Educational Development Corp (EDUC) 2026 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 full year results. As a reminder, this conference is being recorded.

各位下午好，感謝各位參與今天的電話會議，討論 Educational Development Corporation 之 2026 會計年度第四季及全年財務與營運成果。提醒各位，本次會議將進行錄音。

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 2026 fourth quarter and year-end results. The release will be available after today on the company's website at www.edcpub.com.

今天與會者包括總裁兼執行長 Craig White、銷售與行銷長 Heather Cobb，以及財務長 Dan O’Keefe。今日收盤後，公司已發布新聞稿，公布 2026 會計年度第四季及年終業績。新聞稿將於今日之後在公司網站 www.edcpub.com 提供。

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.

在進入事先準備的發言之前，我想提醒各位，今天所作的部分陳述可能屬於前瞻性陳述，並受 1995 年《私人證券訴訟改革法》保護。由於多種因素，實際結果可能與明示或暗示之內容存在重大差異。我們建議各位參閱 Educational Development Corporation 近期向美國證券交易委員會（SEC）提交的文件，以取得對公司財務狀況更詳細的討論。

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

接下來，我將把電話交給公司總裁兼執行長 Craig White。Craig，請開始。

Thank you, Alan, 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 over to Dan to run through the financials. After which Heather will provide an update on sales and marketing and IT projects, and then I will provide an update on our plans for fiscal 2027.

謝謝你，Alan，也歡迎各位參與本次電話會議。我們感謝各位持續的關注。我將先就本季做一些概括性評論，接著把電話交給 Dan 說明財務數據。之後 Heather 將就銷售與行銷以及 IT 專案提供最新進展，最後我會更新我們對 2027 會計年度的規劃。

Much of our fourth quarter was focused on our turnaround plan of selecting and ordering critical inventory. During the quarter, we began a conservative purchasing plan to replenish some of our best-selling out-of-stock items as well as purchased new titles. To remind everyone, it takes anywhere from four to six months from the time we issue a purchase order until the product is received and available for sale.

我們第四季的大部分工作聚焦於轉型計畫，亦即挑選並訂購關鍵庫存。本季期間，我們開始採取保守的採購計畫，以補充部分最暢銷但缺貨的品項，同時也採購新書目。提醒各位，自我們發出採購訂單起，到產品到貨並可供銷售，通常需要四到六個月。

I am pleased to report that we have received some of these replenishment and new titles and I've seen the excitement this has created in both our sales divisions. We are still expecting most of these new titles over the next few weeks and plan to showcase them at our annual convention in June. Heather will talk more about this in her marketing update. As I've said before, our turnaround plan is not an overnight change, but a carefully developed plan for growth over the next few quarters and years.

我很高興報告，我們已收到部分補貨與新書目，並看到這在我們兩個銷售部門都引發了熱烈反應。我們仍預期在接下來幾週內收到大多數新書目，並計畫在六月的年度大會上展示。Heather 會在她的行銷更新中進一步說明。如我先前所說，我們的轉型計畫不會一夕改變，而是一項審慎制定、在未來幾季與幾年推動成長的計畫。

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

接下來，我把電話交給 Dan O’Keefe，請他簡要說明財務概況。

Thank you, Craig. To start our fourth quarter summary compared to the prior year fourth quarter, net revenues for the quarter were $4.2 million compared to $6.6 million. Average active PaperPie brand partners totaled 4,500 compared to 9,400. Loss before income taxes were $2.1 million, a $600,000 decline over the prior fiscal fourth quarter.

謝謝你，Craig。先就第四季與去年同期第四季比較，本季淨營收為 420 萬美元，去年同期為 660 萬美元。PaperPie 品牌活躍合作夥伴平均數為 4,500 人，去年同期為 9,400 人。所得稅前虧損為 210 萬美元，較上一會計年度第四季減少 60 萬美元。

Income tax for the quarter -- income tax expense for the quarter was $1 million due to a onetime valuation allowance of $1.5 million. Net loss for the quarter totaled $3.1 million, a decline of $1.8 million over the prior year fiscal fourth quarter. Loss per share totaled $0.37 compared to a loss per share of $0.16 on a fully diluted basis.

本季所得稅—本季所得稅費用為 100 萬美元，係因一次性估值備抵（valuation allowance）1,500 萬美元所致。本季淨虧損合計 310 萬美元，較去年會計年度第四季減少 180 萬美元。每股虧損為 0.37 美元，而去年在完全稀釋基礎下每股虧損為 0.16 美元。

Next to the fiscal year summary compared to the prior year, net revenues of $22.9 million compared to $34.2 million. Average active PaperPie brand partners totaled 5,800 compared to 12,300. Earnings before income taxes totaled $5.3 million, excluding the gain on the building sale of $12.2 million, the loss before income taxes were $6.9 million.

