Edible Garden AG Inc (EDBL) 2024 Q3 法說會逐字稿

Claims any duty to update any of these forward-looking statements except as required by law, all forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made in this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. Having said that I would now like to turn the call over to Jim Kras, Chief Executive Officer of Edible Garden. Jim?

聲稱有責任更新任何這些前瞻性陳述，除非法律要求，所有歸屬於該公司的前瞻性陳述均明確符合這些警告性陳述以及本次電話會議中所做的其他陳述。您應該在這些風險和不確定性的背景下評估公司所做的所有前瞻性陳述。話雖如此，我現在想把電話轉給 Edible Garden 執行長 Jim Kras。吉姆？

Thanks Ted, good morning and thank you to everyone for joining us today.

謝謝特德，早安，謝謝大家今天加入我們。

We are pleased to report another strong quarter highlighted by an increase of $687,000 in gross profit for Q3 2024 compared to the same period last year, our gross profit margin experienced significant growth reaching 27.1% this quarter. This significant improvement reflects the consistent margin growth that has fueled our progress in recent quarters while marginally impacting our revenue growth in the 2nd and 3rd quarters. Furthermore, our gross profit for the first nine months of 2024 surged by $1.7 million. An impressive 324% increase over prior year.

我們很高興地報告另一個強勁的季度，2024 年第三季度的毛利與去年同期相比增加了 687,000 美元，本季度我們的毛利率大幅增長，達到 27.1%。這一顯著改善反映出持續的利潤成長推動了我們最近幾季的進步，同時對第二和第三季的營收成長產生了輕微影響。此外，我們 2024 年前 9 個月的毛利激增 170 萬美元。比前一年增長了 324%，令人印象深刻。

Our core business and fundamentals are stronger than ever as demonstrated by a 55% increase in sales of cut herbs for the first nine months of 2024. Compared to 2023 revenue for the first nine months ended September 30th, 2024, showed a slight year over year increase.

我們的核心業務和基本面比以往任何時候都更加強勁，2024 年前 9 個月切切藥草銷量成長 55% 就證明了這一點。截至 2024 年 9 月 30 日的前九個月的收入與 2023 年相比略有同比增長。

Third quarter revenue for 2024 was down from the same period last year driven by a strategic decision to phase out of lower margin products and categories. For example, in connection with phasing out our legacy floral business at the at the Edible Garden Heartland facility in Grand Rapids. We have installed new production lines to expand our capacity to drive the growth of our higher margin products.

由於逐步淘汰利潤率較低的產品和類別的策略決策，2024 年第三季營收較去年同期下降。例如，我們正在逐步淘汰位於大急流城 Edible Garden Heartland 工廠的傳統花卉業務。我們安裝了新的生產線來擴大產能，從而推動利潤率更高的產品的成長。

We believe these initiatives will help accelerate achieving our goal of sustainable cash flow and profitability.

我們相信這些措施將有助於加速實現我們可持續現金流和獲利能力的目標。

We also strengthened our balance sheet with our September S1 offering raising approximately $5.65 million in gross proceeds.

我們也透過 9 月 S1 發行籌集了約 565 萬美元的總收益，增強了我們的資產負債表。

Part of these funds went went towards paying down $3.2 million in debt due 2025 helping to reduce our leverage and move us closer to achieving positive free cash flow.

這些資金的一部分用於償還 2025 年到期的 320 萬美元債務，幫助降低我們的槓桿率，讓我們更接近實現正自由現金流。

Additionally, we invested in working capital ahead of the fourth quarter holiday season, putting us in a strong position to meet customer demand and peak season sales.

此外，我們在第四季度假期之前投資了營運資金，使我們能夠滿足客戶需求和旺季銷售。

Our partnership with Walmart continues to evolve in meaningful ways including the debut of our sustainably grown Hydro Basil featured in a custom designed Basil station that fits seamlessly into Walmart's produce section without disrupting current planograms.

