(FARM) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to the Farmer Bros. Fiscal Second Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this call is being recorded. Joining me today are Deverl Maserang, President and Chief Executive Officer; and Scott Drake, Chief Financial Officer.

下午好，歡迎來到 Farmer Bros. 2023 財年第二季度收益電話會議。 （操作員說明）提醒一下，此通話正在錄音中。今天加入我的是總裁兼首席執行官 Deverl Maserang；和首席財務官 Scott Drake。

Earlier today, the company issued its inaugural quarterly shareholder letter, which is available on the Investor Relations section of Farmer Bros.' website at www.farmerbros.com. The shareholder letter is also included as an exhibit to the company's Form 8-K and is available on the company's website and on the Securities and Exchange Commission's website at www.sec.gov.

今天早些時候，該公司發布了首份季度股東信，可在 Farmer Bros 的投資者關係部分獲取。網站 www.farmerbros.com。股東信還作為公司 8-K 表格的附件，可在公司網站和美國證券交易委員會網站 www.sec.gov 上查閱。

A replay of this audio-only webcast will be available approximately 2 hours after the conclusion of this call. The link to the audio replay will also be available on the company's website.

本次電話會議結束後約 2 小時，將提供此純音頻網絡廣播的重播。音頻重播的鏈接也將在公司網站上提供。

Before we begin the call, please note that all of the financial information presented is unaudited and that various remarks made by management during this call about the company's future expectations, plans and prospects may constitute forward-looking statements for purposes of the safe harbor provisions under the federal securities laws and regulation.

在我們開始電話會議之前，請注意所提供的所有財務信息均未經審計，管理層在此次電話會議期間就公司未來預期、計劃和前景發表的各種評論可能構成前瞻性陳述，以符合安全港條款聯邦證券法律法規。

These forward-looking statements represent the company's views only as of today and should not be relied upon as representing the company's views as of any subsequent date. Results could differ materially from those forward-looking statements.

這些前瞻性陳述僅代表公司截至今天的觀點，不應被視為代表公司在任何後續日期的觀點。結果可能與那些前瞻性陳述存在重大差異。

Additional information on factors that could cause actual results and other events to differ materially from those forward-looking statements is available in the company's shareholder letter and public filings.

有關可能導致實際結果和其他事件與這些前瞻性陳述存在重大差異的因素的更多信息，請參閱公司的股東信和公開文件。

On today's call, management will also reference certain non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin, in assessing the company's operating performance. Reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures is also included in the company's shareholder letter.

在今天的電話會議上，管理層還將參考某些非 GAAP 財務指標，包括調整後的 EBITDA 和調整後的 EBITDA 利潤率，以評估公司的經營業績。這些非 GAAP 財務指標與其最直接可比的 GAAP 指標的對賬也包含在公司的股東信中。

I will now turn the call over to Deverl. Deverl, please go ahead.

我現在將把電話轉給 Deverl。 Deverl，請繼續。

Good afternoon, and thank you for joining us. As you saw today, we have now moved our quarterly reporting to a shareholder letter format. This approach better enables us to provide our investors with context around our performance, strategy and progress. If you haven't had a chance to view it, it can be found on our IR website.

下午好，感謝您加入我們。正如您今天所見，我們現在已將季度報告轉為股東信函格式。這種方法使我們能夠更好地為投資者提供有關我們的業績、戰略和進展的背景信息。如果您還沒有機會查看它，可以在我們的 IR 網站上找到它。

So with that, on the call today, I will provide some highlights from the quarter, and Scott will go into a bit more detail on the financials, and then we will [field] some questions.

因此，在今天的電話會議上，我將提供本季度的一些亮點，斯科特將更詳細地介紹財務狀況，然後我們將 [回答] 一些問題。

Looking at our results for the fiscal second quarter. We reported sales growth of 12%, paired with a slight sequential increase in our gross margin. We are finally beginning to see the benefit of contracted price increases and overall customer demand across our national account and DSD businesses.

看看我們第二財季的業績。我們報告的銷售額增長了 12%，同時毛利率略有環比增長。我們終於開始看到合同價格上漲和我們國民賬戶和 DSD 業務的整體客戶需求的好處。

We have more work to do here, but have already seen additional progress early in calendar 2023. Additionally, we improved adjusted EBITDA as we held operating costs in check despite inflationary pressures.