接著就全年與去年同期比較，淨營收為 2,290 萬美元，去年為 3,420 萬美元。PaperPie 品牌活躍合作夥伴平均數為 5,800 人，去年為 12,300 人。所得稅前盈餘為 530 萬美元；若排除出售大樓收益 1,220 萬美元，則所得稅前虧損為 690 萬美元。

Income tax expense was $3 million with an effective tax rate of 56.5% due to a onetime valuation allowance of $1.5 million. Net earnings totaled $2.3 million. Earnings per share totaled $0.27 compared to a loss of $0.63 last year on a fully diluted basis. Now for an update on our working capital. Inventory levels decreased from $44.7 million at the beginning of the fiscal year to $37.7 million at the end of the fiscal year, generating $7 million of cash flow from inventory reductions. At the end of the fiscal year, the company had approximately $1.3 million of cash on our balance sheet.

所得稅費用為 300 萬美元，有效稅率為 56.5%，係因一次性估值備抵 150 萬美元所致。淨利合計 230 萬美元。每股盈餘為 0.27 美元，而去年在完全稀釋基礎下每股虧損為 0.63 美元。接著更新營運資金狀況：庫存水位由會計年度初的 4,470 萬美元降至會計年度末的 3,770 萬美元，因庫存降低而產生 700 萬美元的現金流入。於會計年度末，公司資產負債表上約有 130 萬美元現金。

I would also like to mention some unusual accounting adjustments made during the fourth quarter. First, due to our accounting policy surrounding classification of long-term inventory, coupled with our decline in sales, we made a $3.6 million reclass of inventory during the fourth quarter from current inventory to long-term inventory.

我也想提及第四季所做的一些不尋常會計調整。首先，基於我們關於長期庫存分類的會計政策，加上銷售下滑，我們在第四季將 360 萬美元庫存自流動庫存重分類為長期庫存。

The reclass had no P&L impact as it only means that we have a longer-term supply of titles, we continue to sell each month based on current sales volumes. As sales increase, we expect more and more inventory to be reclassed from long-term inventory to current inventory.

此項重分類對損益表（P&L）沒有影響，僅表示我們持有較長期的書目供應；我們仍會依目前銷售量每月持續銷售。隨著銷售增加，我們預期會有越來越多庫存由長期庫存重分類回流動庫存。

Secondly, due to our historical losses prior to the fiscal 2026, our operational and our operational expectations during our turnaround period, we evaluated the need for a valuation allowance offsetting our net deferred tax assets. Based on this evaluation, we recognized a onetime valuation adjustment of $1.5 million to offset our net deferred tax assets.

其次，鑑於 2026 會計年度之前的歷史虧損，以及我們在轉型期間的營運與營運預期，我們評估是否需要就淨遞延所得稅資產提列估值備抵。根據此評估，我們認列一次性估值調整 150 萬美元，以抵減淨遞延所得稅資產。

This adjustment had no cash flow impact but had a direct impact on our fourth quarter tax expense, net earnings and earnings per share. When the company returns to profitability, this valuation adjustment will be reversed. The reversal will have no cash flow impact, but will have a direct impact to our tax expense, net earnings and earnings per share.

此項調整對現金流沒有影響，但會直接影響第四季的所得稅費用、淨利以及每股盈餘。當公司恢復獲利時，該估值調整將予以迴轉。迴轉同樣不會影響現金流，但將直接影響所得稅費用、淨利以及每股盈餘。

This concludes the financial update. I'll now turn the call over to Heather Cobb for a sales, marketing and IT update. Heather?

以上為財務更新。接下來我把電話交給 Heather Cobb，請她更新銷售、行銷與 IT 進展。Heather？

Thanks, Dan. While our current results reflect the challenges of the past two years, we remain confident in both the direction of our strategy and the opportunity ahead of us. One of the clearest drivers of future growth for our business is growth on our PaperPie side through the brand partner community.

謝謝你，Dan。雖然我們目前的結果反映了過去兩年的挑戰，但我們對策略方向以及未來機會仍充滿信心。推動未來業務成長最明確的動能之一，是透過品牌合作夥伴社群，帶動我們 PaperPie 端的成長。

As our active brand partner count increases, we count on that momentum to positively impact sales, customer engagement and overall business performance. For that reason, much of our sales and marketing focus in fiscal 2027 is centered on attracting, onboarding and retaining new brand partners while also continuing to engage existing leaders and teams.

隨著活躍品牌合作夥伴人數增加，我們期待這股動能能正向影響銷售、客戶互動與整體營運表現。因此，我們在 2027 會計年度的銷售與行銷重點，多集中於吸引、導入（onboarding）並留任新的品牌合作夥伴，同時也持續與既有領導者與團隊保持互動。

We were encouraged by the response to our March joint special, which produced meaningful engagement, adding almost 1,400 new brand partners, showing that there is still strong interest in our opportunity when paired with the right timing, messaging and product excitement. We have additional strategically timed initiatives planned throughout the year that are designed to support both recruiting and sales activities.

