Lazydays Holdings Inc (GORV) 2018 Q4 法說會逐字稿

Good morning.

早安.

My name is Denise, and I'll be your conference operator today.

我叫丹尼斯，今天我將擔任你們的會議操作員。

At this time I'd like to welcome everyone to the Lazydays Holdings, Inc.

此時此刻，我謹歡迎大家來到 Lazydays Holdings, Inc.。

Fourth Quarter and Year-End 2018 Financial Results Conference Call.

2018 年第四季及年末財務業績電話會議。

(Operator Instructions) James Meehan, the Corporate Controller, you may begin your conference.

（操作員指示） 公司財務總監 James Meehan，您可以開始會議了。

Thank you, Denise.

謝謝你，丹妮絲。

Good morning, and thank you for joining us for our fourth quarter and year-end 2018 financial results conference call.

早安，感謝您參加我們的 2018 年第四季和年底財務業績電話會議。

I'm James Meehan, Corporate Controller at Lazydays.

我是 James Meehan，Lazydays 的公司財務長。

We issued the company's earnings press release this morning.

我們今天早上發布了該公司的收益新聞稿。

A copy of the earnings release is available under the Events and Presentation section of the Investor Relations page of our website and has been furnished as an exhibit to our current report on Form 8-K with the SEC.

收益發布的副本可在我們網站投資者關係頁面的活動和演示部分獲取，並已作為我們向 SEC 提交的 8-K 表格當前報告的附件提供。

With me on the call is today are Mr. Bill Murnane, our Chairman and Chief Executive Officer; and Mr. Nick Tomashot, our Chief Financial Officer.

今天與我一起參加電話會議的是我們的董事長兼執行長 Bill Murnane 先生；以及我們的財務長 Nick Tomashot 先生。

As a reminder, please note that some of the information that you will hear today during our discussion may consist of forward-looking statements, including, without limitation, statements regarding revenue, gross margins, operating expenses, stock-based compensation expense, taxes, product mix shift and geographic expansion.

請注意，您今天在我們的討論中聽到的一些資訊可能包含前瞻性陳述，包括但不限於相關收入、毛利率、營運費用、股票補償費用、稅收、產品組合轉變和地理擴張。

Actual results or trends for future periods could differ materially from the forward-looking statements as a result of many factors.

由於許多因素，未來時期的實際結果或趨勢可能與前瞻性陳述有重大差異。

For additional information, please refer to the risk factors discussed in the Form 8-K filed with the SEC on March 21, 2018.

如需了解更多信息，請參閱 2018 年 3 月 21 日向 SEC 提交的 8-K 表中討論的風險因素。

We will also discuss non-GAAP measures of financial performance that we believe are useful to the company, including EBITDA and adjusted EBITDA.

我們還將討論我們認為對公司有用的非公認會計準則財務績效指標，包括 EBITDA 和調整後的 EBITDA。

Please refer to our earnings press release for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

請參閱我們的收益新聞稿，以了解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財務指標的調節表。

For the 3 months ended December 31, 2018, the financial information represents the operating results of Lazydays Holdings, Inc.

截至2018年12月31日止3個月，財務資訊代表Lazydays Holdings, Inc.的營運績效。

For the 3 months ended December 31, 2017, the financial information presented represents the operating results of Lazy Days' R.V. Center, Inc.

截至 2017 年 12 月 31 日止 3 個月，所提供的財務資訊代表 Lazy Days 的 R.V. 的經營業績。中心有限公司

For the fiscal year ended December 31, 2018, the financial information presented represents the combined operating results of Lazydays Holdings, Inc.

截至 2018 年 12 月 31 日的財年，所提供的財務資訊代表 Lazydays Holdings, Inc. 的合併經營績效。

for the period from March 15 to December 31, 2018, with the operating results of Lazy Days' R.V. Center, Inc.

2018年3月15日至12月31日期間，Lazy Days R.V.的經營業績中心有限公司

for the period from January 1, 2018, to March 14, 2018.

有效期限為2018年1月1日至2018年3月14日。

For the fiscal year ended December 31, 2017, the financial information presented represents the operating results of Lazy Days' R.V. Center, Inc.

截至 2017 年 12 月 31 日的財政年度，所提供的財務資訊代表 Lazy Days 的 R.V. 的經營業績。中心有限公司

Now it's my pleasure to introduce Bill Murnane.

現在我很高興向大家介紹比爾‧默南。

Thank you, James, and good morning, everyone.