我們與沃爾瑪的合作關係繼續以有意義的方式發展，包括首次推出可持續種植的Hydro Basil，其特色是定制設計的Basil 站，該站無縫融入沃爾瑪的農產品部分，而不會破壞當前的貨架圖。

Additionally, we launched Edible Gardens Vitamin Way lines of whey and plant-based protein powders on Walmart marketplace. This not only enhances accessibility for our Vitamin Way products but also lays the groundwork to expand our offerings on the platform with new products. We are confident our innovative products will resonate with the evolving taste of an expanded consumer audience. We believe this deepening collaboration with Walmart positions, edible garden revenue growth in 2024 and beyond.

此外，我們也在沃爾瑪市場上推出了 Edible Gardens Vitamin Way 系列乳清和植物蛋白粉。這不僅提高了我們 Vitamin Way 產品的可及性，也為透過新產品擴展我們在平台上的產品範圍奠定了基礎。我們相信我們的創新產品將與廣大消費者不斷變化的品味產生共鳴。我們相信，隨著與沃爾瑪的深入合作，可食用花園的收入將在 2024 年及以後實現增長。

For our Pepper Flavor line of USDA Organic Fermented and sustainable line of gourmet sauces experienced sales growth in the third quarter of 2024 as we continue to add to our existing distribution network, which includes prominent retailers such as Target Whole Foods, Meyer M Williams, dear BGS Woodman's and distributors like KeHE and UNFI and more.

隨著我們繼續擴大現有的分銷網絡，其中包括知名零售商，例如Target Whole Foods、Meyer M Williams，親愛的，我們的美國農業部有機發酵胡椒味系列和可持續美食醬料系列在2024 年第三季經歷了銷售成長BGS Woodman 以及 KeHE 和 UNFI 等經銷商。

According to research and markets, the global sauces and condiments market is projected to grow from 173 billion in 2021 to 240 billion in 2028. And pulp is poised to meet the rising demand for bold unique flavors that take meals from bland of bulk.

根據研究和市場研究，全球醬料和調味品市場預計將從 2021 年的 1,730 億美元成長到 2028 年的 2,400 億美元。紙漿已準備好滿足人們對大膽獨特口味不斷增長的需求，這些口味可以取代平淡的散裝食品。

We also introduced our innovative kick sports nutrition line, a premium range, a range of performance products designed for today's health conscious athletes. KIC addresses the evolving needs of athletes who prioritize the quality impact of their nutritional intake. According to IMA Group, the sports nutrition market is expected to grow from $55 billion in 2023 to 103 billion by 2032. Fueled by an increasing demand for clean labels, personalized products that enhance performance, cater dietary preferences and offer convenient on the go options.

我們還推出了創新的踢球運動營養系列，這是一個優質系列，一系列專為當今注重健康的運動員設計的高性能產品。KIC 滿足了運動員不斷變化的需求，他們優先考慮營養攝取的品質影響。據 IMA 集團稱，運動營養市場預計將從 2023 年的 550 億美元增長到 2032 年的 1,030 億美元。在對清潔標籤、個人化產品的需求不斷增長的推動下，這些產品可以提高性能、滿足飲食偏好並提供方便的移動選擇。

With over 25 years of experience in sports nutrition and a track record of successful brand launches like body fortress, pure protein and matrix. I'm confident that K sports nutrition is more than just a new product line.

擁有超過 25 年的運動營養經驗以及成功推出 Body Fortress、Pure Protein 和 Matrix 等品牌的記錄。我相信 K 運動營養不僅僅是一個新產品線。

It's going to set a standard in the industry. Our vision to redefine the category by delivering innovative purpose driven solutions that are better for you that truly address the evolving needs of athletes is more important than ever. Edible Garden also receives grants from the USDA organic Certification program, providing financial key support to help offset the cost of organic certification, processing and handling and certifications. These funds will not only reduce expenses associated with maintaining our organic certification at our belvedere, New Jersey and Grand Rapids facilities but also support research and development for new product innovation.