我們對三月的聯合特別活動反應感到鼓舞；該活動帶來顯著的互動，新增近 1,400 名品牌合作夥伴，顯示只要搭配適當的時機、訊息傳達與產品熱度，市場對我們的機會仍有強烈興趣。我們已規劃全年更多策略性時點的推動方案，以支援招募與銷售活動。

At the same time, we are being intentional about protecting the long-term value of our products and our brand. We believe there is an important balance between offering thoughtful promotions or sales that meet consumer expectations while avoiding excessive discounting that can weaken our overall brand perception over time.

同時，我們也刻意保護產品與品牌的長期價值。我們相信，在提供符合消費者期待、周全設計的促銷或特賣，與避免過度折扣（可能隨時間削弱整體品牌觀感）之間，必須取得重要平衡。

Our strategy moving forward is focused on creating excitement and urgency in purposeful ways while continuing to reinforce the quality, educational value and uniqueness of our product offering. We also believe we are well positioned within a growing cultural shift towards more intentional and analog experiences.

我們未來的策略聚焦於以有目的的方式創造興奮感與急迫感，同時持續強化我們產品的品質、教育價值與獨特性。我們也相信，在文化逐漸轉向更有意識、偏向類比（analog）體驗的趨勢中，我們具備良好定位。

Parents and families are increasingly looking for opportunities to disconnect from constant screen time and reconnect through hands-on learning, reading, creativity and meaningful interaction. That trend aligns directly with who we have always been as a company. Our mission is creating the story of tomorrow through people, purpose and products continues to resonate and we believe our educational books, games and learning resources meet an important need in today's marketplace.

家長與家庭愈來愈希望有機會遠離持續的螢幕時間，並透過動手學習、閱讀、創意與有意義的互動重新連結。這一趨勢與我們公司一貫的定位完全一致。我們的使命—透過人、使命與產品創造明日的故事—持續引發共鳴；我們相信，我們的教育書籍、遊戲與學習資源能滿足當今市場的重要需求。

As Craig mentioned earlier, the arrival of new titles and replenishment inventory has already generated renewed excitement across both of our sales channels. Combined with our continued investment in technology and enterprise-level initiatives, we believe we are building a stronger foundation for long-term growth.

如 Craig 先前提到，新書目到貨與補貨庫存的到位，已在我們兩個銷售通路引發重新的熱度。結合我們持續在科技與企業級計畫上的投資，我們相信正在為長期成長建立更堅實的基礎。

Our IT and marketing teams are actively developing tools and platform enhancements designed to simplify how brand partners share our products while also creating a more seamless and enjoyable customer experience. Upcoming initiatives include a variety of platform enhancements, focused on improving product discovery, streamlining and personalizing the customer journey, expanding functionality for both brand partners and customers and supporting long-term engagement and retention.

我們的 IT 與行銷團隊正積極開發工具與平台強化功能，以簡化品牌合作夥伴分享我們產品的方式，同時打造更順暢且更愉悅的客戶體驗。即將推出的計畫包括多項平台優化，重點在於改善產品探索、精簡並個人化客戶旅程、擴充品牌合作夥伴與客戶雙方的功能，以及支持長期互動與留存。

While we continue to adapt to changes in consumer behavior and the direct selling landscape as a whole, our overall strategy remains consistent, increase our retail presence, strengthen the brand partner experience, provide exceptional products that support literacy and learning and create sustainable growth through community connection and product sharing.

雖然我們持續因應消費者行為與整體直銷環境的變化，但我們的整體策略仍一致：提升零售能見度、強化品牌合作夥伴體驗、提供支持識字與學習的卓越產品，並透過社群連結與產品分享創造可持續成長。

And one of the best ways that we do that, and Craig referenced it earlier is through our National Convention that happens each year. Next month, we will have several hundred brand partners come into Tulsa to hear from speakers like Rory Vaden, two of our Kane Miller author and creators and we'll spend an entire weekend focusing on solving the problem of disconnection with a way to connect with both their customers, new hosts and next team member.

而我們做到這一點的最佳方式之一——Craig 先前也提到——就是透過我們每年舉辦的全國年會。下個月，我們將有數百位品牌夥伴來到塔爾薩，聆聽像 Rory Vaden 這樣的講者、我們 Kane Miller 的兩位作者與創作者分享，我們也會用整個週末聚焦於解決「失聯」的問題，提供一種能同時與他們的顧客、新的主辦人以及下一位團隊成員建立連結的方法。

We understand that turnarounds take time, and we are encouraged by the progress that we are making and confident in the path ahead. Our team remains deeply committed to the mission of this company, and we believe that, that commitment, combined with strategic execution and renewed sales force growth positions us to build momentum throughout fiscal 2027 and beyond.

我們理解轉型需要時間，我們對目前取得的進展感到鼓舞，並對前方道路充滿信心。我們的團隊仍然深度投入本公司的使命；我們相信，這份承諾結合策略性執行與銷售隊伍的再度成長，將使我們有條件在 2027 財政年度及其後持續累積動能。

Now I will turn the call back over to Craig.

