Educational Development Corp (EDUC) 2025 Q4 法說會逐字稿

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Educational Development Corporation's financial and operating results for its fiscal fourth quarter and fiscal 2025 results. As a reminder, this conference is being recorded.

大家下午好，感謝大家參加今天的電話會議，討論教育發展公司第四季和 2025 財年的財務和營運業績。提醒一下，本次會議正在錄製中。

On the call today are Craig White, President and Chief Executive Officer; Heather Cobb, Chief Sales and Marketing Officer; and Dan O'Keefe, Chief Financial Officer. After the market closed this afternoon, the company issued a press release announcing its results for the fiscal fourth quarter and fiscal 2025 results. The release will be available today on the company's website at www.edcpub.com.

今天參加電話會議的有總裁兼首席執行官克雷格·懷特 (Craig White)、首席銷售和營銷官希瑟·科布 (Heather Cobb) 和首席財務官丹·奧基夫 (Dan O'Keefe)。今天下午收盤後，該公司發布新聞稿，公佈了其第四財季業績和2025財年業績。新聞稿將於今日在公司網站 www.edcpub.com 上發布。

Before turning to the prepared remarks, I would like to remind you that some of the statements made today will be forward-looking and are protected under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied due to a variety of factors. We refer you to Educational Development Corporation's recent filings with the SEC for a more detailed discussion of the company's financial condition.

在開始準備好的發言之前，我想提醒大家，今天所作的一些陳述具有前瞻性，並受到 1995 年《私人證券訴訟改革法》的保護。由於各種因素，實際結果可能與明示或暗示的結果有重大差異。我們請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，以便更詳細地了解該公司的財務狀況。

With that, I would like to turn the call over to Craig White, the company's President and Chief Executive Officer. Craig?

接下來，我想將電話轉給公司總裁兼執行長克雷格懷特 (Craig White)。克雷格？

Thank you, Chloe, and welcome, everyone, to the call. We appreciate your continued interest. I will start today's call with some general comments regarding the quarter. Then I will pass the call to Dan and Heather to run through the financials and provide an update on our sales and marketing. Finally, I will wrap up the call with an update on our progress of the sale leaseback of our headquarters, the Hilti Complex, and provide some comments on our strategy for fiscal 2026.

謝謝你，克洛伊，歡迎大家參加電話會議。感謝您的持續關注。我將在今天的電話會議上就本季發表一些一般性評論。然後我會將電話轉給丹和希瑟，讓他們了解財務狀況並提供我們的銷售和行銷最新情況。最後，我將在電話會議結束時介紹我們總部喜利得綜合大樓售後回租的進展情況，並就我們 2026 財年的策略發表一些評論。

During the fourth quarter, we experienced decreased sales compared to the same period last year. This was influenced in part by a reduced number of active brand partners in our PaperPie division. Across the broader marketplace, we continue to see fluctuations in consumer behavior driven by factors such as inflation and shifting discretionary spending among families with young children. These external pressures have impacted both customer purchasing habits and the pace of new brand partner acquisition.

第四季度，我們的銷售額與去年同期相比有所下降。這在一定程度上受到我們 PaperPie 部門活躍品牌合作夥伴數量減少的影響。縱觀更廣泛的市場，我們持續看到消費者行為的波動，這些波動受到通貨膨脹和有幼兒家庭可自由支配支出變化等因素的影響。這些外部壓力既影響了顧客的購買習慣，也影響了新品牌合作夥伴的取得速度。

That said, one of the unique strengths of the direct selling model is its ability to flex and adapt in response to changing economic conditions. We believe that by staying close to the field, listening to our community and remaining agile in our approach, we are well positioned to navigate the current environment and build a more sustainable path forward.

儘管如此，直銷模式的獨特優勢之一是它能夠根據不斷變化的經濟條件進行靈活調整。我們相信，透過貼近現場、傾聽社區的聲音並保持靈活的態度，我們能夠更好地應對當前環境並建立更永續的前進道路。

We believe another factor in the decrease in sales is the lack of new titles over the past year. Although we did not make any purchases during this quarter, we remain committed to doing so in a strategic and financially responsible manner. We continue to be presented with new content and product offerings and are excited for the opportunity to introduce those to our catalog soon.

