Crown Crafts Inc (CRWS) 2025 Q1 法說會逐字稿

Good day, and welcome to the Crown Crafts, Inc. First Quarter fiscal year 2025 conference call.

美好的一天，歡迎參加 Crown Crafts, Inc. 2025 財年第一季電話會議。

All participants will be in listen-only mode.

所有參與者將處於僅聽模式。

(Operator Instructions) Please note this event is being recorded.

（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to John Beisler, Investor Relations.

我現在想將會議交給投資者關係部門的約翰貝斯勒 (John Beisler)。

Please go ahead.

請繼續。

Thank you, Dave, and good morning, everyone.

謝謝戴夫，大家早安。

We appreciate you joining us for the Crown Crafts first quarter fiscal 2025 Conference Call.

我們感謝您參加 Crown Crafts 2025 財年第一季電話會議。

Joining me this morning are Crown Crafts' President and CEO, Olivia Elliott, and the company's CFO, Craig Demarest.

今天早上和我一起的還有 Crown Crafts 的總裁兼執行長 Olivia Elliott 和公司的財務長 Craig Demarest。

Crown Crafts issued a press release yesterday afternoon regarding their first quarter 2025 financial results.

Crown Crafts 昨天下午發布了有關 2025 年第一季財務業績的新聞稿。

A copy of this release is available on the company's website, crowncrafts.com. The company's Form 10-Q was also filed yesterday.

新聞稿的副本可在該公司網站 Crowncrafts.c​​om 上取得。該公司的 10-Q 表格也在昨天提交。

During today's call, the company will make certain forward-looking statements, and actual results may differ materially from those expressed or implied.

在今天的電話會議中，該公司將做出某些前瞻性陳述，實際結果可能與明示或暗示的結果有重大差異。

These statements are subject to risks and uncertainties that may be beyond Crown Crafts control.

這些陳述存在可能超出 Crown Crafts 控制範圍的風險和不確定性。

The company is under no obligation to update these statements.

公司沒有義務更新這些聲明。

For more information about the company's risk factors and other uncertainties, please refer to the company's filings with the Securities and Exchange Commission.

有關公司風險因素和其他不確定性的更多信息，請參閱公司向美國證券交易委員會提交的文件。

Finally, I would like to remind you today's call is being recorded, and a replay will be available through the company's Investor Relations page.

最後，我想提醒您今天的電話會議正在錄音，並且可以透過公司的投資者關係頁面進行重播。

Now I'd like to turn the call over to President and CEO, Olivia Elliott.

現在我想將電話轉給總裁兼執行長 Olivia Elliott。

Thank you, John.

謝謝你，約翰。

Good morning everyone.

大家早安。

Our first quarter fiscal '25 results were impacted by the prolonged inflationary pressures facing consumers, limiting their discretionary income.

我們 25 財年第一季的業績受到消費者面臨的長期通膨壓力的影響，限制了他們的可自由支配收入。

Excluding the costs related to the closure of our UK subsidiary and acquisition-related costs, our performance for the quarter was generally breakeven.

排除關閉英國子公司相關的成本和收購相關的成本，我們本季的業績總體上實現了盈虧平衡。

The most recent consumer survey provided a mixed outlook with consumers feeling slightly more confident about near-term prospects with concerns about inflation, the job market and a potential recession ahead.

最近的消費者調查顯示了喜憂參半的前景，消費者對近期前景略顯信心十足，並對通膨、就業市場和未來潛在的衰退感到擔憂。

There is growing sentiment about potential rate cuts from the Fed in the remainder of the year and into 2025 which would bring some measure of release to consumers through lower credit card interest rates which impact our lower income customers the most.

人們越來越相信聯準會可能在今年剩餘時間和 2025 年降息，這將透過降低信用卡利率來為消費者帶來一定程度的緩解，這對我們的低收入客戶影響最大。

We did see some encouraging developments in the quarter, including the performance of our bedding business and the reduction of our debt levels with cash provided by operations.

我們確實在本季度看到了一些令人鼓舞的發展，包括我們的床上用品業務的業績以及營運提供的現金降低了我們的債務水平。

Finally, we purchased the assets of Baby Boom Consumer Products last month.

最後，我們上個月購買了嬰兒潮消費品公司的資產。

This is a very exciting opportunity for the company, and I’ll speak more about this later in the call.