謝謝你，詹姆斯，大家早安。

Thank you for joining us.

感謝您加入我們。

I would like to give an overview of what we are seeing in the markets and then Nick will give you more details on our specific performance.

我想概述我們在市場上看到的情況，然後尼克將為您提供有關我們具體表現的更多詳細資訊。

As I'm sure those of you that follow the industry are aware, recreational vehicle sales softened in the fourth quarter in most of our markets.

我相信關注該行業的人都知道，大多數市場的休閒車銷售在第四季度都出現疲軟。

Q4 is typically our weakest quarter of the year, so a slowdown was not unexpected, but what we experienced was more significant than a normal Q4 slowdown.

第四季通常是我們一年中最疲軟的季度，因此經濟放緩並不意外，但我們經歷的情況比正常的第四季放緩更為嚴重。

We don't need to spend a lot of time repeating what others in the industry have said, but we in -- but in general, we concur that demand for RVs has slowed, the over inventories are higher than normal, and we think retail inventories will take another quarter or two to rebalance with demand.

我們不需要花很多時間重複業內其他人所說的話，但總的來說，我們同意房車的需求已經放緩，庫存過剩高於正常水平，我們認為零售庫存還需要一兩個季度才能與需求重新平衡。

That's assuming retail demand isn't down more than 10% versus prior year.

這是假設零售需求與去年相比下降不超過 10%。

In spite of some slowness, we continue to execute on our geographic expansion strategy.

儘管進展緩慢，我們仍繼續執行地域擴張策略。

In August, we closed on the acquisition that became our Minneapolis dealership, and in December we closed on the acquisition that became our Knoxville dealership.

8 月，我們完成了對明尼阿波利斯經銷店的收購，12 月，我們完成了對諾克斯維爾經銷店的收購。

These acquisitions will help diversify us both geographically and seasonally.

這些收購將有助於我們實現地域和季節性的多元化。

It is important to note that both our Minneapolis dealership and our Knoxville dealership have spring- and summer-oriented selling seasons.

值得注意的是，我們的明尼阿波利斯經銷商和諾克斯維爾經銷商都有以春季和夏季為導向的銷售季節。

Given this, we expect them to have a much bigger contribution in the quarters ending in June and September and a much smaller contribution in the quarters ending in December and March.

有鑑於此，我們預計他們在 6 月和 9 月結束的季度中的貢獻將大得多，而在 12 月和 3 月結束的季度中的貢獻將小得多。

Moreover, we announced last week that we will be opening a new dealership in Nashville, Tennessee, and have signed a dealership agreement with Grand Design RV for the Nashville market.

此外，我們上週宣布將在田納西州納許維爾開設一家新經銷店，並與 Grand Design RV 簽署了納許維爾市場經銷協議。

Nashville is a rapidly growing market with a lot of outdoor enthusiasts, and we couldn't be more excited to be moving into the Music City.

納許維爾是一個快速成長的市場，擁有許多戶外愛好者，我們對搬入音樂城感到無比興奮。

I've been asked to contrast the economics of a greenfield dealership like Nashville against an acquired dealership like Knoxville, and I will have a few comments on this in a minute.

我被要求將像納許維爾這樣的新建經銷商與像諾克斯維爾這樣的被收購經銷商的經濟狀況進行比較，我很快就會對此發表一些評論。

First, I'm going to turn the call over to Nick Tomashot, our CFO, to take you through some of the financial highlights of the fourth quarter and year-end.

首先，我將把電話轉給我們的財務長 Nick Tomashot，他將帶您了解第四季度和年底的一些財務亮點。

Thank you, Bill, and good morning, everyone.

謝謝你，比爾，大家早安。

Please note that unless stated otherwise, the 2018 fourth quarter and fiscal year results comparisons are to the same 3- and 12-month periods ended December 31, 2017.

請注意，除非另有說明，2018 年第四季和財年業績比較均與截至 2017 年 12 月 31 日止的相同 3 個月和 12 個月期間進行。

I'll start with a summary of our fourth quarter financial results.

我將首先總結我們第四季度的財務表現。

Total revenues for the quarter were $125.9 million, down $10.7 million or 7.8% from 2017.

該季度總營收為 1.259 億美元，比 2017 年減少 1,070 萬美元，降幅為 7.8%。

Revenue from the sale of recreational vehicles was $110.1 million for the quarter, down $11.9 million or 9.7%.

