Carvana Co (CVNA) 2023 Q2 法說會逐字稿

Good day, and welcome to the Carvana Second Quarter 2023 Earnings Conference Call. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, today's event is being recorded. I would now like to turn the conference over to Meg Kehan with Investor Relations. Please go ahead.

美好的一天，歡迎參加 Carvana 2023 年第二季度收益電話會議。 （操作員說明）今天的演示結束後，將有機會提問。 （操作員說明）請注意，今天的活動正在錄製中。我現在想將會議交給投資者關係部門的梅格·科漢 (Meg Kehan)。請繼續。

Thank you, Rocco. Good morning, ladies and gentlemen, and thank you for joining us on Carvana's Second Quarter 2023 Earnings Conference Call. Please note that this call will be simultaneously webcast on the Investor Relations section of the company's corporate website at investors.carvana.com. The second quarter shareholder letter is also posted to the IR website. Additionally, we posted a set of supplemental financial tables for Q2, which can be found on the Events and Presentations page of our IR website. Joining me on the call today are Ernie Garcia, Chief Executive Officer; and Mark Jenkins, Chief Financial Officer.

謝謝你，羅科。早上好，女士們先生們，感謝您參加 Carvana 2023 年第二季度收益電話會議。請注意，本次電話會議將同時在公司網站investors.carvana.com 的投資者關係部分進行網絡直播。第二季度股東信函也發佈在IR網站上。此外，我們還發布了第二季度的一組補充財務表格，您可以在我們的 IR 網站的活動和演示頁面上找到這些表格。今天和我一起參加電話會議的是首席執行官厄尼·加西亞 (Ernie Garcia)；和首席財務官馬克·詹金斯。

Before we start, I would like to remind you that the following discussion contains forward-looking statements within the meaning of the federal securities laws, including, but not limited to, Carvana's market opportunities and future financial results that involve risks and uncertainties that may cause actual results to differ materially from those discussed here. A detailed discussion of the material factors that cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Carvana's most recent Form 10-K and Form 10-Q.

在我們開始之前，我想提醒您，以下討論包含聯邦證券法含義內的前瞻性陳述，包括但不限於 Carvana 的市場機會和未來財務業績，涉及可能導致風險和不確定性的風險和不確定性。實際結果與此處討論的結果存在重大差異。有關導致實際結果與前瞻性陳述不同的重大因素的詳細討論，請參閱 Carvana 最新表格 10-K 和表格 10-Q 的風險因素部分。

The forward-looking statements and risks in this conference call are based on current expectations as of today, and Carvana assumes no obligation to update or revise them whether as a result of new developments or otherwise. Our commentary today will include non-GAAP financial metrics. Unless otherwise specified, all references to GPU and SG&A will be to the non-GAAP metrics and all references to EBITDA will be to adjusted EBITDA. Reconciliations between GAAP and non-GAAP financial metrics for our reported results can be found in our shareholder letter issued today, a copy of which can be found on our IR website. And now with that said, I'd like to turn the call over to Ernie Garcia. Ernie?

本次電話會議中的前瞻性陳述和風險基於截至今天的當前預期，Carvana 不承擔因新的發展或其他原因而更新或修改這些陳述和風險的義務。我們今天的評論將包括非公認會計準則財務指標。除非另有說明，所有對 GPU 和 SG&A 的引用均指非 GAAP 指標，所有對 EBITDA 的引用均指調整後的 EBITDA。我們報告的業績的 GAAP 和非 GAAP 財務指標之間的調節可以在我們今天發布的股東信中找到，其副本可以在我們的 IR 網站上找到。話雖如此，我想把電話轉給厄尼·加西亞。厄尼？

Thanks, Meg. And thanks, everyone, for joining the call on such short notice. Let me start with the most important takeaways in this quarter. It was a great quarter for Carvana, and we're nowhere near the end. We are making rapid progress because of the power of our customer offering, the strength of our business model and the quality of our people. The fundamentals are what is making it possible.

謝謝，梅格。感謝大家在如此短的時間內加入電話會議。讓我從本季度最重要的要點開始。對於 Carvana 來說，這是一個偉大的季度，但我們還遠未接近結束。得益於我們強大的客戶服務、強大的業務模式和高素質的員工，我們取得了快速的進步。基礎是使之成為可能的基礎。

We're going to sustain the intensity of the last 18 months by maintaining our operating focus for the foreseeable future and embedding it further into our culture. 18 months ago, we were positioned aggressively for growth. We were then hit with a combination of macroeconomic, industry, operational and capital market impacts that when combined, put us under considerable pressure and demanded a reprioritization of our efforts. So that's what we did.

我們將通過在可預見的未來保持我們的運營重點並將其進一步融入我們的文化來維持過去 18 個月的強度。 18 個月前，我們積極謀求增長。隨後，我們受到了宏觀經濟、行業、運營和資本市場的綜合影響，這些影響綜合在一起，給我們帶來了巨大的壓力，並要求我們重新調整工作的優先順序。這就是我們所做的。

We reoriented the business with a simple 3-step plan. Number one, drive the business to positive adjusted EBITDA; number two, drive the business with significant positive unit economics. And number three, after completing steps 1 and 2, return to growth. In the second quarter, we completed the first step. We are extremely proud of the speed of this progress. In the last year, we've taken $1.1 billion of annualized expenses out of the business, and this quarter, we set records in GPU and adjusted EBITDA margin with total adjusted EBITDA dollars over $150 million.

我們通過簡單的三步計劃重新調整了業務方向。第一，推動業務實現正調整 EBITDA；第二，以顯著的正單位經濟效益推動業務發展。第三，完成步驟 1 和 2 後，恢復增長。第二季度，我們完成了第一步。我們對這一進展的速度感到非常自豪。去年，我們從業務中扣除了 11 億美元的年化費用，本季度，我們在 GPU 和調整後 EBITDA 利潤率方面創下了記錄，調整後 EBITDA 總額超過 1.5 億美元。

These numbers benefited from significant nonrecurring items that collectively added about $900 to GPU and $70 million to adjusted EBITDA. But even when controlling for these nonrecurring items, the results were exceptional. Today, the company is functioning better than it ever has. We're more efficient and we are improving at a faster pace than we ever have in the past. This improvement spans the entire business, from customer-facing improvements, including the early testing of same-day delivery in a subset of markets that have inspection centers to product improvements that enable us to buy more cars from our customers more efficiently to process changes and developments that are making us more efficient across every operating group in the company, and we plan to keep up our pace. With the results and capital structure changes being discussed today, a natural question is how does this change the plan?

這些數字得益於重要的非經常性項目，這些項目總共為 GPU 增加了約 900 美元，為調整後的 EBITDA 增加了 7000 萬美元。但即使控制了這些非經常性項目，結果仍然非常出色。如今，該公司的運作比以往任何時候都更好。我們比過去更有效率，並且進步速度更快。這種改進涵蓋了整個業務，從面向客戶的改進，包括在設有檢查中心的部分市場中對當日交付的早期測試，到產品改進，使我們能夠更有效地從客戶那裡購買更多汽車，以處理變化和這些發展使我們公司每個運營團隊的效率更高，我們計劃跟上我們的步伐。隨著今天討論結果和資本結構變化，一個自然的問題是這將如何改變計劃？

The short answer is that it doesn't. We plan to continue operating in the same way with the same urgency to continue to drive efficiencies that we expect to result in sustainable significantly positive adjusted EBITDA. From there, we will once again turn our attention to growth as we did successfully for the first 8 years of our history. Our opportunity is as great as it has ever been. Our customers love our offering and our business is efficient, highly differentiated, scalable and extremely difficult to replicate. We remain firmly on the path to selling millions of cars per year and to becoming the largest and most profitable automotive retailer. The march continues. Mark?

簡短的回答是不會。我們計劃繼續以同樣的方式運營，同樣緊迫地繼續提高效率，我們預計將帶來可持續的顯著正調整的 EBITDA。從那時起，我們將再次將注意力轉向增長，就像我們在歷史的前 8 年中所取得的成功一樣。我們的機會和以往一樣巨大。我們的客戶喜歡我們的產品，我們的業務高效、高度差異化、可擴展且極難復制。我們仍然堅定地走在每年銷售數百萬輛汽車並成為最大、最賺錢的汽車零售商的道路上。遊行仍在繼續。標記？

Thank you, Ernie, and thank you all for joining us today. Our second quarter results demonstrate significant progress on our path to profitability. We significantly exceeded our goal of driving positive adjusted EBITDA and and we set a company record for total GPU. These second quarter milestones complete step 1 of our 3-step plan to drive positive free cash flow, and we are now in step 2. driving repeated and significant unit economics.

謝謝你，厄尼，也謝謝大家今天加入我們。我們第二季度的業績表明我們在盈利之路上取得了重大進展。我們大大超出了推動正調整 EBITDA 的目標，並且創造了公司 GPU 總量記錄。這些第二季度的里程碑完成了我們推動正自由現金流的三步計劃的第一步，我們現在正處於第二步：推動重複且顯著的單位經濟效益。

In the second quarter, retail units sold totaled 76,530, a decrease of 35% year-over-year and 3% sequentially. Similar to past quarters, our decline in retail units sold, which we expected, was driven by 4 primary factors: reduced inventory size, reduced advertising, increased benchmark interest rates and credit spreads and a continued focus on executing our profitability initiatives. Total revenue was $2.968 billion, a decrease of 24% year-over-year and an increase of 14% sequentially.

第二季度，零售單位銷量總計 76,530 套，同比下降 35%，環比下降 3%。與過去幾個季度類似，我們預期零售銷量的下降是由四個主要因素驅動的：庫存規模減少、廣告減少、基準利率和信用利差增加以及繼續專注於執行我們的盈利計劃。總收入為29.68億美元，同比下降24%，環比增長14%。

As we've previously discussed, our long-term financial goal is to generate significant GAAP net income and free cash flow. In service of this goal, in the near term, our management team remains focused on driving progress on a set of key non-GAAP financial metrics that are inputs into this long-term goal, including non-GAAP gross profit, non-GAAP SG&A expense and adjusted EBITDA. Due to the dynamic nature of the current environment, we will focus our remaining remarks on sequential changes in these metrics.

