Farmer Bros Co (FARM) 2024 Q3 法說會逐字稿

Good afternoon, and welcome to the Farmer Brothers fiscal third quarter 2024 earnings conference call.

下午好，歡迎參加 Farmer Brothers 2024 年第三季財報電話會議。

(Operator Instructions) As a reminder, this call is being recorded.

（操作員說明）謹此提醒，此通話正在錄音。

Earlier today, the company issued its quarterly shareholder letter available on the Investor Relations section of Farmer Brothers' website at farmerbrothers.com. The shareholder letter is also included as an exhibit on the company's Form 10-Q and is available on its website and the Securities Exchange Commission's website at SEC.gov. A replay of this audio-only webcast will be available on the company's website approximately two hours after the conclusion of this call.

今天早些時候，該公司發布了季度股東信函，可在 Farmer Brothers 網站 farmerbrothers.com 的投資者關係部分查看。股東信函也作為附件包含在公司 10-Q 表格中，並可在公司網站和美國證券交易委員會網站 SEC.gov 上查閱。本次電話會議結束後約兩個小時，將在公司網站上提供此純音訊網路廣播的重播。

Before we begin the call, please note all the financial information presented is unaudited and 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 regulations.

在我們開始電話會議之前，請注意，所提供的所有財務資訊均未經審計，管理層在本次電話會議期間發表的有關公司未來預期、計劃和前景的各種言論可能構成聯邦安全港條款中的前瞻性陳述。

These forward-looking statements represent the company's views as of today and should not be relied upon as representing the company's views as of any subsequent date.

這些前瞻性陳述代表了本公司截至目前為止的觀點，不應被視為代表本公司截至任何後續日期的觀點。

Results could differ materially from those forward-looking statements.

結果可能與這些前瞻性陳述有重大差異。

Additional information on factors, which could cause actual results and other events to differ materially from those forward-looking statements is available on 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.

在今天的電話會議上，管理層還將參考某些非公認會計準則財務指標，包括調整後的 EBITDA 和調整後的 EBITDA 利潤率來評估公司的營運績效。

Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is also included in the company's shareholder letter.

這些非公認會計原則財務指標與最直接可比較的公認會計原則指標的調節也包含在公司的股東信中。

I will now turn the call over to Farmer Brothers' President and Chief Executive Officer, John Moore.

我現在將把電話轉給 Farmer Brothers 總裁兼執行長約翰·摩爾 (John Moore)。

Mr. Moore, please go ahead.

摩爾先生，請繼續。

Good afternoon, everyone, and thank you for joining us.

大家下午好，感謝您加入我們。

Over the course of the third quarter, we continued to see positive momentum has made year over year gains versus many of our key metrics.

在第三季度，我們繼續看到積極的勢頭與我們的許多關鍵指標相比取得了同比增長。

We see ongoing progress in our transformation to becoming a direct store delivery based organization and in our efforts to optimize utilization of newly right-sized operations.

我們看到，我們在轉型為直接商店交付的組織方面以及在優化新規模營運的利用率方面不斷取得進展。

We've executed a new corporate headquarters lease in Fort Worth, Texas, which better aligns our current business needs.

我們在德克薩斯州沃思堡簽署了新的公司總部租賃協議，這更好地滿足了我們當前的業務需求。

We also continue to consolidate roasting packaging and production at our Portland, Oregon facility.

我們也持續整合俄勒岡州波特蘭工廠的烘焙包裝和生產。

In addition, we made significant strides in our brand pyramid and SKU rationalization initiatives, designs to create clearly defines traditional premium and specialty property lines within our products catalog.

此外，我們在品牌金字塔和 SKU 合理化計劃方面取得了重大進展，旨在在我們的產品目錄中創建清晰定義的傳統優質和特色產品線。

This change to our brand pyramid to remove skewed redundancies and simplify our offerings for customers.

我們對品牌金字塔的這項改變旨在消除傾斜的冗餘並簡化我們為客戶提供的產品。

It will also provide additional operational and cost efficiencies for the organization as well as streamline our inventory and overall sales approach.

它還將為組織提供額外的營運和成本效率，並簡化我們的庫存和整體銷售方法。

We achieved a milestone in relation to this project during the third quarter as we now have more SKUs related to our new tiered coffee offerings in inventory than those of our previous catalog.

我們在第三季實現了與該項目相關的里程碑，因為我們現在庫存中與新的分層咖啡產品相關的 SKU 比我們之前的目錄更多。

We are encouraged to already hitting scheduling and production improvements leading to increases in our in-stock and delivery capabilities.

我們受到鼓勵，已經實現了調度和生產改進，從而提高了我們的庫存和交付能力。

We expect to complete this initiative by the end of the first quarter of fiscal 2025.

我們預計在 2025 財年第一季末完成該計劃。

They are also continuing to improve our field operations through investment in technology upgrades and enhancements.

他們還透過投資技術升級和增強繼續改善我們的現場營運。

We recently completed an upgrade of handheld devices for our route sales representatives, which will simplify device management, enhanced support, and improve our inventory management, invoicing and overall customer service efforts.