本季休閒車銷售收入為 1.101 億美元，下降 1,190 萬美元，成長 9.7%。

RV unit sales, excluding wholesale units, were 1,334, down 145 units or 9.8%.

房車銷售量（不含批發量）為 1,334 輛，下降 145 輛，即 9.8%。

Q4 revenue from the sale of new recreational vehicles was $66 million, down $8.4 million or 11.3%.

第四季新休閒車銷售收入為 6,600 萬美元，下降 840 萬美元，成長 11.3%。

New vehicle unit sales were 787, down 74 units or 8.6%.

新車銷量787輛，下降74輛，跌幅8.6%。

The average selling price of new vehicles was $83,500, down $3,100 or 3.6%.

新車平均售價為83,500美元，下降3,100美元，跌幅3.6%。

Q4 revenue from pre-owned vehicles was $44.1 million, down $3.5 million or 7.3% from 2017.

第四季二手車收入為 4,410 萬美元，比 2017 年下降 350 萬美元，成長 7.3%。

Pre-owned vehicle units sold, excluding wholesale units, were 547, down 71 units or 11.5%.

二手車銷售量（不含批發量）為 547 輛，下降 71 輛，即 11.5%。

The majority of the decrease in pre-owned units and revenue was from a decline in pre-owned motorized sales.

二手車和收入的下降大部分是由於二手機動車輛銷售的下降。

This decrease was driven by limits in the availability of quality pre-owned motorized units.

這一下降是由於優質二手機動車輛的供應受到限制。

The average selling price of pre-owned recreational vehicles was $74,000, which was relatively flat compared with the fourth quarter of 2017 at $74,100.

二手休閒車的平均售價為 74,000 美元，與 2017 年第四季的 74,100 美元相比相對持平。

Revenue from our other channels consist of parts, accessories and related service, finance and insurance or F&I revenue as well as campground and miscellaneous revenue.

我們其他管道的收入包括零件、配件及相關服務、金融和保險或F&I收入以及露營地和雜項收入。

In total, revenue from these other lines of business was $15.7 million, up $1.2 million or 8.2% compared to 2017.

這些其他業務線的總收入為 1,570 萬美元，比 2017 年增加 120 萬美元，即 8.2%。

The increase was driven by an F&I increase of $0.3 million or 4.6% to $6.8 million, and parts and service revenue increase of $0.9 million or 13.5% to $7.7 million.

這一成長的推動因素是 F&I 成長了 30 萬美元，即 4.6%，達到 680 萬美元，零件和服務收入成長了 90 萬美元，即 13.5%，達到 770 萬美元。

Q4 gross profit, excluding noncash, last in, first out or LIFO adjustments was $27.3 million, down $1.1 million versus 2017.

第四季毛利（不包括非現金、後進先出或 LIFO 調整）為 2,730 萬美元，比 2017 年下降 110 萬美元。

Gross margin excluding LIFO adjustments improved between the 2 periods to 21.7% compared to 20.8% in 2017, with the change primarily driven by improved new vehicle margins and improved F&I revenues per vehicle sold.

不包括後進先出調整的毛利率在兩個時期內提高至21.7%，而2017 年為20.8%，這一變化主要是由於新車利潤率的提高和每輛售出車輛的F&I 收入的提高所致。

Gross profit for the quarter, including the $5.1 million net favorable swing in noncash LIFO adjustments compared to prior year, was $26.9 million, up $4 million or 17.3%.

該季度的毛利為 2,690 萬美元，增加了 400 萬美元，增幅為 17.3%，其中包括非現金後進先出調整帶來的 510 萬美元的淨有利波動。

Excluding transaction costs, stock-based compensation and depreciation and amortization, SG&A for the quarter was $21.7 million, down $1.8 million compared to prior year, primarily related to decreases in compensation cost, which more than offset the additional overhead expenses contributed by the recently acquired Minnesota and Tennessee locations.

不包括交易成本、基於股票的薪酬以及折舊和攤銷，本季度的SG&A為2170萬美元，比去年同期減少180萬美元，主要與薪酬成本的下降有關，這遠遠抵消了最近收購的公司帶來的額外管理費用明尼蘇達州和田納西州地點。

Stock-based compensation and depreciation and amortization increased $2.5 million and $1.1 million, respectively, compared to prior year.

與前一年相比，基於股票的薪酬以及折舊和攤提分別增加了 250 萬美元和 110 萬美元。

These noncash expenses have increased compared to prior years, stemming from the March 2018 merger between Andina Acquisition Corp.