現在我把電話交回給 Craig。

Thank you, Heather and Dan. As Dan mentioned, we had some unusual adjustments during the quarter but expect these to improve our results in the future with the execution of our turnaround plan. During the last couple of years, we have been challenged to operate our business under restrictions from our bank.

謝謝你，Heather 和 Dan。正如 Dan 提到的，本季有一些不尋常的調整，但我們預期隨著轉型計畫的執行，這些調整將在未來改善我們的業績。在過去幾年裡，我們一直面臨在銀行限制下經營業務的挑戰。

I am excited about the position we are in today and the plan for growth in fiscal 2027. While we need to execute on our plan that increases sales and therefore, cash, we're putting the most focus on increasing our brand partner counts and retaining existing brand partners.

我對我們今天所處的位置以及 2027 財政年度的成長計畫感到振奮。雖然我們需要執行能提升銷售、進而增加現金的計畫，但我們最聚焦的是提升品牌夥伴人數並留住現有品牌夥伴。

Over the last two years, our sales force has been anxious and waiting to see what will happen. A major factor for the reduced activity has been the lack of new products for them to get excited about for the last two years. As I mentioned initially, we have already received a few of these new titles and are seeing the sales excitement from both of our sales channels.

在過去兩年，我們的銷售隊伍一直焦慮並等待事情會如何發展。活動減少的一個主要因素，是過去兩年缺乏能讓他們感到興奮的新產品。如我一開始提到的，我們已經收到其中幾個新書名，並且看到我們兩個銷售通路都出現銷售熱度。

We have continued to work with our vendors and are very excited about what is recently been presented to us for release in the new year. As always, and as you heard extensively from Heather, increasing our brand partner count is a big part of our overall strategy, and that means putting consistent effort toward attracting Gen Z.

我們持續與供應商合作，並對近期向我們展示、預計在新年度推出的內容感到非常興奮。一如既往，也如你們從 Heather 那裡多次聽到的，提升品牌夥伴人數是我們整體策略的重要一環，而這也意味著要持續投入心力吸引 Z 世代。

This new generation is challenging, not just for our company, but all companies in the direct selling industry to revise the recruiting and engagement methods. Many of our recent IT initiatives are focused on getting Gen Z to join as new brand partners by making it easier to do business with us. They work and shop differently, and we are well positioned to meet them where they are.

這一代人帶來的挑戰不只對我們公司如此，對直銷產業的所有公司而言，都需要修正招募與互動方式。我們近期許多 IT 計畫都聚焦於讓 Z 世代更容易與我們做生意，從而加入成為新的品牌夥伴。他們的工作與購物方式不同，而我們已具備良好條件在他們所在之處與他們接軌。

These are revisions to our existing model that's certainly not an overhaul. We are evaluating programs and systems that haven't brought enough of a return and trying new tactics in new markets. We are embracing AI not as a strategy to eliminate or replace employees but to become more effective so that as we grow, we do not have to hire as many new employees. We are already seeing returns in system development or coding and basic inquiries to support tickets.

這些是對我們既有模式的修訂，當然不是全面翻新。我們正在評估一些回報不足的方案與系統，並在新市場嘗試新戰術。我們擁抱 AI 並不是要消除或取代員工，而是要提升效率，讓我們在成長時不必雇用那麼多新員工。我們已經在系統開發或程式撰寫，以及支援工單的基本詢問上看到回報。

I also want to make sure everyone understands that we expect to generate cash flow from inventory reductions to fund operations. Having said this, we executed a new agreement for a $2 million line of credit with our new bank to ensure we have the cash needed for growth. And although we are currently not using line and have a higher cash balance than we had at year-end, this line ensures we can capitalize on new opportunities.

我也想確保大家理解，我們預期將透過降低庫存所釋放的現金流來支應營運。話雖如此，為了確保我們有成長所需的現金，我們已與新銀行簽訂一項 200 萬美元的信用額度協議。雖然我們目前尚未動用該額度，且現金餘額高於年末水準，但這條額度可確保我們能把握新的機會。

Also, at the end of the fiscal year, as the next step in our turnaround plan, we executed a strategic restructuring of our office and warehouse staff, including executive pay reductions, a small reduction in force along with other expense reductions. Lastly, I want to thank all of our shareholders for their patience, our employees, customers and brand partners for their commitment to our mission and our vendors for their willingness to stick with us.

此外，在財政年度末，作為轉型計畫的下一步，我們對辦公室與倉庫人員進行策略性重整，包括高階主管減薪、小幅裁員以及其他費用削減。最後，我要感謝所有股東的耐心，感謝我們的員工、顧客與品牌夥伴對使命的投入，也感謝供應商願意與我們並肩前行。

I am confident in our collective ability to emerge stronger and more resilient than ever before because I really believe we are tackling our growth from a plan -- our growth plan from a position of strength. While we were doing what we had to do to satisfy the bank, we are also thinking and planning for when we are out from under their control and continue to build.