我們認為銷售下降的另一個因素是過去一年缺乏新書。儘管本季我們沒有進行任何採購，但我們仍致力於以策略性和財務負責的方式進行採購。我們將繼續推出新的內容和產品，並很高興有機會很快將它們引入我們的目錄。

During the quarter, we continued to offer increased discounts to customers, which negatively impacted our gross margin and bottom line. Our increased discounting has been a tactical decision to bolster sales and turn excess inventory into cash to be used to pay down our bank debt. We see this as a short-term strategy, and we'll continue to offer discounts and promotions until the sale of our building and we pay back all of our borrowings. While we generated less sales during the quarter, our loss before taxes declined from last year. This reflects our continued focus on reducing expenses during this difficult environment.

本季度，我們繼續向客戶提供增加的折扣，這對我們的毛利率和利潤產生了負面影響。我們增加折扣是一種戰術決策，旨在促進銷售並將過剩庫存轉化為現金，用於償還銀行債務。我們認為這是一個短期策略，我們將繼續提供折扣和促銷，直到我們的建築物出售並且我們償還所有借款。雖然本季我們的銷售額有所下降，但稅前虧損較去年同期下降。這反映出我們在困難環境下持續致力於削減開支。

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

說完這些，我現在將電話轉給 Dan O'Keefe，讓他簡單介紹一下財務狀況。擔？

Thank you, Craig. To our fourth quarter results compared to the prior year fourth quarter, net revenues were $6.6 million compared to $9 million. Average active PaperPie Brand Partners totaled 9,400 compared to 15,500. Loss before income taxes totaled $1.5 million compared to a loss of $2.2 million in the fiscal fourth quarter last year. Net loss totaled $1.3 million compared to a loss of $1.6 million, and loss per share for the quarter totaled $0.16 compared to a loss of $0.19 on a fully diluted basis.

謝謝你，克雷格。與去年同期相比，我們第四季的業績為 660 萬美元，而去年同期為 900 萬美元。PaperPie 平均活躍品牌合作夥伴總數為 9,400 個，而去年同期為 15,500 個。所得稅前虧損總計 150 萬美元，而去年第四財季的虧損為 220 萬美元。淨虧損總計 130 萬美元，而去年同期虧損為 160 萬美元；本季每股虧損總計 0.16 美元，而全面攤薄後每股虧損為 0.19 美元。

Now on to our fiscal 2025 summary compared to the prior year. Year-to-date net revenues totaled $34.2 million compared to $51 million. Average active PaperPie Brand Partners totaled 12,300 compared to 18,300 last year. Loss before income taxes totaled $6.9 million compared to income before taxes of $700,000. Net loss after taxes totaled $5.3 million compared to income of $500,000. Loss per share totaled $0.63 compared to earnings per share of $0.07 on a fully diluted basis.

現在來看看我們與前一年相比的 2025 財年總結。年初至今的淨收入總計 3,420 萬美元，去年同期為 5,100 萬美元。PaperPie 平均活躍品牌合作夥伴總數為 12,300 個，而去年為 18,300 個。稅前虧損總計 690 萬美元，而稅前收入為 70 萬美元。稅後淨虧損總計 530 萬美元，而同期的收入為 50 萬美元。每股虧損總計 0.63 美元，而完全稀釋後每股收益為 0.07 美元。

Now for an update on our working capital positions. Net inventories decreased $10.9 million from $55.6 million at February 28, 2024, to $44.7 million at February 28, 2025. Borrowings on our working capital line of credit totaled $4.2 million at the end of February 2025 with $600,000 of availability at the end of the fourth quarter. That concludes the financial update.

現在來更新一下我們的營運資金狀況。淨庫存從 2024 年 2 月 28 日的 5,560 萬美元減少 1,090 萬美元至 2025 年 2 月 28 日的 4,470 萬美元。截至 2025 年 2 月底，我們的營運資金信貸額度借款總額為 420 萬美元，第四季末可用金額為 60 萬美元。財務更新到此結束。

I will now turn the call over to Heather Cobb to talk about sales and marketing opportunities in further detail. Heather?