我們最近完成了路線銷售代表手持設備的升級，這將簡化設備管理、增強支援並改善我們的庫存管理、發票和整體客戶服務工作。

The common theme in these initiatives is that we remain focused on customer growth, retention, and improving key elements of our value proposition to ensure profitable growth.

這些措施的共同主題是，我們仍然專注於客戶成長、保留和改善我們價值主張的關鍵要素，以確保獲利成長。

This progress will take time for our efforts and initiatives are beginning to bear fruit.

這項進展需要時間，我們的努力和措施才開始取得成果。

We reached an inflection point during the quarter as retention trends stabilized and our rate of customer decline improved compared to the prior year.

隨著保留趨勢趨於穩定，客戶流失率與前一年相比有所改善，我們在本季度達到了轉折點。

Overall, we are proud of the strides we've made so far this year and the early wins we have achieved related to our DSD transformation, but there's still much work to be done.

總的來說，我們對今年迄今為止所取得的進步以及我們在 DSD 轉型方面取得的早期成果感到自豪，但仍有許多工作要做。

As we have said before, we do not expect our results to be linear quarter to quarter.

正如我們之前所說，我們預計我們的業績不會按季度呈線性增長。

Change of this magnitude takes time and patience as we continue to implement the deliberate foundational changes necessary for long-term success.

如此大規模的變化需要時間和耐心，因為我們將繼續實施長期成功所必需的深思熟慮的基礎性變革。

Our focus continues to be on the fall.

我們的重點仍然是秋天。

Driving customer retention and growth, improve our cost structure, delivering incremental margin improvement, increasing market penetration for new on-trend products, and completing the transitional services associated with our direct ship sale.

推動客戶保留和成長，改善我們的成本結構，實現增量利潤改善，提高新趨勢產品的市場滲透率，並完成與我們的直接船舶銷售相關的過渡服務。

With that, I'll turn it over to Brad to discuss our financials in more detail.

這樣，我將把它交給布拉德，更詳細地討論我們的財務狀況。

Brad?

布拉德？

But thanks, John.

但謝謝，約翰。

And hello, everyone.

大家好。

As a reminder, results for fiscal 2024 and the prior year third quarter are reported on a continuing operations basis, reflecting the performance of our DSD business in the respective periods.

謹此提醒，2024 財年和上一年第三季的業績是在持續經營的基礎上報告的，反映了我們 DSD 業務在相應時期的業績。

Please refer to our Form 10-Q, which was filed with the SEC today, further explanation of our expected performance of our discontinued and continuing operations.

請參閱今天向 SEC 提交的 10-Q 表格，其中進一步解釋了我們已終止和持續經營業務的預期業績。

Overall, we're pleased to have maintained the positive year-over-year gains we have made in gross margin and adjusted EBITDA profitability.

總體而言，我們很高興能夠維持毛利率和調整後 EBITDA 獲利能力年增。

Net sales for the third quarter of fiscal 2024 were relatively flat on a year-over-year basis by $85.4 million compared to $85.7 million in the prior year period.

2024 財年第三季的淨銷售額較去年同期相對持平，為 8,540 萬美元，而去年同期為 8,570 萬美元。

Overall, net sales were impacted by a reduction in total unit sales, which were offset by higher pricing.

總體而言，淨銷售額受到總銷售量減少的影響，但定價上漲抵消了這一影響。

During the quarter, gross margins increased 660 basis points compared to the third quarter of fiscal 2023 moving from 33.5% to 40.1% respectively.

與 2023 財年第三季相比，本季毛利率成長了 660 個基點，分別從 33.5% 增至 40.1%。

Gross profit during the quarter increased $5.5 million from $34.2 million or 19% on a year-over-year basis.

本季毛利從 3,420 萬美元增加了 550 萬美元，年增 19%。

This increase in gross margin was primarily driven by improvements in pricing and a decrease in underlying commodities costs.

毛利率的成長主要是由於定價的改善和基本商品成本的下降所致。

Operating expenses increased slightly from $35.6 million in the prior year period to $34.7 million during the third quarter fiscal 2024.

2024 財年第三季營運費用從去年同期的 3,560 萬美元小幅增加至 3,470 萬美元。

This improvement was a result of a $2.3 million increase in net gains associated with property sales and other assets was offset by the $1.3 million increase in selling expenses and a $200,000 increase in general and administrative expenses.

這一改善是由於與房地產銷售和其他資產相關的淨收益增加了 230 萬美元，但被銷售費用增加 130 萬美元以及一般和管理費用增加 20 萬美元所抵消。

The selling expense increase was primarily a result of additional costs related to health care benefits and vehicle rental expense, both partially offset by a decrease in advertising related expenses.

銷售費用的增加主要是由於與醫療保健福利和車輛租賃費用相關的額外成本，兩者部分被廣告相關費用的減少所抵消。

Net income from continuing operations moved to a loss of $682,000 during the quarter compared to a loss of $6.9 million during the prior year period, an improvement of more than $6.2 million.