正如我們之前討論的，我們的長期財務目標是產生可觀的 GAAP 淨利潤和自由現金流。為了實現這一目標，在短期內，我們的管理團隊將繼續專注於推動一系列關鍵非 GAAP 財務指標的進展，這些指標將作為這一長期目標的投入，包括非 GAAP 毛利潤、非 GAAP SG&A費用和調整後的 EBITDA。由於當前環境的動態性質，我們將把剩下的評論重點放在這些指標的連續變化上。

In the second quarter, non-GAAP total GPU was 7,030, a sequential increase of $2,234, driven by increases in retail and other GPU. The Total GPU in Q2 was positively impacted by approximately $900 nonrecurring benefits, which we described in more detail later in this remark. Non-GAAP retail GPU was $28.62 versus $15.19 in Q1. Retail GPU included an approximately $250 benefit due to an adjustment to our retail inventory allowance. In addition, sequential changes in retail GPU were primarily driven by lower average days of sale, lower retail market depreciation rates, wider spreads between wholesale and retail market prices and lower reconditioning and inbound transport costs.

第二季度，非 GAAP 總 GPU 數量為 7,030 個，環比增長 2,234 美元，主要受到零售和其他 GPU 增長的推動。第二季度的 GPU 總量受到約 900 美元的非經常性收益的積極影響，我們在本評論後面對此進行了更詳細的描述。非 GAAP 零售 GPU 價格為 28.62 美元，而第一季度為 15.19 美元。由於調整了我們的零售庫存限額，零售 GPU 包含約 250 美元的收益。此外，零售 GPU 的連續變化主要是由於平均銷售天數較低、零售市場折舊率較低、批發和零售市場價格之間的價差擴大以及翻新和入境運輸成本較低所致。

This retail GPU in Q2 was driven by several fundamental improvements in our business as well as some seasonal end market tailwinds. On the fundamental gain side, retail GPU was driven by normalizing inventory size as well as several key areas of improvement compared to FY 2021, including a higher customer sourcing rate, higher revenue from additional services and lower reconditioning and inbound transport costs. On the seasonal and market dynamics side, Q2 is on average, the strongest quarter of the year for retail GPU.

第二季度零售 GPU 的增長是由我們業務的幾項根本性改進以及一些季節性終端市場的利好推動的。從基本收益方面來看，零售 GPU 的推動因素是庫存規模正常化以及與 2021 財年相比的幾個關鍵領域的改進，包括更高的客戶採購率、更高的附加服務收入以及更低的翻新和入站運輸成本。從季節性和市場動態來看，平均而言，第二季度是零售 GPU 一年中最強勁的季度。

In addition, this year saw a period of high spreads between wholesale and retail market prices followed by lower-than-expected retail depreciation, which benefited retail GPU in Q2, other things being equal. Non-GAAP wholesale GPU was $12.28 versus $12.36 in Q1. Sequential changes in wholesale GPU were primarily driven by higher wholesale market depreciation rates in Q2 compared to Q1 and which negatively impacted wholesale vehicle gross profit per wholesale unit sold largely offset by operational improvements that allowed us to handle more wholesale units sold volume.

此外，今年批發和零售市場價差較高，隨後零售貶值低於預期，這在其他條件相同的情況下，第二季度零售 GPU 受益。非 GAAP GPU 批發價格為 12.28 美元，而第一季度為 12.36 美元。批發 GPU 的連續變化主要是由於第二季度批發市場折舊率高於第一季度，這對每批發單位銷售的批發車輛毛利潤產生了負面影響，但在很大程度上被運營改進所抵消，運營改進使我們能夠處理更多的批發單位銷售量。

Non-GAAP other GPU was $29.40 versus $19.69 in Q1. Sequential improvement in other GPU was primarily driven by a greater volume of loans sold in Q2 compared to Q1. We estimate that a higher than normalized volume of loans held and sold in Q2 increased other GPU by approximately $650, other things being equal.

非 GAAP 其他 GPU 的價格為 29.40 美元，而第一季度為 19.69 美元。其他 GPU 的連續改善主要是由於與第一季度相比，第二季度銷售的貸款數量增加。我們估計，在其他條件相同的情況下，第二季度持有和出售的貸款數量高於正常水平，其他 GPU 增加了約 650 美元。

Sequential changes in other GPU were also driven by higher origination interest rates relative to benchmark interest rates and higher average loan size. In Q2, we continue to make progress lowering SG&A expenses, reducing non-GAAP SG&A expense by $21 million sequentially, primarily driven by continued reductions in non-advertising expenses.

其他 GPU 的連續變化也是由相對於基準利率較高的原始利率和較高的平均貸款規模推動的。第二季度，我們在降低 SG&A 費用方面繼續取得進展，非 GAAP SG&A 費用連續減少了 2100 萬美元，這主要是由於非廣告費用的持續減少。

Advertising expenses in Q2 were approximately flat compared to Q1. We expect Q1 to be our near-term low point on quarterly advertising expense as we continue to seek to optimize our spend to balance unit volume and profitability. We believe the cost reductions we've achieved over the past year are long-lasting and sustainable, and we believe we have further efficiencies to realize in all areas.

第二季度的廣告費用與第一季度大致持平。我們預計第一季度將成為季度廣告費用的近期低點，因為我們將繼續尋求優化支出以平衡單位銷量和盈利能力。我們相信，我們在過去一年中實現的成本降低是持久且可持續的，並且我們相信我們在所有領域都可以進一步提高效率。

Looking forward, we see 3 primary drivers to reduce SG&A per retail unit sold. First, in step 2 of our 3-step plan, which is drive significant unit economics, we continue to see opportunities to reduce operations expenses on a per retail unit sold basis by completing our pipeline of projects to automate manual work, optimize staffing and routing, increased deep funnel conversion among other initiatives.

展望未來，我們認為有 3 個主要驅動因素會降低每售出零售單位的銷售管理費用 (SG&A)。首先，在我們的三步計劃的第二步中，即推動顯著的單位經濟效益，我們繼續看到通過完成我們的項目管道以自動化手工工作、優化人員配置和路線來減少每個零售單位銷售的運營費用的機會，增加其他舉措中的深度漏斗轉化。

Second, also in step 2 of our 3-step plan, we continue to see opportunities to reduce and optimize our corporate technology and facilities expenses on an absolute dollar basis through a continued focus on zero-based budgeting and other efficiency gains. Third, in step 3 of our 3-step plan, which is returned to growth, we see a significant opportunity to leverage our corporate technology and facilities expense base, leading to significant leverage on a per retail unit sold basis at higher volumes.

其次，同樣在我們三步計劃的第二步中，我們繼續看到通過繼續關注零基預算和其他效率提升，以絕對美元為基礎減少和優化我們的企業技術和設施支出的機會。第三，在我們三步計劃的第三步（即恢復增長）中，我們看到了利用我們的公司技術和設施費用基礎的重大機會，從而在更高銷量的每個零售單位銷售基礎上產生顯著的槓桿作用。

Adjusted EBITDA was positive $155 million in Q2 or 5.2% of revenue. The impact to adjusted EBITDA of the previously described nonrecurring items was approximately $70 million, including a $50 million benefit from selling and holding additional loans and a $20 million benefit from our retail inventory allowance.

第二季度調整後 EBITDA 為正 1.55 億美元，佔收入的 5.2%。上述非經常性項目對調整後 EBITDA 的影響約為 7000 萬美元，其中包括出售和持有額外貸款帶來的 5000 萬美元收益，以及零售庫存補貼帶來的 2000 萬美元收益。

Moving now to our third quarter outlook. While the macroeconomic and industry environment continues to be uncertain, looking toward Q3, expect the following as long as the environment remains stable. On retail units, we currently expect similar retail units sold in Q3 compared to Q2. On GPU, we currently expect non-GAAP total GPU above 5,000. On SG&A, we expect similar non-GAAP SG&A expense in Q3 compared to Q2. We continue to see opportunities to further reduce non-GAAP SG&A expenses over time. Finally, we expect to generate positive adjusted EBITDA in Q3 for the second consecutive quarter, further demonstrating the first step in our 3-step plan toward positive free cash flow. We see upside to these total GPU and adjusted EBITDA numbers, but given the early date of this earnings call within the quarter, we are electing to provide a conservative outlook.

現在轉向我們的第三季度展望。儘管宏觀經濟和行業環境仍然存在不確定性，但展望第三季度，只要環境保持穩定，預計將出現以下情況。在零售單位方面，我們目前預計第三季度零售單位的銷量與第二季度相似。在 GPU 方面，我們目前預計非 GAAP 總 GPU 數量將超過 5,000。在 SG&A 方面，我們預計第三季度的非 GAAP SG&A 費用與第二季度類似。隨著時間的推移，我們繼續看到進一步減少非 GAAP SG&A 費用的機會。最後，我們預計第三季度將連續第二個季度產生正的調整後 EBITDA，進一步證明我們邁向正自由現金流的三步計劃的第一步。我們認為 GPU 總量和調整後 EBITDA 數字有上升空間，但考慮到本季度財報電話會議的日期較早，我們選擇提供保守的前景。

On June 30, we had approximately $3.5 billion in total liquidity resources including $1.5 billion in cash and revolving availability and $2 billion in unpledged real estate and other assets, including more than $1 billion of real estate acquired with ADESA. Today, we announced the transaction support agreement with over 90% of holders of our senior unsecured notes to exchange approximately $5.2 billion of those senior unsecured notes for new senior secured notes with maturities ranging from December 2028 through June 2031. The strong performance of our business in 2023 presented an opportunity for a win-win transaction for Carvana and its senior unsecured noteholders. The transaction reduces our total debt by over $1.2 billion, reduces our cash interest expense by over $430 million per year over the next 2 years and extends more than 83% of our 2025 and 2027 senior unsecured note maturities, giving us significant flexibility to execute our plan toward driving positive free cash flow. Thank you for your attention. We will now take questions.

截至 6 月 30 日，我們擁有約 35 億美元的總流動性資源，包括 15 億美元的現金和循環可用資金，以及 20 億美元的未質押房地產和其他資產，其中包括通過 ADESA 收購的超過 10 億美元的房地產。今天，我們宣布與超過 90% 的高級無抵押票據持有人達成交易支持協議，將約 52 億美元的高級無抵押票據兌換為新的高級無抵押票據，期限為 2028 年 12 月至 2031 年 6 月。我們業務的強勁表現2023 年為 Carvana 及其高級無擔保票據持有人提供了雙贏交易的機會。此次交易使我們的總債務減少了超過 12 億美元，在未來 2 年內每年減少了超過 4.3 億美元的現金利息支出，並延長了我們 2025 年和 2027 年高級無擔保票據的 83% 以上的期限，使我們能夠非常靈活地執行我們的計劃推動積極的自由現金流。感謝您的關注。我們現在將接受提問。

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Today's first question comes from Ron Josey with Citi.