我們在這方面還有更多工作要做，但我們已經在 2023 年初看到了更多進展。此外，儘管存在通脹壓力，但我們控制了運營成本，因此我們改善了調整後的 EBITDA。

We also believe that fiscal Q2 will prove to be the high watermark for our coffee input cost. While we're encouraged with the early progress, we recognize that our results need to improve from here to achieve the performance, our turnaround work has laid the groundwork for.

我們還相信，第二財季將被證明是我們咖啡投入成本的高水位線。雖然我們對早期的進展感到鼓舞，但我們認識到我們的結果需要從這裡改進以實現績效，我們的周轉工作為此奠定了基礎。

We think the right factors are in place to see that improvement. The short-term pricing headwinds we have faced more recently are expected to alleviate. Our turnaround has improved our underlying operating cost structure and our strategic growth initiatives, while in the very early stage, are progressing nicely.

我們認為正確的因素已經到位，可以看到這種改善。我們最近面臨的短期定價逆風預計會有所緩解。我們的轉變改善了我們的基本運營成本結構和我們的戰略增長計劃，而在早期階段，進展順利。

This gives us confidence in a more pronounced recovery in sales and margins in the second half of our fiscal year, helped by a much more favorable cost environment. We remain vigilant as we manage through the near term, and our vision of a path for long-term profitable growth remains steadfast.

這使我們有信心在更有利的成本環境的幫助下，我們財政年度下半年的銷售額和利潤率將出現更明顯的複蘇。我們在短期內保持警惕，我們對長期盈利增長道路的願景仍然堅定不移。

I will now turn it to Scott. Scott?

我現在將它交給斯科特。斯科特？

Thanks, Deverl. Let's dive right in. Net sales in the second quarter of fiscal 2023 were $132.7 million, up 12% year-over-year. Growth in sales primarily reflects traction with new customers and higher per pound pricing in both our DSD and direct ship sales.

謝謝，德維爾。讓我們開始吧。2023 財年第二季度的淨銷售額為 1.327 億美元，同比增長 12%。銷售額的增長主要反映了我們的 DSD 和直接船舶銷售對新客戶的吸引力以及更高的每磅定價。

This was partially offset by lower volume, which was primarily due to the loss of a large customer at one of our major national accounts in our direct ship sales channel.

這部分被銷量下降所抵消，銷量下降主要是由於我們直接船舶銷售渠道中一個主要國民客戶失去了一個大客戶。

Gross margin was 22.9% in Q2, which was an incremental improvement on a quarter-over-quarter basis. Margins in the quarter reflect what we believe were peak coffee costs, combined with the previously noted lag that accompanies our contractual cost plus pricing agreements in the direct ship sales channel. We expect margins to improve further over the next 2 to 3 quarters.

第二季度毛利率為 22.9%，環比有所改善。本季度的利潤率反映了我們認為的咖啡成本峰值，以及之前提到的伴隨我們在直接船舶銷售渠道中的合同成本加定價協議的滯後。我們預計未來 2 到 3 個季度的利潤率將進一步提高。

Adjusted EBITDA loss was $3.1 million in the quarter, an improvement over the last quarter from a loss of $4.9 million. The adjusted EBITDA margin also improved quarter-over-quarter by 170 basis points.

本季度調整後的 EBITDA 虧損為 310 萬美元，較上一季度的虧損 490 萬美元有所改善。調整後的 EBITDA 利潤率也環比提高了 170 個基點。

Our unrestricted cash balance increased by $7.8 million to $17.6 million as of the end of the calendar year. The increase in unrestricted cash was due to a decrease in working capital, net proceeds from the sale of branch assets and net borrowings under our credit facilities.

截至日曆年年底，我們的非限制性現金餘額增加了 780 萬美元，達到 1760 萬美元。非限制性現金的增加是由於營運資金、出售分行資產的淨收益和我們信貸額度下的淨借款減少。

Turning to direct ship and DSD. We saw a low double-digit percentage sales growth in our direct ship business on a year-over-year basis as we began to see pricing realization after a lag period that depressed the first quarter of fiscal 2023 performance.

轉向直接船舶和 DSD。我們看到我們的直接船舶業務銷售額同比實現了兩位數的低百分比增長，因為我們開始看到在拖累 2023 財年第一季度業績的滯後期後實現定價。

On the volume front, one of our large national accounts experienced the loss of a major customer, which led to a decrease in our pound volume compared to the prior-year period. Looking ahead, we expect that the direct ship business continues to improve.