本季持續營運淨利為虧損 68.2 萬美元，去年同期虧損為 690 萬美元，改善超過 620 萬美元。

Our capital expenditures for the quarter were flat on a year-over-year basis at $3.4 million.

我們本季的資本支出與去年同期持平，為 340 萬美元。

In fiscal 2024, we anticipate between $12 million and $15 million in total capital expense.

2024 財年，我們預計總資本支出將在 1,200 萬至 1,500 萬美元之間。

We expect to finance these expenditures through cash flow from operations and borrowings under our credit facility.

我們預計透過營運現金流和信貸額度下的借款來為這些支出提供資金。

Adjusted EBITDA for the third quarter remained positive for the second consecutive quarter at $271,000.

第三季調整後 EBITDA 連續第二季保持正值，達到 271,000 美元。

This compares to a loss of $579,000 in the prior year period.

相比之下，去年同期虧損 57.9 萬美元。

Looking at the balance sheet, as of March 31, 2024, Farmer Brothers had $5.5 million of unrestricted cash and cash equivalents and $200,000 in restricted cash.

從資產負債表來看，截至2024年3月31日，Farmer Brothers擁有550萬美元的非限制性現金和現金等價物以及20萬美元的限制性現金。

We had outstanding borrowings of $23.3 million utilized $4.6 million of letters of credit supplement at $30.5 million of availability under our revolver credit facility.

我們有 2,330 萬美元的未償還借款，利用我們的循環信貸額度下的 3,050 萬美元可用信用證補充了 460 萬美元。

We believe we are adequately capitalized to finance our operations and expect to achieve our goal to be free cash flow positive in early fiscal '25.

我們相信我們有足夠的資本來為我們的營運提供資金，並期望在 25 財年初實現自由現金流為正的目標。

Although we do not expect results to be linear quarter to quarter, we are pleased with the progress we've made so far in fiscal 2024 and are confident we are building a foundation to support long-term profitable growth and value creation.

儘管我們預計季度業績不會呈線性增長，但我們對 2024 財年迄今的進展感到滿意，並相信我們正在為支持長期盈利增長和價值創造奠定基礎。

With that, I'll turn it back to John.

這樣，我會把它轉回給約翰。

John?

約翰？

Thanks, Brad.

謝謝，布拉德。

As you've heard, we're making market progress in our DSD transformation, but are nowhere near the finish line.

正如您所聽說的，我們在 DSD 轉型方面正在取得市場進展，但距離終點線還很遙遠。

It is our view that there is a significant amount of upside still to be realized in the operational and cost efficiencies as well as top line growth.

我們認為，營運和成本效率以及營收成長仍有很大的上升空間。

We firmly believe in the potential of our revenues to generate significant and sustainable shareholder value.

我們堅信我們的收入有潛力創造顯著且可持續的股東價值。

Thank you to all for joining us on the call today.

感謝大家今天加入我們的電話會議。

Operator, we will now open it up for Q&A.

接線員，我們現在將開放問答。

(Operator Instructions) Gerry Sweeney, Roth Capital.

（操作員指令）Gerry Sweeney，Roth Capital。

Good afternoon, guys.

下午好，夥計們。

Thanks for taking my call.

感謝您接聽我的電話。

Hey, Gerry.

嘿，格里。

How are you?

你好嗎？

Doing well, thanks.

做得很好，謝謝。

I wanted to start on customer retention.

我想從保留客戶開始。

It sounded like two different things falling out from quarter, one, revenues were down and it sounded as though revenue was down because you had some customers have not secondarily, in your script, you talked about customer retention stabilizing.

聽起來像是季度中出現的兩件不同的事情，一是收入下降，聽起來好像收入下降是因為你有一些客戶沒有其次，在你的腳本中，你談到了客戶保留穩定。

We sort of was that an inflection point during the quarter that retention has sort of flipped from a negative to a positive just once again on that a little bit further?

我們認為，本季出現了一個拐點，保留率再次從負面轉變為正面？

Yeah.

是的。

Hi, Gerry, this is John.

嗨，格里，我是約翰。

In terms of the customer attention and what we're seeing is the numbers are decrease in customers that we were facing last year, a change that was happening.

就客戶關注度而言，我們看到去年我們面臨的客戶數量有所減少，而這項變化正在發生。

It's much, much better than it was.

比以前好多了。

And if anything, it's stabilized and comes to neutral.

如果有什麼變化的話，那就是它已經穩定並趨於中性。

So that in and of itself is a huge positive relative to the performance last year.

因此，與去年的表現相比，這本身就是一個巨大的正面因素。

And I think as we continue to refine how we're going to market and focusing on execution at the field level, we're seeing that it's starting to bear fruit.

我認為，隨著我們繼續完善行銷方式並專注於現場執行，我們看到它開始結出碩果。

So in the past, we've talked about operational excellence when it comes to showing up at the right place at the right time with the right product at the right price and basically fulfilling on the service proposition.