謝謝。我們現在開始問答環節。 （操作員說明）今天的第一個問題來自花旗銀行的 Ron Josey。

I want to talk just about demand trends overall, and I'm sure we'll get into the debt restructuring, but Ernie talk just about inventory that overall, I believe that was down in December, the (inaudible) for most of the days inventory. I'm wondering how that compares to overall demand out there as you supply improving, I guess, is the question. And are you seeing any signs of -- I think that Mark energy companies with more stable environment, just to use car dynamics, any insights on the broader macro would be helpful.

我只想談談總體需求趨勢，我確信我們會進行債務重組，但厄尼只談庫存，總體而言，我相信 12 月份的庫存有所下降，這是大多數日子裡的（聽不清）存貨。我想知道隨著供應的改善，這與總體需求相比如何，我想，這就是問題所在。你是否看到任何跡象——我認為馬克能源公司擁有更穩定的環境，只是為了利用汽車動力學，任何對更廣泛宏觀宏觀的見解都會有所幫助。

Sure. Well, let's start with the inventory component of that question. I think inventory is down year-over-year by over 50%. I believe something in the over 55%. It was down again quarter-over-quarter. We've really been pushing that down in an effort to align our inventory size with sales volumes. And I think you can really see that flowing through the benefits of that into retail GPU. I think we had a pretty incredible by any measure, retail GPU quarter. And I think there are a number of components of that, but 1 of the largest, certainly over the last 6 to 9 months has been reducing inventory and kind of aligning our sales volumes with where inventory was. We could have faster turn times and therefore, less depreciation. I think the environment remains an environment of elevated prices and elevated and elevated interest rates and more difficult affordability for customers. I think there are certainly signs today of depreciation. I think depreciation right now looks very similar to depreciation last year, although it's probably been pulled forward maybe a month. It's happening a little faster than last year. And so I think we'll see how that unfolds through the rest of this year. I think our view on that is -- the probably best case scenario for our business would be pretty significant depreciation that is foreseen. I think foreseen depreciation enables the market to organize kind of in the wholesale market to buy cars at sufficiently high margins to where you can absorb that depreciation, and it doesn't impact the business in a material way. But then that also leads to better affordability for customers. And I think that's what we would hope for and I think the signs that we're seeing right now are at least weekly aligned with that. From a broader demand perspective, I'm not sure we have a ton more to add.

當然。好吧，讓我們從該問題的庫存部分開始。我認為庫存同比下降了 50% 以上。我相信超過 55% 的人。環比再次下降。我們確實一直在努力降低庫存規模，以使我們的庫存規模與銷量保持一致。我認為您確實可以看到零售 GPU 所帶來的好處。我認為無論以何種標準衡量，我們的零售 GPU 季度都非常令人難以置信。我認為其中有很多因素，但其中最大的因素之一，當然是在過去 6 到 9 個月裡，一直在減少庫存，並使我們的銷量與庫存狀況保持一致。我們可以縮短周轉時間，從而減少折舊。我認為，當前的環境仍然是價格上漲、利率不斷升高、客戶的承受能力更加困難的環境。我認為今天肯定有貶值的跡象。我認為現在的折舊看起來與去年的折舊非常相似，儘管它可能被提前了一個月。它發生的速度比去年要快一些。因此，我認為我們將在今年餘下的時間裡看到這一情況如何展開。我認為我們對此的看法是——對我們業務來說最好的情況可能是預見到的相當大的折舊。我認為，可預見的貶值使市場能夠在批發市場上以足夠高的利潤購買汽車，從而可以吸收貶值，並且不會對業務產生重大影響。但這也為客戶帶來了更好的負擔能力。我認為這就是我們所希望的，我認為我們現在看到的跡象至少每週都與此一致。從更廣泛的需求角度來看，我不確定我們還有更多需要添加的內容。

Ernie, that's super helpful. And just a real quick 1 on inventory [front] users. I think you said you're back to above 2021 levels and process improvement has helped there. Speaking about inventory, any insights on those product improvement.

厄尼，這非常有幫助。並且只是對庫存[前端]用戶進行真正快速的1。我想您說過您已回到 2021 年以上的水平，並且流程改進對此有所幫助。談到庫存，關於這些產品改進的任何見解。

Yes. So on inventory, we've reduced inventory size very significantly since the beginning of 2022. And I think what that has done is it has placed our inventory size now relative to sales volumes. That ratio is now back much more normalized levels. I think we call it in the shareholder letter. If you just compare the inventory that we had on hand at the end of the second quarter to the second quarter retails units sold that ratio is in [implied] term time about 62 days, which is in sort of a normal range that we've operated in, in the past.

是的。因此，在庫存方面，自 2022 年初以來，我們已經大幅減少了庫存規模。我認為這樣做的結果是，我們現在的庫存規模相對於銷量而言是相對合理的。該比率現在已恢復到更加正常化的水平。我想我們在股東信中這麼稱呼它。如果您只是將第二季度末我們手頭的庫存與第二季度銷售的零售單位進行比較，那麼該比率在[隱含]期限內約為 62 天，這屬於我們所預測的正常範圍。過去，在，經營過。

Thank you. And our next question today comes from Michael Montani with Evercore ISI.

謝謝。今天我們的下一個問題來自 Evercore ISI 的 Michael Montani。

Yes. I just wanted to ask, first off, if I could, just for some updates in terms of what you're seeing on the depreciation side. in the wholesale market. And basically, on the total GPU front, you had mentioned over $5,000 for the quarter, is that basically what you just produced is [7] less than roughly $900 of of nonrecurring? Or could we see additional nonrecurring again this quarter.

是的。首先，我只是想問一下，如果可以的話，只是想了解一下您在折舊方面看到的一些最新情況。在批發市場。基本上，在整個 GPU 方面，您提到本季度的收入超過 5,000 美元，這基本上是您剛剛生產的 [7] 不到大約 900 美元的非經常性收入嗎？或者我們可能會在本季度再次看到額外的非經常性支出。

Sure. So really quickly on the depreciation side. I think depreciation is clearly elevated as discussed before. I think so far, that's happened in an orderly way, and it seems like the wholesale market is is positioned to kind of absorb that depreciation and then be able to pass that through to the retail market. So we haven't yet seen that impacting retail spreads in a way that would be meaningful.

當然。折舊方面確實很快。我認為正如之前所討論的，折舊明顯升高。我認為到目前為止，這是有序發生的，批發市場的定位似乎是吸收貶值，然後能夠將其傳遞到零售市場。因此，我們還沒有看到這對零售價差產生有意義的影響。

And then I think the GPU number for this quarter is just a truly incredible number, and I think there are so many components that go into it. We did benefit first from about $900 of nonrecurring items that included the fact that we sold more receivables than we originated as a result of also holding those receivables we earned additional interest on those receivables and then we did have a release of inventory allowance as well that ended up being about $250 of retail GPU benefit.

我認為本季度的 GPU 數量確實是一個令人難以置信的數字，而且我認為其中涉及到很多組件。我們確實首先從大約 900 美元的非經常性項目中受益，其中包括我們出售的應收賬款比我們最初的數量要多，因為我們還持有這些應收賬款，我們從這些應收賬款中賺取了額外的利息，然後我們也釋放了庫存津貼，最終獲得約 250 美元的零售 GPU 收益。

But when removing that, it was still $6,000, which is a number that I think was unimaginable for the vast majority of our history and completely unimaginable from the perspective of even 3 months ago, 6 months ago. And I think there's been so many incredible improvements across the business. We really have reoriented the business and we've got an operating cadence that has many different teams extremely focused on efficiency in every aspect of the business from the ways that we're acquiring cars, the ways that we're shipping cars, to the distances that we're shipping cars, to the way that we're managing how those cars get put on to trucks, the way that we're reconditioning cars in our finance program.

但去掉這個之後，它仍然是 6,000 美元，我認為這個數字對於我們歷史上的絕大多數人來說是不可想像的，甚至從 3 個月、6 個月前的角度來看也是完全不可想像的。我認為整個行業已經取得了許多令人難以置信的進步。我們確實重新調整了業務方向，我們的運營節奏讓許多不同的團隊都非常注重業務各個方面的效率，從我們獲取汽車的方式、我們運輸汽車的方式，到我們運輸汽車的距離，我們管理這些汽車如何裝上卡車的方式，我們在財務計劃中翻新汽車的方式。

We've made a number of additional enhancements. In the wholesale business, we've made a number of enhancements and improvements and are better utilizing ADESA. ADESA has also had a great quarter. They're on a great path, and that's flowing through to GPU as well. I think we've clearly seen market share in both the ADESA dealer business and the ADESA commercial business improve over the last many months. And the market, in general, is also just seeming at least like it's likely to start turning around as the market starts to normalize and we see more normal activity from rental fleets, and we're starting to get a sense that there could be off-lease volume starting to come back in the not-too distant future, even though we're not quite there yet.

我們進行了許多額外的增強。在批發業務方面，我們進行了許多增強和改進，並且更好地利用了 ADESA。 ADESA 也度過了一個出色的季度。他們正走在一條偉大的道路上，而且也正在向 GPU 發展。我認為在過去的幾個月裡，我們清楚地看到 ADESA 經銷商業務和 ADESA 商業業務的市場份額都有所提高。總體而言，隨著市場開始正常化，市場看起來至少可能會開始好轉，我們看到租賃車隊的活動更加正常，而且我們開始感覺到可能會出現下滑。 - 租賃量將在不久的將來開始回升，儘管我們還沒有完全實現這一目標。

So I just think across the business, there were a lot of improvements, and we think the majority of those improvements are sustainable. We called out that $900 nonrecurring items. There were some other benefits as well that flowed through -- Q2 is generally a good quarter for retail GPU in particular, based on seasonality. And then I do think that there was some unexpected appreciation early in the year. that wasn't at least in our plan, and so that benefited us a bit as well. But the vast majority of the gains that we're seeing, we believe are sustainable, and you can kind of see that expectation in our outlook.