現在我將把電話轉給 Heather Cobb，讓她更詳細地討論銷售和行銷機會。希瑟？

Thank you, Dan. As Craig mentioned earlier, we continue to make strategic changes to bring fresh opportunities for success within PaperPie, especially related to our brand partners. One of the most visible examples during the fourth quarter was our Book Friday promotion, which offered deep discounts across our e-commerce platform and was met with strong engagement. In addition to the increase in customer activity, this event allowed us to move excess inventory, generate cash flow and create energy within our community at a critical time of year.

謝謝你，丹。正如 Craig 之前提到的，我們將繼續進行策略變革，為 PaperPie 帶來新的成功機會，尤其是與我們的品牌合作夥伴相關的成功機會。第四季最明顯的例子之一是我們的「閱讀星期五」促銷活動，該活動在我們的電子商務平台上提供了大幅折扣，並獲得了熱烈的反響。除了增加客戶活動之外，這次活動還使我們能夠在一年中的關鍵時刻轉移多餘的庫存，產生現金流並在社區內創造活力。

Another key initiative this quarter was the successful launch of our new shipping subscription program, The Pass. Designed to enhance the customer experience and encourage repeat purchases, The Pass offers members access to discounted or free shipping, exclusive perks and special promotions throughout the year.

本季的另一個重要舉措是成功推出我們的新航運訂閱計畫 The Pass。The Pass 旨在提升客戶體驗並鼓勵重複購買，為會員提供全年折扣或免費送貨、專屬優惠和特別促銷。

We introduced two affordable tiers, Basic and Plus, to meet a range of customer needs, and early adoption was a success. Not only has The Pass driven strong customer loyalty, but it has also created new opportunities for brand partners to reengage, pass customers and build ongoing relationships rooted in both convenience and value.

我們推出了兩種價格實惠的套餐，即 Basic 和 Plus，以滿足一系列客戶需求，早期採用取得了成功。The Pass 不僅增強了客戶忠誠度，還為品牌合作夥伴創造了新的機會，讓他們能夠重新吸引、轉移客戶並建立以便利性和價值為基礎的持續關係。

We also concluded our StoryScape travel incentive where top-performing brand partners could have earned a trip to Scotland. The qualification period officially ended on December 31, and we are thrilled to be celebrating those earners this summer. We immediately followed this by launching our next major sales incentive called The Piece of the Story, which offered a wide and tiered range of rewards and has been structured to encourage consistent sales activity across a broader segment of the field.

我們也推出了 StoryScape 旅遊獎勵計劃，表現最佳的品牌合作夥伴將有機會獲得一次蘇格蘭之旅。資格審查期於 12 月 31 日正式結束，我們很高興能在今年夏天為這些獲得資格的人員慶祝。緊接著，我們又推出了下一個重要的銷售激勵計劃，名為“故事片段”，該計劃提供了廣泛而多層次的獎勵，旨在鼓勵更廣泛領域的持續銷售活動。

As we've shared in the past, we believe strongly in in-person connection and development. Our 2025 StoryMaker Summit began during the fourth quarter and had us meeting brand partners in their neighborhoods, at least in some of them, as we travel to five regions across the country. Unlike our traditional national convention, these summits are intentionally designed as smaller, more intimate gathering, allowing for richer conversations, deeper personal connection and focused skill building.

正如我們過去所分享的，我們堅信面對面的聯繫和發展。我們的 2025 年 StoryMaker 高峰會於第四季度拉開序幕，我們前往全國五個地區，與品牌合作夥伴在他們的社區（至少是其中一些社區）會面。與我們傳統的全國大會不同，這些峰會特意設計為規模更小、更親密的聚會，以便進行更豐富的對話、更深層次的個人聯繫和有針對性的技能建設。

This structure not only provides attendees with more direct access to home office leadership and expert speakers, but also creates the space for meaningful peer-to-peer exchanges that inspire action and build confidence.