在交易量方面，我們的一個大型國民賬戶失去了一個主要客戶，這導致我們的英鎊交易量與去年同期相比有所下降。展望未來，我們預計直航業務將繼續改善。

We saw positive momentum in our DSD business as revenue was up in the low double-digit percentage range, driven by our pricing increases. Although volume decreased in the quarter compared to last year, there was strong unit and pricing momentum in December that carried over to January, and we expect continued progress on pricing actions in the coming quarters.

我們看到了 DSD 業務的積極勢頭，因為在價格上漲的推動下，收入增長了兩位數的百分比。儘管本季度的銷量與去年相比有所下降，但 12 月的單位和定價勢頭強勁並延續到 1 月，我們預計未來幾個季度的定價行動將繼續取得進展。

Looking ahead, our focus in the coming quarters remains on completing the final elements of our turnaround, driving process improvements that will result in sustainable higher levels of performance and executing on our exciting growth initiatives, including Shott and Revive that bring more services and products to customers and leverage our national distribution footprint.

展望未來，我們在未來幾個季度的重點仍然是完成我們扭虧為盈的最後要素，推動流程改進，從而實現可持續的更高水平的績效，並執行我們令人興奮的增長計劃，包括為我們帶來更多服務和產品的 Shott 和 Revive客戶並利用我們的全國分銷足跡。

In recent weeks, we have started seeing the benefit of our ongoing pricing efforts as these take effect across our direct ship and DSD customers. This development, paired with our falling coffee prices, leave us optimistic that gross margins will recover towards prior-year levels, exiting our 2023 fiscal year in June.

最近幾週，我們開始看到我們正在進行的定價努力的好處，因為這些努力對我們的直運和 DSD 客戶產生了影響。這一發展，加上我們不斷下跌的咖啡價格，讓我們樂觀地認為毛利率將恢復到去年的水平，並在 6 月份結束我們的 2023 財年。

At the same time, current economic headwinds are placing pressure on talent acquisition and wages as well as transportation and other operations. We continue to move aggressively to contain and manage these pressures, and we fundamentally believe our cost structure is better positioned than it has been in years to drive better performance as macro conditions abate.

與此同時，當前的經濟逆風給人才招聘和工資以及交通和其他業務帶來壓力。我們將繼續積極採取行動來遏制和管理這些壓力，並且我們從根本上相信，隨著宏觀環境的減弱，我們的成本結構比過去幾年處於更好的位置，可以推動更好的業績。

Our near-term objectives are to bring Farmer Bros. back to profitability, improve our competitive position for sustainable long-term growth and enhance our ability to manage macroeconomic challenges and challenges within our industry. We will now open it up for questions. Operator?

我們的近期目標是讓 Farmer Bros. 恢復盈利，提高我們的競爭地位以實現可持續的長期增長，並增強我們管理宏觀經濟挑戰和行業內挑戰的能力。我們現在將打開它來提問。操作員？

(Operator Instructions) Our first question comes from Gerry Sweeney with ROTH MKM.

（操作員說明）我們的第一個問題來自 Gerry Sweeney 和 ROTH MKM。

I wanted to talk about prices -- pricing. I know you talked a little bit about it there in the prepared remarks. But I think one of the things we discussed in the past was, especially on the DSD side was not just instituting price increases but making sure that they were appropriately or fully pushed through at the street level and maintained at the street level.

我想談談價格——定價。我知道你在準備好的發言中談了一點。但我認為我們過去討論的其中一件事是，尤其是在 DSD 方面，不僅要提高價格，還要確保在街道層面適當或充分推動並維持在街道層面。

And I think it's really two questions. One, how is that going into? I believe, some of your IT initiatives were being put in place to help also facilitate that. I wanted to see if we could get an update on that front.

我認為這真的是兩個問題。一，那是怎麼回事？我相信，您的一些 IT 計劃正在實施，以幫助促進這一點。我想看看我們是否可以獲得這方面的更新。

Yes. Yes. You bet, Gerry. When we think of pricing, obviously, the direct ship is the more straightforward one. And you didn't ask, but we'll get that out of the way. It's that pricing agreement we have with all those customers. So it's kind of a cost-plus pass-through. So there's that lag in that direct ship side of the business that we've talked about.