所以我認為整個業務都有很多改進，而且我們認為其中大部分改進都是可持續的。我們指出 900 美元的非經常性項目。還有一些其他的好處——第二季度對於零售 GPU 來說通常是一個很好的季度，特別是根據季節性。然後我確實認為今年年初出現了一些意想不到的升值。這至少不在我們的計劃中，因此這也讓我們受益匪淺。但我們相信，我們所看到的絕大多數成果都是可持續的，你可以在我們的前景中看到這種期望。

And then just to hit 1 additional point there. You asked about are there more nonrecurring items that we should expect. On that note, let me just talk for a moment about our finance receivables balance. So on 3/31, we had about $1.6 billion of finance receivables on our balance sheet that we had built up over basically Q4 and Q1. As of 6/30 that was down to $1.1 billion. That $1.1 billion is certainly still higher than normalized. -- so we do have -- we continue to have additional loans that we can sell over the coming quarters that would sort of yield additional nonrecurring revenue in GPU.

然後再獲得 1 分。您詢問我們是否應該期待更多的非經常性項目。關於這一點，讓我談談我們的財務應收賬款餘額。因此，到 3 月 31 日，我們的資產負債表上大約有 16 億美元的金融應收賬款，這些賬款基本上是在第四季度和第一季度建立的。截至 6 月 30 日，這一數字已降至 11 億美元。這 11 億美元肯定仍高於正常水平。 - 所以我們確實有 - 我們繼續擁有額外的貸款，我們可以在未來幾個季度出售這些貸款，這將在 GPU 方面產生額外的非經常性收入。

Thank you. And our next question today comes from Seth Basham with Wedbush Securities.

謝謝。今天我們的下一個問題來自 Wedbush Securities 的 Seth Basham。

In your debt exchange, you're giving bondholders more security, including ADESA assets and higher interest rates tapping some value from the core business. Can you help us understand how you came to this agreement and how it's in the best interest of the company.

在債務交換中，您可以為債券持有人提供更多安全保障，包括 ADESA 資產和更高的利率，從而從核心業務中挖掘一些價值。您能否幫助我們了解您是如何達成此協議的以及它如何符合公司的最佳利益。

Sure. Well, first of all, I would say, I think we're extremely excited about the agreement we came to, and we believe it's great for both of us. And we believe that getting a win-win is never a trivially simple thing to do in life. But I think given the performance of the business, it created a lot of room for a win-win. And so I think when we work there to try to achieve is Years ago, when we took out our initial unsecured notes, we always had an option to either do unsecured debt or secured debt and we like it at the time to do unsecured debt and to preserve that collateral.

當然。嗯，首先，我想說，我認為我們對達成的協議感到非常興奮，我們相信這對我們雙方都很好。我們相信，在生活中獲得雙贏從來都不是一件簡單的事情。但我認為考慮到業務的表現，它創造了很大的雙贏空間。因此，我認為，當我們在那裡努力實現幾年前的目標時，當我們拿出最初的無擔保票據時，我們總是可以選擇要么做無擔保債務，要么做擔保債務，我們當時喜歡做無擔保債務，保留該抵押品。

Had with unsecured debt, our interest expense over the last several years would have been much lower. But we decided to preserve that collateral because we believe it could be valuable in certain circumstances. And I think this is a circumstance where that collateral is valuable. And so what we were able to do is work together with our bondholders to find a solution that works well for them as we use that collateral to make their bonds stronger, and then we were able to take some of that benefit and extend our maturities and reduce our overall debt burden and also give us a lot of freedom financially, especially over the next several years from an interest perspective.

如果有了無擔保債務，我們過去幾年的利息支出將會低得多。但我們決定保留該抵押品，因為我們相信它在某些情況下可能很有價值。我認為在這種情況下，抵押品就很有價值。因此，我們能夠做的是與我們的債券持有人合作，找到一個適合他們的解決方案，因為我們使用該抵押品來增強他們的債券，然後我們能夠獲得一些好處並延長我們的期限和減輕我們的總體債務負擔，並在財務上給予我們很大的自由，特別是從利息的角度來看，在未來幾年內。

So I think overall, that was -- that's a great deal for us. We're extremely excited about it. And I think I would be remiss if I didn't also note that I think the group bondholders was very productive to work with. Someone that I respect once that the world is full of optimizers and not enough solution providers. And I will say that, of course, everyone wanted to make sure they got a fair deal there. And of course, you're dealing with incredibly intelligent people but what you read in the media is not correct. They were very much solution oriented. And I think we came to a solution that was great for everyone.

所以我認為總的來說，這對我們來說意義重大。我們對此感到非常興奮。我認為，如果我沒有註意到我認為與集團債券持有人的合作非常富有成效，那就是我的失職。我曾經尊敬的一個人，世界上到處都是優化者，但解決方案提供商卻不夠。我想說，當然，每個人都想確保他們在那裡得到公平的交易。當然，你面對的是非常聰明的人，但你在媒體上讀到的內容是不正確的。他們非常注重解決方案。我認為我們找到了一個對每個人都有利的解決方案。

That's helpful. And just as a follow-up in terms of your plan to sell equity, how quickly could we see that? And are you aiming to do as much as $1 billion in the very short term?

這很有幫助。作為您出售股權計劃的後續行動，我們多久能看到這一點？您的目標是在短期內賺到 10 億美元嗎？

Sure. So our plan is to do $350 million of equity, and that's kind of built into our plan. inside of that, the family would do approximately $125 million there'll be about $225 million going out into the market. We've also put out a larger ATM, which we believe is just kind of good corporate housekeeping in general -- and we think that's true for most companies. It's certainly true for a company as volatile as ours in terms of stock price. And for a company that has as high quality use of proceeds built into the business as we do.

當然。因此，我們的計劃是進行 3.5 億美元的股權投資，這已納入我們的計劃中。其中，該家族將投入約 1.25 億美元，其中約 2.25 億美元將投入市場。我們還推出了一台更大的自動取款機，我們認為這總體上是一種良好的企業內務管理——我們認為這對大多數公司來說都是如此。對於像我們這樣股價波動較大的公司來說確實如此。對於一家像我們一樣高質量利用業務收益的公司來說。

Another aspect of the agreement we came to with noteholders is we have highly desirable prepayment capabilities built into those notes. And so I think that gives us a lot of optionality to the extent we raise more over time, the family commitment decreases. But that's kind of the options that we've got in front of us.

我們與票據持有人達成的協議的另一個方面是，我們在這些票據中內置了非常理想的預付款能力。因此，我認為這給了我們很大的選擇餘地，隨著時間的推移，我們籌集的資金越多，家庭的承諾就會減少。但這就是我們面前的選擇。

And our next question today comes from Ben Johnson with Piper Sandler.

今天我們的下一個問題來自本·約翰遜和派珀·桑德勒。

Can you guys talk a little bit more about your ability to source vehicles from customers rather than wholesale? And what's kind of the main driver of that?

你們能多談談你們從客戶那裡採購車輛而不是批發車輛的能力嗎？其主要驅動因素是什麼？

Sure. And I think this is a fundamentally important element of our business. I think, first and foremost, we've built a transactional website that customers can go to that gets a tremendous amount of traffic and a tremendous amount of interest that enables us to get access to many, many customers. And then we built a process flow on the website that allows customers to get a value for their car in a minute that is extremely accurate and benefits from all of the data that we have on many different cars and all of our experience in valuing those cars. And then we've got a process, I think, that is about as desirable as the process can be for a customer selling a car where they get the value on their computer or on their phone, they click a button and schedule a pick up, and then we come to them, we pick it up.

當然。我認為這是我們業務的一個根本性重要因素。我認為，首先也是最重要的是，我們建立了一個客戶可以訪問的交易網站，該網站獲得了大量的流量和極大的興趣，使我們能夠接觸到很多很多的客戶。然後我們在網站上建立了一個流程，允許客戶在一分鐘內獲得非常準確的汽車價值，並受益於我們擁有的許多不同汽車的所有數據以及我們在評估這些汽車方面的所有經驗。然後我們有一個流程，我認為，這對於銷售汽車的客戶來說是最理想的流程，他們可以在計算機或手機上獲取價值，他們單擊按鈕並安排提貨，然後我們找到他們，把它撿起來。

We've built a number of enhancements in that process that have made us much more efficient and enable us to also differentiate vehicle value better and then pass some of those benefits on to our customers. And then we buy those cars, we bring them back and then we take them to our inspection centers. We plan to retail them and we prepare them for retail. And if we plan to wholesale them, we now have the ADESA asset where we can go take those cars and dispose of those cars. And so I think that platform overall, I think, is an extremely valuable platform. I think it's fundamentally very hard to replicate. It benefits very much from basically reverse retail transactions. It benefits from the existence of the retail disposition channel, and it benefits from the existence of the ADESA disposition channel.

我們在該流程中進行了許多改進，使我們的效率大大提高，並使我們能夠更好地區分車輛價值，然後將其中一些好處傳遞給我們的客戶。然後我們購買這些汽車，把它們帶回來，然後帶到我們的檢查中心。我們計劃零售它們，並為零售做好準備。如果我們計劃批發它們，我們現在擁有 ADESA 資產，我們可以在那裡拿走這些汽車並處置這些汽車。因此，我認為整個平台是一個非常有價值的平台。我認為這從根本上來說很難復制。它從基本上反向的零售交易中受益匪淺。它受益於零售處置渠道的存在，也受益於ADESA處置渠道的存在。

So what we think that we're incredibly well positioned to continue to grow that business. And I think that you're seeing the benefits of that business and the strength of that business in our retail GPU numbers and our wholesale numbers this quarter.

因此，我們認為我們處於非常有利的位置，可以繼續發展該業務。我認為您已經在本季度我們的零售 GPU 數據和批發數據中看到了該業務的優勢以及該業務的實力。

And our next question today comes from Mike Baker at D.A. Davidson.

今天我們的下一個問題來自 D.A. 的 Mike Baker。戴維森。

So hopefully, you can hear me. I just wanted to to ask about top line. How much of your decline do you think is based on the market? And how much is based on your internal initiatives to focus more on profitability? In other words, I guess, what I'm getting at is -- how do you think about your markets right now? How has that changed? And how do you think about it going forward?

所以希望你能聽到我的聲音。我只是想問一下頂線。您認為您的下跌有多少是基於市場的？有多少是基於您的內部計劃，更加關注盈利能力？換句話說，我想我想說的是——你現在如何看待你的市場？這有何變化？您如何看待未來的發展？

Sure. Let me start with this. I think for the first 8 years of our company existence, we grew at approximately 100% per year, we at a time when the market was flat. And so I think that, that was possible because our customer offering is very high quality. Our business is very scalable. And I think we have a lot of incredible people to do a great job across the business, making sure that the customer experience is great. And that enabled us to grow very, very quickly over a sustained period of time without tailwinds from the market itself.