這對公司來說是一個非常令人興奮的機會，我將在稍後的電話會議中詳細討論這一點。

With that, I'd like to turn it over to Craig to cover the financials in more detail.

有了這個，我想將其交給克雷格，以更詳細地介紹財務狀況。

Thank you, Olivia and good morning, everyone.

謝謝奧莉維亞，大家早安。

Net sales for the first quarter of 2025 were $16.2 million compared with $17.1 million in the prior year quarter.

2025 年第一季的淨銷售額為 1,620 萬美元，而去年同期為 1,710 萬美元。

The decrease is primarily due to a major retailer reducing inventory levels and the loss of a program at another major retailer.

減少的主要原因是一家主要零售商降低了庫存水平以及另一個主要零售商的一個計劃的損失。

Gross profit for the quarter was 24.5% of net sales compared with 27.7% in the first quarter of fiscal 2024.

本季毛利佔淨銷售額的 24.5%，而 2024 財年第一季為 27.7%。

The decrease in gross profit is primarily related to increased warehouse costs and the timing of purchases, which caused an unfavorable change in the absorption of costs into inventory.

毛利的下降主要與倉儲成本和採購時間的增加有關，導致庫存成本吸收發生不利變化。

Marketing and administrative expenses were $4.3 million compared to $4 million in the prior year quarter.

行銷和管理費用為 430 萬美元，去年同期為 400 萬美元。

The current year quarter includes $244,000 for the closing of Manhattan Toys UK subsidiary and $116,000 in costs associated with the Baby Boom acquisition.

本季包括關閉曼哈頓玩具英國子公司的 244,000 美元以及與 Baby Boom 收購相關的 116,000 美元成本。

Net loss for the quarter was $322,000 or $0.03 per share compared with net income of $366,000 or $0.04 per share in the prior year.

本季淨虧損為 322,000 美元，即每股 0.03 美元，而上一年的淨利潤為 366,000 美元，即每股 0.04 美元。

Turning now to our balance sheet.

現在轉向我們的資產負債表。

Cash and cash equivalents at June 30 totaled $1.1 million compared with $829,000 at the end of fiscal '24.

截至 6 月 30 日，現金及現金等價物總額為 110 萬美元，而 2024 財年末為 829,000 美元。

Inventories at the end of the quarter were $30.6 million compared to $29.7 million at the end of fiscal '24 and $37.7 million at the end of the first quarter of the prior year.

本季末的庫存為 3,060 萬美元，而 2024 財年末的庫存為 2,970 萬美元，上一年第一季末的庫存為 3,770 萬美元。

Our long-term debt at the end of the first quarter of fiscal '25 was $1.5 million compared to $8.1 million at the end of fiscal 2024.

截至 25 財年第一季末，我們的長期債務為 150 萬美元，而 2024 財年末為 810 萬美元。

This decrease is primarily related to the collection of fourth quarter fiscal '24 receivables coupled with lower than planned inventory purchases during the current year quarter.

這一減少主要與 24 財年第四季應收帳款的收回以及本季庫存採購量低於計劃有關。

Regarding the acquisition of Baby Boom, we paid $18 million to the assets of the company, subject to customary working capital adjustments.

關於收購 Baby Boom，我們向該公司資產支付了 1,800 萬美元，但需根據慣例進行營運資本調整。

We financed the transaction through a combination of an $8 million term loan, repayable monthly over four years and additional borrowings under our revolving line of credit.

我們透過 800 萬美元的定期貸款（四年內每月償還）和循環信貸額度下的額外借款為此交易提供資金。

The term of the line of credit was extended by one year to July 2029, and we increased its borrowing capacity from $35 million to $40 million.

信用額度期限延長一年至2029年7月，我們將借款能力從3,500萬美元增加到4,000萬美元。

Finally, our quarterly dividend of $0.08 per share offers an annualized yield of 6.7% based on yesterday's closing price per share.

最後，我們的季度股息為每股 0.08 美元，根據昨天每股收盤價計算，年化收益率為 6.7%。

We continue to believe our dividend is a key component towards offering long-term returns to our shareholders.

我們仍然相信，股利是為股東提供長期回報的關鍵組成部分。

Now I will turn the call back over to Olivia for additional comments.