因此，過去我們討論過卓越運營，即在正確的時間、正確的地點以正確的價格提供正確的產品，並基本上履行服務主張。

We're starting to see that as we invest in our manufacturing capability, our plan planning and procurement capability we're building in better systems and infrastructure, allowing us to fulfill on the value proposition to the customers.

我們開始看到，當我們投資於製造能力、計劃規劃和採購能力時，我們正在建立更好的系統和基礎設施，使我們能夠實現對客戶的價值主張。

That's beginning to bear fruit.

這已經開始結出碩果了。

And again, we're starting to see that customer accounts are approaching neutral or at neutral, even turning a little bit positive from week to week.

再次，我們開始看到客戶帳戶接近中性或處於中性，甚至每週都變得有點積極。

And that's an extremely positive situation for us.

這對我們來說是一個非常積極的情況。

Got it.

知道了。

So, we're getting there's sort of putting summation -- we're getting there.

所以，我們正在得到某種總結——我們正在達到那裡。

It's improving.

它正在改善。

Looking at a week to week and we're getting to neutral, it's not positive.

每週來看，我們正在走向中性，這並不是正面的。

Got it.

知道了。

And then secondarily, on the operational side, reduce skews, scheduling planning, roasting, consolidating everything in Portland.

其次，在營運方面，減少偏差、調度規劃、烘焙、整合波特蘭的一切。

Where -- what inning would you say you are in on that process and how much opportunity from means.

你會說你在這個過程中處於哪一局，以及有多少機會。

It sounds like we're still in the early section of that, to be honest with you.

老實說，聽起來我們仍處於早期階段。

Yeah.

是的。

I would say we're in the early to mid-innings.

我想說我們正處於前半局。

We haven't brought in our first lever yet

我們還沒有引入第一個槓桿

(technical difficulty) .

（技術難度）。

The other piece to that puzzle is that when we initiated a change in planning and production, it takes weeks for that to be realized at the field level.

這個難題的另一個部分是，當我們開始改變規劃和生產時，需要幾週的時間才能在現場實現。

I can tell you that there's been an exponential improvement, we're tracking this on a weekly cadence.

我可以告訴你，已經有了指數級的改進，我們正在以每週的節奏追蹤這一點。

And of course, we're planning production daily.

當然，我們每天都在計劃生產。

There has been a market improvement.

市場已有改善。

If I look from February to today, there is significant improvement in our fulfilment rates, not only in the fulfilment rates, but then also in our line of sight and ability to track from the manufacturing level all the way through to the branch level.

如果我從二月到現在，我們的履行率有了顯著的提高，不僅是履行率，而且是我們的視線和從製造層面一直到分支機構層面的追蹤能力。

And I know you've been following us for a while and you may have heard in the past, we talked about difficulty in establishing line of sight to the branch even beyond the route level where it really matters to the customer.

我知道您已經關注我們一段時間了，您過去可能聽說過，我們談到了建立分支機構視線的困難，甚至超出了對客戶真正重要的路線級別。

And I think we've made substantive changes in our infrastructure, redeploying assets, building new systems of communication from the branch level or goes back through to the planning and procurement even into the manufacturing piece, integrating all of those in a meaningful way.

我認為我們已經對基礎設施進行了實質性的改變，重新部署資產，從分支機構層面建立新的通訊系統，或追溯到規劃和採購，甚至進入製造環節，以有意義的方式整合所有這些。

So that we get manufacturing cadence that matches to the need of the customer.

這樣我們就能獲得符合顧客需求的製造節奏。

And I would say that is a somewhat new capability that we've developed in the last couple of months.

我想說，這是我們在過去幾個月中開發的新功能。

We are beginning to see meaningful fulfilment at the branch level, but we're in that regard are in the early innings.

我們開始在分支機構層級看到有意義的成就，但在這方面我們還處於早期階段。

Does that mean you are having the right products on the trucks?

這是否意味著您的卡車上有合適的產品？

Satisfying

滿意

(multiple speakers)

（多個發言者）

That's correct.

這是正確的。

So in the past, we felt as though we had the right products in the system in general, they just happen to be in the wrong place.

因此，在過去，我們感覺系統中總體上擁有正確的產品，但它們只是碰巧出現在錯誤的位置。

Today, I would say that we're getting much better about manufacturing the right products and getting them to the right place at the right time.

今天，我想說的是，我們在製造正確的產品並在正確的時間將它們運送到正確的地點方面做得越來越好。

And in that regard, we're in the early innings/middle innings, but we are beginning to see the impact.

在這方面，我們正處於前局/中局，但我們已經開始看到影響。

And that's one of the things we see with this Q3 inflection in the customer rates.

這就是我們在第三季客戶率的變化中看到的事情之一。

We feel as though that's having an immediate impact.

我們覺得這正在產生立竿見影的影響。

And that's -- by the way that same level of line of sight on the finished goods inventory side.

順便說一下，成品庫存方面的視線水平相同。

We're also making substantive changes on the other piece of this, which our field representatives and the customers told us, again reinforced by the artificial intelligence.