它將在行業中樹立一個標準。我們的願景是透過提供更適合您、真正滿足運動員不斷變化的需求的創新目標驅動解決方案來重新定義該類別，這一願景比以往任何時候都更加重要。Edible Garden 也獲得了美國農業部有機認證計畫的資助，提供關鍵的財務支持，以幫助抵消有機認證、加工、處理和認證的成本。這些資金不僅將減少與維持我們在新澤西州麗城和大急流城工廠的有機認證相關的費用，而且還將支持新產品創新的研發。

As leaders in controlled environment agriculture, we are deeply committed to producing local organic and sustainable products, making organic certification a valuable asset for the business.

作為受控環境農業的領導者，我們致力於生產本地有機和永續產品，使有機認證成為企業的寶貴資產。

These grants further strengthen our partnership with the USDA and align seamlessly with the company's zero waste. Inspired mission by utilizing these funds to drive R&D for new or new organic offerings. We look forward to exploring new opportunities to work together and to continue to lead the way in sustainable agriculture ensuring that we make a lasting positive contribution to the industry and the communities we serve.

這些贈款進一步加強了我們與美國農業部的合作夥伴關係，並與公司的零浪費無縫銜接。利用這些資金來推動新產品或新有機產品的研發，從而激發使命。我們期待探索新的合作機會，並繼續引領永續農業，確保我們為產業和我們所服務的社區做出持久的積極貢獻。

I would now like to turn the call over to Kostas Dafoulas, Our Interim Chief Financial Officer who will review the financial results for the three months ended, September 30th, 2024, Kostas?

我現在想將電話轉給我們的臨時財務長 Kostas Dafoulas，他將審查截至 2024 年 9 月 30 日的三個月的財務業績，Kostas？

Thanks Jim and good morning, everyone turning to our third quarter results revenue totaled 2.6 million compared to $3 million for the three months ended September 30th, 2023, The decrease was primarily driven by our strategic shift away from the sale of lower margin products and impact from weather events. Specifically, our strategic decision to eliminate the lettuce and floral categories accounted for a decrease of 597,000 in revenue. The impact of hurricane Helene on our nutraceutical products resulted in the shift of $215,000 of revenue from the third to the fourth quarter.

謝謝吉姆，早安，大家都在關注我們的第三季度業績，收入總計260 萬美元，而截至2023 年9 月30 日的三個月收入為300 萬美元，這一下降主要是由於我們從銷售低利潤產品的策略轉變和影響來自天氣事件。具體來說，我們取消生菜和花卉類別的策略決策導致收入減少了 597,000 美元。海倫颶風對我們的營養保健品的影響導致我們的收入從第三季轉移到第四季 215,000 美元。

Cost of goods sold totaled $1.9 million for the three months ended September 30th, 2024, compared to $3.3 million for the three months ended September 30th, 2023.

截至2024年9月30日止三個月的銷售成本總計為190萬美元，而截至2023年9月30日止三個月為330萬美元。

The decrease was primarily driven by our seasonally low sales in the current quarter as well as the elimination of the use of large third party growers that previously made up a material portion of our cost of goods sold.

這一下降主要是由於我們本季的季節性低銷售額以及取消了對大型第三方種植者的使用，而這些種植者先前在我們的銷售成本中佔了很大一部分。

We saw continued strength in our gross profit margin as a result of this strategic decision move away from low margin categories. We delivered gross profit margin for Q3 2024 of 27%. Our second straight quarter positive double digit margin selling general and administrative expenses were $2.2 million for the three months ended September 30th, 2024, compared to $2.4 million for the three months ended September 30th, 2023. The decrease was primarily due to a reduction in labor costs and professional fees. As we continue to find efficiencies in our cost structure.