現在我將把電話轉回給奧利維亞以徵求更多意見。

Thank you, Craig.

謝謝你，克雷格。

Before I get into our purchase of Baby Boom, let me provide an update on a few other matters.

在開始購買 Baby Boom 之前，讓我先介紹一下其他一些事項的最新情況。

We continue to receive positive feedback on new product development in Manhattan Toy, which acquisition in March 2023 expanded our distribution channel and cross-selling opportunities.

我們繼續收到有關曼哈頓玩具新產品開發的正面回饋，該公司於 2023 年 3 月收購，擴大了我們的分銷管道和交叉銷售機會。

As part of continuous management of our cost structure, we decided to close its [GK] subsidiary at the end of June 2024.

作為成本結構持續管理的一部分，我們決定在 2024 年 6 月底關閉其子公司 [GK]。

We continue to evaluate options for a future warehouse location to reduce our lease expense.

我們繼續評估未來倉庫地點的選擇，以減少我們的租賃費用。

This effort likely will continue through the rest of fiscal 2025 and into next fiscal year.

這項努力可能會持續到 2025 財年剩餘時間以及下一財年。

Now let me turn to our acquisition of Baby Boom.

現在讓我談談我們對 Baby Boom 的收購。

We are very excited about the opportunity to add Baby Boom's products and licenses to our lineup.

我們非常高興有機會將 Baby Boom 的產品和許可添加到我們的產品陣容中。

The acquisition enhances our toddler bedding business with some very popular licensed brands, including Bluey, Ms. Rachel and Paw Patrol.

此次收購增強了我們的幼兒床上用品業務，包括 Bluey、Ms. Rachel 和 Paw Patrol 等一些非常受歡迎的授權品牌。

It also adds diaper bags to our product offering.

它還將尿布袋添加到我們的產品中。

The diaper bags are sold under both company brands and under a license from Eddie Bauer.

尿布袋以兩個公司品牌銷售，並獲得 Eddie Bauer 的許可。

There will be some expenses in the near term as we move the Baby Boom inventory from a 3PL in Ontario, California through our existing warehouse in Compton, ran additional storage space in a temporary facility and moved some capacity inventory from California to our Eden Valley, Minnesota warehouse, but the acquisition is expected to be immediately accretive to earnings.

短期內將會產生一些費用，因為我們將嬰兒潮庫存從加州安大略省的3PL 轉移到康普頓的現有倉庫，在臨時設施中運行額外的存儲空間，並將一些容量庫存從加利福尼亞州轉移到我們的伊甸谷，明尼蘇達州倉庫，但此次收購預計將立即增加收益。

As we work through the remainder of calendar 2024 and into 2025, we will continue to focus on optimizing our cost structure and developing products that position our brands to capitalize when the overall macroeconomic picture improves.

在 2024 年剩餘時間和 2025 年期間，我們將繼續專注於優化成本結構和開發產品，使我們的品牌能夠在整體宏觀經濟狀況改善時獲利。

I would like to thank our team for their efforts and our customers for their continuing support.

我要感謝我們團隊的努力以及客戶的持續支持。

We look forward to updating you on our progress throughout the year, and thank you our shareholders, for your continued support.

我們期待向您通報我們全年的進展情況，並感謝我們的股東的持續支持。

With that, I'd like to open up the line for questions.

至此，我想開通提問專線。

Dave?

戴夫？

We will now begin the question-and-answer session.

我們現在開始問答環節。

(Operator Instructions).

（操作員說明）。

Doug Ruth.

道格·魯斯.

Lenox Financial.

萊諾克斯金融。

Good morning.

早安.

I appreciate the details that you provided.

我很欣賞您提供的詳細資訊。

With the Baby Boom toddler bedding, which of the brands do you think has the most opportunity?

對於 Baby Boom 幼兒寢具，您認為哪個品牌最有機會？

And maybe you could tell us why?

也許你可以告訴我們為什麼？

Meaning the licenses?

意思是許可證？

Yes.

是的。

So it's a license with the bedding.

所以這是一個有床上用品的許可證。

So they have some very popular licenses right now.

所以他們現在有一些非常受歡迎的許可證。

They have Bluey, which is a really, really popular and probably the most popular one right now.

