Educational Development Corp (EDUC) 2025 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Educational Development Corporation's first quarter fiscal year 2025 earnings call.

女士們、先生們，下午好，歡迎參加教育發展公司 2025 財年第一季財報電話會議。

(Operator Instructions) This call is being recorded on Thursday, July 11, 2024.

（操作員說明）此通話錄音時間為 2024 年 7 月 11 日星期四。

Before beginning the call, we'd like to remind you that some of the statements made today will be forward-looking are protected under the Private Securities Litigation Reform Act of 1995.

在開始通話之前，我們想提醒您，今天發表的一些前瞻性陳述受到 1995 年私人證券訴訟改革法案的保護。

Actual results may differ materially from those expressed or implied due to a variety of factors.

由於多種因素，實際結果可能與明示或暗示的結果有重大差異。

We refer you to Educational Development Corporation's recent filings with the SEC for a more detailed discussion of the company's financial condition.

我們建議您參閱教育發展公司最近向美國證券交易委員會提交的文件，以更詳細地討論該公司的財務狀況。

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

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

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，接線生。

With the Safe Harbor statement read, I'll turn the call over to Craig White.

讀完安全港聲明後，我會將電話轉給克雷格懷特。

Okay.

好的。

Thank you.

謝謝。

And I want to introduce a couple of the people joining me on the call we have myself, Craig White, President and Chief Executive Officer, Heather Cobb, Chief Sales and Marketing Officer, and Dan O'Keefe, Chief Financial Officer.

我想介紹一下與我一起參加電話會議的幾位人士：總裁兼首席執行官 Craig White、首席銷售和營銷官 Heather Cobb 以及首席財務官 Dan O'Keefe。

After the market closed this afternoon, the company issued a press release announcing its results for the third quarter, which will be on our company's website at Edcpub.com, and welcome everyone to the call.

今天下午收盤後，公司發布了新聞稿，公佈了第三季度的業績，新聞稿將發佈在我們公司的網站Edcpub.com上，歡迎大家來電。

We appreciate your continued interest.

我們感謝您的持續關注。

I will start today's call with some general comments regarding the quarter.

我將以一些有關本季的一般性評論開始今天的電話會議。

Then I'll pass the call over to Dan Heather to run through financials and provide an update on our sales and marketing.

然後我會將電話轉接給丹希瑟 (Dan Heather)，讓他了解財務狀況並提供有關我們銷售和行銷的最新資訊。

Finally, I will wrap up the call with an update on our progress of the sale leaseback of our headquarters, healthy complex, and provide some comments on strategy and fiscal 2025 outlook.

最後，我將介紹我們總部、健康綜合體售後回租的最新進展，並就策略和 2025 財年前景提供一些評論。

Our first quarter as well as previous quarters of fiscal 2024, were driven by strategic decisions to prioritize cash flow over profitability.

我們 2024 財年第一季以及前幾季的策略決策將現金流置於獲利之上。

During the quarter, we ran several promotions to energize our sales force and customers by offering discounts on our products as well as the freight we charge on shipments.

在本季度，我們開展了多項促銷活動，透過提供產品折扣以及收取的運費來激勵我們的銷售人員和客戶。

These decisions were necessary in these difficult economic times when high inflation is eating at the discretionary spending of our customers, coupled with our higher than normal inventory levels, we are continuing to evaluate and implement cost-cutting measures as well as leverage IT to provide new tools to energize the field sales force as well as contribute to the bottom line.

在經濟困難時期，這些決定是必要的，因為高通膨正在吞噬我們客戶的可自由支配支出，加上我們的庫存水平高於正常水平，我們將繼續評估和實施成本削減措施，並利用IT 提供新的服務。

While I'm not pleased to report a loss, we are actively working on the long-term strength of our business model.

雖然我不願意報告虧損，但我們正在積極致力於商業模式的長期優勢。

With that, I'd like like to turn the call over to Dan O'Keefe to provide a brief overview of the financials.

說到這裡，我想將電話轉給丹·奧基夫（Dan O'Keefe），他將簡要介紹財務狀況。

Thank you, Craig.