由於這項策略決策遠離低利潤類別，我們看到毛利率持續走強。我們 2024 年第三季的毛利率為 27%。截至2024年9月30日的三個月，我們連續第二季的正兩位數利潤率銷售一般和管理費用為220萬美元，而截至2023年9月30日的三個月為240萬美元。下降的主要原因是勞動成本和專業費用的減少。隨著我們不斷尋找成本結構的效率。

Net loss was $2.1 million or $0.65 per share for the three months ended September 30th, 2024, compared to a net loss of $2.4 million or $13.83 per share for the three months ended September 30th, 2023.

截至2024年9月30日的三個月，淨虧損為210萬美元，即每股0.65美元，而截至2023年9月30日的三個月，淨虧損為240萬美元，即每股13.83美元。

Improvement in net loss was primarily driven by the gross profit margin expansion and lower SG and a offset by other expenses in closing. We are proud of the hard work. Our team has put into improving our growth margin and the strong execution we experienced this quarter. The Q3 results demonstrate that our strategic shift in product mix and reduce reliance on third party growers is paying off and we remain committed to a disciplined financial approach with that operator. Please open the line for questions.

淨虧損的改善主要是由於毛利率的擴張和SG的降低以及結算時的其他費用所抵銷。我們為辛勤的工作感到自豪。我們的團隊致力於提高我們的成長率和本季所經歷的強大執行力。第三季的結果表明，我們在產品組合和減少對第三方種植者的依賴方面的策略轉變正在取得成效，我們仍然致力於與該營運商採取嚴格的財務方法。請打開提問專線。

Thank you very much. At this time, we will be conducting our question and answer session. If you would like to ask a question, please press star one on your telephone keypad. Now a confirmation tone will indicate that your line is in the queue. You may press star two. If you would like to remove your question from the queue for any participants using speaker equipment, it might be necessary to pick up your handset before you press the keys.

非常感謝。此時，我們將進行問答環節。如果您想提問，請按電話鍵盤上的星號一。現在，確認音將顯示您的線路已在佇列中。您可以按星二號。如果您想從使用揚聲器裝置的任何參與者的佇列中刪除您的問題，則可能需要在按鍵之前拿起聽筒。

Please wait a moment whilst we poll for questions.

我們正在投票詢問問題，請稍等。

Thank you very much. Your first question is coming from Anthony Vendetti of the Maxim Group. Anthony your line of life.

非常感謝。你的第一個問題來自Maxim Group 的Anthony Vendetti。安東尼你的生命線。

Thank you.

謝謝。

Good morning. So let me you, you've reduced significantly contract growers which obviously, you know, improve your gross margin significantly. So, We're glad to see that. But as you move into this quarter that we're in right now, this is your busy season. Are are you able to handle the demand this season?

早安.所以讓我告訴你，你們已經顯著減少了合約種植者，這顯然顯著提高了你們的毛利率。所以，我們很高興看到這一點。但當你進入我們現在所處的這個季度時，這是你的忙碌季節。你們能滿足這個季節的需求嗎？

With fewer contract growers than last season or do you have to rely on them to meet the demand?

合約種植者比上季少，還是必須依靠他們來滿足需求？

So, hey, Anthony, good morning. So the answer is we don't need the contract growers to service our demand. And look, we focused on infrastructure GP improvement and the fundamentals of the business in the last two quarters. And it shows in, you know, sequential quarter to quarter, you know, GP improvement and dramatic improvement at that. That's a result of bringing a vertically integrating the facilities and adding more capacity. So, you know, we did, you know, this was, I believe in the press release and in my opening script, we put in, you know, another production line state of the art made the investment there in Grand Rapids. You know, I think what you see now is that, you know, a strong signal to our retail partners that not only can we handle what we currently have, we can take on a lot more and we can push out a lot more in the way of units. So our capacity is only sort of, you know, is only limited by our ability to process and putting in, you know, more and more lines as we continue to grow the business. And right now, you know, we've got significant capacity Q4 is shaping up to be potentially our best quarter ever as a function of having that ability to do so. And now the platform is set, the fundamentals have, you know, are set and you know, we can take on, you know, more herbs, more new pro more new products, even more warehousing and cross stocking that once again, add to that top line. So, you know, by trying to move out of these other products that are, you know, that were sort of, you know, legacy products that just really didn't give us what we needed from a, from a GP standpoint, we now can focus and build that core business. So we're ready to run and, and, and we're pretty excited about it and, you know, it was a lot of hard work, excuse me this past quarter to get into a position in order to, you know, get set for you know, for the volume that's coming.