由於 Andina Acquisition Corp 和 2018 年 3 月的合併，這些非現金支出比往年增加。

II and Lazy Days' R.V. Center, Inc., which included options issued to management and increases in tangible and in intangible asset valuations on our balance sheet.

II 和 Lazy Days' R.V. Center, Inc.，其中包括向管理層發行的選擇權以及我們資產負債表上有形和無形資產估值的增加。

Net loss for the fourth quarter was $2.4 million as compared to a net loss of $3.6 million in 2017.

第四季淨虧損為 240 萬美元，而 2017 年淨虧損為 360 萬美元。

The $1.2 million improvement was primarily the result of a -- of the $5.1 million net favorable impact of LIFO adjustments between the periods mentioned by discussion of gross profits partially offset by the $3.6 million increase in noncash expansions -- expenses, which I mentioned in my SG&A discussion.

120 萬美元的改善主要是由於毛利潤的討論所提到的期間內後進先出調整帶來的510 萬美元的淨有利影響，部分被非現金擴張增加的360 萬美元所抵消，這一點我在我的報告中提到過。

Despite the pretax loss shown for the fourth quarter, we still recorded income tax expense of $0.4 million, primarily due to the anticipated impact of nondeductible expenses for stock-based compensation and certain transaction costs on our effective tax rate for the year.

儘管第四季度出現稅前虧損，但我們仍然記錄了 40 萬美元的所得稅費用，這主要是由於股票薪酬的不可扣除費用和某些交易成本對我們今年的有效稅率的預期影響。

Adjusted EBITDA was $4.6 million for the quarter, up $0.6 million.

本季調整後 EBITDA 為 460 萬美元，增加 60 萬美元。

Adjusted EBITDA margin increased by 80- basis points to 3.7%.

調整後 EBITDA 利潤率成長 80 個基點，達到 3.7%。

Please refer to our earnings release for the table, which includes a reconciliation of GAAP net income or loss to adjusted EBITDA.

請參閱我們的收益發布表，其中包括 GAAP 淨利潤或虧損與調整後 EBITDA 的調整表。

I'm now going to pivot to providing a summary of our year-end financial results.

我現在將轉向提供我們年終財務表現的摘要。

Revenues for the year were $608.2 million, down $6.6 million or 1.1% from 2017.

全年營收為 6.082 億美元，比 2017 年減少 660 萬美元，即 1.1%。

Revenue from the sales of recreational vehicles in 2018 was $538.1 million, down $8.3 million or 1.5%.

2018 年休閒車銷售收入為 5.381 億美元，下降 830 萬美元，成長 1.5%。

RV unit sales for the year, excluding wholesale units, were 7,296, down 92 units or 1.2%.

不包括批發單位，全年房車銷量為 7,296 輛，下降 92 輛，即 1.2%。

The decrease in sales of recreational vehicles was offset by $1.6 million increase from our other revenue streams.

休閒車銷售額的下降被我們其他收入來源增加的 160 萬美元所抵消。

Year-end gross profit, excluding LIFO adjustments, was $133.1 million, up $2.2 million versus 2017.

年末毛利（不包括後進先出法調整）為 1.331 億美元，比 2017 年增加 220 萬美元。

Gross margin, excluding LIFO adjustments, improved between the 2 periods from 21.3% in 2017 to 21.9% in 2018, primarily driven by improved new vehicle margins and improved F&I revenues per vehicle sold.

兩個時期的毛利率（不包括後進先出法調整）從 2017 年的 21.3% 提高到 2018 年的 21.9%，這主要是由於新車利潤率的提高和每輛售出車輛的 F&I 收入的提高。

Gross profit for the year, including LIFO adjustments, was $131.7 million, up $4.6 million or 3.6%.

包括後進先出法調整在內，本年度毛利為 1.317 億美元，成長 460 萬美元，成長 3.6%。

This gross profit improvement was favorably impacted by a $2.3 million net change related to LIFO adjustments in the 2 periods.

毛利的改善受到與 2 個時期的 LIFO 調整相關的 230 萬美元淨變化的有利影響。

Excluding transaction costs, stock-based compensation and depreciation and amortization, SG&A for the year was $96.8 million, up $0.5 million compared to prior year.