這種結構不僅為與會者提供了更直接地接觸總部領導和專家演講者的機會，而且還創造了有意義的點對點交流的空間，以激發行動並建立信心。

We are already seeing how these more personal settings are fostering stronger community bonds, greater trust and lasting loyalty among those attending. These summits are more than just training. They're energizing touch points that remind brand partners that they are seen, supported and part of something bigger. This concludes the sales and marketing update for the fourth quarter.

我們已經看到這些更個人化的環境如何在參與者中培養更強大的社群連結、更大的信任和持久的忠誠度。這些峰會不僅僅是訓練。它們是充滿活力的接觸點，提醒品牌合作夥伴，他們被看見、被支持，並且是更大群體的一部分。第四季的銷售和行銷更新到此結束。

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

現在我將把電話轉回給克雷格，請他作最後發言。克雷格？

Thank you, both, Heather and Dan. And now for an update on the Hilti Complex building sale process. Over the past few months, we have been working with a prospective new buyer, and I'm pleased to announce last week, we executed a purchase sale agreement with the new buyer. This buyer has expressed interest since mid-last year, and we hope to complete the sale within the next 120 days.

謝謝你們，希瑟和丹。現在來更新一下喜利得綜合大樓的銷售進度。在過去的幾個月裡，我們一直在與一位潛在的新買家合作，我很高興地宣布，上週我們與新買家簽訂了買賣協議。該買家自去年年中以來就已表達興趣，我們希望在未來 120 天內完成銷售。

Some of the positive items with this buyer is that they have a good understanding of the market as well as the Hilti Complex. Additionally, they have agreed to a more expedited due diligence with half our deposit going hard after 45 days. I think it just demonstrates a more -- a higher level of commitment than our previous buyers.

該買家的優點之一是他們對市場以及喜利得集團有很好的了解。此外，他們還同意加快盡職調查速度，我們的一半定金將在 45 天後退還。我認為這表明我們比以前的買家有更高水準的承諾。

The agreement excludes the 17 acres of excess land, which will remain under EDC's ownership and provide further strength to our balance sheet post building sale. The proceeds from the sale are expected to fully pay back the bank, leaving us with no debt, and we expect to have limited borrowing needs moving forward. We continue to develop options for post-sale financing as well.

該協議不包括 17 英畝的多餘土地，這些土地仍歸 EDC 所有，並將進一步增強我們建築物出售後的資產負債表。出售所得預計將全部償還銀行債務，使我們不再有債務，並且我們預計未來的借貸需求將有限。我們也正在繼續開發售後融資方案。

Lastly, I want to thank all of our shareholders for their patience, our employees for their commitment to our mission and our customers and brand partners for their loyalty during this difficult period. I am confident in our collective ability to emerge stronger and more resilient than ever before.

最後，我要感謝所有股東的耐心、員工對我們使命的承諾以及客戶和品牌合作夥伴在這段困難時期的忠誠。我相信，我們集體的力量將比以往更加強大、更加堅韌。

Now that we have provided a summary of some recent activity, I will now turn the call back over to the operator for questions and answers.

現在我們已經提供了一些最近活動的摘要，我現在將把電話轉回給接線員進行問答。

Thank you. Ladies and gentlemen, we will now begin the question and answer session. (Operator instructions)

謝謝。女士們、先生們，我們現在開始問答環節。（操作員指示）

Paul Carter, Capstone Asset Management.

保羅卡特（Paul Carter），Capstone Asset Management。

Thank you. Good afternoon, everybody. Can you -- you mentioned there just about the buyer and the terms of the agreement. But can you disclose who is this TG OTC? Is that a local group? Is it a REIT? Any characteristics that you can provide about the buyer?

謝謝。大家下午好。您能否—您剛才提到了買家和協議條款。但可以透露一下這個TG OTC是誰嗎？那是當地團體嗎？它是房地產投資信託基金 (REIT) 嗎？您能提供任何關於買家的功能嗎？

Yeah. I think we're choosing not to disclose that at this time. We kind of want to get through the initial part of the due diligence period before we disclose who the buyer is.

是的。我認為我們目前選擇不披露這一點。我們希望先完成盡職調查的初始階段，然後再透露買家是誰。

Can you disclose what price you've agreed upon?

能透露一下您同意的價格嗎？

I believe that's in the -- what's been filed today.

