase shares via these methods, we expect to return more than 50% of our adjusted free cash flows to shareholders by the end of 2023.

我們還支付了 210 萬美元的季度現金股息，並在本季度使用略高於 100 萬美元的資金透過這些方式回購股票，我們預計到 2023 年底將超過 50% 的調整後自由現金流返還給股東。

And well on our way to exceed $10 million of shareholder returns in 2023. Our top line may continue to fluctuate for the remainder of the year, but we remain confident that we are focusing on the things that matter most at ARC. And as a result, we continue to generate opportunities for growth, cash generation, and a reliable return of shareholder value in the coming quarters. With that, I'll turn the call back to Suri. Suri?

我們將在 2023 年實現超過 1000 萬美元的股東回報。在今年剩餘時間內，我們的營收可能會繼續波動，但我們仍然相信，我們將專注於 ARC 最重要的事情。因此，我們將在未來幾季繼續創造成長、現金產生和可靠的股東價值回報的機會。說完，我會把電話轉回蘇瑞。蘇瑞？

Thank you, Jorge. Operator, we are now available for all listeners' questions.

謝謝你，豪爾赫。接線員，我們現在可以回答所有聽眾的問題。

(Operator Instructions)

（操作員說明）

Greg Burns, Sidoti Company.

格雷格·伯恩斯 (Greg Burns)，Sidoti 公司。

Afternoon, when we look at the 2.5% decline in digital printing this quarter, could you give us a breakdown of what the growth was from color printing, and what the decline was from your ARC markets?

下午，當我們看到本季數位印刷下降 2.5% 時，您能否向我們詳細說明彩色印刷的成長以及 ARC 市場的下降？

Yes. Good afternoon, Jorge do you like to answer?

是的。下午好，豪爾赫，你願意回答嗎？

Sure as we've always said, roughly 50% of that line item is our legacy plant printing, high blue printing type of business. The other half is color graphics. In regards to the legacy traditional reprographics, that revenue was down between 6% and 8%. Color was up in that 3% to 5% range.

當然，正如我們一直所說的那樣，大約 50% 的訂單項目是我們傳統的工廠印刷、高藍色印刷業務類型。另一半是彩色圖形。至於傳統影印技術，收入下降了 6% 至 8%。顏色在 3% 到 5% 的範圍內上升。

Okay, and then for scanning, it was down a little bit sequentially, and grew less than we were expecting. Is that is that business is project-based? I'm just trying to get a better feel for how to think about the growth profile of that business going forward?

好的，然後進行掃描，它連續下降了一點，並且增長幅度低於我們的預期。這就是說業務是基於專案的嗎？我只是想更了解如何思考該業務未來的成長狀況？

Yeah, so last year, actually know the scanning revenue, the billing rates are continuing to be the same. It's continuing to grow. One of the issues that we had was that last year during the third quarter, we had one significant customer project that we completed and billed, as a digital service that was not there this year.

是的，去年，實際上知道掃描收入，計費率繼續保持不變。它還在繼續增長。我們遇到的問題之一是，去年第三季度，我們完成了一個重要的客戶專案並進行了計費，作為數位服務，但今年不存在。

So that's why you see year-over-year, the growth rate has declined. But if you look at it from the scanning services, otherwise, we are still in that in 9% to 10% growth rate.

這就是為什麼你會看到成長率逐年下降。但如果你從掃描服務來看，否則我們仍然處於 9% 到 10% 的成長率。

And so if you really look at it from our day-to-day scanning, the opportunities we go after all the time, we were really growing at that 15%-plus mark, as Dilo mentioned, that one job that was kind of an oddball last year, roughly $500,000 that we booked in Q3 of last year, it's skewing the year over year results, but we feel very confident about that 10%-plus growth in the scanning business.

因此，如果你真正從我們的日常掃描和我們一直追求的機會來看，我們確實以 15% 以上的速度增長，正如 Dilo 提到的那樣，這項工作有點像去年很奇怪，我們在去年第三季度預訂了大約50 萬美元，這使得同比結果出現偏差，但我們對掃描業務10% 以上的成長非常有信心。

Okay. And then when you look at the opportunities for growth in colors, and scanning deals. Maybe it's difficult now, but do you have line of sight on, when you might -- when you think you maybe get back to a little level of growth here, or offset the declines, I guess that you're seeing kind of the more traditional plant printing.

好的。然後當你尋找色彩成長的機會和掃描交易。也許現在很困難，但是當你認為你可能會回到一點增長水平，或者抵消下降時，你是否有視線，我想你會看到更多傳統的植物印刷。

Dilo, you would like to answer?

迪洛，你願意回答嗎？

Yeah, so if you look at our revenue lines, as you know, there are kind of three or four buckets of primary revenue. So when we look at the revenue lines that are currently under challenged, it is primarily the plain paper printing market, as well as the equipment sales. That segment of the business is directly connected to the construction industry. Right?