他們有 Bluey，這是一款非常非常受歡迎的遊戲，而且可能是目前最受歡迎的遊戲。

Cocomelon, which has been popular for quite some time.

Cocomelon，已經流行了一段時間了。

And then we are really excited about some of the YouTube brands.

我們對 YouTube 的一些品牌感到非常興奮。

We think Ms. Rachel has a good opportunity.

我們認為雷切爾女士有一個很好的機會。

The inventory is not in yet.

庫存還沒到。

It's a new license that had been signed right before we did the acquisition.

這是我們在收購之​​前簽署的新許可證。

And so we are waiting on the inventory to come in, but we think that's going to be a hit.

因此，我們正在等待庫存的到來，但我們認為這將會很受歡迎。

And what makes Bluey popular?

是什麼讓 Bluey 如此受歡迎？

It's a television show that today's kids are just very excited about.

這是今天的孩子們非常興奮的電視節目。

He is a cute little puppy dog.

他是一隻可愛的小狗。

Okay.

好的。

Very good.

非常好。

And then could you talk about the diaper bag and how big of an opportunity you think it might be?

然後您能談談尿布袋以及您認為它可能有多大的機會嗎？

So right now, diaper bags, they're probably about 40% of the acquisition sales.

因此，目前尿布袋可能佔收購銷售額的 40% 左右。

We do think that we have an opportunity to grow diaper bags and right now, it is mainly in Walmart and Target.

我們確實認為我們有機會發展尿布袋，目前主要在沃爾瑪和塔吉特。

We think we have an opportunity to grow that across other retailers.

我們認為我們有機會在其他零售商中發展這項業務。

And we also think that we have an opportunity maybe in specialty stores and to take that internationally.

我們也認為，我們可能有機會在專賣店並將其推向國際。

Okay.

好的。

And then could you give us a little bit more detail about the feedback that you are receiving about the product development with the Manhattan Toys?

那麼您能否向我們提供更多有關您收到的有關曼哈頓玩具產品開發的回饋的詳細資訊？

Yes.

是的。

So the big product launches happen at some of the gift shows that primarily happened during the summer.

因此，大型產品發布發生在一些主要在夏季舉行的禮品展上。

And so in June, we showed at one of the major gift shows, and we introduced the new line of Wimmer, which is the baby, the true infant 0 to kind of 9- to 12-month products.

因此，在 6 月份，我們在一場主要禮品展上展示了 Wimmer 的新系列，這是嬰兒，真正的嬰兒 0 至 9 至 12 個月的產品。

And they were just really excited about those.

他們對此感到非常興奮。

And the specialty stores are really pushing us to go ahead and get that inventory in so that they can start purchasing it.

專賣店確實在推動我們繼續增加庫存，以便他們可以開始購買。

We also are working on updating the Stella Doll collection.

我們也致力於更新 Stella 娃娃系列。

And so the initial feedback on that is very good.

因此，最初的反饋非常好。

Very good.

非常好。

And then can you explain a little bit more about what happened in the United Kingdom and the decision to close the Manhattan Toy subsidiary there?

然後您能詳細解釋一下英國發生的事情以及關閉那裡的曼哈頓玩具子公司的決定嗎？

So ,Sassy Baby already had international distribution, and they do primarily through distributors, whereas the Manhattan Toy kind of handle those retailers direct.

因此，野蠻寶貝已經有了國際分銷，而且他們主要透過分銷商進行分銷，而曼哈頓玩具則直接與這些零售商打交道。

And so as we looked at those two models, it feels like the distributorship model works the best.

因此，當我們研究這兩種模式時，感覺分銷模式效果最好。

And so we were able to close that office, cut down those expenses, and we had three employees there, and we are replacing it with two employees in the US.

因此，我們能夠關閉該辦事處，削減這些費用，我們在那裡有三名員工，我們將用兩名在美國的員工取代它。

Okay.

好的。

And then are you thinking that the final decision about the warehouse.

然後你考慮一下關於倉庫的最終決定。

Do you think that, is it possible still for fiscal 2025?

您認為 2025 財年還有可能嗎？

Or do you think that would be made sometime in fiscal 2026?

或者您認為這會在 2026 財年的某個時候實現？

I think we will have narrowed down to one or two locations or at least not necessarily the exact address, but I think we'll have narrowed down to the city locations by the end of fiscal 2025.