我對我們整體有能力變得比以往更強大、更具韌性充滿信心，因為我真心相信，我們是從一個——從優勢地位來推動我們的成長計畫。當我們為了滿足銀行要求而做必須做的事時，我們也同時在思考並規劃：當我們不再受其控制時，如何持續建設與成長。

Now that we have provided a summary of some recent activity, I will now turn the call back over to Alan for question and answer. Alan?

既然我們已提供近期活動的摘要，現在我把電話交回給 Alan 進行問答。Alan？

Igor Novgorodtsev, Lares Capital.

Igor Novgorodtsev，Lares Capital。

Hello, and thank you for taking my question and pronouncing my last name correctly. I have two questions. Unfortunately, I cannot see for some reason, your balance sheet on your press release. Could you talk a little bit how much inventory was reduced in this quarter? And as related to this, how much was the cash flow from the inventory reduction from operations.

你好，謝謝你們回答我的問題，也謝謝你把我的姓氏念對。我有兩個問題。不幸的是，我不知道為什麼在你們的新聞稿上看不到資產負債表。你能談談本季庫存減少了多少嗎？以及相關地，因庫存降低而帶來的營運現金流是多少？

This is Dan O’Keefe. I'm sorry, I don't have that information for you right now. We will be filing the 10-K later today. And you can obviously glean that from the 10-K coming out.

我是 Dan O’Keefe。抱歉，我現在沒有那個資訊可以提供。我們會在今天稍晚提交 10-K，你當然可以從即將發布的 10-K 中看出來。

Okay. Fair enough. But would it be fair to say that the cash flow still stayed positive in Q4?

好的。合理。不過可以說第四季的現金流仍然維持正數嗎？

Well, Q4 is typically our softest quarter that in the summer months, which is Q2, our two softest quarters of the year. So I would say that cash flow, when you look at inventory reductions and our losses for the -- our earnings before losses for the quarter would have been close to netting even.

嗯，第四季通常是我們最淡的季度；夏季月份，也就是第二季，是我們一年中另外一個最淡的季度。所以我會說，若你把庫存降低以及我們的虧損——本季的（扣除虧損前）獲利一起看，應該接近打平。

Okay. Fair enough. I'll just wait for your 10-K. My next question is, I appreciate that you take a revolving loan just in case, and it's actually nice to know. So hopefully, that shows to -- points towards the improvement of your business. But are there any covenants on your revolving loan than if your business improves enough doesn't allow you to buy stock back or pay a dividend to the shareholders? Or there is no such covenants?

好的。合理。我就等你們的 10-K。我的下一個問題是：我理解你們辦了一筆循環貸款以備不時之需，知道這點其實也不錯。所以希望這能——指向你們業務的改善。但你們的循環貸款是否有任何契約條款（covenants），例如即使你們的業務改善到一定程度，也不允許你們回購股票或向股東發放股利？還是沒有這類條款？

There are no covenants with the new $2 million line of credit.

這筆新的 200 萬美元信用額度沒有任何契約條款。

Okay. Excellent. Again, it's a little bit too early. I understand you just removed your biggest problem is the overhang from the loan. But did you have already made any improvements to your inventory or your operations in this quarter or that you basically just didn't have a time or given that this is the weakest quarter traditionally, these will not see the results until the next quarter?

好的。很好。再次強調，現在可能還有點早。我理解你們剛移除最大的問題，也就是貸款帶來的壓力。但你們在本季是否已經對庫存或營運做出任何改善？還是基本上沒有時間；或者考量到這傳統上是最弱的季度，要到下個季度才會看到結果？

Okay. So we touched on it briefly. But once we sold the building and knew we were going to be able to resolve all of our debt with our previous bank, we executed a Phase 1 of our purchasing plan, which is a very conservative $0.5 million in purchases, which was executed in the fourth quarter.

好的。我們有稍微提到。一旦我們賣掉大樓並確定能夠用以清償與前一家銀行的所有債務，我們就執行了採購計畫的第一階段，也就是非常保守的 50 萬美元採購，並在第四季完成。

We are kind of just now seeing new titles come in. But as we see the results of selling new titles, we've already kind of started our Phase 2, which is another $0.5 million. Does that answer your question?

我們現在才剛開始看到新書名進貨。但隨著我們看到新書名銷售的結果，我們其實已經開始第二階段，也就是另外 50 萬美元。這樣有回答你的問題嗎？

Yes. Somewhat -- okay. Sorry, somebody was adding something, I believe? Can I just continue? Is it okay?

有。某種程度上——好的。抱歉，我想剛剛有人要補充？我可以繼續嗎？可以嗎？

Yes.

可以。

I just run a quick numbers on your revenue per partner, and I know that's an interesting trend in the last two quarters, your revenue per partner actually increased, like if you do the comparable revenue per partner, it's actually increasing and despite the account of the partner is falling, the revenue is increasing.