所以，嘿，安東尼，早安。所以答案是我們不需要合約種植者來滿足我們的需求。看，過去兩個季度我們專注於基礎設施 GP 的改進和業務的基本面。你知道，它顯示出連續每季的 GP 改善和顯著改善。這是垂直整合設施並增加容量的結果。所以，你知道，我們做到了，你知道，這是，我相信在新聞稿和我的開場白中，我們在大急流城投資了另一條最先進的生產線。你知道，我認為你現在看到的是，你知道，這是向我們的零售合作夥伴發出的一個強烈信號，即我們不僅可以處理我們目前擁有的東西，我們還可以承擔更多，我們可以在這個領域推出更多東西。因此，隨著我們業務的不斷發展，我們的產能只是受到我們處理和投入越來越多生產線的能力的限制。現在，你知道，我們擁有龐大的產能，第四季可能會成為我們有史以來最好的季度，因為有這種能力。現在平台已經建立，基本面已經確定，你知道，我們可以承擔更多草藥，更多新專業產品，甚至更多的倉儲和交叉庫存，再次增加那頂線。所以，你知道，透過嘗試擺脫這些其他產品，你知道，這些遺留產品確實不能滿足我們從 GP 的角度來看所需的東西，我們現在可以專注並建立核心業務。所以我們已經準備好運行，而且我們對此非常興奮，你知道，這是很多艱苦的工作，請原諒我在上個季度進入一個位置，以便，你知道，為即將到來的捲做好準備。

Okay, great. And then can, can you just further quantify the impact from the hurricanes in Florida, how much of that revenue in total has moved from the third quarter to the fourth quarter?

好的，太好了。然後，您能否進一步量化佛羅裡達州颶風的影響，總收入中有多少從第三季轉移到了第四季？

Well, it was 215000 approximately, that was driven by a relationship that we have with a major big box price smart. We supply a Nutrisa line for them. That business has been growing, considered over the last six months as they've been, you know, watching what we're doing and I've had a relationship with them for decades. So they understand the investment we're making in that segment of the business. And so they out of the port of Miami. So, unfortunately, we had a hurricane at the end of the quarter and they closed the ports while people were evacuating and they weren't bringing in any trucking. So once again, you know, you know, you know, 200,000 plus that gets pushed into the, the Q4 that we didn't benefit from. So, and you know, in the Q4, you know, there's obviously additionally or additional orders that are, you know, keyed up and that will ship by the end of the year as well on top of that, you know, 200 for price mark. So that's kind of unfortunately impacted it, you know, trust me, I wanted the trucks to roll and you know, I can't control weather.

嗯，大約是 215000，這是由我們與主要大賣場價格智慧公司的關係所推動的。我們為他們提供 Nutrisa 系列。在過去的六個月裡，我們的業務一直在成長，因為他們一直在關注我們正在做的事情，而且我與他們的關係已經有幾十年了。因此他們了解我們在該業務領域所做的投資。就這樣他們離開了邁阿密港。因此，不幸的是，我們在本季末遭遇了颶風，他們在人們撤離時關閉了港口，並且沒有引進任何卡車運輸。所以，再一次，你知道，你知道，你知道，20 萬多被推入第四季度，我們沒有從中受益。所以，你知道，在第四季度，你知道，顯然有額外的或額外的訂單，你知道，這些訂單都在準備中，並且將在今年年底發貨，最重要的是，你知道，價格為200標記。所以這有點不幸地影響了它，你知道，相信我，我想讓卡車開動，你知道，我無法控制天氣。

Sure, of course. So as we look to 2025 what, what kind of growth can we expect from the sports nutrition line?