謝謝你，克雷格。

To our for first quarter summary, compared to the prior first quarter, net revenues were $10 million compared to $14.5 million.

根據我們的第一季總結，與之前第一季相比，淨收入為 1,000 萬美元，而上一季為 1,450 萬美元。

Our average active brand partners totalled 13,400 compared to 15,000 at the end of our last fiscal year.

我們的平均活躍品牌合作夥伴總數為 13,400 個，而上一財年末為 15,000 個。

Loss before income taxes were $1.7 million compared to a loss of $1.2 million in the first quarter last year.

所得稅前虧損為 170 萬美元，去年第一季虧損為 120 萬美元。

Net loss totalled $1.3 million compared to $0.9 million, and loss per share totalled $0.15 compared to a loss of $0.11 on a fully diluted basis.

淨虧損總計 130 萬美元，而完全攤薄後每股虧損總計 0.15 美元，而每股虧損為 0.11 美元。

To update everyone on our inventory and working capital levels, net inventories decreased $2.9 million from $55.6 million at the end of February 28, 2024 to February 29, 2024 to $52.7 million at May 31, 2024.

為了向大家通報我們的庫存和營運資金水準的最新情況，淨庫存減少了290 萬美元，從2024 年2 月28 日至2024 年2 月29 日的5,560 萬美元減少至2024 年5 月31 日的5,270 萬美元。

Now for working capital update update.

現在進行營運資金更新更新。

Our working capital line of credit borrowing was $5.5 million at the end of February 2024 and $5.6 million at the end of May 2024 with $1.4 million of availability at the end of the first quarter.

截至 2024 年 2 月末，我們的信用借款營運資金額度為 550 萬美元，截至 2024 年 5 月末為 560 萬美元，第一季末可用資金為 140 萬美元。

That concludes the financial update, and I'll now turn the call over to Heather Cobb to talk about sales and marketing opportunities and further detail.

財務更新到此結束，現在我將把電話轉給希瑟·科布 (Heather Cobb)，討論銷售和行銷機會以及更多細節。

Heather?

希瑟？

Thanks, Dan.

謝謝，丹。

As Craig mentioned earlier, we continue to make strategic choices and changes to bring new initiatives for success to our paper by brand partners.

正如克雷格之前提到的，我們不斷做出策略選擇和變革，透過品牌合作夥伴為我們的報紙帶來新的成功舉措。

We had a May site-wide sales promotion where we hosted an exciting week-long sale site-wide sales that seem to capture the attention of our customers.

我們在五月進行了全場促銷活動，舉辦了為期一周的令人興奮的全場促銷活動，似乎吸引了客戶的注意。

It was definitely a hit our June convention.

這絕對是我們六月大會的成功。

We hosted attendees here in Tulsa at the Cox Business Convention Center during which we had over 50 presenters including three of our Kane Miller authors and creators from both England and Australia as well as keynote presentations on the science of hope and the importance of early literacy by our newest Board member, Dr. Amy Emerson response to all that was presented was overwhelmingly positive.

我們在塔爾薩的考克斯商業會議中心接待了與會者，期間有50 多名演講者，其中包括來自英格蘭和澳大利亞的三名凱恩·米勒作家和創作者，以及關於希望科學和早期識字重要性的主題演講我們最新的董事會成員艾米·愛默生博士對所提出的所有內容的反應非常積極。

And the excitement and energy that our brand partners left with was palpable.

我們的品牌合作夥伴留下的興奮和活力是顯而易見的。

That was evidenced as we held our next promotion that week after we returned a one-day account activation special offer.

在我們退回一日帳戶啟動特別優惠後的那週，我們舉行了下一次促銷活動，這證明了這一點。

As a result of this, we saw over 3,700 new brand partners join us keeping us around the 15,000 active brand partner count.

因此，我們看到超過 3,700 個新品牌合作夥伴加入我們，使我們的活躍品牌合作夥伴數量保持在 15,000 個左右。

We have already seen success for many of them who are sharing our mission and our products with their networks, bringing in new customers just in time to lead us into the fall selling season.