我快速算了一下你們每位夥伴的營收，我知道這是個有趣的趨勢：在最近兩個季度，你們的每位夥伴營收其實上升了；如果用可比口徑來看，每位夥伴營收是在增加的，儘管夥伴數在下降，營收卻在上升。

Is that because there is something operationally changed about the partners or simply the partners that remained as the most active ones?

這是因為夥伴在營運上有什麼改變，還是只是留下來的夥伴本來就是最活躍的那群？

That's a great question. One of the trends that we're seeing that tends to mean slightly higher sales per brand partner is the growth in our in-person events that are happening whether that's book fairs, inside schools or in-person booths and things like that, which even goes back to what I mentioned in my report of moving from digital to analog.

這是個很好的問題。我們看到的一個趨勢是：面對面活動的成長往往意味著每位品牌夥伴的銷售會略高一些，無論是書展、進入學校的活動，或是實體攤位等；這也呼應我在報告中提到的，從數位轉向類比。

Some people are having even more in-person home parties, which we haven't done in several years. And so we believe that, that trend that you are referencing point back to the growth of these in-person events.

有些人甚至開始舉辦更多面對面的居家派對，這是我們好幾年沒有做的。因此我們相信，你所提到的這個趨勢，指向的正是這些面對面活動的成長。

Okay. That's great to know. And my last question, and hopefully, it's not a long question. Given that you have such a large inventory, do you consider any of your inventory unsellable or you try to basically go for some inventory put through liquidation channels? Or you think that it's just slow moving and it will just take time, but everything is potentially sellable still?

好的。很高興知道。最後一個問題，希望不會太長。鑑於你們有這麼大量的庫存，你們是否認為其中有任何庫存是不可銷售的，或你們會考慮把部分庫存透過清算通路處理？還是你們認為只是周轉較慢、需要時間，但所有庫存仍然都有可能賣得掉？

Yes. We consider everything salable still. And that's why I want to reiterate the move to long-term inventory. It's not that we're going to have to write off anything at all. It's still all good sellable inventory is just going to take a little longer.

是的。我們認為全部仍可銷售。這也是我想再次強調轉為長期庫存的原因。並不是我們必須做任何報廢減記；這些都是良好、可銷售的庫存，只是需要更長一點的時間。

That being said, we make mistakes in purchasing every now and again. It happens very, very rarely. We're kind of exploring the remainder market, but the returns are just not worth it.

話雖如此，我們偶爾在採購上也會犯錯。這種情況非常、非常少見。我們有在探索尾貨市場，但回報實在不值得。

So while we're looking into it, it's very unlikely that we'll participate in the remainder of market. Yes, we're looking at other creative marketing ways to move this inventory. And it's more of a kind of one-off here and there of the things that are more highly inventory.

所以雖然我們正在研究，但我們極不可能參與尾貨市場。是的，我們正在尋找其他更有創意的行銷方式來消化這些庫存。而且這比較像是針對某些庫存較高的品項，偶爾一次性的處理。

Okay. Thank you very much. I'll get back in the queue and maybe I'll ask questions if there is nobody else is asking.

好的。非常感謝。我會回到隊列裡，如果沒有其他人提問，我可能會再問幾個問題。

Okay. Perfect. Thank you, Igor.

好的。太好了。謝謝你，Igor。

Paul Carter, Capstone Asset Management.

Paul Carter，Capstone Asset Management。

Great. Thanks very much. Hi, everybody.

太好了。非常感謝。各位好。

Hello.

你好。

Craig, your comments about exploring the remainder market (inaudible) say that. Is there -- can you provide some numbers around that, like what percentage of your long-term inventory are you thinking about in ways such as that?

Craig，你提到在探索尾貨市場（聽不清）這麼說。能否提供一些數字，例如你們長期庫存中，有多少百分比是你們在考慮用這類方式處理的？

Well, yes, no, the creative marketing ways were as opposed to the remainder market. We looked into it, it's just not worth our time. We're just going to find other ways. As an example, just some quotes that we got back, we get like 2% of the retail price. It's just not even remotely worth it. So we're not going to participate in that.

嗯，是也不是。所謂有創意的行銷方式，是相對於尾貨市場而言。我們研究過了，但不值得花時間。我們會找其他方法。舉例來說，我們拿到的一些報價顯示，我們大概只能拿到零售價的2%。這根本不值得。所以我們不會參與。

Paul, I'll jump into you and say that in our meetings, one of the points of conversation that was important to us that may be important to you is using our time and energy and resources on this as a potential short-term or one-off strategy didn't seem like our best use of resources. And so since this wasn't going to be an ongoing strategy for us, once we discovered that it wasn't going to be worth it, we just aren't really pursuing it.

Paul，我補充一下：在我們的會議中，有一個對我們很重要、也可能對你很重要的討論點是，把時間、精力與資源投入在這件事上，作為一種可能的短期或一次性策略，看起來並不是最好的資源運用。因此，既然這不會是我們的長期策略，一旦我們發現不值得，我們就不再真正推進了。

Okay. Fair enough. And maybe more to that point, is -- of my question is sort of how much of your $37.7 million of inventory (inaudible) characterize as inventory that you don't -- that you would want to maybe get rid (inaudible) obviously not through the remainder of market.