我相信這就是今天提交的文件。

Yeah, it's in the press release, $35,150,000

是的，新聞稿裡說了，3515萬美元

Sorry, I totally missed that. Okay. So that $35 million, that's quite a bit below what you sold or what you had agreed upon with the previous buyer. Can you describe a little bit about the -- just the local market there in Tulsa? Has it weakened significantly? Or is this more a reflection of just your desire to get this transaction completed as soon as possible?

抱歉，我完全沒有註意到。好的。所以那 3500 萬美元，比你賣出的價格或與前一位買家達成的價格低了不少。能否簡單介紹一下塔爾薩的當地市場？它是否已經明顯減弱了？或者這只是反映了您希望盡快完成這筆交易？

Well, a couple of things. Thanks for the question. That's not exactly true. With the last buyer -- well, the net proceeds are going to be higher with this sale than they were going to be with the last buyer is what I'll say. So all of our offers are netting us around the same amount over our last previous couple of buyers. So we feel good about this one.

嗯，有幾件事。謝謝你的提問。事實並非如此。對於上一位買家來說——嗯，我想說的是，這次銷售的淨收益將比上一位買家的淨收益更高。因此，我們所有報價為我們帶來的淨收入都與之前幾位買家的報價大致相同。所以我們對此感覺很好。

Okay. That's great. And then just on the average sales consultants or brand partners. So I know obviously, like four years ago, that number was up around the 60,000 mark, and it's been a difficult last four years for a variety of reasons.

好的。那太棒了。然後只是針對普通的銷售顧問或品牌合作夥伴。所以我顯然知道，就像四年前一樣，這個數字上升到了 60,000 左右，但由於各種原因，過去四年一直很艱難。

That number seems to be bottoming out in kind of the low teens number, but then this last quarter, saw a pretty -- quite honestly, a pretty shocking reacceleration in that drop. It's now -- like just last quarter versus this quarter, it's down another 24% quarter-over-quarter. If my numbers are right, that's the biggest quarter-over-quarter drop that you've seen over the last four years.

這個數字似乎已經觸底，處於低點十幾個百分點，但在上個季度，坦白說，出現了相當令人震驚的再次下降。現在——與上一季相比，本季環比下降了 24%。如果我的數字正確的話，這是過去四年來最大的季度環比降幅。

And again, I know it's a consumer -- the consumer environment is a little bit more difficult now than maybe it was a year ago, but is there anything more that you can sort of talk through like why such a large drop quarter-over-quarter? And is sort of the thoughts of sort of bottoming out, has that been kind of pushed aside for the moment and we could see continued drops in the quarter ahead -- quarters ahead?

再說一次，我知道這是一個消費者問題——現在的消費環境可能比一年前要困難一些，但您能否再解釋一下為什麼季度環比下降幅度這麼大？那麼，這種觸底反彈的想法是否暫時被擱置了，我們是否可以看到未來幾季經濟繼續下滑？

Yeah. Good question. We tend not to look at quarter-over-quarter numbers just because of how drastically our seasonality is and there's all sorts of other factors. One of the biggest factors that we can attribute this drop to is we tend to run recruiting specials at various different times of year. We ran a significant special in early summer of last year.

是的。好問題。我們往往不關注季度環比數據，因為季節性影響很大，而且還有各種其他因素。造成這種下降的一個最大因素是我們傾向於在一年中的不同時間進行招募特惠活動。去年初夏我們舉辦了一場意義重大的特別活動。

And so what happens is the way that we calculate our active brand partner count would be those that potentially join during that recruiting special and did not continue with activity or remain active would drop off during this quarter. And so I think that that's the main factor that we're seeing here as the difference in the numbers that you're seeing there, Paul.

因此，我們計算活躍品牌合作夥伴數量的方式是，那些在招募特別活動期間可能加入但沒有繼續活動或保持活躍的合作夥伴將在本季度減少。所以我認為這就是我們在這裡看到的主要因素，因為你看到的數字有差異，保羅。

No, I would also -- sorry, Paul, I would also add that during this period of difficulty, I mean, we're throwing up red flags left and right to our field sales force. So I think they're kind of waiting to see what happens. Everyone's wanting us to see the building sale complete, move on from our current lender and get back to business -- back closer to business as usual. So -- and that includes buying new titles. Our lowest level of brand partner rely on new title releases to spur their activity to call customers and whatnot. So we've got to get back to where we can conservatively purchase new titles.