我們已經看到他們中的許多人取得了成功，他們與他們的網絡分享我們的使命和產品，及時引入新客戶，帶領我們進入秋季銷售季節。

This excitement is fuelled by the introduction of new products which we have been doing through the month of June, and that will continue through the summer.

這種興奮是由我們整個六月一直在推出的新產品所推動的，並將持續到整個夏天。

Both our PaperPie sales division and our retail division see an increase of activity around the launch of new titles.

我們的 PaperPie 銷售部門和零售部門都發現圍繞新遊戲的推出活動增加。

Our retail customers continue to delight in our offerings, finding new series to lead from Kane Miller, educational manipulative from learning wraps-ups and steam based kits and products from SmartLab Toys.

我們的零售客戶繼續對我們的產品感到滿意，他們發現 Kane Miller 主導的新系列、學習總結的教育操作以及 SmartLab Toys 的基於蒸汽的套件和產品。

That concludes our sales and marketing update.

我們的銷售和行銷更新到此結束。

I'll turn the call back over to Craig for closing remarks.

我會將電話轉回給克雷格，讓其結束語。

Thank you, both Heather and Dan.

謝謝希瑟和丹。

One of the if not the biggest event in fiscal 2025 is the anticipated sale and leaseback of our headquarters building the Hilti complex.

2025 財年最大的事件之一（如果不是最大的事件）是我們總部大樓喜利得綜合大樓的預期出售和回租。

The proceeds from this sale will not only bring savings from reduced interest expense, but allow us to build a positive build positive cash position as we continue to work down our excess inventory level, which was approximately $30 million at year end.

此次出售的收益不僅可以減少利息支出，還可以讓我們在繼續降低過剩庫存水準（年底約為 3000 萬美元）的過程中建立積極的現金頭寸。

On June 6, we executed our sale leaseback agreement for the healthy complex totalling $35.5 million.

6 月 6 日，我們簽署了總價值 3,550 萬美元的健康綜合體的售後回租協議。

The proceeds from the sale are expected to pay off our borrowings with the bank with our new amendment will also have a line available to us post sale with our bank of $4.5 million building sale agreement calls for a 60-day due diligence period with an additional 30 days to close the transaction.

出售所得的收益預計將用於償還我們在銀行的借款，我們的新修正案還將為我們提供一條售後額度，價值450 萬美元，建築物銷售協議要求60 天的盡職調查期，並附加額外的期限。

So we expect the building sale will be complete by the end of second fiscal quarter or the start of the third fiscal quarter.

因此，我們預計建築物銷售將在第二財季末或第三財季初完成。

Additionally, starting July 1, 2024, we have leased approximately half of our 220,000 square feet to a new tenant in a triple-net lease structure.

此外，從 2024 年 7 月 1 日開始，我們已以三網租賃結構將 220,000 平方英尺的約一半租賃給新租戶。

The initial term of these of the lease for 5 years and includes a 5-year extension.

租賃的初始期限為 5 年，並​​包括 5 年的延期。

This lease improves our monthly cash flow and further positions us to return to profitability.

這項租賃改善了我們的每月現金流，並進一步使我們恢復盈利。

I want to reiterate that everything that we've done in the last 15 months are to meet the bank's requirements, which we have done so.

我想重申，過去15個月我們所做的一切都是為了滿足銀行的要求，我們也確實這麼做了。

All of our efforts are beginning to come to fruition and once they fully new, we will start to see the fruits of our effort, from reduced interest expense, lease income, which reduces our lease commitment, our cost cutting and capitalizing on the goodwill received from charging less for our products and shipping.

我們所有的努力都開始取得成果，一旦它們完全煥然一新，我們將開始看到我們努力的成果，包括利息費用的減少、租賃收入的減少，這減少了我們的租賃承諾、成本削減和利用所收到的商譽減少我們的產品和運輸費用。

Our sales force is grateful and excited coming off conviction heading to incentive trip to Vienna next week and working toward next year's trip to Scotland.

我們的銷售人員非常感激和興奮，因為他們堅定了下週前往維也納的獎勵之旅，並為明年的蘇格蘭之旅而努力。

There a lot of reasons to be positive as we head into our fall selling season.