我認為我們將縮小到一兩個地點，或至少不一定是確切的地址，但我認為到 2025 財政年度結束時我們將縮小到城市地點。

Okay, that’s encouraging.

好的，這令人鼓舞。

I just wanted to say that I’m optimistic about the future of the company and I want to thank you for answering my questions.

我只是想說，我對公司的未來感到樂觀，並感謝您回答我的問題。

Thank you Doug.

謝謝你，道格。

Josh Peters, Morgan Dempsey.

喬許彼得斯，摩根登普西。

Good morning Craig, Olivia.

早上好，克雷格，奧利維亞。

Hi, Josh.

嗨，喬許。

Yes.

是的。

I, too, am very excited about the Baby Boom acquisition.

我也對 Baby Boom 的收購感到非常興奮。

And since I still have relatively young children in the house, I kind of get the Bluey thing compared to some of what I've seen over the last 15 years for small child entertainment, Bluey is much less likely to drive its parents absolutely insane.

而且由於我家裡還有相對年幼的孩子，與我在過去 15 年裡看到的一些小孩子娛樂項目相比，我對 Bluey 的東西有點了解，Bluey 不太可能讓其父母完全瘋狂。

Super peated exposure.

超級泥炭暴露。

I realize we're not the target audience there.

我意識到我們不是那裡的目標受眾。

That's always an important point.

這始終是重要的一點。

I have just a couple of questions.

我只有幾個問題。

One, I was very happy to see the bedding line items start to turn around in the quarter.

第一，我很高興看到床上用品系列產品在本季開始出現改善。

And obviously, you've talked about some very promising feedback and potential growth for Manhattan Toy.

顯然，您談到了曼哈頓玩具的一些非常有希望的回饋和潛在的成長。

I am curious about what if you're able to give me some sense of what the Manhattan Toy contribution to sales in the quarter was?

我很好奇，如果您能讓我了解曼哈頓玩具對本季銷售的貢獻是什麼？

Because the quarter was pretty soft on that light item.

因為這個季度的輕品商品相當疲軟。

Actually, I don't have that number broken out right now.

事實上，我現在還沒有這個數字。

I can tell you that where it was soft was in the bibs side of the business.

我可以告訴你，軟的地方是在圍兜方面。

We mentioned that there was a loss program that impacted the sales and that was the bibs program at Target because Target decided to take that entire program direct source.

我們提到有一個影響銷售的損失計劃，那就是 Target 的圍兜計劃，因為 Target 決定直接採用整個計劃。

So they are sourcing that themselves.

所以他們自己採購。

Okay. but that affects more your pre-existing business than Manhattan Toy.

好的。但這對您現有業務的影響比曼哈頓玩具更大。

Is that a fair characterization?

這是一個公平的描述嗎？

Correct.

正確的。

Yes.

是的。

Okay.

好的。

Okay.

好的。

Yes, I'm just trying to get a sense of some of the discrete contributions from different parts of the business.

是的，我只是想了解業務不同部分的一些離散貢獻。

And you mentioned also a major retailer reducing inventory, that is been a story here for a while.

您還提到一家主要零售商減少庫存，這已經是一個故事了一段時間了。

Do you feel like the customer is now comfortable with their level of inventory, and we are going to at least get the benefit of what's actually being sold at the cash registers?

您是否覺得客戶現在對他們的庫存水準感到滿意，我們至少會從收銀機實際銷售的商品中受益？

Yes.

是的。

Well, we know what's being sold at the cash registers and we can see that this particular inventory.

好吧，我們知道收銀機上正在出售什麼，我們可以看到這個特定的庫存。

I mean, this particular customer is not buying to the POS.

我的意思是，這個特定的客戶並不是在 POS 上購買商品。

Just when we think the wheels are on the bus and the inventory levels are back to normal this happens.

就在我們認為輪子已經裝上並且庫存水平恢復正常時，這種情況發生了。

And so I would like to say that we are that they are purchasing back to the POS, but I'm not sure that they are.

所以我想說，我們是他們正在向 POS 進行採購，但我不確定他們是不是這樣。

It seems very erratic right now. 1 week, they're purchasing to POS and the next week, they're not.