不，我還要——抱歉，保羅，我還要補充一點，在這段困難時期，我的意思是，我們正在向我們的現場銷售人員發出警告。所以我認為他們正在等待看會發生什麼。每個人都希望我們能夠完成大樓的銷售，擺脫目前的貸款機構，重新開始營業——恢復正常的業務。所以——這包括購買新書。我們最低層級的品牌合作夥伴依靠新標題的發布來刺激他們的活動來呼叫客戶等等。因此，我們必須回到可以保守地購買新書的地方。

Okay. No, that's fine. And then just last question. Yeah, last question here. So your share count increased like 310,000 in the fourth quarter relative to the third. Was there anything unusual that happened in the fourth quarter that caused the share count to increase?

好的。不，沒關係。接下來是最後一個問題。是的，這是最後一個問題。因此，與第三季相比，第四季的股票數量增加了 310,000 股。第四季是否發生了一些異常情況，導致股票數量增加？

We had a vesting tranche in our LTI plan, long-term incentive plan that was granted back in 2019 and '20 and vested on February 28, 2025. And so that is the last component of our equity incentive plan. And we have no current equity incentive plan in place.

我們的 LTI 計劃中有一個歸屬部分，即長期激勵計劃，於 2019 年和 2020 年授予，並於 2025 年 2 月 28 日歸屬。這就是我們的股權激勵計畫的最後一個組成部分。我們目前沒有股權激勵計畫。

Okay. And I do -- yes, thanks for that. I do remember that. I don't remember the details of it, but I'm just going off memory here. I thought that was -- the vesting was driven by revenue growth. Or was that not part -- or was it just time vesting?

好的。我確實如此——是的，謝謝你。我確實記得那件事。我不記得它的細節，但我只是在這裡回憶一下。我認為－歸屬是由營收成長所推動的。或者那不是部分——或者那隻是時間歸屬？

The earning of it was based on hitting revenue and profitability targets. And then the vesting of it was a time vesting period. So it was earned back in '19 and '20, but there was a time vesting requirement

其獲利取決於收入和獲利目標的達成。然後它的歸屬是一個時間歸屬期。所以它在 19 年和 20 年賺回來了，但有一個時間歸屬要求

Okay, no, that's great. Excellent. Well, that's it for me. Thanks everybody and best of luck with the closing of the transaction.

好的，不，那太好了。出色的。嗯，對我來說就這樣了。謝謝大家，祝交易順利完成。

Thank you.

謝謝。

Thank you, Paul.

謝謝你，保羅。

(Operator instructions)

（操作員指示）

Daniel Balchen.

丹尼爾·巴爾欽。

Hello, I hope you can hear me. I hope you can hear me. So my first question was sort of thinking about the longer-term future of these discounts that the company is offering. To what extent would you say that these discounts are a combination of just a lack of demand for the product rather than our own ability to actually not discount those products? And then what I'm asking is, are these discounts forced upon us rather than our own choice in order to reduce inventory?

你好，希望你能聽到我的聲音。我希望你能聽到我的聲音。所以我的第一個問題是思考公司提供的這些折扣的長期前景。您認為這些折扣在多大程度上是因為產品需求不足，而不是因為我們本身無法真正不打折這些產品？然後我想問的是，這些折扣是強加給我們的，而不是我們自己選擇的，以減少庫存嗎？

I mean I think a little bit of your answer is both and it is something that we are choosing to do in order to continue to pay down inventory, generate cash, reduce inventory on hand. I would say as far as demand for the product, it is definitely still there. We see that with all sorts of market numbers and different things like that.

我的意思是，我認為您的答案是兩者兼而有之，而我們選擇這樣做是為了繼續償還庫存、產生現金、減少庫存。我想說，就產品需求而言，它肯定仍然存在。我們從各種市場數據和諸如此類的不同事物中看到了這一點。

I'll refer back to what Craig said in one of the responses to Paul talking about new titles. Sometimes that we see as more of a driver that people will come in, excited about a new title. But as we know and we believe and we continue to see happen, everything is a new title to a new customer.