是的。是的。你打賭，格里。當我們想到定價時，顯然，直接發貨是更直接的一種。你沒有問，但我們會解決的。這是我們與所有這些客戶達成的定價協議。所以這是一種成本加成的轉嫁。因此，我們所討論的業務的直接船舶方面存在滯後。

Specific to DSD, and maybe it's a little bit on us that we haven't unpacked this a little more fully. But you're right. We continue to see inflationary costs in the business that we have to pass through. So we're doing so. But even in our DSD business, a lot of our larger national DSD customers are under a pricing agreement as well. And so we have several of these that have windows of execution for changes to the contract, including pricing.

特定於 DSD，也許我們還沒有更充分地解壓縮它，這對我們來說有點不妥。但你是對的。我們繼續看到我們必須通過的業務中的通貨膨脹成本。所以我們正在這樣做。但即使在我們的 DSD 業務中，我們許多較大的國家 DSD 客戶也有定價協議。因此，我們有幾個具有更改合同（包括定價）的執行窗口。

And -- for example, we've been doing those changes that some of those contractual changes for those larger customers, they've been happening in November, December, there's some still in January, February as well. So that's one we'll continue to see momentum on that front in regards to the pricing.

而且——例如，我們一直在為那些大客戶進行一些合同變更，這些變更發生在 11 月、12 月，還有一些還在 1 月、2 月。因此，我們將繼續在定價方面看到這方面的勢頭。

But the good news is that we think we've seen the peak pricing or peak cost for coffee as well as other costs are starting to plateau as well. So we think we're going to get both momentum on the pricing side and start to see some relief on the cost of goods side. And the two of those will combine for the stronger margins that we expect to see in the coming quarters.

但好消息是，我們認為我們已經看到咖啡的最高定價或最高成本以及其他成本也開始趨於平穩。因此，我們認為我們將在定價方面獲得動力，並開始看到商品成本方面有所緩解。而這兩者將結合起來，我們預計在未來幾個季度會看到更高的利潤率。

Regarding the long-term solve, which is I think what you're getting at with the IT solution, you're exactly right. And the IT solution may take a little longer as we work through it, but we're currently underway with a -- basically a reengineering of our pricing function for DSD, taking out some of the complexity, taking out, quite honestly, some of those variables that we have less control over that we've talked about.

關於長期解決方案，我認為您對 IT 解決方案的理解是正確的。 IT 解決方案在我們完成它時可能需要更長的時間，但我們目前正在進行 - 基本上是重新設計我們的 DSD 定價功能，消除一些複雜性，老實說，消除一些我們已經討論過的那些我們無法控制的變量。

And we're going to be testing and rolling out this new pricing engine for DSD here over the next 2 quarters. So by the end of the fiscal year, we think we'll have substantially improved pricing for DSD and better insights, better controls, all those things. So we think that's another reason for our bullishness on margins and sales for the coming quarters.

在接下來的兩個季度裡，我們將在這裡測試和推出這個新的 DSD 定價引擎。因此，到本財年結束時，我們認為我們將大幅改善 DSD 的定價，並獲得更好的洞察力、更好的控制，所有這些。因此，我們認為這是我們看好未來幾個季度的利潤率和銷售額的另一個原因。

Got you. Would you be able to quantify or qualify where you are on your pricing versus where you would like to be or should be or however you would phrase that, in aggregate, I guess?

明白了你是否能夠量化或限定你在定價上的位置與你想要或應該成為的位置，或者你會怎麼說，總的來說，我猜？

Right. Right. Yes, I think you're right. I think in aggregate, I would call it middle innings, moving towards the latter stages of the game, but still in the middle innings, unfortunately. .

正確的。正確的。是的，我認為你是對的。我認為總的來說，我會稱之為中間局，走向比賽的後期階段，但不幸的是仍然在中間局。 .

One of the things we really want to address with these new engines and our new logic is whatever we can move more swiftly, we want to be able to do so. So that's one of the things we're really targeting with some of these improvements.