是的，所以如果你看看我們的收入線，你知道，主要收入有三到四個部分。因此，當我們審視目前面臨挑戰的收入線時，主要是普通紙印刷市場以及設備銷售。此業務部分與建築業直接相關。正確的？

So as we see the interest, obviously, one of the primary reasons for that the challenging situation is the increased interest rate, that has totally reduce the opportunities for brand new construction, and tenant improvement and so forth. As we see going into the new year, interest rates probably stabilizing, and there might be -- we might see some increased activity in construction. As soon as we see some stabilization in that construction market, we would definitely see some growth within our organization.

因此，正如我們所看到的興趣一樣，顯然，充滿挑戰的情況的主要原因之一是利率上升，這完全減少了全新建設和租戶改善等的機會。正如我們所看到的，進入新的一年，利率可能會趨於穩定，我們可能會看到建築活動增加。一旦我們看到建築市場有所穩定，我們肯定會看到我們組織內部的一些成長。

So when you take the other, -- our strategic growth line, when it comes to kind of digital color, the market opportunities are continuing to be very strong. Marketing activities are bringing a lot of new leads. Some of the projects that we execute are very significant, significantly sized projects. Many of the top brand organizations are continuing to bring us sizable work, really focusing on rebranding of their marketing activities. They're doing a lot of trade shows.

因此，當你採取另一條——我們的策略成長線時，當涉及到數位色彩時，市場機會仍然非常強勁。行銷活動帶來了許多新的線索。我們執行的一些專案非常重要、規模很大。許多頂級品牌組織繼續為我們帶來大量工作，真正專注於行銷活動的品牌重塑。他們舉辦了很多貿易展覽。

We see a quite a lot of activity there as well, and a lot of fair amount of office renovations that takes place, revolving around color graphic. So the future opportunities, the pipeline. Yeah, very good, and very, very strong for company.

我們在那裡也看到了相當多的活動，以及大量圍繞彩色圖形的辦公室裝修。所以未來的機會，管道。是的，非常好，而且非常非常適合陪伴。

Document scanning side is continuing to grow, is bringing us a lot of opportunities, leads through marketing activities. Pipeline is very strong, booked revenue that the contracts that are already booked, to be scanned is also at a healthy level.

文件掃描方面正在持續成長，正在為我們帶來很多機會，透過行銷活動來引導。管道非常強勁，已預訂、待掃描的合約的預訂收入也處於健康水平。

So therefore, going into the new year, we continue to be very bullish about those two lines. And as soon as we see some stabilization in the construction market as a company, our hope is that we will continue to see some positive growth overall.

因此，進入新的一年，我們仍然非常看好這兩條線。作為一家公司，一旦我們看到建築市場出現一些穩定，我們希望整體上將繼續看到一些積極的成長。

All great. Thank you.

一切都很棒。謝謝。

David Marsh, Singular Research.

大衛馬什，奇異研究。

Thank you. Hey, guys. Thanks for taking the questions. During the quarter, we did not have any significant customer wins that you could talk about. And if so, could you talk about sectors that those might be in?

謝謝。大家好。感謝您提出問題。在本季度，我們沒有獲得任何您可以談論的重大客戶。如果是這樣，您能談談這些可能屬於的行業嗎？

So I will stop there to speak about a specific customer per se, because remember as a company, we don't necessarily focus on one big job. Right? Because as you know, we have 100 sales consultants, that sales out of 140 locations, and obviously we focus on the 53 vertical. So our customers come from all segments, from all types of jobs from very simple jobs locally that we do, versus regional type of campaigns as, versus national campaigns as well.

因此，我將在此停下來談談特定客戶本身，因為請記住，作為一家公司，我們不一定專注於一項重要工作。正確的？因為如您所知，我們有 100 名銷售顧問，在 140 個地點進行銷售，顯然我們專注於 53 個垂直領域。因此，我們的客戶來自各個領域，來自各種類型的工作，從我們在當地所做的非常簡單的工作，與區域類型的活動相比，也與全國性的活動不同。

So I can I cannot pinpoint to one specific area, when we spin, we look at our color growth, it's coming from all segments, all types of customers, all sizes of jobs as well.

所以我不能精確地指出一個特定領域，當我們旋轉時，我們會觀察顏色的成長，它來自所有細分市場、所有類型的客戶、所有規模的工作。

With regard to what I can see from the wins that we get on the digital color side is that, the brands that we are continuing to sell to, and getting excited about working with us, is continuing to be a continuing to grow. There are some top brands. We are we have renewed a couple of sizable contracts for digital printing in the last quarter.

我從我們在數位色彩方面的勝利中看到的是，我們繼續銷售的品牌以及對與我們合作感到興奮的品牌正在繼續成長。有一些頂級品牌。我們在上個季度續簽了幾份規模較大的數位印刷合約。

So, whether it's things happening in the UK, whether it's things happening in Canada, or whether things are going on in the US, US market, we can see some really potential, and good opportunities as we go into the next quarter. And they are all revolving around our ability to satisfy and promote our customers' brands through visual graphics.