我將回顧克雷格在對保羅談論新標題的回應中所說的話。有時，我們認為這更像是一種驅動力，促使人們加入進來，對新的頭銜感到興奮。但正如我們所知、所信以及我們不斷看到的，對於新客戶來說，一切都是新的頭銜。

And so as long as babies and kids continue to be born and grow up each and every day, the demand will continue to be there. And we intend to slow down the discounts in the coming months so that we can get back to, air quotes, normal operations and don't have to see this as a factor that we're relying on any further.

因此，只要嬰兒和兒童每天都不斷出生和成長，需求就會持續存在。我們打算在未來幾個月內放慢折扣速度，以便我們能夠恢復航空報價和正常運營，而不必將其視為我們進一步依賴的因素。

Okay. And in terms of the team's own understanding of the sort of the future of the company, say, looking 1.5 years, 2 years down the line, what's the sort of goal that the team has in mind in terms of revenue and the leanness of the balance sheet? For example, if we sell our Hilti Complex, then we have a significant cash inflow. Not all of that will go to paying off the bank debt. So -- and some of that will obviously be used to buy inventory. But what are your thoughts surrounding sort of your picture of the company in 1.5 years time?

好的。就團隊本身對公司未來的理解而言，比如說，展望 1.5 年或 2 年後，團隊在收入和資產負債表精簡方面心中的目標是什麼？例如，如果我們出售喜利得綜合體，那麼我們就會有大量的現金流入。這些錢不會全部用來償還銀行債務。所以——其中一部分顯然會用於購買庫存。但是您對一年半後的公司有何看法？

Yeah, that's a great question. Yes, there'll be a little bit of excess funds from the sale of the building transaction in which we will start to purchase new titles. We're taking this opportunity to kind of define -- redefine who we are and what we want to be.

是的，這是一個很好的問題。是的，我們會從出售建築交易中獲得一些剩餘資金，用於購買新的產權。我們正在藉此機會重新定義我們是誰以及我們想要成為什麼樣的人。

And Heather has been into Bologna, Italy back in late March, where vendors and publishers present content to us. And there's several companies that want to offer their entire product line to us. Now we're not going to obviously do that. But we're very excited about a couple of product lines that we want to bring on.

希瑟於三月底去了義大利博洛尼亞，那裡的供應商和出版商向我們展示了內容。有幾家公司希望向我們提供他們的整個產品線。現在我們顯然不會這麼做。但我們對於想要推出的幾條產品線感到非常興奮。

But again, we've got to be conservative. We've got to get back to profitability. Reducing our interest expense will go a long way. We're going to try to operate on our own cash flow. If not, very, very small borrowings from a new lender and then rebuild this business.

但同樣，我們必須採取保守態度。我們必須恢復獲利。減少我們的利息支出將大有裨益。我們將嘗試利用自己的現金流來運作。如果沒有的話，就向新的貸款機構借入非常小額的款項，然後重建這項業務。

And what's your own -- for all of you, what are your personal views on how the market is evaluating the company at the moment? Do you think that investors are missing something? Do you think investors have understood your plan correctly? Or do you think there's a misunderstanding?

而您自己—對你們所有人來說，您個人對目前市場如何評價該公司有何看法？您認為投資者是否忽略了什麼？您認為投資者是否正確理解了您的計劃？或者您認為其中有誤解？

No, I think they definitely understand. This has been a year to 15 months or so. And so the stock has held relatively steady between $1.20 and $1.50 for almost that entire period. So it's not like any more investors are jumping out. We may not be acquiring many new investors.

不，我想他們肯定明白。這已經過了一年十五個月左右了。因此，在幾乎整個期間內，該股價一直保持在 1.20 美元至 1.50 美元之間相對穩定。所以，這並不意味著會有更多投資者退出。我們可能不會獲得很多新投資者。

But I think we're all pushing towards getting this building sold. We've said it all along. We believe that once we get out from under our current lender and get back to having a little more flexibility to run the company the way we see fit that we could be back going again.