當然。讓我從這個開始。我認為在我們公司成立的前 8 年裡，我們每年增長約 100%，而當時市場表現平淡。所以我認為這是可能的，因為我們的客戶提供的產品質量非常高。我們的業務具有很強的可擴展性。我認為我們有很多令人難以置信的人在整個業務中出色地完成工作，確保客戶體驗良好。這使我們能夠在持續一段時間內非常非常快速地增長，而無需受到市場本身的推動。

I think over the last 1.5 years, our situation change pretty dramatically, and we reprioritize pretty significantly. And we focus a lot on getting to significantly better unit economics. And you're seeing the benefits of that focus as well. You see that in the $155 million of EBITDA that we just printed this quarter that I think -- from the perspective of 6 months ago, I don't know if there was anyone out there that had that in their model at that time. And I think what -- 1 way to think about that is just that this business that has very high quality fundamentals shifted its goal from growth to unit economics and profitability.

我認為在過去 1.5 年裡，我們的情況發生了相當大的變化，我們也顯著重新調整了優先順序。我們非常注重顯著改善單位經濟效益。您也看到了這種關注的好處。你看，在我們本季度剛剛公佈的 1.55 億美元 EBITDA 中，我認為，從 6 個月前的角度來看，我不知道當時是否有人在他們的模型中包含這一點。我認為，一種思考方式是，這家擁有非常高質量基本面的企業將其目標從增長轉向單位經濟效益和盈利能力。

And as a result, kind of those fundamental benefits flowed through in a different line item, but they flow through very, very quickly. And I think when it's time to turn back to growth, I think this is a group of people that knows how to do that. I think this is a business model that lends itself to that, both through the quality of the customer experience and through the scalability of the business model as well as I think something else the last 1.5 years has taught us that this is a very, very hard business to replicate. It's capital intensive. It is complicated. It's hard to get everything lined up and to do it well. So I think when it's time, we'll be very well positioned.

結果，這些基本利益在不同的項目中流動，但流動得非常非常快。我認為，當需要恢復增長時，我認為這是一群知道如何做到這一點的人。我認為這是一種適合這一點的商業模式，無論是通過客戶體驗的質量還是通過商業模式的可擴展性，以及我認為過去 1.5 年的其他事情告訴我們，這是一個非常非常業務難以復制。這是資本密集型的​​。這很複雜。要把所有事情都安排好並做好是很困難的。所以我認為當時機成熟時，我們將處於有利位置。

Now I do think that the market has provided additional headwinds aside from our shift in focus. But I don't think that those are the biggest drivers over the last 1.5 years. Today, used car sales in some total are probably 10% below their baseline. It's probably a reasonable way to think about it. So at some point, when the market normalizes, that should be a tailwind, which will be nice, but I don't know that it will be that significant relative to the benefits that we plan to go get ourselves.

現在我確實認為，除了我們焦點的轉變之外，市場還帶來了額外的阻力。但我不認為這些是過去 1.5 年最大的推動因素。如今，部分二手車銷量可能比基準線低 10%。這可能是一種合理的思考方式。因此，在某個時候，當市場正常化時，這應該是一種順風，這會很好，但我不知道相對於我們計劃獲得的利益來說，這是否會那麼重要。

And then I think that there's strong arguments that the independent market has been more impacted than the franchise market over the last 1.5 years. And so I think that there's an argument that kind of our direct market has actually been impacted more than that 10%. So I think at some point, as car prices normalize and interest rates normalize and affordability comes back. I think that there likely will be a rebound in the broader market. But I think most importantly, when it's time to grow, we'll take control of that, and we'll control our own destiny as we did in the past, and we'll push growth on our own, like we have before.

我認為，有充分的證據表明，在過去 1.5 年裡，獨立市場比特許經營市場受到的影響更大。因此，我認為有一種觀點認為，我們的直接市場實際上受到的影響超過了 10%。所以我認為，在某個時候，隨著汽車價格正常化、利率正常化，負擔能力也會回歸。我認為大盤可能會出現反彈。但我認為最重要的是，當增長的時候，我們將掌控它，我們將像過去一樣控制自己的命運，我們將像以前一樣推動自己的增長。

Okay. Very helpful. If I could follow up, you talked about the GPU and you talked about the onetime items, but -- so this is not a onetime item, but how sustainable is it the spread that you're seeing right now between retail prices and wholesale prices, I think the demand high indexed pricing is lower than it's been in 2 years. Does that normalize at some point? Or is that spread expected to continue in your GPU outlook?

好的。很有幫助。如果我可以跟進的話，您談到了 GPU，也談到了一次性產品，但是 - 所以這不是一次性產品，但是您現在看到的零售價格和批發價格之間的價差有多可持續，我認為需求高指數定價低於兩年來的水平。這會在某個時候正常化嗎？或者在您的 GPU 前景中，這種差距預計會持續下去嗎？

I'll take that one. So obviously, we had a very strong quarter from retail GPU in Q2, for some of the reasons that we pointed out as well as reasons that you just alluded to. I do think there were some market tailwinds there, but I think there's also some real fundamental gains that we've made that are important. And we do expect to have another strong quarter of retail GPU in Q3.

我會接受那個。顯然，由於我們指出的一些原因以及您剛才提到的原因，我們在第二季度的零售 GPU 表現非常強勁。我確實認為那裡有一些市場順風，但我認為我們也取得了一些重要的真正的基本收益。我們確實預計第三季度零售 GPU 將再次表現強勁。

Obviously, we won't have the allowance benefit in Q3 that we had in Q2. But we do expect a strong quarter for retail GPU. I think some of those fundamental gains just to enumerate them again, I think we're having a lot of success sourcing cars from customers. Ernie touched on that earlier in this call. We are generating revenue from some of the additional services that we provide to our customers. And we've really had a lot of success on the cost side of retail GPU.

顯然，我們在第三季度將不會獲得第二季度的津貼福利。但我們確實預計零售 GPU 季度將表現強勁。我認為其中一些基本收益只是再次列舉，我認為我們在從客戶那裡採購汽車方面取得了很多成功。厄尼在這次電話會議的早些時候談到了這一點。我們通過向客戶提供的一些附加服務來創收。我們在零售 GPU 的成本方面確實取得了很大的成功。

So our fulfillment teams have been working to make the logistics network more efficient. We're really improving our inbound transport costs. We've been -- the inventory teams and the reconditioning teams ever have been really focused on cost efficiency in the inspection centers, and we've really pushed down over the last year, the reconditioning cost per retail unit sold. So all the way such that those are down below full year 2021 levels. Even work in the inspection and reconditioning centers we're probably only operating at, say, on the order of 25% capacity, maybe a little bit more than that, but right around that order of magnitude and yet costs in those centers is down below what it was in full year '21. So I think those are some real fundamental success stories that we believe will drive strength in retail GPU.

因此，我們的履行團隊一直致力於提高物流網絡的效率。我們確實正在改善入境運輸成本。我們的庫存團隊和翻新團隊一直非常注重檢查中心的成本效率，去年我們確實降低了每售出零售單位的翻新成本。一路走來，這些數字都低於 2021 年全年的水平。即使在檢查和翻新中心工作，我們也可能只以 25% 的產能進行運營，也許比這多一點，但大約是這個數量級，但這些中心的成本卻低於21 年全年的情況。因此，我認為這些是一些真正的基本成功故事，我們相信它們將推動零售 GPU 的發展。

And our next question today comes from Chris Bottiglieri with BNP Paribas.

今天我們的下一個問題來自法國巴黎銀行的 Chris Bottiglieri。

First of all, I just want to kind of clarify the cap structure. Can you give us a summation, you have $1.2 billion of debt -- net debt retiring. You're raising $350 million of equity that leaves roughly $700 million, $800 million gap. You're going to do ATM in the future. I can't tell if that's being used to pay down the debt. But can you maybe just clarify kind of like the gap between the $1.2 million and $350 million and obviously, you have some receivables to sell still, and there's some cash on the balance sheet. Just trying to think how we bridge the two.

首先，我只想澄清一下上限結構。您能否給我們一個總結，您有 12 億美元的債務——淨債務退休。您籌集了 3.5 億美元的股本，剩下大約 7 億至 8 億美元的缺口。以後你要做ATM機。我不知道這是否是用來償還債務的。但您能否澄清一下 120 萬美元和 3.5 億美元之間的差距，顯然，您仍有一些應收賬款需要出售，資產負債表上還有一些現金。只是想想想我們如何彌合兩者。

Sure. Yes. So let me break that into 2 pieces. One is just talking about the capital structure and then second is talking about liquidity resources. So first, as it relates to capital structure. So I think the basic framework that you laid out is correct. So with the committed noteholders exchanging in the transaction support agreement will reduce total face value of notes by just slightly over $1.2 billion. A component of that is there will be some cash consideration paid to retire certain of the notes. And that's where this $350 million of equity comes in. That's part of the transaction support agreement. Again, we have -- basically, we have committed to raise $350 million of equity of which the Garcia have committed to put in $125 million. And then we're committed to raising $225 million elsewhere. And so that will form a cash consideration that is part of the exchange. And then the remainder of the exchange is basically just exchanging existing senior unsecured notes for the tranches of new senior secured notes. I think some of the benefits of those senior secured notes, we talked about a bit on this call, but I think 1 really valuable benefit from our perspective is the option to pay -- pick interest for 2 years and also to -- we're essentially largely eliminating 2025 and 2027 maturities.

當然。是的。所以讓我把它分成兩部分。一是談論資本結構，二是談論流動性資源。首先，因為它與資本結構有關。所以我認為你提出的基本框架是正確的。因此，隨著承諾票據持有人在交易支持協議中進行交換，票據總面值將減少略高於 12 億美元。其中一個組成部分是，將支付一些現金代價來註銷某些票據。這就是這 3.5 億美元股權的用武之地。這是交易支持協議的一部分。基本上，我們已經承諾籌集 3.5 億美元的股本，其中加西亞家族承諾投入 1.25 億美元。然後我們承諾在其他地方籌集 2.25 億美元。因此，這將形成現金對價，成為交換的一部分。然後，交換的其餘部分基本上只是將現有的高級無擔保票據交換為新的高級有擔保票據。我認為這些高級擔保票據的一些好處，我們在這次電話會議上談到了一些，但我認為從我們的角度來看，一個真正有價值的好處是可以選擇支付——選擇兩年的利息，並且——我們“我們基本上消除了 2025 年和 2027 年的到期日。

So after completing this exchange, we don't have a meaningful note maturity until December 2028. And -- and I think that's really great from a flexibility standpoint. We've obviously had a tremendous amount of success so far executing our 3-step plan. We completed step 1 of it. moving on to step 2 of it and then step 3 of it will be returned to growth. And we have a lot -- an awful lot of flexibility over a many year time horizon to be executing that plan and really driving the business to very significant positive unit economics and volume.