我們也對另一部分進行了實質改變，我們的現場代表和客戶告訴我們，人工智慧再次強化了這一點。

And the other piece of that equation was the equipment placement and getting speed to market with the equipment so that customers could actually brew the coffee and service their customers further downstream.

該等式的另一部分是設備放置和加快設備上市速度，以便客戶能夠真正煮咖啡並為下游的客戶提供服務。

And there, again, we've made substantive changes, making sure that at the branch level, there is an adequate inventory of the equipment that is most often used in the field, so that they can get speed to market with an equipment placement and allocation.

在這裡，我們再次做出了實質改變，確保在分支機構層面，有足夠的現場最常用設備的庫存，以便他們能夠透過設備放置和部署來加快上市速度分配。

So on both sides of that, the pieces that the customers are telling us through their purchasing cadence, there were issues around retention and purchasing.

因此，從客戶透過購買節奏告訴我們的兩方面來看，都存在有關保留和購買的問題。

Now we feel as though we made substantive changes and we're beginning to get traction with those.

現在我們覺得我們似乎做出了實質的改變，我們開始受到這些改變的牽引。

Gerry, one thing I'd add is, as you're looking at there soon to reading the P&L.

格里，我要補充的一件事是，正如您很快就會看到的那樣，閱讀損益表。

And I'm trying to say what inning we're in because I think in the shareholder letter that we are now our inventory level and the new skews, for example, is higher than the inventory level on the book, both skews as that flows through the P&L, though, that's still to come because that product has to get sorted through.

我試圖說出我們處於哪一局，因為我認為在股東信中，我們現在的庫存水平和新的偏差，例如，高於賬面上的庫存水平，兩者都隨著流動而偏差不過，通過損益表，這還沒有完成，因為該產品必須經過分類。

We get through the old inventory, we start selling the new inventory that focusing on the top line.

我們清理掉舊庫存，開始販售專注於營收的新庫存。

Then you start to see that business coming out of my world less and doing less with more inventory or their outlook.

然後你開始看到我的世界裡的業務越來越少，隨著庫存或他們的前景越來越多，做得也越來越少。

For doing more with less inventory.

以更少的庫存做更多的事情。

So all of these things that we have a line of sight to this progress being made by then it trickled through the supply chain and that trickles through the business.

因此，所有這些事情我們都可以看到當時所取得的進展，它會滲透到供應鏈和業務中。

So I guess you'll see those things as we as we go along.

所以我想隨著我們的進展，你會看到這些事情。

But we talk about these inflection points just keep that in mind.

但我們談論這些拐點時請記住這一點。

Got, it.

知道了。

And I should have asked this question earlier, but when you talk about the AI pricing engine, there were several models.

我應該早點問這個問題，但是當你談論人工智慧定價引擎時，有幾個模型。

One was the pricing and the other two, I think we’re market basket and customer retention, and they were going to -- I think for like a term turned on this year.

一個是定價，另外兩個，我認為我們是市場籃子和客戶保留，他們將會——我認為今年會出現一個術語。

Just curious if they are in play and if they're part of the solution, not only driving sales but customer retention.

只是好奇它們是否在發揮作用，是否是解決方案的一部分，不僅可以推動銷售，還可以提高客戶保留率。

So that was developed by our initial understanding of what we could do with that tool.

這是我們對使用該工具可以做什麼的初步了解而開發的。

I would not say that we're driving market basket with the AI tool at this point.

我不會說我們目前正在利用人工智慧工具來推動市場購物。

It's certainly in the capability.

這當然是在能力範圍內。

What I would call out is that we used that a key part of the pricing engine is too anticipate when we think we might lose the customer because that is the most critical thing to pricing.

我要指出的是，當我們認為我們可能會失去客戶時，定價引擎的關鍵部分過於預期，因為這是定價最關鍵的事情。

So applying the fact that we have the pricing engine built moves, we've done more than just optimize pricing.

因此，應用我們擁有內建定價引擎這一事實，我們所做的不僅僅是優化定價。

It's also given us really good feedback on how to retain customers in general, not just related to the price we're giving up.

它還為我們提供了關於如何留住客戶的非常好的回饋，而不僅僅是與我們放棄的價格有關。

But I would say that intelligence has driven us towards our focus on in-stock position and our focus on equipment service levels.

但我想說的是，情報促使我們更加關注庫存狀況和設備服務水準。

So we found those to be good predictors of customer turnover.

因此我們發現這些可以很好地預測客戶流失率。

So we're leveraging that for more than just, hey, what's the price of this have a copy.

所以我們利用它的目的不僅僅是，嘿，這個副本的價格是多少。

For that we haven't gotten to -- just the basket value.

為此，我們還沒有得到——只是籃子價值。

I would say, even found lower hanging fruits, but that's pretty valuable on the way there.

我想說，即使找到了唾手可得的成果，但這在實現這一目標的過程中非常有價值。

Got it.

知道了。

And then just new growth -- new products growth opportunities, obviously, I think you guys are getting to on it were operational efficiencies are coming into play.

然後就是新的成長——新產品的成長機會，顯然，我認為你們已經意識到營運效率正在發揮作用。

We're seeing in the margins, we're seeing in EBIDTA results center or target for free cash flow.