但我認為我們都在努力將這棟大樓賣掉。我們一直都這麼說。我們相信，一旦我們擺脫當前貸款人的束縛，重新擁有更多的靈活性，以我們認為合適的方式經營公司，我們就可以重新開始營運。

Now we're stressing that we're going to have to be conservative about the start-up after we sell this building. So it's not going to be a quick fix. It's going to take some time. We've got to work through our excess inventory while bringing in some more inventory. So I mean that implies we're still going to be aggressively selling our -- the inventory that we have now. But I don't think the investment community is missing anything. I just think we're all waiting to see what happens with this transaction.

現在我們強調，出售這棟建築後，我們必須對啟動採取保守態度。所以這不是一個可以快速解決的問題。這需要一些時間。我們必須處理掉多餘的庫存，同時引入更多的庫存。所以我的意思是，這意味著我們仍然會積極銷售我們現有的庫存。但我並不認為投資界錯過了什麼。我只是認為我們都在等著看這筆交易的結果。

Okay. And the final question on my end. What is the deal with the undeveloped land? I understand that TG as the buyer, they want to maximize their return on their capital. But what is the plan for that land? Because of course, if we can reinvest capital much more efficiently in inventory or even say buying back shares, what's the use of this unoccupied inefficient land?

好的。這是我最後一個問題。未開發的土地如何處理？我理解 TG 作為買家，他們希望最大化其資本回報。但是那塊土地的規劃是什麼？因為當然，如果我們可以更有效地將資本再投資於庫存，甚至回購股票，那麼這些閒置的低效率土地有什麼用呢？

Yeah. So the -- David, the land recently appraised for a value of about $2 million that -- but when we go to market with the Hilti Complex, the buyer really doesn't value the land because he values the leases that are existing in the complex. So for us, it's about just getting through the sale, and then what we decide to do with that land in the future is really kind of a multipath kind of option. We could sell it in the future. We could -- right now, we have a lot of outside warehouse space that we're renting.

是的。所以——大衛，這塊土地最近的估價約為 200 萬美元——但是當我們帶著喜利得綜合體進入市場時，買家實際上並不看重這塊土地，因為他看重的是綜合體中現有的租約。所以對我們來說，這只是完成銷售，然後我們決定將來如何處理這塊土地實際上是一種多路徑選擇。我們將來可以將其出售。我們可以—現在，我們有很多正在租賃的戶外倉庫空間。

There's a thought process that if we grow back to where we were in the pre-COVID days of $100 million, we're going to need some more space than what we have just in the Hilti Complex, and we might use that space to build a warehouse on it. So just lots of different ideas on what we can do with it. But the key thing is that the buyer wasn't going to give us much value at all for it. So we -- our shareholders are better off with us holding on to it for a little bit and determining the best way to maximize the value of the land.

有一種想法是，如果我們恢復到新冠疫情之前的 1 億美元規模，我們將需要比喜利得綜合大樓更多的空間，我們可能會利用這些空間建造一個倉庫。因此，對於我們可以用它做什麼，有很多不同的想法。但關鍵是買家根本不會給我們太多價值。因此，如果我們暫時持有土地並確定最大化土地價值的最佳方式，我們的股東將受益。

Okay, that's great. Well, you've got my support, so, thank you for another year.

好的，太好了。好吧，你得到了我的支持，所以，感謝你又一年的支持。

Yeah, I appreciate you, Daniel.

是的，我很感謝你，丹尼爾。

Thanks Daniel.

謝謝丹尼爾。

There are no questions at this time. I would like to hand the conference over to Craig. Please go ahead.

目前沒有問題。我想將會議交給克雷格。請繼續。

Okay. Thank you. Another good call. I appreciate everyone's engagement and your continued support. We look forward to providing you another update in July. Thank you.

好的。謝謝。又一個好電話。我感謝大家的參與和持續的支持。我們期待在七月為您提供另一個更新。謝謝。

This concludes today's conference. Thank you for participating. You may now disconnect.

今天的會議到此結束。感謝您的參與。您現在可以斷開連線。