我們真正想用這些新引擎和我們的新邏輯解決的一件事是，無論我們可以更快地移動什麼，我們都希望能夠這樣做。因此，這是我們通過其中一些改進真正針對的目標之一。

Got it. And then you did touch upon it for a second. This was down on my list of questions. I guess, it impacted both direct ship and I think DSD, but some of the hedging contractual structure and delays. I think last quarter, you talked about Q2, which we just had some improvement, but more substantial improvement in Q3 and Q4. How does that work out? Or is that still sort of on the table per se?

知道了。然後你確實觸及了它一秒鐘。這在我的問題清單上。我想，它影響了直運和我認為的 DSD，但也影響了一些對沖合同結構和延誤。我想上個季度，你談到了第二季度，我們剛剛有了一些改進，但在第三季度和第四季度有了更實質性的改進。效果如何？或者它本身仍然有點擺在桌面上？

Yes, exactly. The -- I think that when you look at the program we have, really, we hedge so that we can have more certainty around our costs. And when -- theoretically, when prices are rising like they were in the last couple of years, that's when you saw us get much more coverage, and we went much longer on our contractual coverage of those costs. .

對，就是這樣。我認為，當您查看我們的計劃時，我們確實進行了對沖，以便我們可以更加確定我們的成本。當——從理論上講，當價格像過去幾年一樣上漲時，你就會看到我們獲得了更多的承保範圍，而且我們對這些成本的合同承保範圍更長了。 .

And then when we had the thesis that prices were going to be falling, we've obviously shortened up our coverage quite a bit so that we could get to those lower prices as quick as possible.

然後當我們認為價格將要下跌時，我們顯然已經大大縮短了我們的報導範圍，以便我們能夠盡快獲得那些較低的價格。

But we are still working through some of those inventories. It has to be brought in, manufactured, distributed, sold, et cetera, to get the way -- all the way to the P&L.

但我們仍在處理其中一些庫存。它必須被引進、製造、分銷、銷售等等，才能順利——一直到損益表。

So we're starting to see that now, but that is another thing that, that lag, along with some of the pricing lags we've talked about, are both -- we're seeing progress, but we're just going to need some more time, a few more months here to continue to work through them.

所以我們現在開始看到這一點，但這是另一回事，這種滯後，以及我們談到的一些定價滯後，都是——我們看到了進展，但我們只是打算需要更多時間，在這裡再花幾個月的時間來繼續完成它們。

But the good news on both fronts is that they're accelerating. So through Q3, Q4 and even Q1, we think we'll continue to have these tailwinds and really see nice progress.

但好消息是它們都在加速發展。因此，通過第三季度、第四季度甚至第一季度，我們認為我們將繼續擁有這些順風並真正看到不錯的進展。

On that front, how long does it take for sort of inventory to roll through? So obviously, pricing is down as well over well above $2 a pound, now it's below, on average. How long does it take to sort of see that benefit?

在這方面，庫存需要多長時間才能完成？很明顯，價格下降遠高於每磅 2 美元，現在低於平均水平。需要多長時間才能看到這種好處？

Yes. It's interesting. If you look at our -- like any other business, if you look at our top SKUs, those turned quite a bit. It's pretty regular. But I'll use an example from DSD and our spices and teas. Some of those products, they kind of have a growing season and ordering season, and you really only place your orders once or twice a year for some of those items. So you've got longer inventory, and it just takes a little longer for those to turn.

是的。這真有趣。如果你看看我們的 - 就像任何其他業務一樣，如果你看看我們的頂級 SKU，它們會發生很大變化。這很正常。但我將使用 DSD 以及我們的香料和茶的示例。其中一些產品有生長季節和訂購季節，您實際上每年只為其中一些產品下訂單一次或兩次。所以你有更長的庫存，只是需要更長的時間才能周轉。

But I think, on average, when you look at it, it's -- people can do the kind of quick inventory turns, but we're usually at a couple of months, 2 to 3 months, I would say, on average.

但我認為，平均而言，當你看它時，它是 - 人們可以做那種快速的庫存周轉，但我們通常是幾個月，2 到 3 個月，我會說，平均而言。

But then again, you've got with DSD, you have that sale and that turn, and then you've got your collection, your AR period there that would tack on to the end of that. And with DSD, you've kind of got the customer notification.

但話又說回來，你有 DSD，你有那個銷售和那個轉彎，然後你有你的收藏，你的 AR 時期會一直持續到那結束。通過 DSD，您可以收到客戶通知。

So even if you're going to change prices or move some of these things, there's usually a 30-day or so notification period. And that tends to make it just feel longer and really because it is longer than the 60 to 90 days we talk about so much.