我們看到的是利潤，我們看到的是 EBIDTA 結果中心或自由現金流目標。

The natural step is that I know you had done with that side.

自然的一步是我知道你已經完成了那一邊。

Next step is maybe new products and adding that to the system against growth, maybe some thoughts on that.

下一步可能是新產品並將其添加到系統中以防止成長，也許對此有一些想法。

Yeah, you bring up a great point, Gerry.

是的，你提出了一個很好的觀點，格里。

I mean, as you know, we've been emphasizing both the shots, the innovative syrup line extension that we have in our portfolio and also the Boyd's lipid Ambien coffee and both of which are beginning to get traction.

我的意思是，正如你所知，我們一直在強調這兩個鏡頭，即我們產品組合中的創新糖漿系列延伸，以及博伊德的脂質安必恩咖啡，這兩者都開始受到關注。

There's no question when we talk about driving top line growth, one of the bigger opportunities for us is really the idea of product penetration in the customers that we have, and that's where offering products like shot, like the voids that they have in coffee throughout the rest of this fiscal year as they begin to gain traction probably into the next fiscal year as they continue to grow and come to maturity because we'll continue to gain points of focus for us.

毫無疑問，當我們談論推動營收成長時，對我們來說更大的機會之一實際上是產品滲透到我們擁有的客戶中的想法，這就是提供像咖啡這樣的產品的地方，就像他們在咖啡中所存在的空白一樣在本財年剩下的時間裡，它們開始獲得吸引力，可能會在下一個財年繼續增長並走向成熟，因為我們將繼續獲得關注點。

But we do see some positive signs of growth in both right now.

但我們現在確實看到了兩者成長的一些積極跡象。

And then obviously, we also have an eye to the future.

顯然，我們也著眼於未來。

So a future state beyond that, what will the next innovation look like.

那麼除此之外的未來狀態，下一次創新會是什麼樣子。

We're constantly looking toward the future state where we'll be shifting emphasis in months ahead toward new products and new introductions.

我們不斷展望未來，未來幾個月我們將把重點轉向新產品和新推出。

And staying with this theme on growth, what about adding more routes or routes optimized?

圍繞著成長這個主題，添加更多路線或優化路線怎麼樣？

Or is there an opportunity there?

或者說那裡有機會嗎？

There may very well be an opportunity there longer term.

從長遠來看，那裡很可能有機會。

I think, right now what we're looking to as opposed to adding routes, it's adding density to the routes that we have.

我認為，現在我們所尋求的不是增加路線，而是增加現有路線的密度。

And I think one of the things we're looking at, how do we get more value out of the existing infrastructure that we have.

我認為我們正在考慮的事情之一是，我們如何從我們現有的基礎設施中獲得更多價值。

There's still a lot to be gained through that exercise.

透過這項練習，我們仍然可以獲得很多東西。

And I think we're really looking to leverage the assets we have -- where we have and looked channel-by-channel for opportunity.

我認為我們確實希望利用我們擁有的資產——我們擁有並逐一管道尋找機會。

So rather than adding routes, I think you would see us optimizing routes and adding value to the routes that exist at the moment.

因此，我認為您會看到我們優化路線並為目前存在的路線增加價值，而不是添加路線。

But we are also keep in mind we've completely transformed the sales team and fulfilment capability.

但我們也請記住，我們已經徹底改變了銷售團隊和履行能力。

We've added with Tom Bauer's leadership as the Chief Commercial Officer.

我們增加了湯姆·鮑爾（Tom Bauer）作為首席商務官的領導力。

We've completely restructured that side of the business.

我們已經徹底重組了這方面的業務。

And an established new KPI's, what we refer to internally as power rankings.

以及既定的新 KPI，我們在內部稱之為權力排名。

And we've created somewhat of a performance driven culture on that side of the equation.

我們在等式的這一邊創造了某種績效驅動的文化。

And that's another piece that we look to in order to grow through new customer acquisition, but at the same time, have an eye to establishing density in areas where we already exist.

這是我們希望透過獲取新客戶來實現成長的另一部分，但同時也要著眼於在我們已經存在的領域建立密度。

Got it.

知道了。

Density is key to growth.

密度是生長的關鍵。

I guess

我猜

--

--

That is it for me.

對我來說就是這樣。

I appreciate it.

我很感激。

Thanks.

謝謝。

Thanks, Gerry.

謝謝，格里。

Thanks, Gerry.

謝謝，格里。

(Operator Instructions) Eric Des Lauriers, Craig-Hallum Capital Group.

（操作員說明）Eric Des Lauriers，Craig-Hallum Capital Group。

Great.

偉大的。

Thank you for taking my questions and congrats on the steel rationalization progress here.

感謝您提出我的問題，並對鋼鐵合理化進程表示祝賀。

Thanks, Eric.

謝謝，埃里克。

My first question is kind of diving a bit more deeply into that's the rationalization and the progress there.