當我們進入秋季銷售季節時，有很多理由保持樂觀。

I want to thank all of our shareholders for their patience.

我要感謝所有股東的耐心等待。

Our employees for their commitment to our mission and our customers and brand partners for their loyalty during this difficult period, I'm confident in our collective ability to emerge stronger and more resilient than ever before.

我們的員工對我們使命的承諾，以及我們的客戶和品牌合作夥伴在這個困難時期的忠誠，我相信我們的集體能力比以往任何時候都更強大、更有彈性。

And with that, I will hand it back over to the operator for questions and answers.

然後，我會將其交還給操作員以供其提問和解答。

Thank you.

謝謝。

Ladies and gentlemen, we will now begin the question and answer session.

女士們、先生們，我們現在開始問答環節。

(Operator Instructions)

（操作員說明）

Paul Carter, Capstone Asset Management.

保羅卡特，凱普斯通資產管理公司。

Thank you.

謝謝。

Good afternoon, everybody.

大家下午好。

Hi, Paul.

嗨，保羅。

Just to start.

剛開始。

So the $10 million of net revenue, how is that split between PaperPie and your publishing division?

那麼這 1000 萬美元的淨收入，PaperPie 和您的出版部門如何分配？

It's about 85 -15, Paul.

大約是 85 -15，保羅。

Similar to pretty much every other quarter, yeah.

是的，幾乎每個其他季度都類似。

Okay, great.

好的，太好了。

And then you added over 3,700 brand partners thus far, which is which is great.

到目前為止，您已經增加了超過 3,700 個品牌合作夥伴，這非常棒。

Was that just during the month of June or was that post convention up till today, I guess?

我猜這只是在六月期間還是會議後直到今天？

No, that's a great question.

不，這是一個很好的問題。

That was just during that promo in the month of June.

那是在六月的促銷期間。

Okay.

好的。

Great.

偉大的。

Excellent.

出色的。

Um, And then so how confident are you I know as a tough question to answer, but how confident are you at stabilizing your brand partner count at this 15,000 level?

嗯，那麼您對將品牌合作夥伴數量穩定在 15,000 個水平有多大信心？

It sort of seems like it's up is stabilizing somewhat.

看起來似乎有所穩定。

And I know the macro employment picture is getting slightly worse, which I think that might encourage more people to sign on as part-time brand partners.

我知道宏觀就業情況正在變得稍微惡化，我認為這可能會鼓勵更多的人成為兼職品牌合作夥伴。

But are you I guess, getting incrementally more confident and stabilization?

但我猜你是否正在變得越來越自信和穩定？

That's a great way to put it, Paul.

這是一個很好的表達方式，保羅。

Incrementally more company is exactly what we should say.

越來越多的陪伴正是我們該說的話。

I think we'll put that on a T-shirt.

我想我們會把它印在 T 恤上。

But yes, you know, I think, but I think that as we see things start to stabilize in the market as a whole.

但是，是的，你知道，我認為，但我認為，隨著我們看到整個市場開始穩定下來。

It makes us more reassured that we are heading in the direction of, you know what we want the future of our brand partner base to look like.

這讓我們更加放心，我們正朝著這個方向前進，你知道我們希望我們的品牌合作夥伴基礎的未來會是什麼樣子。

Okay.

好的。

All right.

好的。

Thanks for that.

謝謝你。

And then just switching gears on talking about your building.

然後就切換話題來談論你的建築。

So I guess is this new buyer Rockford holdings, is that some associated with the same group of investors as the original ones that bowed out on Blue Ledge Group?

所以我猜這個新買家是 Rockford Holdings，是不是與退出 Blue Ledge Group 的原始投資者屬於同一群投資者？

Or is it a different group?

還是一個不同的群體？

Yeah.

是的。

Thank you.

謝謝。

It is associated with the prior group.

它與先前的組相關聯。

There's brothers involved one with each group.

每組都有一名弟兄參與。

And so it was kind of it a fairly seamless handoff from one group to the other, but yet it is a new group.

因此，這是從一個組到另一個組的相當無縫的切換，但它是一個新組。

So they're still going through their due diligence.

所以他們仍在進行盡職調查。

Okay.