當然，當然。那麼，當我們展望 2025 年時，我們可以預期運動營養產品線會達到什麼樣的成長？

Well, you know, as I had mentioned, you know, earlier, look, this is a great category. I grew up in the category I worked at, you know, at some big businesses, you know, Nations Bound being one of them, where I ran that part of the business for them and relaunched metric developed from concept Body Fortress, which is a, you know, $150 million line and, and also relaunched pure protein, which is probably another $100 million line. So, you know, point being and they're still around 15 years later, you know, the trends are towards better for you. We have the right formulas. We have a fantastic partner Neutra com that we're just continuing to deepen our relationship with. They were the originators of what are some of the, some of the products like the metrics white box which, you know, started the industry 2,530 years ago. With that said, you know, we're already looking at commitments for KIC and we haven't even gone to full scale production. You know, we're driving a partnership with Amazon to look to potentially coincide the launch with them. It was just with them last week. And so for us, we're expecting some significant growth. Obviously, you know, we're going to have to make product and a lot of that you'll see rolling out towards the tail end of Q1.

嗯，你知道，正如我之前提到的，你知道，你看，這是一個很棒的類別。我是在我工作的類別中長大的，你知道，在一些大企業，你知道，Nations Bound就是其中之一，我為他們經營這部分業務，並重新啟動了從身體堡壘概念開發出來的指標，這是一個你知道，1.5 億美元的產品線，並且還重新推出了純蛋白產品，這可能是另一個 1 億美元的產品線。所以，你知道，重點是，大約 15 年後它們仍然存在，你知道，趨勢是朝著對你更好的方向發展。我們有正確的公式。我們有一個出色的合作夥伴 Neutra com，我們正在繼續加深與它的關係。他們是一些產品的創始人，例如度量白盒，你知道，這個行業在 2,530 年前就開始了。話雖如此，您知道，我們已經在考慮對 KIC 的承諾，但我們甚至還沒有開始全面生產。您知道，我們正在推動與亞馬遜的合作夥伴關係，希望能夠與他們同時發布。上週才剛和他們在一起。因此，對於我們來說，我們預計會有一些顯著的成長。顯然，你知道，我們將不得不生產產品，其中許多產品將在第一季末推出。

You think you'll see a launch at a major big box that we have a, we have a deep relationship with, on traditional retail and like I said, I think it will coincide with, with Amazon on that and then roll out with the likes of price Mart internationally. So I couldn't be more excited about it. Like I said, you know, I think putting behind us fixing the core business, you know, and you know, getting the, the greenhouses where they can, they can operate and operate like manufacturing we're there. So now we can start focusing on a lot of these new products. We've got a line of past herbs that we're launching, in Q1 as well. So, you know, next year, you know, I'm pushing my sales team to say, look, let's you know, let's start looking at not only Q1 and with these launches, but what are we doing to drive the business, you know, second half of next year and so I couldn't be more excited about where we are. I feel like it's been a pretty hard, real, pretty tough journey to get here. But, you know, we solved a lot of problems that, you know, our others couldn't, you know, we were watching a lot of our competition on the a side sort of, you know, crap out and, you know, we're positioned for more and you know, the calls have been coming in on the all the businesses to, you know, to ship. And so I, like I said it's been tough but I'm excited. I mean, it truly is. I mean, so I hope that that answers that question, but I'm sorry, go ahead.