因此，在完成這次交換後，我們要到 2028 年 12 月才會有有意義的票據到期日。而且——我認為從靈活性的角度來看，這真的很棒。到目前為止，我們顯然在執行我們的三步計劃方面取得了巨大的成功。我們完成了第 1 步。繼續第 2 步，然後第 3 步將恢復增長。我們在多年的時間範圍內擁有很大的靈活性來執行該計劃並真正推動業務達到非常顯著的積極單位經濟效益和銷量。

Now turning to your question about liquidity. So we ended the quarter with approximately $1.5 billion in total liquidity resources -- that was a mix of just over $500 million of cash and just under $1 billion of availability on existing revolvers. I think 1 thing to note about that number is our total -- our committed liquidity resources actually stepped up quarter-over-quarter. So we actually increased our liquidity in the second quarter. And so I think we feel like we're in a very good liquidity position with a lot of flexibility to execute our plan over a many year time horizon.

現在轉向關於流動性的問題。因此，本季度結束時，我們的流動性資源總額約為 15 億美元，其中包括略高於 5 億美元的現金和略低於 10 億美元的現有左輪手槍可用資金。我認為關於這個數字需要注意的一點是我們的總量——我們承諾的流動性資源實際上逐季增加。所以我們實際上在第二季度增加了流動性。因此，我認為我們感覺我們處於非常良好的流動性狀況，並且具有很大的靈活性來在多年的時間範圍內執行我們的計劃。

And Chris, just to make sure 1 thing is clear because I couldn't tell how you're interpreting it from the question. The majority of that $1.2 billion of debt reduction is basically just the exchange of collateral for reduction in face of debt. It's not a cash paydown. So we don't need to kind of tie out the full $1.2 billion reduction with cash that's -- the majority of that is just kind of value that is created by providing collateral to the bond.

克里斯，只是為了確保一件事是清楚的，因為我無法從問題中看出你是如何解釋它的。 12億美元的債務削減中的大部分基本上只是以抵押品交換來減少債務。這不是現金支付。因此，我們不需要用現金來削減 12 億美元的全部資金，其中大部分只是通過為債券提供抵押品而創造的價值。

That's what I was asking. And just a quick follow-up. You have this $1 billion of ATM that you could theoretically take advantage of volatility. It seems like you could probably generate reported positive FCF because of the [Pick] feature, depending on your EBITDA levels moving forward for the next year. How do you think about future debt paydown. Is there a wiggle room if you do raise this equity that they would allow you to retire more of debt? How do you think about that?

這就是我想問的。只是快速跟進。你有這 10 億美元的 ATM，理論上你可以利用它的波動性。由於[選擇]功能，您可能會生成報告的正自由現金流，具體取決於您明年的 EBITDA 水平。您如何看待未來的債務償還？如果您確實籌集了股本，是否有迴旋餘地，他們會讓您償還更多債務？您對此有何看法？

Sure. Yes. So I think there are multiple aspects of the new senior secured notes that do facilitate decreasing leverage. I think one is the 2028 notes have only a 1-year no-call period. And so those can be called at only par plus half a coupon after 1 year. I think the 2030 notes also have a slightly shorter than typical no-call period, but just a 2-year no-call period, and then that debt could be paid at par plus half a coupon.

當然。是的。因此，我認為新的高級擔保票據在多個方面確實有助於降低杠桿率。我認為其中之一是 2028 年票據只有 1 年的禁止贖回期。因此，一年後只需按面值加半張優惠券即可贖回。我認為 2030 年票據的無贖回期也比典型的無贖回期稍短，但只有 2 年無贖回期，然後可以按面值加半票息償還債務。

And so I think those are a couple of features. I think the notes, the 2028 and 2030 notes also do allow prepayments to be made with proceeds from equity. That's another feature that enables the deleveraging. And so I think there's many aspects of this debt exchange that I think worked well from the standpoint of capital structure and financial flexibility. I've talked about some of the interest components. We also talked about overall reduction in debt and the elimination of near-term maturities. But another, I think, is the ability to reasonably efficiently reduce leverage if we so desire.

所以我認為這些是幾個特點。我認為2028年和2030年的票據也確實允許用股本收益進行預付款。這是另一個能夠實現去槓桿化的特徵。因此，我認為從資本結構和財務靈活性的角度來看，這種債務交換的許多方面都運作良好。我已經談到了一些有趣的組成部分。我們還討論了全面減少債務和消除近期到期債務。但我認為，另一個問題是，如果我們願意的話，能夠合理有效地降低杠桿率。

And our next question today comes from Rajat Gupta with JPMorgan.

今天我們的下一個問題來自摩根大通的 Rajat Gupta。

Great. Just a clarification on 1 of the prior questions. The $5,000 retail GPU for 3Q that does not assume additional backlog of -- receivables and backlog clearance. Is that correct? And if you do choose to do that, that's further upside to that? Just wanted to clarify that comment.

偉大的。只是對之前的問題 1 進行澄清。第三季度零售 GPU 售價 5,000 美元，不考慮額外的積壓——應收賬款和積壓清理。那是對的嗎？如果你確實選擇這樣做，那會有更多好處嗎？只是想澄清該評論。

Sure. Yes. So with the greater than $5,000 total GPU outlook for Q3, we didn't specify a specific volume of loans sold associated with that, greater than $5,000 GPU outlook. However, we did note in the shareholder letter that we do see upside to that $5,000 GPU number. And I think we also noted at the same time, we see upside to the positive adjusted EBITDA outlook as well. But we're early in the quarter. So we just gave those nice round figures that we believe we'll be above both of them. And so hopefully, that provides a little bit of color.

當然。是的。因此，鑑於第三季度的 GPU 總前景超過 5,000 美元，我們沒有具體說明與此相關的具體貸款銷售量（GPU 前景超過 5,000 美元）。然而，我們在股東信中確實指出，我們確實看到了 5,000 美元 GPU 數字的好處。我認為我們同時也注意到，我們也看到了積極的調整後 EBITDA 前景的上行空間。但我們正處於本季度初期。所以我們只是給出了那些漂亮的圓形數字，我們相信我們將超越它們。希望這能提供一點色彩。

Obviously, we feel really good about the strength of the business from a GPU perspective. We are operating at meaningfully higher GPU levels than we have at any point in the past, there's a lot of fundamental reasons why that's the case.

顯然，從 GPU 的角度來看，我們對該業務的實力感到非常滿意。我們現在的 GPU 級別比過去任何時候都高得多，造成這種情況的根本原因有很多。

Got it. That's helpful. Just on SG&A. The other SG&A was flattish sequentially. You talked about some more opportunities around like corporate cost and like other infrastructure-related reduction. Is that -- how should we think about the timing of those benefits? Is that something you expect to see on a per unit basis going forward? I was surprised to see it remain flat in the second quarter despite the volume reduction. So just curious how should we think about the opportunity there?

知道了。這很有幫助。就在SG&A 上。其他 SG&A 連續持平。您談到了更多機會，例如企業成本和其他與基礎設施相關的減少。那是——我們應該如何考慮這些好處的時機？您預計未來會看到這樣的情況嗎？我很驚訝地發現，儘管銷量有所下降，但第二季度的銷量仍持平。所以只是好奇我們應該如何看待那裡的機會？

Let me jump in first, and then Mark, please provide a better answer. Did you find the only not positive number in the entire report, Rajat, come on?

讓我先插話，然後馬克，請提供更好的答案。你找到整個報告中唯一一個非正數了嗎，Rajat，來吧？

I mean I was -- I had a lower number there. So I just wanted to see if (inaudible).

我的意思是——我那裡的數字較低。所以我只是想看看是否（聽不清）。

Go ahead. Mark.

前進。標記。

Let me hit your question on other SG&A. So I do think other SG&A was basically flat quarter-over-quarter. We do see meaningful opportunities to continue to reduce that over time. I do think on a quarter-by-quarter basis, there can be things that push it up a little on a recurring basis, push it down a little on a nonrecurring basis. But -- and so there -- it can bounce around a little bit, but we certainly see opportunities to further reduce that from where it was in Q1 and Q2.

讓我來回答你關於其他 SG&A 的問題。因此，我確實認為其他銷售、一般行政費用環比基本持平。我們確實看到了隨著時間的推移繼續減少這種情況的有意義的機會。我確實認為，在逐季度的基礎上，可能會有一些因素在經常性的基礎上將其推高一點，在非經常性的基礎上將其推低一點。但是，因此，它可能會有所反彈，但我們當然看到了進一步減少第一季度和第二季度的機會。

Got it. If I can ask like 1 more on the positive side, you've made tremendous progress on the recon logistics side of things. Curious, I think in the past, you've given us some numbers in terms of like how much opportunity there was left. I mean, are we on a good glide path there? How you feel about the recon and logistics expenses in the retail GPU or is there like more utilization opportunity there going forward?

知道了。如果我能再問一個積極的方面的話，那就是你們在偵察後勤方面取得了巨大的進步。奇怪的是，我想在過去，你給了我們一些數字，比如還剩下多少機會。我的意思是，我們在那裡的滑翔路徑是否良好？您對零售 GPU 的偵察和物流費用有何看法，或者未來是否有更多的利用機會？

Sure. Yes. So simple answer there is we continue to see opportunities throughout all areas of the business, and that would include retail reconditioning and inbound transport, we certainly see more opportunities there despite the very significant progress that we've made.

當然。是的。答案很簡單，我們繼續在所有業務領域看到機會，其中包括零售翻新和入境運輸，儘管我們取得了非常重大的進展，但我們當然看到了更多機會。

And our next question today comes from Brad Erickson with RBC Capital Markets.

今天我們的下一個問題來自加拿大皇家銀行資本市場的布拉德·埃里克森（Brad Erickson）。

So ultimately, what's going to catalyze kind of a return to quarterly retail unit growth here? Is it just getting kind of through this restructuring process, saying kind of stabilizing the balance sheet, maybe returning to inventory growth at some point? Or is it just more a function of the market? Or I guess, between those 2, which is more important to driving a rebound to your retail unit sales growth?