因此，即使您打算更改價格或移動其中一些東西，通常也有 30 天左右的通知期。這往往會讓它感覺更長，而且真的因為它比我們經常談論的 60 到 90 天要長。

Got it. And then unrestricted cash was up. And just looking at the balance sheet, inventories were down. I actually -- I mean, I didn't scrub the balance sheet or go through it. But I would imagine as cost of coffee reduces, working capital, just like an inventory, should decline as well.

知道了。然後不受限制的現金增加了。看看資產負債表，庫存就下降了。我實際上 - 我的意思是，我沒有清理或檢查資產負債表。但我想，隨著咖啡成本的降低，營運資金，就像庫存一樣，也應該下降。

Is that a fair assumption? And is that what drove 2Q? Or are we just seeing with some of the initiatives you put in place, just better inventory management, et cetera?

這是一個公平的假設嗎？這就是第二季度的推動力嗎？或者我們只是看到您實施的一些舉措，只是更好的庫存管理，等等？

Yes. You're exactly right that our inventory should get some natural benefit of lower cost as we move forward. But in Q2, what you really saw was the benefit of some of the actions we've talked about through the summer months of 2022 and then into the fall, where we were focused on restructuring our debt, which we did successfully. And then we had mentioned how we were going to really turn our focus to getting more efficient with working capital.

是的。你是完全正確的，我們的庫存應該在我們前進的過程中獲得一些成本降低的自然好處。但在第二季度，你真正看到的是我們在 2022 年夏季和秋季討論的一些行動的好處，我們專注於重組債務，我們成功地做到了。然後我們提到了我們將如何真正將重點轉移到提高營運資金的效率上。

And Q2 was really the result of that. The inventory and some of the other efficiencies you see were really the result of us getting in and getting more efficient with our inventory, with our processes, safety stops, all those different components that go into that, that got a little better for us.

第二季度確實是這樣的結果。你看到的庫存和其他一些效率實際上是我們進入並提高我們的庫存效率的結果，我們的流程，安全停止，所有這些不同的組成部分，對我們來說變得更好了。

And quite honestly, it's also been helpful and it was the right time to do so because more of the supply chain is returning to normal at the time where we can have more reliance on vendors and products and timing, so we're able to do a lot of this progress. But we're not done yet. We'll continue with the efficiency and have the benefit of lower cost with coffee, certainly.

老實說，這也很有幫助，現在是時候這樣做了，因為在我們可以更加依賴供應商、產品和時間的時候，更多的供應鏈正在恢復正常，所以我們能夠做到很多這樣的進步。但我們還沒有完成。當然，我們將繼續提高效率，並享受降低咖啡成本的好處。

I'm going to ask one more. I'm not sure if there's anyone in queue. But labor, historically, it's been challenging to get labor in the last couple of years and trouble -- led to some challenges around rolling out additional routes or reinstating routes, et cetera. Any issues there? Or what's that looking like? And obviously, you also had the Revive business, but curious as to -- on that front.

我要再問一個。我不確定是否有人在排隊。但勞動力，從歷史上看，在過去幾年中獲得勞動力一直具有挑戰性和麻煩 - 導致圍繞推出額外路線或恢復路線等方面的一些挑戰。那裡有什麼問題嗎？或者那看起來像什麼？顯然，你也有 Revive 業務，但好奇的是——在這方面。

So Gerry, labor is -- we've invested in HR. We've pulled some new resources in. As you know, we pulled in a new CHRO just over a year ago. She's put her fingerprints on the organization, new head of recruiting, working on different programs with various technical schools and training program.

所以 Gerry，勞動力是——我們已經投資於人力資源。我們已經引入了一些新資源。如您所知，我們在一年多前引入了一位新的 CHRO。她在組織、新的招聘主管、與各種技術學校和培訓項目合作的不同項目上留下了自己的印記。

And what that has resulted, and I'll speak to Revive first, we've been able to recruit against our turnover in Revive on techs and have net adds per week, which is what's contributing to being able to get more techs on the street. And now we're just working on those folks getting fully trained and productive on their specific tech routes in Revive.