不包括交易成本、股票薪酬以及折舊和攤銷，本年度的銷售管理及管理費用為 9,680 萬美元，比上年增加 50 萬美元。

This is contributable to the additional overhead expense contributed by the recently acquired Minnesota and Tennessee locations, partially offset by reduced personnel and other overhead costs across the company.

這是由於最近收購的明尼蘇達州和田納西州工廠帶來的額外管理費用，部分被整個公司人員和其他管理費用的減少所抵消。

Stock-based compensation and depreciation and amortization increased $8.3 million and $3.4 million, respectively, compared to prior year.

與前一年相比，基於股票的薪酬以及折舊和攤提分別增加了 830 萬美元和 340 萬美元。

These noncash expense increases stem from the March 2018 merger between Andina Acquisition Corp.

這些非現金費用的增加源自於 2018 年 3 月 Andina Acquisition Corp. 與 Andina Acquisition Corp. 之間的合併。

II and Lazy Days R.V. Center, Inc., which included options issued to management and increases in tangible and tangible asset valuation.

II 和慵懶時光 R.V. Center, Inc.，其中包括向管理層發行的期權以及有形和有形資產估值的增加。

Adjusted EBITDA, a non-GAAP financial measure, was $32.4 million for the year, up $1.1 million compared to 2017.

調整後 EBITDA（非 GAAP 財務指標）全年為 3,240 萬美元，比 2017 年增加 110 萬美元。

This was primarily driven by approved gross margins, which were partially offset by the decline of revenue in units sold.

這主要是由批准的毛利率推動的，但部分被銷售收入的下降所抵消。

Adjusted EBITDA as a percentage of revenue increased slightly for the year to 5.3% compared to 5.1% in 2017.

調整後 EBITDA 佔營收的百分比從 2017 年的 5.1% 略有上升至 5.3%。

Now turning to the December 31 balance sheet and our financial position, we had cash on hand of $26.6 million and net working capital of $44.3 million, with cash down $10.8 million compared to September 30, 2018.

現在看看 12 月 31 日的資產負債表和我們的財務狀況，我們手頭現金為 2,660 萬美元，淨營運資本為 4,430 萬美元，與 2018 年 9 月 30 日相比，現金減少了 1,080 萬美元。

This was primarily driven by the $9 million cash payment for the acquisition of Tennessee RV Supercenter and the $1.2 million dividend paid to preferred shareholders in October 2018.

這主要是由於收購田納西州房車超級中心時支付的 900 萬美元現金以及 2018 年 10 月向優先股股東支付的 120 萬美元股息所致。

We had approximately $167.4 million in inventory, consisting of $129.4 million in new vehicles, $34.9 million in pre-owned vehicles, approximately $4.4 million in parts inventory and LIFO reserves of $1.3 million.

我們的庫存約為 1.674 億美元，其中包括 1.294 億美元的新車、3,490 萬美元的二手車、約 440 萬美元的零件庫存以及 130 萬美元的後進先出儲備。

Excluding LIFO reserves, our inventories increased $40.6 million at the end of 2018 compared to the end of September.

不包括後進先出儲備，我們的庫存在 2018 年底比 9 月底增加了 4,060 萬美元。

$14.3 million of this increase was related to the Tennessee RV Supercenter acquisition in December, with the remaining increase attributable to seasonal inventory build for Q1 combined with some higher-than-planned inventory levels that resulted from the softening of demand in the fourth quarter.

其中 1,430 萬美元的增長與去年 12 月收購田納西州房車超級中心有關，其餘增長歸因於第一季的季節性庫存建設以及第四季度需求疲軟導致的一些高於計劃的庫存水平。

As of December 31, 2018, we had no borrowings under our $5 million revolving credit facility, $17.8 million of term loans outstanding and $14.9 million in gross notes payable on our floor plan facility.

截至 2018 年 12 月 31 日，我們的 500 萬美元循環信貸額度下沒有借款，未償還定期貸款為 1,780 萬美元，平面圖貸款的應付票據總額為 1,490 萬美元。

We also had approximately $5.6 million outstanding on notes payable related to acquisitions.

我們還有大約 560 萬美元未償付的與收購相關的應付票據。

Thank you, and I'll now turn the call back over to Bill Murnane.

謝謝您，我現在將把電話轉回比爾·默南。

Thank you, Nick.

謝謝你，尼克。

As I said, I want to elaborate briefly on the economics of a greenfield dealership compared to an acquired dealership, because I've gotten a number of questions on that.