我的第一個問題是更深入地探討其中的合理化和進展。

So I understand that you're expecting to have all the legacy skews sort of fully up by the end of Q1 of fiscal '25.

因此，我理解您預計在 25 財年第一季末所有遺留偏差都會完全消除。

Have you finalized, which SKUs and brands will be included in the new tiered offerings.

您已確定哪些 SKU 和品牌將包含在新的分級產品中嗎？

I mean, I'm just sort of fully built out what those tiers will look like.

我的意思是，我已經完全了解了這些層級的外觀。

We have in terms of the first two tiers where most of the volume is.

我們的前兩層是大部分成交量的地方。

So essentially in the traditional tier, we've established the Farmer Brothers brand as our traditional Tier offering.

因此，本質上在傳統層，我們已經將 Farmer Brothers 品牌建立為我們的傳統層產品。

And then what we're referring to as the premium tier we have avoid spread positions take that space.

然後我們所指的優質層，我們避免價差部位佔據了這個空間。

We're still working on the brand expression in the specialty space, but those will be essentially the three defined tiers, the value propositions presented by those are pretty much for all define.

我們仍在致力於專業領域的品牌表達，但這些本質上將是三個定義的層級，這些層級所呈現的價值主張幾乎適用於所有定義。

And essentially now we're in the brand building effort on the specialty side, but the Farmer Brothers and the Boyd’s brands are established and will be the brands of choice for those other two tiers.

本質上，現在我們正在專業方面進行品牌建設，但 Farmer Brothers 和 Boyd’s 品牌已經建立，並將成為其他兩層的首選品牌。

And I understand that we're at sort of more than half of your inventory now.

就我所知，我們現在的庫存量大約是你們庫存量的一半以上。

Is these new skews.

這些是新的傾斜嗎？

You mentioned the obvious sort of delay of getting this news in the inventory and then out into the market.

您提到了將這一消息納入庫存然後進入市場的明顯延遲。

I'm just wondering if any of these were peers have gone out into the market and if there's been any sort of early feedback from customers or any sort of early insights to ascertain from that.

我只是想知道這些同行中是否有任何人已經進入市場，以及是否有來自客戶的任何早期反饋或任何早期見解可以從中確定。

Now, that's a great question.

現在，這是一個很好的問題。

I mean, I would say that the early indications are that -- we've managed thus far to thread the needle when it comes to positioning the new products into the market space.

我的意思是，我想說的是，早期的跡像是——到目前為止，我們已經成功地將新產品定位到市場空間。

Keep in mind that both Farmer Brothers and Boyd’s had been out in the market in the past, and we're essentially distilling down other brands that have been out.

請記住，Farmer Brothers 和 Boyd’s 過去都已經退出市場，我們基本上是在提煉其他已經退出市場的品牌。

But even in those markets, they may have had some exposure to Farmer Brothers and Boyd’s.

但即使在這些市場，他們也可能接觸過 Farmer Brothers 和 Boyd’s。

So the resistance has not been significant.

所以阻力不大。

Having said that, on the manufacturing side and the planning side, the efficiencies are definitely there and being realized.

話雖如此，在製造方面和規劃方面，效率肯定是存在的並且正在實現。

So you can imagine when it comes to procurement and the efforts and attention that you need to source when you've got half of the coffee SKUs that you've had in the past is radically reduced and you can really focus on adding value there.

因此，您可以想像在採購方面，當您擁有過去一半的咖啡 SKU 時，您需要採購的精力和注意力就會大大減少，您可以真正專注於增加價值。

When it comes to the manufacturing and production side, even more so the planning of manufacturing on the lines is much more straightforward.

在製造和生產方面，生產線上的製造規劃更加簡單。

You can realize the efficiency as by not turning over your line changes as often.

您可以透過不頻繁地進行生產線變更來實現效率。

And so there we've seen a great deal of efficiency gain when it comes to the manufacturing in Portland.

因此，我們看到波特蘭的製造效率大幅提高。

Also the fact that we've been able to consolidate the vast majority of the manufacturing in the Portland facility has made that facility much more efficient in and of itself.

此外，我們已經能夠將絕大多數製造業務整合到波特蘭工廠，這使得工廠本身效率更高。

So we're seeing lots of advantages there.

所以我們在那裡看到了很多優勢。

Where I think we'll be continuing to see efficiencies being in the future as that stretches through the chain and it goes into the distribution center and into the branch level and onto the trucks ultimately, we'll see a much more streamlined capability.

我認為未來我們將繼續看到效率的提高，因為它延伸到整個鏈條，進入配送中心，進入分支機構，最終到達卡車上，我們將看到更簡化的能力。

So as much as reducing things and getting sort of the right brands, the right truck, we have improved that part of the ability to improve that has been, yes, communication, additional infrastructure and resources, but it's also the fact that the offering set has been radically reduced.

因此，除了減少東西並獲得正確的品牌、正確的卡車之外，我們還改進了部分改進能力，是的，溝通、額外的基礎設施和資源，但事實上，我們的產品組合已經從根本上減少了。

So we're going to see efficiencies when it comes to the amount of space we need.