現在看來非常不穩定。第 1 週，他們會透過 POS 進行購買，但下週就不會了。

Okay.

好的。

Well, I suppose everybody is still dealing with the volatility associated with the interesting things of the last three years, four years here.

好吧，我想每個人仍在應對與過去三年、四年中有趣的事情相關的波動。

On gross margin, I see the pressure there and just trying to get a little bit better handle on how that is working its way through.

在毛利率方面，我看到了那裡的壓力，只是想更好地處理它的運作方式。

So when you referred to timing of purchases, is this a disproportionate piece of high-cost inventory from perhaps a year or two ago, when shipping costs were really high?

那麼，當您提到購買時間時，這是否是一兩年前運輸成本非常高的高成本庫存？

And obviously, we've had the increase in the rent and the Compton facility.

顯然，我們的租金和康普頓設施都增加了。

Just trying to get a sense as are we absorbing those costs now finally through the P&L, and we can see some margin improvement from here?

只是想了解我們現在是否最終透過損益表吸收了這些成本，我們可以從這裡看到一些利潤率的提高嗎？

Yes.

是的。

The margins are mostly impacted by the additional warehousing costs and the allocation of overhead between inventory and cost of sales.

利潤主要受到額外倉儲成本以及庫存和銷售成本之間的管理費用分配的影響。

And all of that is kind of based on purchases, and we had a lower than we planned or lower than expected purchases during the first quarter, which wound up with a like we said, an unfavorable absorption of the cost into the balance sheet that has to run through the P&L.

所有這些都是基於採購，我們在第一季的採購量低於計劃或低於預期，這最終導致了我們所說的，將成本不利地吸收到資產負債表中，運行損益表。

So that can fluctuate from quarter-to-quarter.

因此，這個數字可能會隨著季度的變化而波動。

If you look at the prior year first quarter, it was a favorable impact to margin.

如果你看看去年第一季度，你會發現這對利潤率產生了有利的影響。

So the combination of the two from prior year and the current year made it look a little more pronounced than maybe it really is.

因此，去年和今年的兩者結合起來，使它看起來比實際情況更明顯。

Okay.

好的。

Well, that's really a good perspective just to understand the accounting process associated with some of that.

嗯，這確實是一個很好的視角，可以幫助您了解與其中一些相關的會計流程。

Last question, there is a couple of [housekeeping] questions, relating to the Baby Boom acquisition, are you expecting to file in 8-K that will have some financial history for Baby Boom and the pro forma financial statements, pardon?

最後一個問題，有幾個與 Baby Boom 收購相關的[內務]問題，您是否希望提交 8-K 文件，其中包含 Baby Boom 的一些財務歷史記錄和預計財務報表，請原諒？

Yes, we will.

是的，我們會的。

We'll file their one-year historical financial statements accompanied by pro forma financial information.

我們將提交他們的一年歷史財務報表以及預估財務資訊。

Okay.

好的。

Do you have a sense of when that's likely to be filed?

您知道什麼時候可能會提交嗎？

I suppose there's delays associated with actual accounting.

我認為實際會計存在延遲。

I would look forward to around the first of October.

我期待十月一日左右。

Okay.

好的。

And from that, I'll certainly look forward to actually getting the filing, but we paid $18 million for the business.

從那時起，我當然會期待真正收到申請，但我們為這項業務支付了 1800 萬美元。

In very rough terms, are you able to break that down between net physical assets associated with the business as opposed to what you're paying for goodwill and intangibles?

粗略地說，您是否能夠將其細分為與業務相關的淨有形資產，而不是您為商譽和無形資產支付的費用？

Yes.

是的。

I mean we disclosed in the press release that it is going to be adjusted to the extent that the working capital differs from the $6.5 million.

我的意思是，我們在新聞稿中透露，將根據營運資金與 650 萬美元的差異進行調整。

And we are not buying the underlying equity of the company and we're not buying a whole lot of PP&E or a plant facility or anything like that.

我們不會購買該公司的基礎股權，也不會購買大量的固定資產、廠房或工廠設施或類似的東西。

So it will be the difference between what we paid and the working capital.

所以這將是我們支付的費用和營運資金之間的差額。

And that will be allocated over the next months.

這將在接下來的幾個月內分配。

We have a third-party who does evaluation of the intangibles licenses and brands and the like.