你認為你會看到我們在傳統零售方面與我們有深厚關係的一個主要大賣場推出產品，就像我說的，我認為它將與亞馬遜在這方面相一致，然後與喜歡國際上的Price Mart 。所以我對此感到非常興奮。就像我說的，你知道，我認為把修復核心業務放在後面，你知道，你知道，讓溫室盡可能地運作，他們可以像我們在那裡的製造業一樣運作和運作。所以現在我們可以開始關注很多這樣的新產品。我們也在第一季推出了一系列過去的草藥。所以，你知道，明年，你知道，我正在敦促我的銷售團隊說，看，讓你知道，讓我們不僅開始關注第一季和這些產品的發布，而且我們正在做什麼來推動業務，你我知道，明年下半年，所以我對我們的現狀感到非常興奮。我覺得到達這裡是一段非常艱難、真實、非常艱難的旅程。但是，你知道，我們解決了很多其他人無法解決的問題，你知道，我們在旁邊觀看了很多比賽，你知道，廢話，你知道，我們已準備好提供更多服務，您知道，所有企業都接到了要求出貨的電話。所以我，就像我說的，這很艱難，但我很興奮。我的意思是，確實如此。我的意思是，所以我希望這能回答這個問題，但很抱歉，請繼續。

Yeah, last question on the gross margin side. It sounds like you, you know, particularly lettuce, but maybe there was other low margin products you, you've exited, was that leverage from, from exiting the low margin products such as lettuce fully reflected in the third quarter or is there additional leverage or ability to increase the gross margin from, from the level that you're at?

是的，最後一個問題是關於毛利率的。聽起來你知道，特別是生菜，但也許你還退出了其他低利潤產品，退出低利潤產品（如生菜）的槓桿作用在第三季度得到了充分體現，還是還有其他的槓桿作用？或提高毛利率的能力？

Well, I think, look, I did that mean for us, you know, it's all about, you know, improving our margins and the efficiencies that we're driving currently across the whole supply chain leveraging, you know, every tool that we have in the toolbox is coming down to bear. And so to answer your question is, you know, you should see that gross profit continue to expand as we get, you know, stronger and yeah, I mean, between, you know, look, we're not fully out of the lettuce business, we're just not in the low or no margin lettuce business that we sort of have the service some of the customers when we first started the business, you know, the floral business for us. Look, it's an interesting business but it's just not our core business and, you know, by just, you know, kind of pushing that aside and, and kind of eliminating it and focusing on the food business, which is what we're in. Once again, you know, nothing against florals and flowers, you know, I like them. But, you know, at the end of the day, that's really wasn't our core business. We adhered to our commitment to the distributors that we took on when we bought the facility in Grand Rapids and, you know, we executed well and everybody moved on and I'm sure if I wanted to do floor on the road, I can always pick up the phone and call them, but not our core business. It was a drag. I don't like the competing crops in the greenhouse for a multitude of reasons. Now, we've cleared the deck. I got super capacity place. Looks gorgeous. I just had Myer down there shooting it the other day for social media. You know, we're ready to run. And I don't have to worry about that, that business anymore and it, you know, impacted the margin because it was just labor intensive for what it was and moving pots and it was just an old business that, you know, has never really been sort of automated and it's seasonal and it's just not what we wanted to do and what I want to do. It's all about core business, fundamentals, new products, leveraging a $5000 an hour and to put more of the trucks that are running on produce, getting more on those trucks, improving the logistics. And like I said, you see it where we are right now and we just got started in the last, you know, quarter or two. I mean, and frankly, you know, we've been able to get some real strong players to come in and help us really you know, refine, refine this so I couldn't be more excited about it.