那麼最終，什麼會促進季度零售單位增長的回歸呢？是否只是通過這種重組過程，穩定資產負債表，也許在某個時候恢復庫存增長？或者這更多的是市場的功能？或者我猜，在這兩者之間，哪一個對於推動零售單位銷售增長的反彈更重要？

Sure. So I would say, most importantly is we underwent a big reprioritization pivot inside of the business around 12, 18 months ago. And that takes time and effort to reorient everything. And we're making in our opinion, at least pretty incredible progress pretty quickly as a result of that. I think at this point, the math is pretty clear. If you put it in a spreadsheet, it's going to tell you that we're supposed to grow as quickly as possible, basically because the GPU is in a great spot and our variable costs are in a great spot.

當然。所以我想說，最重要的是，大約 12、18 個月前，我們在業務內部經歷了一次重大的優先級調整。這需要時間和精力來重新調整一切。我們認為，我們正在迅速取得令人難以置信的進展。我認為此時，數學已經很清楚了。如果你把它放在電子表格中，它會告訴你我們應該盡快增長，基本上是因為 GPU 處於一個很好的位置，而我們的可變成本也處於一個很好的位置。

But I think we're also continuing to rapidly make progress. And I think we're benefiting from the simplicity in the business by holding units approximately flat and focusing on efficiencies. And so we plan to maintain the plan that we had before. Step 1 was get to positive adjusted EBITDA. We completed that today. Step two, is basically maintaining the exact same operating cadence, but pushing that to significant and sustainable positive unit economics that puts us in a very good position to build an incredible business over time that is much, much larger than we are today.

但我認為我們也在繼續快速取得進展。我認為，通過保持單位大致持平並註重效率，我們正在從業務的簡單性中受益。所以我們計劃維持之前的計劃。第一步是調整 EBITDA 為正值。我們今天完成了。第二步，基本上是保持完全相同的運營節奏，但將其推向顯著且可持續的正單位經濟效益，這使我們處於非常有利的位置，隨著時間的推移，我們可以建立一個比今天規模大得多的令人難以置信的業務。

And then step 3 will be return to growth. I think there's a number of factors that will drive that transition. I think that you named several, I think, inside the business. The progress is clearly very helpful. I think capital structure changes are clearly helpful. But I think most importantly, the operational progress we're making is very, very fast. And so we want to maintain discipline and be thoughtful about how we transition back to what has been the more comfortable and normal foot for Carvana over the majority of our life, which is a growth footing.

然後第三步將恢復增長。我認為有很多因素會推動這種轉變。我認為您提到了行業內的一些人。進展顯然非常有幫助。我認為資本結構的改變顯然是有幫助的。但我認為最重要的是，我們正在取得的運營進展非常非常快。因此，我們希望保持紀律，並考慮如何在我們一生的大部分時間裡恢復到 Carvana 更舒適、更正常的腳型，這是一種成長的基礎。

So we are not yet making that pivot, but in due time, we certainly plan to.

因此，我們還沒有做出這樣的轉變，但在適當的時候，我們當然計劃這樣做。

Got it. And then maybe just a follow-up. You just mentioned kind of the efficiencies as you've kind of throttled run rates almost. Historically, when you guys are growing so fast, right, OpEx was kind of always running a little bit hot just because you were kind of struggling to catch up with demand to most degree. What -- like as you think about the rebound, what costs will have to be incurred when you start to increase that sales run rate? I think that's where people are maybe a little bit struggling with how to bridge the math, understand all the leverage and the efficiencies you and Mark have spoken to here this morning, but just how to think about that rebound and how we control costs as we ramp back up production capacity, all that stuff.

知道了。然後也許只是後續行動。您剛剛提到了效率，因為您幾乎限制了運行速度。從歷史上看，當你們增長如此之快時，運營支出總是有點熱，只是因為你們在很大程度上努力追趕需求。什麼——就像您考慮反彈一樣，當您開始提高銷售運行率時，將不得不產生哪些成本？我認為，這就是人們可能有點困惑的地方，如何連接數學，理解你和馬克今天早上在這裡談到的所有槓桿和效率，但如何考慮反彈以及我們如何控製成本提高產能等等。

Sure. Well, I think the most important element to an increase in costs as a result of growth is basically preparation for that growth and positioning yourself forward ahead of time. And I think that's a function of the level of efficiency you have inside the company, right? If it costs you $1 dollar to sell the car, you're positioning for $2, you might spend an extra dollar if it costs you $0.50 to sell a car, you're positioning for $2, it cost you an extra $0.50 and so I think the efficiency gains that we've built into the business over the last year will make it that we can grow more efficiently.

當然。嗯，我認為增長導致成本增加的最重要因素基本上是為增長做好準備並提前定位自己。我認為這取決於公司內部的效率水平，對嗎？如果你賣車的成本是 1 美元，你的定位是 2 美元，你可能會多花 1 美元；如果你賣車的成本是 0.50 美元，你的定位是 2 美元，你會額外花費 0.50 美元，所以我我認為我們去年在業務中所取得的效率提升將使我們能夠更有效地發展。

I would also say that we're in a spot now where disproportionate relative to our history, a portion of our expenses are fixed. And so I think the math is pretty beneficial as it relates to growth. And so when it's time to grow, I think our view is that will probably be helpful from an expense perspective because the fixed component of it is probably a larger and more mechanical component than the variable component.

我還想說，我們現在的處境與我們的歷史不成比例，我們的一部分開支是固定的。所以我認為數學非常有益，因為它與增長有關。因此，當需要增長時，我認為我們的觀點是，從費用角度來看，這可能會有所幫助，因為它的固定組件可能比可變組件更大、更機械。

So I think when that time, I think we look forward to it. There will undeniably be investments associated with some of that growth. But I think we're very well positioned for it. And I would also say is I think many of the other investments in growth are capital investments to prepare for that growth. You have to build bigger inspection centers, you have to build more inspection centers. You have to build more logistics pathways. A lot of that is built. I think the ADESA acquisition is something that we remain just tremendously excited about, not just because of the core business, but also what it means to our infrastructure going forward and what it means to the decrease in investments that are necessary in order for us to build the company that we want to build, which remains a company that sells millions of cars and changes the way people buy cars.

所以我認為到那時，我們會很期待。不可否認，其中一些增長將涉及投資。但我認為我們已經做好了充分的準備。我還想說的是，我認為許多其他增長投資都是為增長做好準備的資本投資。你必須建立更大的檢查中心，你必須建立更多的檢查中心。你必須建立更多的物流路徑。其中很多都已建成。我認為 ADESA 的收購讓我們仍然感到非常興奮，不僅因為核心業務，還因為它對我們未來的基礎設施意味著什麼，以及它對減少我們必要的投資意味著什麼。建立我們想要建立的公司，它仍然是一家銷售數百萬輛汽車並改變人們購買汽車方式的公司。

That remains our vision, our goal and our opportunity and our belief -- so I think we think we're very well positioned for it. There will undeniably be some cost increases, but we think it is likely that they will be dwarfed by the improvements in the business otherwise due to the leveraging of fixed costs.

這仍然是我們的願景、我們的目標、我們的機會和我們的信念——所以我認為我們已經做好了充分的準備。無可否認，成本會有所增加，但我們認為，由於固定成本的利用，這些成本可能與業務的改善相形見絀。

And our next question comes from Brian Nagel at Oppenheimer.

我們的下一個問題來自奧本海默的布萊恩·內格爾。

First off, congratulations. I mean the repositioning has been very swift and very effective, so congratulations.

首先，恭喜你。我的意思是，重新定位非常迅速且非常有效，所以恭喜。

I believe that's about our third congratulations in our public life. So that means more to us than you know.

我相信這是我們在公共生活中的第三次祝賀。所以這對我們來說比你知道的更重要。

So my question is -- just a follow-up to that, congratulations.

所以我的問題是——這只是一個後續，恭喜。

There. You said it again.

那裡。你又說了一遍。

That's the fourth. As we step back, we look at all that's been done here with Carvana, both from a, I guess, an operational repositioning as well as the efforts on the balance sheet. And are you again recognizing the environment is very fluid and you're still a young business. But -- is it done? Are you in a position now that you look at the model and this balance sheets, okay, we can grow from here? Or should we expect further type of repositioning and again, either operationally or on the debt side?

這是第四個。當我們退後一步時，我們會回顧一下 Carvana 所做的一切，我想，這既包括運營重新定位，也包括資產負債表上的努力。您是否再次認識到環境非常不穩定，而您仍然是一家年輕的企業。但是——完成了嗎？現在您看到模型和資產負債表了嗎？好吧，我們可以從這裡開始增長嗎？或者我們是否應該期待進一步的重新定位，無論是在運營方面還是在債務方面？

And I'm sorry, you say not operationally on the -- but on the debt side, that's how you finished the question?

抱歉，你說不是在操作上，而是在債務方面，這就是你如何完成這個問題的？

Yes. I'm sorry, both on operational and the debt, right, as we're looking forward to that debt side.

是的。我很抱歉，無論是在運營方面還是在債務方面，對吧，因為我們期待著債務方面。

Yes. So I think operationally, I think we are in position to continue to make gains, and our plan is to continue to make gains. And so I think we've -- we rolled out an internal program about a year ago that was aiming at this Q2 that was incredibly successful, where all the different groups of the business we're aiming for different targets. We've rolled out a similar plan over the next year that we're very excited about, and we think that there's significant gains that are yet to be had.

是的。所以我認為在操作上，我認為我們有能力繼續盈利，我們的計劃就是繼續盈利。因此，我認為我們大約一年前推出了一項內部計劃，該計劃的目標是第二季度，該計劃非常成功，我們的所有不同業務部門都瞄準了不同的目標。我們在明年推出了一個類似的計劃，我們對此感到非常興奮，並且我們認為尚未取得重大成果。

So we're going to continue to push there and we expect to make gains over time to continue to get more efficient operationally. From a balance sheet perspective, I think we're clearly in a much better spot today than we were yesterday. And I think that that's an exciting and quick development. And I think that in addition to just kind of the leverage being less, the flexibility is significantly higher in terms of longer maturities, more prepayment and lower cash interest expense.