我們有第三方對無形資產許可和品牌等進行評估。

Okay.

好的。

So subject to adjustments as the business continues to operate here, $6.5 million is the net tangible asset bogey, so to speak?

因此，隨著業務繼續在這裡運營，可能會進行調整，可以這麼說，650 萬美元是有形資產淨值的忌諱嗎？

That was the estimate at the acquisition date.

這是收購日期的估計。

We still have, I don't know maybe another week or two, before the seller has to provide us with an actual close, accounting close as of the acquisition date, but that should be coming in the next week or so.

在賣方必須向我們提供截至收購日期的實際結算、會計結算之前，我不知道可能還需要一兩週的時間，但這應該會在下週左右完成。

Okay.

好的。

All right.

好的。

Well, I'm sorry to be getting into some pretty small bore things there, but you've already given me quite a good education over the years on the big picture for the business and really looking forward to seeing the growth of the business with the latest acquisition, very optimistic.

好吧，我很抱歉在這裡涉及一些非常小的無聊的事情，但是多年來您已經給了我很好的關於業務大局的教育，並且非常期待看到業務的增長最新的收購，非常樂觀。

Thanks.

謝謝。

Thank you.

謝謝。

And the next question comes from Doug Ruth with Lenox Financial.

下一個問題來自 Lenox Financial 的 Doug Ruth。

Please go ahead.

請繼續。

I wanted to ask a follow-up to sort of Josh's question.

我想對喬希的問題提出後續問題。

With the sales from Manhattan Toy, it seemed like when you did the last earnings call, you indicated that perhaps the revenue might grow 7.5% to 10% in this fiscal year.

從曼哈頓玩具的銷售額來看，您在上次財報電話會議上似乎表示，本財年收入可能會成長7.5%至10%。

I was wondering, do you have an update?

我想知道，你有更新嗎？

Do you have a projection as far as what kind of growth you might get from Manhattan Toy this fiscal year?

您對曼哈頓玩具本財年可能獲得什麼樣的成長有預測嗎？

We do not.

我們沒有。

And yes, I don't recall.

是的，我不記得了。

We typically don't provide forecast.

我們通常不提供預測。

So I'm trying to figure out where the 7% to 10% came from.

所以我試著弄清楚這 7% 到 10% 是從哪裡來的。

While you had said that initially, you thought that the revenue would be higher in the first year of operation.

雖然您最初這麼說，但您認為營運第一年的收入會更高。

And then what you made some projections as far as how long it might take for you to get back to the original projection.

然後你做了一些預測，看看你可能需要多長時間才能回到原來的預測。

Based that time frame is two to three years out before you get, what we initially forecasted.

根據我們最初預測的時間範圍，您將獲得兩到三年的時間。

Yes.

是的。

So I took you took out that number, and then I just calculated it and that's what it appeared to be, 7.5% to 10% growth per year for the next like three years.

所以我把這個數字拿出來，然後我計算了一下，看起來就是這樣，在接下來的三年裡每年增長 7.5% 到 10%。

So, do you think there'll be revenue growth from Manhattan Toy in this fiscal year?

那麼，您認為曼哈頓玩具本財年的收入會成長嗎？

We really don't make those forecasts.

我們確實不會做出這些預測。

I hate to do that.

我討厭這樣做。

No, I understand. it was a question I thought should be asked, and I appreciate you considering it.

不，我明白。我認為這是一個應該問的問題，我很感謝你考慮這個問題。

All right.

好的。

Thank you.

謝謝。

And then this concludes our question-and-answer session.

然後我們的問答環節就結束了。

I would like to turn the conference back over to Olivia Elliott for any closing remarks.

我想將會議轉回給奧利維亞·埃利奧特（Olivia Elliott）做總結演講。

Thanks, Dave.

謝謝，戴夫。

Thank you for your continued interest in our company.

感謝您對我們公司的持續關注。

We will participate in the 3-part advisers Ideas Conference on August 28, and our presentation will be available on our website.

我們將參加 8 月 28 日舉行的由 3 部分組成的顧問創意會議，我們的簡報將發佈在我們的網站上。

We look forward to speaking with you again when we report our second quarter results in November.

我們期待在 11 月報告第二季業績時再次與您交談。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。