好的，可以理解。那也延伸一下我的問題：你們3,770萬美元的庫存中，（聽不清）你會把多少歸類為你們不想持有、可能想處理掉的庫存（聽不清），當然不是透過尾貨市場。

Obviously, you looked at the remainder market because you felt there was a sufficient amount of inventory that may be (inaudible). Can you just give us some numbers around what that is and what that is?

顯然你們會去看尾貨市場，是因為你們覺得有相當數量的庫存可能是（聽不清）。你能否給我們一些數字，說明那大概是多少、以及是什麼類型？

No. It's roughly in the neighborhood of $500,000. I mean, it's not even a big part of our inventory.

不，大概在50萬美元左右。我的意思是，這甚至不是我們庫存中的大部分。

Okay. No, that's great. And then Craig, you mentioned in the press release throughout fiscal '26, you continue to run promotions with -- pricing, prioritizing cash flow, et cetera. And I know that was obviously driven (inaudible) driven by the bank.

好的。那很好。接著，Craig，你在新聞稿中提到在2026財年期間，你們會持續做促銷、以定價為主、優先考量現金流等等。我知道那顯然是（聽不清）由銀行所驅動。

Was that the case in Q4 or maybe -- I'm sorry, I missed a little bit of your earlier comments, maybe you already talked (inaudible) what was your gross margin change year-over-year (inaudible) the fourth quarter?

那在第四季也是這樣嗎？或者——抱歉，我漏聽了你前面的一些評論，也許你已經談過（聽不清）。你們第四季的毛利率年對年變化是多少（聽不清）？

Yes. We haven't disclosed gross margin yet, Paul. And I don't have that information right in front of me, but I'm thinking back to the fourth quarter, Heather, did we run some promotional sales in December, January and February.

是的，我們尚未披露毛利率，Paul。我手邊也沒有那個資訊，但回想第四季，Heather，我們在12月、1月和2月有做一些促銷銷售嗎？

Yes. I mean there's always some sort of saving shelf-type promotions. It's not one of the quarters that we typically do large sales. I will say that oftentimes, our Black Friday sale trickles over into the fourth quarter just because of when the date falls on the calendar. So that can have them impact there.

有的。我是說，總會有一些像是書架類的折扣促銷。第四季通常不是我們做大型促銷的季度。不過我會說，很多時候我們的黑色星期五促銷會延續到第四季，因為日期在行事曆上的落點不同，所以那可能會造成一些影響。

But would you say that the whatever promotional activity you have been experiencing, obviously, as not -- you're not feeling the pressure of the bank anymore. So that (inaudible) coming back -- kind of normal, would you say?

但你會說，你們目前經歷的那些促銷活動，顯然已經不是——你們不再感受到銀行的壓力了。所以那（聽不清）正在回到——比較正常的狀態，對嗎？

Yes. That's kind of what I was alluding to when I talked about trying to meet consumer expectations, which even on the other side of it as a consumer, I like to shop a good sale. But putting out there the fact that our books are so reasonably priced with an average price point hovering right around, if not below $10, not discounting ourselves and the value that we can offer even at regular price.

是的，這就是我在談到試著符合消費者期待時所暗示的。即使站在消費者角度，我也喜歡逛特價。但我們也想傳達：我們的書定價非常合理，平均價格大約就在10美元左右，甚至低於10美元；因此即使以原價銷售，我們也不會過度折價、貶低我們能提供的價值。

And so we're trying to temper that by not throwing as many large-scale promotional sales out at them, but more falling in line with the traditional timing of the Black Friday sale or a Summer Blowout or something like that. It's kind of expected, but not negatively impacting our business side of things.

所以我們試著拿捏，不要丟出那麼多大規模促銷，而是更貼近傳統時點，例如黑色星期五促銷、夏季清倉之類。這是大家預期會有的，但不會在我們的營運面造成負面影響。

Okay. And then just lastly, regarding (inaudible) admittedly, 4,500 is lower than if (inaudible) a couple of years ago, and that's obviously (inaudible). It sounds like the March joint special that you mentioned -- positively. Is it kind of (inaudible) the current quarter average active brand partner count might be higher than 4,500?

好的。最後一個問題，關於（聽不清），坦白說，4,500比（聽不清）幾年前要低，這也很明顯（聽不清）。聽起來你提到的3月聯合特別活動——是正面的。那是否（聽不清）表示本季平均活躍品牌合作夥伴數可能會高於4,500？

The fourth quarter that we just reported on or the current quarter that we're working on.

你是指我們剛剛報告的第四季，還是我們正在進行的本季？

The quarter we're in right now, the March, April quarter.

指我們現在這一季，也就是3月、4月這一季。

Yes. I mean as always, and you're familiar with how this works, we constantly have ins and outs of people coming. We have been energized and hopeful about what we saw with what happened in March and are focusing even more than normal on not only bringing those people in, but also retaining them. And so I do think that we will see more of a balance shift to more coming and staying than we have losing.