好吧，我認為，看，我這樣做對我們來說意味著，你知道，這一切都是為了提高我們的利潤和效率，我們目前在整個供應鏈中利用我們使用的每一種工具工具箱裡的東西正在發揮作用。因此，回答你的問題是，你知道，你應該看到毛利繼續擴大，因為我們變得更強，是的，我的意思是，在之間，你知道，看，我們還沒有完全擺脫生菜業務，我們只是不從事低利潤或無利潤的生菜業務，當我們剛開始業務時，我們為一些客戶提供服務，你知道，我們的花卉業務。聽著，這是一項有趣的業務，但它不是我們的核心業務，你知道，只是把它放在一邊，然後消除它並專注於食品業務，這就是我們所處的行業。再說一次，你知道，我並不反對花和鮮花，你知道，我喜歡它們。但是，你知道，歸根結底，這確實不是我們的核心業務。我們恪守我們在大急流城購買工廠時對經銷商的承諾，你知道，我們執行得很好，每個人都繼續前進，我確信如果我想在路上做地板，我總是可以拿起電話給他們打電話，但這不是我們的核心業務。這是一個拖累。由於多種原因，我不喜歡溫室裡的競爭作物。現在，我們已經清理了甲板。我得到了超能力的地方。看起來很華麗。前幾天我剛剛讓邁爾在那裡為社交媒體拍攝了這張照片。你知道，我們已經準備好要逃跑了。我不用再擔心那個業務了，你知道，它影響了利潤，因為它只是勞動密集型的，而且搬鍋，而且它只是一個老業務，你知道，從來沒有確實有點自動化，而且是季節性的，這不是我們想做的，也不是我想做的。這一切都與核心業務、基本面、新產品有關，利用每小時 5000 美元的資金，讓更多的卡車用於生產農產品，提高這些卡車的利用率，改善物流。就像我說的，你看到我們現在的位置，我們剛開始，你知道，一兩個季度。我的意思是，坦白說，你知道，我們已經能夠吸引一些真正強大的球員加入並幫助我們真正了解、完善、完善這一點，所以我對此感到非常興奮。

Excellent. Alright. Thanks for all that call, Jim. I'll hop back in.

出色的。好吧。謝謝你打來的電話，吉姆。我會跳回來。

I appreciate it. Alright. Thank you, Anthony. Take care.

我很感激。好吧。謝謝你，安東尼。小心。

Thank you very much. Just a reminder that if anyone has any questions, you can join the key by pressing star one on your phone keypad. Now don't appear to have anyone else waiting for questions. Just hang on a second in case someone else does jump in.

非常感謝。只是提醒一下，如果有人有任何疑問，您可以按手機鍵盤上的星號一來加入金鑰。現在似乎沒有其他人在等待提問。請稍等一下，以防其他人加入。

Okay. I don't think we have any further questions. I will now hand back over to the management team for closing comments.

好的。我認為我們沒有其他問題了。我現在將交回給管理團隊以徵求結束意見。

Well, thank you for joining us today. We believe we have successfully streamlined our business removing elements that previously constrained revenue growth, core operations and fundamentals are now healthy and performing well based on current trends. We are confident that the fourth quarter of 2024 will display significant growth in both margin and revenue potentially making marking one of the strongest quarters in our company's history with a solid foundation, a robust infrastructure in place. We are well positioned not only to achieve strong results in the coming quarters but to also drive sustained growth and long term value for our shareholders.

好的，謝謝您今天加入我們。我們相信，我們已經成功地簡化了我們的業務，消除了以前限制收入成長的因素，核心業務和基本面現在很健康，並且根據當前趨勢表現良好。我們相信，2024 年第四季的利潤率和收入將出現顯著增長，有可能成為我們公司歷史上最強勁的季度之一，擁有堅實的基礎和強大的基礎設施。我們處於有利地位，不僅可以在未來幾季取得強勁業績，還可以推動股東的持續成長和長期價值。

Thank you very much. This does conclude today's conference. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation. Thank you.

非常感謝。今天的會議到此結束。此時您可以斷開電話線並度過美好的一天。感謝您的參與。謝謝。

Editor^ Portion of this transcript marked (technical difficulty) indicate an audio problem. The missing text will be supplied if a replay becomes available.

編輯^ 本記錄中標記為（技術難度）的部分錶示有音訊問題。如果可以重播，將提供缺少的文字。