結果是什麼，我會先和 Revive 談談，我們已經能夠根據我們在 Revive 技術人員的營業額進行招聘，並且每週都有淨增加，這有助於讓更多的技術人員走上街頭.現在，我們只是在幫助那些在 Revive 的特定技術路線上接受全面培訓並富有成效的人。

And then on the DSD side, we've had, I'd say, a little less success from where we were with Revive, but solid performance on maintaining our RSR headcount and being able to get people back on routes and continue to add routes as the volume justifies those routes. We're still very much focused on optimization of those RSRs as we add them back.

然後在 DSD 方面，我想說，與 Revive 相比，我們取得的成功要少一些，但在維持我們的 RSR 人數以及能夠讓人們回到路線並繼續增加路線方面表現穩定因為數量證明了這些路線。我們仍然非常專注於優化這些 RSR，因為我們將它們添加回去。

Would it be for turnover or specifically coverage on PTO or for adding additional RSRs to be able to change route structures when the route starts to get to a point where it has too much volume on the route, and we need to add a route, so we can pick up additional volume for customers that may be underserved. So that's an ongoing optimization.

是為了營業額還是特別是 PTO 的覆蓋範圍，還是為了增加額外的 RSR 以便能夠在路線開始到達路線上的流量過多的點時更改路線結構，我們需要添加一條路線，所以我們可以為可能服務不足的客戶增加額外的數量。所以這是一個持續的優化。

We have a group that continues to lead that with our DSD team, and that's been very successful. And on the HR side, we've been able to turn the tide. I'd say, from a macroeconomic perspective over the past quarter, we've seen -- while the labor rates have continued to -- unemployment rate is still quite low. We've been able to react to that and be able to get more applicants through and hired than on the street.

我們有一個團隊繼續領導我們的 DSD 團隊，這非常成功。在人力資源方面，我們已經能夠扭轉局勢。我想說的是，從過去一個季度的宏觀經濟角度來看，我們已經看到——雖然勞動力率繼續上升——但失業率仍然很低。我們已經能夠對此做出反應，並且能夠讓更多的申請人通過並被雇用，而不是在街上。

So I'm sensing right now, given the new programs we've been putting in place through our HR team and through our DSD frontline team, that we've been able to hold our own and not deteriorate on the negative side and lose more than we can add. So that's been very positive.

所以我現在感覺到，考慮到我們通過人力資源團隊和 DSD 前線團隊實施的新計劃，我們已經能夠保持自己的狀態，不會在消極方面惡化並失去更多比我們可以添加。所以這是非常積極的。

Yes. And Gerry, just quickly on external view just because I happen to have seen it last week. Unfortunately, I don't recall where, but there was an article I saw that noted the restaurant industry in the United States is still -- they estimate about 1 million workers short from where they would like to be. So we still see that with our customers, and we're hopeful for improvement there as well.

是的。而 Gerry，只是因為我上週碰巧看到了它，所以很快就會從外部視圖中看到它。不幸的是，我不記得在哪裡，但我看到一篇文章指出美國的餐飲業仍然——他們估計大約有 100 萬工人短缺他們想要的地方。所以我們仍然看到我們的客戶，我們也希望在那裡有所改進。

This concludes our question-and-answer session. I would like to turn the conference back over to Deverl for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 Deverl，聽取任何閉幕詞。

Thank you. Overall, while we've had the foundation in place, market dynamics have been difficult. We are very focused on sharpening execution as we manage through this period. .

謝謝。總的來說，雖然我們已經有了基礎，但市場動態一直很困難。在這段時間裡，我們非常專注於加強執行力。 .

And we're encouraged by our progress this quarter and are optimistic that the expected favorable pricing environment that Scott spoke of in the prepared remarks and in the coming quarters will support meaningful improvement in our results.

我們對本季度的進展感到鼓舞，並樂觀地認為斯科特在準備好的講話中和未來幾個季度談到的預期有利定價環境將支持我們的業績取得有意義的改善。

The strategy is in place, and we are determined to show the benefits of the hard work the team has completed as we move through fiscal 2023 and into the next fiscal year. Thank you for attending today.

該戰略已經到位，我們決心在我們進入 2023 財年並進入下一個財年時展示團隊所完成的辛勤工作所帶來的好處。感謝您今天的出席。

The conference has now concluded. Thank you for attending today's presentation. You may all now disconnect.

會議現已結束。感謝您參加今天的演講。你們現在可能都斷開連接了。