因此，我們將繼續推動這一目標，並期望隨著時間的推移取得成果，繼續提高運營效率。從資產負債表的角度來看，我認為我們今天的處境顯然比昨天好得多。我認為這是一個令人興奮且快速的發展。我認為，除了槓桿較小之外，在更長的期限、更多的預付款和更低的現金利息費用方面，靈活性也顯著更高。

So I think the improvements there are sort of multi-dimensional I think going forward, we're also, I think, well positioned to further delever over time, although we'll be thoughtful about the pace at which that occurs. So I think it depends on your time frame that you're looking at there, but I do not think that we are done with balance sheet changes in the grand scheme of things. I think the business is in a very good position. I think we're well positioned over time to generate significant positive cash. I think that gives us a lot of options. And then I think that we've also outlined a number of other options today that also give us flexibility.

因此，我認為，未來的改進是多方面的，我認為，隨著時間的推移，我們也有能力進一步去槓桿化，儘管我們會考慮這種情況發生的速度。所以我認為這取決於你所考慮的時間框架，但我不認為我們已經完成了宏偉計劃中的資產負債表變化。我認為該業務處於非常有利的位置。我認為隨著時間的推移，我們將處於有利位置，能夠產生大量正現金。我認為這給了我們很多選擇。然後我認為我們今天還概述了許多其他選項，這些選項也為我們提供了靈活性。

That's very helpful. And then a second question, also bigger picture, just kind of picking your brain as what you're seeing from a -- I guess, a sector standpoint. So there's a lot of debate out there about as we think about affordability, affordability for used cars on the part of your core consumers, maybe we're starting to see some acceleration in depreciation maybe. But I guess as you think about affordability, what do you think is the bigger factor? Do you think it's still these elevated used car pricing? Or is it now a higher rate environment? .

這非常有幫助。然後是第二個問題，也是更大的圖景，只是從一個部門的角度來思考你所看到的。因此，當我們考慮核心消費者的二手車負擔能力時，存在很多爭論，也許我們開始看到折舊速度加快。但我想當你考慮負擔能力時，你認為更重要的因素是什麼？您認為二手車價格仍然如此高嗎？或者現在是一個更高利率的環境？ 。

I think our view would be it's the intersection. The vast majority of consumers in the U.S. buy a car with financing. And for most people, I think the decision to buy a car is a function of kind of the cash down payment upfront and then their monthly payment over time. And obviously, those 2 things are a function of both the car price and rates I think historically, we've seen many different rate environments, and I think you tend to see kind of car prices move in a way that would be expected in light of those rate environments.

我認為我們的觀點是它是十字路口。絕大多數美國消費者通過融資購買汽車。對於大多數人來說，我認為購買汽車的決定取決於預先支付的現金首付款，然後隨著時間的推移每月付款。顯然，這兩件事是汽車價格和費率的函數，我認為從歷史上看，我們已經看到了許多不同的費率環境，而且我認為您往往會看到汽車價格的變動方式與預期一致這些利率環境。

I think what's been very unique over the last year and half or so is we saw rates rising rapidly while we also saw car prices at a very high level and kind of they were depreciating in the back half of '22, but then they appreciated early this year, and now they're depreciating pretty quickly today. I think affordability is about just the sum of those 2 things, interest rates and car prices dropping over time.

我認為在過去一年半左右的時間裡，非常獨特的是，我們看到利率迅速上升，同時我們也看到汽車價格處於非常高的水平，而且它們在 22 世紀後半段開始貶值，但後來它們很早就升值了今年，現在它們貶值得很快。我認為負擔能力只是這兩件事的總和，利率和汽車價格隨著時間的推移而下降。

So and average customers monthly payment is less. And I think that there are signs, at least on the car price side that, that is occurring. As I said, depreciation this year looks a lot like depreciation last year, although it started about a month earlier, give or take, in both the wholesale and retail markets. And so far, at least, it's a little more severe even than it was last year, which I think as long as that is foreseen by markets, that's probably great for us for the reasons discussed earlier.

因此，普通客戶的每月付款較少。我認為有跡象表明，至少在汽車價格方面，這種情況正在發生。正如我所說，今年的貶值看起來很像去年的貶值，儘管在批發和零售市場上，貶值早了一個月左右。至少到目前為止，情況甚至比去年還要嚴重一些，我認為只要市場能夠預見到這一點，出於前面討論的原因，這對我們來說可能是件好事。

And our next question comes from Nick Jones with JMP Securities.

我們的下一個問題來自 JMP 證券公司的尼克·瓊斯。

I guess one, now that you're in Part 2 of your kind of 3-part plan, is this step maybe incrementally more challenging than the first part of your plan as we all try to triangulate when you may return to growth. Any color there would be great.

我想，現在你已經進入了由三部分組成的計劃的第二部分，這一步可能會比你計劃的第一部分更具挑戰性，因為我們都試圖對你何時可以恢復增長進行三角測量。任何顏色都會很棒。

Sure. I think it's I think everything that matters is challenging, but I think it's more of the same of what we've set up. I think the most challenging thing that we probably went through at the company was the transition from growth to a focus on improving unit economics. I think that, that was a big reorientation that was made very, very quickly. and it required new processes and new focus and kind of new management patterns and all kinds of different things.

當然。我認為重要的一切都是具有挑戰性的，但我認為這與我們已經建立的東西更加相同。我認為我們在公司經歷的最具挑戰性的事情可能是從增長轉向專注於提高單位經濟效益。我認為，這是一次非常非常快的重大調整。它需要新的流程、新的焦點、新的管理模式以及各種不同的東西。

But I think that we made that transition, and I think we're very happy about the outcomes that we're observing now as a result. I think that the next year looks a lot like the last year in terms of the way that we're aiming for different targets inside the business. And so I don't know that the setup is particularly difficult. I think making progress is always difficult, but I think we've got very good plans and very capable people.

但我認為我們已經實現了這一轉變，而且我認為我們對現在所觀察到的結果感到非常高興。我認為，就我們在業務內部實現不同目標的方式而言，明年看起來很像去年。所以我不知道設置特別困難。我認為取得進展總是困難的，但我認為我們有非常好的計劃和非常有能力的人員。

And I think we feel very good about the trend lines that we're on and the targets that we've set. So I think nothing is ever easy, but I think we're on as good a path as we can be to continue to achieve those goals. And then turning to growth, I think that will be another pivot when it's time. But again, that's a pivot that I think is a pretty comfortable 1 for us given our past and given our infrastructure setup and the scalability of our business as well as the efficiency gains that we've made over time that make that even more straightforward. So none of that is going to be easy, but we think it's all achievable, and we plan to achieve it.

我認為我們對我們所處的趨勢線和我們設定的目標感覺非常好。所以我認為沒有什麼是容易的，但我認為我們正在盡我們所能繼續實現這些目標。然後轉向增長，我認為時機成熟時這將是另一個支點。但同樣，考慮到我們的過去、我們的基礎設施設置和業務的可擴展性，以及我們隨著時間的推移所取得的效率提升，這使我們變得更加簡單，我認為這是一個非常舒適的支點。因此，這一切都不會是一件容易的事，但我們認為這一切都是可以實現的，並且我們計劃實現它。

Great. And then maybe a follow-up on driving reconditioning costs down. In this process, are you maybe not reconditioning items you would have reconditioned 2 years ago? Is there -- is it getting smarter than what you're buying? Is there any kind of feedback from your customers as you've driven those costs down?

偉大的。然後也許是降低翻新成本的後續行動。在這個過程中，您是否可能不會翻新兩年前會翻新的物品？它是否比你購買的東西變得更聰明？當您降低成本時，您的客戶有什麼反饋嗎？

Yes. So the simple answer there is the gains are process and technology driven, not quality driven. I think the inventory team has absolutely been investing in an enhanced inventory management system that makes us much better than we were before at managing parts to spend, for example, I think we've been in-sourcing various services that we've historically outsourced. That's something we've talked about before, but that generates opportunities for cost savings and efficiencies.

是的。因此，簡單的答案是，收益是流程和技術驅動的，而不是質量驅動的。我認為庫存團隊絕對一直在投資增強的庫存管理系統，這使我們在管理零件支出方面比以前更好，例如，我認為我們一直在內包我們歷史上外包的各種服務。這是我們之前討論過的事情，但這創造了節省成本和提高效率的機會。

I mean, I think we're definitely much more rightsized and efficient with the staffing and teams in the inspection and reconditioning centers. So the gains in reconditioning have been very broad-based, but they're certainly process-driven and technology driven and not quality driven.

我的意思是，我認為我們在檢查和修復中心的人員配置和團隊方面肯定更加合理和高效。因此，修復的收益非常廣泛，但它們肯定是流程驅動和技術驅動的，而不是質量驅動的。

Thank you. And ladies and gentlemen, this concludes our question-and-answer session. I'd like to turn the conference back over to the management team for any closing remarks.

謝謝。女士們、先生們，我們的問答環節到此結束。我想將會議轉回給管理團隊進行總結髮言。

Well, thanks, everyone. We really appreciate you taking the time. I know this was a short notice, and it's early in the morning, at least for many parts of the country. So thank you for jumping on. To Carvana team. Thank you guys so much. I really cannot -- thank you just doesn't do it. The amount of work that's gone in over the last year to get to this spot is absolutely incredible, and fact that everyone stood shoulder to shoulder with each other and never blinked and just kept pushing in light of a lot of doubt is something that is amazing, and I cannot fully express the gratitude that comes along with that.

嗯，謝謝大家。我們非常感謝您抽出時間。我知道這是一個很短的通知，而且現在是凌晨，至少對於這個國家的許多地方來說是這樣。所以謝謝你的參與。致卡瓦納團隊。非常感謝你們。我真的不能——謝謝你就是不這麼做。在過去的一年裡，為了到達這個位置所付出的工作量絕對是令人難以置信的，事實上，每個人都肩並肩地站著，從不眨眼，只是在很多疑問的情況下繼續努力，這是令人驚奇的事情，我無法完全表達隨之而來的感激之情。

So thank you all so much. We are nowhere near done, as we always say, and we're going to keep pushing. But this is a moment to be proud. And then later today is a moment to keep pushing that pedal down. Thank you, guys.

非常感謝大家。正如我們常說的那樣，我們還遠遠沒有完成，我們將繼續努力。但這是值得驕傲的時刻。今天晚些時候是繼續踩下踏板的時刻。感謝你們。

Thank you, sir. And ladies and gentlemen, this concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

謝謝你，先生。女士們、先生們，今天的電話會議到此結束。我們感謝大家參加今天的演講。您現在可以斷開線路，度過美好的一天。