因此，無論是在英國發生的事情，無論是在加拿大發生的事情，還是在美國、美國市場發生的事情，當我們進入下一個季度時，我們都可以看到一些真正的潛力和良好的機會。它們都圍繞著我們透過視覺圖形滿足和推廣客戶品牌的能力。

Do you guys get any kind of uptick at all from political activity? Are you realizing any revenue from increased advertising in political spaces, or that not really a big driver for you guys.

你們從政治活動中得到任何提升嗎？您是否意識到政治領域廣告增加帶來的收入，或者這對您來說並不是一個很大的驅動力。

David, that market is not a significant market at all for us in US. Yes, we do have occasional political banner or two, but that work that you see where people have they stick in front of your garden and all those are very cheap printing. They are they on every chip material, cheap long runs, and we don't necessarily play in that market, because the margins are extremely thin, and that's that we don't concentrate very much in that market.

大衛，這個市場對我們美國來說根本不是一個重要的市場。是的，我們偶爾會有一兩個政治橫幅，但是你看到人們把它們貼在你的花園前面的作品，所有這些都是非常便宜的印刷品。它們是在每種晶片材料上的，廉價的長期運行，我們不一定在那個市場上玩，因為利潤非常薄，而且我們不太專注於那個市場。

Got it. Just turning a little bit to a balance sheet, could you talk about the share repurchases? What was the average purchase price per share?

知道了。稍微轉向一下資產負債表，可以談談股票回購嗎？每股平均購買價格是多少？

Roughly for the quarter, we spent about a million dollars on share repurchases for the quarter, average price on those, it will come out when we distribute our 10-Q here in the next day or so. But roughly in that $3 range.

大約在本季度​​，我們花費了大約 100 萬美元用於本季度的股票回購，平均價格將在我們第二天左右在這裡分發 10-Q 時公佈。但大致在 3 美元的範圍內。

Yes. And can you refresh me on remaining authorization there? Jorge?

是的。您能否向我介紹一下剩餘的授權情況？喬治？

We have about $9 million left.

我們還剩下大約 900 萬美元。

9 million authorized. Okay

900萬授權。好的

Yes, it was authorized $15 million. Obviously, we've been buying shares that we have about $9 million left.

是的，它被授權了 1500 萬美元。顯然，我們一直在購買剩餘約 900 萬美元的股票。

And then I noticed that the interest expense ticked down in the quarter. I appreciate the comment that used cash throughout the quarter, to bring the revolver down, is there is there anything further you could do there to continue to drive that lower?

然後我注意到本季的利息支出有所下降。我很欣賞整個季度使用現金來降低左輪手槍價格的評論，您是否可以採取進一步措施來繼續降低價格？

And is that something that you're considering at the moment or is it -- are you pretty comfortable with where things are? I mean, obviously leverage is not a big issue for you guys. But I thought that was a nice point there, a $50,000 improvement in interest expense in the quarter.

這是您目前正在考慮的事情嗎？或者您對現狀感到滿意嗎？我的意思是，顯然槓桿對你們來說不是一個大問題。但我認為這是一個很好的點，本季利息支出減少了 50,000 美元。

Yes. And really what we're doing is I think I've said the comment multiple times that I kind of view us as not having any bank debt, because as I said in my script, the cash we have on hand in our quarters, we're just using that cash to pay debt -- pay down that revolver to zero which means I'm incurring zero interest expense there. So, you know, kind of your comment of could we bring it down?

是的。事實上，我們正​​在做的是，我想我已經多次說過這樣的評論，我認為我們沒有任何銀行債務，因為正如我在劇本中所說，我們宿舍裡手頭的現金，我們我只是用這些現金來償還債務——將左輪手槍還清到零，這意味著我在那裡產生的利息費用為零。那麼，你知道，你的評論是我們可以把它拉下來嗎？

As you said, right, if you look at our net cash number were already at $11 million. I mean, how much lower can we go. And a quick correction on the average share price that we bought back on the shares for the quarter, it was actually at $3.40.

正如您所說，如果您看看我們的淨現金數字已經達到 1100 萬美元。我的意思是，我們還能降低多少。我們對本季回購股票的平均股價進行了快速修正，實際上是 3.40 美元。

Got it. Thanks. I appreciate it. I am going to pause there and see if anybody else wants to jump in.

知道了。謝謝。我很感激。我將在那裡暫停，看看是否還有其他人想加入。

There are no further questions at this time. I will now turn the call over to David Stickney for closing remarks.

目前沒有其他問題。我現在將把電話轉給大衛·斯蒂克尼（David Stickney）做總結發言。

Thank you very much for your interest this afternoon. As always, we very much appreciate your continued participation in our progress forward here, and we look forward to talking with you again in February. Thanks very much and have a great evening. Good night.

非常感謝您今天下午的關注。一如既往，我們非常感謝您繼續參與我們的進步，我們期待在二月再次與您交談。非常感謝，祝您有個愉快的夜晚。晚安。

This concludes today's conference.

今天的會議到此結束。

Yes, and our progress forward here, we look forward to talking with you.

是的，我們在這裡取得進展，我們期待與您交談。