因此，當涉及到我們所需的空間量時，我們將看到效率的提高。

The amount of gas we burn on.

我們燃燒的氣體量。

Every single piece of the puzzle will be more efficient as we continue to roll this out.

隨著我們繼續推出這項解決方案，每一塊拼圖都將變得更有效率。

That's great color and great to hear.

那顏色真棒，聽起來也很棒。

Last question on the new tiered offerings here.

關於新分層產品的最後一個問題。

Do you anticipate any meaningful gross margin difference among the peers?

您預計同行之間的毛利率有顯著差異嗎？

Yeah, I understood that specialty is still sort of a work in progress here, but just a view as you see now, do you anticipate any meaningful gross margin difference among the peers.

是的，我知道專業化仍然是一項正在進行中的工作，但正如您現在所看到的，您是否預計同行之間會出現任何有意義的毛利率差異。

No, honestly, keep in mind, we have existing business associated with these tiers.

不，老實說，請記住，我們現有的業務與這些級別相關。

And we are we are as much collapsing multiple brands into singular brands as anything.

我們正在將多個品牌分解為單一品牌。

So we already have gross margin data around where these brands have been positioned.

因此，我們已經掌握了這些品牌定位的毛利率數據。

And as such, I think we're able to maintain consistency in the gross margin across the three branches.

因此，我認為我們能夠保持三個分支機構毛利率的一致性。

Brad, if you want to speak to that.

布拉德，如果你想談談這個。

Yeah, What I would call out your question, the answer is definitely I think we're thinking of the same margin profile within each tier.

是的，我想提出你的問題，答案肯定是我認為我們正在考慮每個級別內相同的利潤率概況。

But that said, the simplification of our product offering and on the back end is going to allow us to be very intentional with our pricing in a way that (technical difficulty) will raise almost.

但話雖如此，我們產品供應和後端的簡化將使我們能夠非常有意地定價，從而（技術難度）幾乎會提高。

So there's opportunity to find inefficiencies and where individual customers are priced to move them into the new system.

因此，我們有機會發現效率低下的地方，並為個別客戶定價以將他們轉移到新系統。

So there's potential to do the right model.

所以有可能做出正確的模型。

That's certainly better than last year with 600 basis points, this isn't going from zero to full.

這肯定比去年 600 個基點好，但這並不是從零到滿。

But it is an opportunity for us to be much more strategic about the pricing online payments business.

但這對我們來說是一個在線上支付業務定價方面更具策略性的機會。

Yeah, that's helpful.

是的，這很有幫助。

And then on the technology upgrades, nice to see this handheld device upgrades and the expected improvement there in inventory management and customer service.

然後在技術升級方面，很高興看到這款手持設備的升級以及庫存管理和客戶服務的預期改進。

Can you give us a high-level update on what other technology upgrades you're focusing on?

您能否向我們介紹一下您關注的其他技術升級的最新情況？

I know last quarter you mentioned the or you touched on the CRM upgrade, maybe just an update and any other technology upgrades are working on that?

我知道上個季度您提到了 CRM 升級，也許只是一個更新，還有其他技術升級正在解決這個問題嗎？

Sure.

當然。

So we refer to that sort of suite of improvements internally as Project Symphony because essentially what we're doing is we're seeing are a key capability as really a partner in the business, not sort of as an isolated or siloed activity.

因此，我們在內部將這種改進套件稱為“交響樂項目”，因為從本質上講，我們正在做的事情是我們看到了作為真正的業務合作夥伴的關鍵功能，而不是一種孤立或孤立的活動。

And as such, I think it's touching every piece.

因此，我認為它觸及了每一件作品。

So we're implementing new software programming around everything from risk mitigation and sourcing when it comes to commodities driven, purchasing from utilizing it when it comes to the CRM activities, that we have rolled that out.

因此，我們正在圍繞一切實施新的軟體編程，從風險緩解和商品驅動的採購，到 CRM 活動的利用採購，我們已經推出了這些軟體。

What we're referring to as phase one is now complete, we're into phase two of the rollout with the CRM.

我們所說的第一階段現已完成，我們正進入 CRM 推出的第二階段。

We're utilizing that when it comes to street level operations and the handheld technologies, both in terms of hardware but also software.

當涉及街道操作和手持技術時，我們正在利用這一點，無論是在硬體方面還是在軟體方面。

So improvements there to be expected.

因此，改進是可以預期的。

And let's not forget, we had significant upgrades to the ERP over the last six months.

我們不要忘記，過去六個月我們對 ERP 進行了重大升級。

So a great deal of work happening on that side on.

因此，這方面正在進行大量工作。

So you know, again, we're seeing that the IT integration is a key part of what we're doing driving the business forward.

所以您知道，我們再次看到 IT 整合是我們推動業務發展的關鍵部分。

Very helpful.

很有幫助。

I appreciate the color.

我很欣賞它的顏色。

Thanks for taking my questions.

感謝您回答我的問題。

Sure.

當然。

Thank you.

謝謝。

This concludes our question and answer session.

我們的問答環節到此結束。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。