好的。

Because yes, that's what I was just going to ask about is I know the I guess the first group would have done their due diligence, right, think they had 60 days of due diligence.

因為是的，這就是我要問的，我知道我猜第一組會完成盡職調查，對吧，認為他們有 60 天的盡職調查。

And just curious why the second group, if they're associated if they also need that sort of 60 day window.

只是好奇為什麼第二組，如果他們有關聯，如果他們也需要那種 60 天的窗口。

Is there something that they didn't, I guess, learn in the first due diligence period?

我猜他們在第一個盡職調查期間沒有學到什麼嗎？

Well, I said they're closely related, but still it is yet a different group.

嗯，我說他們是密切相關的，但它仍然是一個不同的群體。

One of the principals from Blue Ledge and maybe wasn't comfortable, but one was still very comfortable to he headed it off to Rockford, which is actually a brother.

來自 Blue Ledge 的一位校長也許不太舒服，但他把球帶到羅克福德仍然很舒服，這實際上是一個兄弟。

So yes, we're confident nothing has changed.

所以，是的，我們相信一切都沒有改變。

It's just a new group and they still need to get through their due diligence and have their own lending partner.

這只是一個新集團，他們仍然需要完成盡職調查並擁有自己的貸款合作夥伴。

Fair enough.

很公平。

And so assuming that gets done, as you anticipate, including commission costs, what do you think the total cost of selling the building is going to be I don't know what sort of typical commission is for a commercial building down there.

因此，假設如您預期的那樣完成，包括佣金成本，您認為出售該建築的總成本是多少，我不知道那裡的商業建築的典型佣金是多少。

Well, we think [we'll] net, yes, $34.5 million after commissions and expenses.

好吧，我們認為扣除佣金和費用後，我們將淨賺 ​​3,450 萬美元。

So that will be up sufficient to pay off or borrowings with our banks.

因此，這將足以償還我們銀行的借款。

And that's great.

那太好了。

Okay.

好的。

And then so your revolver with the bank, I know it steps down after you sell the building on, but it matures on October 4.

然後你在銀行的左輪手槍，我知道在你賣掉大樓後它就會減少，但它會在 10 月 4 日到期。

I know you're going to be hopefully generating some pretty good free cash flow.

我知道你將有望產生一些相當不錯的自由現金流。

Do you intend on operating without a line of credit after October 4, are you looking for a different banking relationship?

您打算在 10 月 4 日之後在沒有信用額度的情況下運作嗎？

That's a complex question.

這是一個複雜的問題。

We are -- the good news is that when I said that $34.5 million of payoff the bank that includes paying off the letter of credit.

我們——好消息是，當我說銀行支付了 3,450 萬美元時，其中包括還清信用證。

So the bank is offering us a $4.5 million letter credit post sale, which is a very positive thing.

因此，在銀行向我們提供 450 萬美元的信用證售後，這是一件非常積極的事情。

We're still evaluating what the right financing solution is, and we have several different options.

我們仍在評估什麼是正確的融資解決方案，而且我們有幾種不同的選擇。

So know we but the good news is that BOK. is has offered us an operating line post close that will allow us to operate.

所以我們知道，但好消息是 BOK。它為我們提供了關閉後的營運線路，使我們能夠進行營運。

We've got some vendors that we need to catch up that are we've kind of delayed a little bit.

我們有一些供應商需要趕上，但我們有點延遲了。

And so we'll have availability of $4.5 million to fund operations going into the fall, which you know is our busy season.

因此，我們將有 450 萬美元的可用資金來資助秋季的運營，眾所周知，秋季是我們的繁忙季節。

You know, if we're turning a lot of inventory into cash during that period.

你知道，如果我們在此期間將大量庫存轉化為現金。

Hopefully we'll be without a line by the end of the fall.

希望到秋季結束時我們將不再需要排隊。

Okay, great.

好的，太好了。

And I suspect you don't want to count your chickens before they hatch, but it looks like you'll end up having a book value per share somewhere in the neighborhood of like $6 to $7 once the building is sold and the bank is paid off on no end and you'll be generating significant free cash flow as you kind of work through your inventory.