是的。就像一向如此，而且你也熟悉運作方式，我們一直都有新人加入、也有人退出。我們對3月發生的情況感到振奮並抱持希望，也比平常更專注於不僅把人帶進來，也要把人留住。因此我確實認為，我們會看到更偏向「加入並留下」的人數增加，而不是像之前那樣流失。

Okay. Great. Thanks very much, everybody.

好的。非常好。各位非常感謝。

Thanks, Paul.

謝謝你，Paul。

(Operator Instructions). There are no further questions at this time. I would hand over the call to Craig White for closing comments. Please go ahead.

（接線員指示）。目前沒有進一步的提問。我將把電話交給Craig White作結語。請開始。

Yes. It looks like maybe Igor jumped in late. Do we want to -- I'm happy to take his question.

是的。看起來可能Igor晚了一點加入。我們要不要——我很樂意回答他的問題。

Sure, no problem. Go ahead and Igor Novgorodtsev of Lares Capital for the next question. Your line is already open.

當然，沒問題。請繼續。接下來由Lares Capital的Igor Novgorodtsev提問。您的線路已經開通。

Oh, thank you so much. Sorry, I jumped in a little bit late. Yes, I just have a couple of follow-up questions. So now that you're going to start getting finally new titles, what kind of gross margin you're thinking about if we just said the old titles also side, just purely for the new titles? What would you consider like for your new businesses, acceptable gross margin?

喔，非常感謝。抱歉我加入得有點晚。是的，我有幾個追問。既然你們終於要開始拿到新書名了，如果我們先把舊書名放一邊，只看新書名，你們預期的毛利率大概會是多少？對於你們的新業務，你們認為可接受的毛利率水準是什麼？

Well, hopefully getting back to more business as usual, if we're not discounting and when we've talked about discounting to satisfy the bank, we were talking about 40%, 50%, 60% discounting, and that's absolutely not normal. So if we do kind of some not normal discounting to meet customers' expectations, it's going to be in the 10% to 15% range. So our gross margins are going to be getting closer back to business as usual.

嗯，希望能回到比較正常的營運狀態。如果我們不折價——我們之前談到為了滿足銀行要求而折價時，指的是40%、50%、60%的折扣，那絕對不正常。所以如果我們為了符合客戶期待而做一些相對不那麼正常的折扣，大概會在10%到15%的範圍。因此，我們的毛利率會更接近回到正常水準。

What was your traditional margin like over the years?

你們過去幾年的傳統毛利率大概是多少？

So Igor, we have kind of a pretty simple model. As Heather said, our average book is $10. The average cost -- landed cost of that book is $2.50. And when we sell it through the retail division like Barnes & Noble or Ingram's or one of our retail customers, we sell that $10 book to them for $5 and they sell it for $10 to their customers and they make $5 and we get $5 on that $2.50 book.

Igor，我們的模型其實很簡單。如Heather所說，我們平均一本書是10美元。平均成本——到岸成本——是2.50美元。當我們透過零售事業部銷售，例如Barnes & Noble、Ingram或其他零售客戶時，我們把這本10美元的書以5美元賣給他們，他們再以10美元賣給他們的客戶，他們賺5美元，而我們在成本2.50美元的書上拿到5美元。

When we sell it through PaperPie, we typically sell it for the retail price of $10. But we pay out commissions to the salespeople and overrides to the leadership team of about $5. So on both -- in both sales channels, we get $5 for a $10 book that cost $2.50 and then -- and we have $2.50 to run our business on.

當我們透過PaperPie銷售時，我們通常以10美元的零售價出售。但我們會支付給銷售人員的佣金，以及給領導團隊的覆蓋獎金（override），合計大約5美元。所以——在兩個銷售通路中，我們都是針對一本成本2.50美元、零售價10美元的書拿到5美元，然後——我們就有2.50美元用來支應公司營運。

Right. This is very, very helpful. My other question is about --

了解。這非常、非常有幫助。我另一個問題是關於——

Do we lose Igor?

我們是不是斷線了，Igor？

I think we lost him.

我想我們失去他的線路了。

Well, all right. Somebody let Igor know he can e-mail me.

好吧。請有人告訴Igor，他可以寄電子郵件給我。

Are there no further questions at this time, I would hand over the call to Craig White for closing remarks. Please go ahead.

由於目前沒有進一步的提問，我將把電話交給Craig White作結語。請開始。

Yes. I have nothing else to add. I appreciate everyone's questions and the interest in the call. So thank you for joining us, and have a good day. We'll talk to you in July. Thanks.

是的。我沒有其他補充。感謝大家的提問以及對本次電話會議的關注。謝謝各位參與，祝各位有美好的一天。我們7月再談。謝謝。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.

各位女士、先生，今天的電話會議到此結束。感謝各位的參與，您現在可以掛線。