我懷疑你不想在雞孵化之前數它們，但一旦建築物被出售並向銀行付款，你最終的每股賬面價值將在 6 至 7 美元左右無休無止地進行下去，當您處理庫存時，您將產生大量的自由現金流。

You did reference dividends in your press release, but why have you thought or is the Board thought about like maybe buying a big chunk of stock that through a Dutch auction tender offer something which would boost the value of each remaining share pretty meaningfully ala even if you buy back stock at a premium to what the stock price is right now?

您確實在新聞稿中提到了股息，但您為什麼考慮或董事會考慮過透過荷蘭式拍賣要約收購大量股票，這將非常有意義地提高剩餘每一股的價值，即使您以高於當前股價的溢價回購股票嗎？

Yes, we have just like we've said in past quarters, we have all those tools at our disposal, whether it's while we're reducing debt by this transaction, but stock buyback and dividends.

是的，就像我們在過去幾季所說的那樣，我們擁有所有可供使用的工具，無論是透過這項交易減少債務，還是股票回購和股息。

And yes, we have options.

是的，我們有選擇。

We haven't like you said, we're not counting any year chickens before they hatch.

我們沒有像你說的那樣，我們不會在孵化前計算任何一年的雞。

So that will be it remains to be seen what which direction we give.

因此，我們給的方向還有待觀察。

Okay.

好的。

And then just lastly, I'm curious on just curiosity more than anything that undeveloped land that you're retaining on.

最後，我對你所保留的未開發土地的好奇只是出於好奇。

Do you have any sort of long-term plan for that, or is it just you're going to hold onto that for the foreseeable future and just sort of an option for somebody down the road?

你對此有什麼長期計劃嗎？

Yes. bringing down those tenants, they're moving in this space that was not part of our operations, but we still have needs for storage.

是的。打倒這些租戶，他們搬進了這個不屬於我們營運的空間，但我們仍然有儲存需求。

And I hate to use leave just for storage, but that's a possibility or, you know, once we get this thing right-sized again and get known again, maybe it's at further operations.

我討厭只用休假來存儲，但這是有可能的，或者，你知道，一旦我們再次調整這個東西的大小並再次了解，也許它會在進一步的操作中。

Okay.

好的。

So it sounds like you don't have plans to liquidate that at any point in the future that..

所以聽起來你沒有計劃在未來的任何時候清算它..

Yes, no.

是的，不是。

Okay.

好的。

Great.

偉大的。

Well, listen, that's that's it for me.

好吧，聽著，這就是我的目的。

Thank you very much for taking my questions.

非常感謝您回答我的問題。

Thanks, Paul.

謝謝，保羅。

Thanks, Paul.

謝謝，保羅。

(Operator Instructions)

（操作員說明）

Frank Payer, Private Investor.

弗蘭克·佩爾，私人投資者。

Hi, everybody.

大家好。

My question is -- I have kind of two questions, maybe three, when the promotion that increased the brand partners com was announced or as a result of that, did the partners were they added through people recruiting to their downside existing partners, recruiting people or are they've fresh with no, it was no upside person?

我的問題是——我有兩個問題，也許是三個問題，當宣布增加品牌合作夥伴com的促銷活動時，或者因此，合作夥伴是否是透過招募人員來招募他們現有的合作夥伴，招募人員來添加的還是他們已經新鮮了，沒有，沒有優點的人？

And that's a great question, Frank.

這是一個很好的問題，弗蘭克。

We actually we don't do any direct recruiting.

實際上我們不進行任何直接招聘。

We count on our brand partners and to spread the word about our mission and make that opportunity available.

我們依靠我們的品牌合作夥伴來傳播我們的使命並提供這個機會。

We did see them come in initially without somebody and that they were wanting to sign up under the sponsor.

我們確實看到他們最初在沒有人的情況下進來，並且他們想在贊助商的贊助下註冊。

But as a part of our protocol, we automatically assign those to a sponsor and just because that's how our structure works.

但作為我們協議的一部分，我們會自動將它們分配給贊助商，因為這就是我們的結構的工作原理。

Okay.

好的。

If I would summarize that.

如果我總結一下的話。

I would maybe conclude that your promotion was inspiring to the existing brand partners and they went out and got some new folks.

我可能會得出這樣的結論：你的促銷活動對現有的品牌合作夥伴來說是鼓舞人心的，他們出去認識了一些新朋友。

That absolutely correct.

那絕對正確。

Okay.

好的。

The previous caller had mentioned buying back shares of stock or dividends.

之前的來電者提到回購股票或股利。

And I've been a shareholder for quite a while and I did appreciate the dividends is very attractive.

我成為股東已經有一段時間了，我確實意識到股息非常有吸引力。

I guess I'm wondering what is your what is your banker think about are starting to buy back stock or pay dividends at this point in time?

我想我想知道您的銀行家在此時開始回購股票或支付股息有何想法？

Well, yes, we didn't commit to you at this point.

嗯，是的，我們此時還沒有向您做出承諾。

In time, they would not yet be in favour of that.

隨著時間的推移，他們將不會贊成這樣做。

It's just once we are out of debt with our current lender and potentially moving to a different lender or whatever our future may be, then we would look at it.

只有當我們擺脫了當前貸方的債務，並可能轉向其他貸方或無論我們的未來如何時，我們才會考慮它。

It's not going to be before and we execute this sale transaction.

之前不會，我們會執行這筆銷售交易。

Okay.

好的。

One more is that, if I took my notes correctly, you have -- you think you have $30 million of excess inventory?

還有一點是，如果我的筆記正確的話，你認為你有 3000 萬美元的過剩庫存？

Unfortunately, yes.

不幸的是，是的。

Okay.

好的。

Any great idea on how to get rid of that, that you haven't thought of?

關於如何擺脫它的任何好主意，你沒有想到嗎？

Well, you have there's been a lot of people have tried to advise us.

嗯，有很多人試圖給我們建議。

Now it's very delicate.

現在已經非常微妙了。

We don't want to do anything that would damage our current business models or we're using tactics like discounting and things like that.

我們不想做任何會損害我們當前商業模式的事情，或者我們正在使用折扣等策略。

And we've done, you know, on decreased sales.

你知道，我們已經做到了銷量下降。

We still moved a lot of inventory.

我們仍然轉移了大量庫存。

So it's working well, we're staying within the confines of our the restrictions put on us by the bank within our line of credit.

所以它運作得很好，我們遵守銀行在我們的信用額度內對我們施加的限制。

So everything we're doing so far is working.

所以到目前為止我們所做的一切都是有效的。

But yes, we're going to get into the fall, which is normally at a higher level of selling time selection, reduce inventory.

但是，是的，我們將進入秋季，這通常是在較高水平的銷售時間選擇，減少庫存。

But like we've said before, this is all good inventory.

但就像我們之前說的，這都是很好的庫存。

It's not it doesn't need to be written off or written down or anything like that.

並不是它不需要被註銷或寫下來或類似的東西。

It's still very, very salable products.

它仍然是非常非常暢銷的產品。

So and we should turn it into cash and I get more get stronger.

所以我們應該把它變成現金，我會變得更強大。

Sounds great.

聽起來很棒。

Thank you, folks.

謝謝你們，夥計們。

Keep up the good work.

繼續做好工作。

Thanks, Frank.

謝謝，弗蘭克。

As there are no further questions at this time, I would hand over the call to Craig White for closing comments, please go ahead.

由於目前沒有其他問題，我將把電話轉交給克雷格懷特（Craig White）進行結束評論，請繼續。

Thanks, everyone, for joining us on our call today.

感謝大家今天加入我們的電話會議。

Just as a heads up, because of the timing of the 4th of July holiday, we will be filing our 10-Q on Monday.

請注意，由於 7 月 4 日假期，我們將於週一提交 10-Q。

So again, appreciate your continued support and look forward to providing an additional update in October.

再次感謝您的持續支持，並期待在 10 月提供額外的更新。

Thank you.

謝謝。

Ladies and gentlemen, this concludes today's conference call.

女士們、先生們，今天的電話會議到此結束。

Thank you for your participation, and you may now disconnect.

感謝您的參與，您現在可以斷開連接。