正如我所說，我想簡要闡述新建經銷商與收購經銷商相比的經濟效益，因為我收到了很多關於這方面的問題。

For a similar-size dealerships, the investment in real estate and inventory is typically the same, whether it is a greenfield dealership or an acquired dealership.

對於規模相似的經銷商來說，無論是新建經銷商還是收購經銷商，對房地產和庫存的投資通常是相同的。

For an acquired dealership, we will also need to pay for an existing stream of cash flows, so this would be an added cost to having the dealership.

對於收購的經銷商，我們還需要支付現有的現金流，因此這將是擁有經銷商的額外成本。

On the other hand, for a greenfield dealership, it might take us 1 to 3 years to ramp up to the same cash flow level of the acquired dealership.

另一方面，對於新建經銷商來說，我們可能需要 1 到 3 年的時間才能達到與被收購經銷商相同的現金流水準。

Theoretically, on a discounted cash flow basis, a greenfield dealership will have a higher RRR -- IRR, internal rate of return, than an acquired dealership if we can achieve normalized cash flow in 1 to 3 years, which typically we can do.

理論上，如果我們能夠在1 到3 年內實現正常化現金流（通常我們可以做到），那麼在貼現現金流的基礎上，新建經銷商將比被收購的經銷商擁有更高的RRR（IRR ，內部報酬率）。

I should also mention that although greenfield dealerships may typically achieve a higher IRR, we still get very attractive returns for shareholders on acquired dealerships.

我還應該提到，儘管新建經銷店通常可能會實現更高的內部收益率，但我們仍然為收購經銷店的股東獲得非常有吸引力的回報。

As I've said in the past, good greenfield opportunities are hard to come by, given most of the best brands are taken in most of the best markets.

正如我過去所說，鑑於大多數最好的品牌都在大多數最好的市場中被採用，良好的綠地機會很難獲得。

The availability of strong brands has a significant impact on our decision to acquire versus greenfield the dealership.

強大品牌的可用性對我們收購經銷商或新建經銷商的決定有重大影響。

Nashville did have strong brands available, including Grand Design, one of the industry's strongest brands, so that made our decision to greenfield in Nashville relatively easy.

納許維爾確實擁有強大的品牌，包括業內最強大的品牌之一 Grand Design，因此我們相對容易做出在納許維爾新建的決定。

We are more likely to acquire dealerships in markets where strong brands are not available.

我們更有可能在沒有強大品牌的市場中收購經銷商。

One final remark on our recent acquisitions is that the integration of these dealerships into the Lazydays family has gone very well.

關於我們最近的收購的最後一點是，這些經銷商併入 Lazydays 家族的過程進展順利。

Our goal is to fully integrate a dealership into our processes and systems in 90 days, and we achieved or exceeded this goal in both cases.

我們的目標是在 90 天內將經銷商完全整合到我們的流程和系統中，我們在這兩種情況下都實現或超過了這一目標。

This is a credit not only to the integration teams but also to the great teams that exist at each dealership.

這不僅歸功於整合團隊，也歸功於每個經銷商的優秀團隊。

Regarding quarter 1 2019, we think it is safe to say at this point that slowness in the market continues.

關於 2019 年第一季度，我們認為目前可以肯定地說市場持續放緩。

As you know, we don't give guidance, but we will say that we expect Q1 2019 will have lower revenue and earnings than Q1 2018.

如您所知，我們不會給予指導，但我們會說，我們預計 2019 年第一季的收入和收益將低於 2018 年第一季。

I should also remind you that Q1 2018 was one of the strongest quarters in the history of the company and the industry, so it is a very tough comparable.

我還應該提醒您，2018 年第一季是公司和行業歷史上最強勁的季度之一，因此這是一個非常艱難的比較。

That's all for our prepared remarks.

這就是我們準備好的發言稿。

Denise, please open the line for questions.

丹尼斯，請撥打電話提問。

Thank you.

謝謝。

(Operator Instructions) Your first question comes from Fred Wightman with Citi.

（操作員說明）您的第一個問題來自花旗銀行的 Fred Wightman。

I know that in the release you had mentioned Minnesota and Tennessee didn't impact sales in the quarter, but was there any meaningful impact on margins?

我知道您在新聞稿中提到明尼蘇達州和田納西州沒有影響本季的銷售，但是對利潤率有任何有意義的影響嗎？

No.

不。

No.

不。

It didn't have no impact.

並不是沒有影響。

It had a smaller impact, just to be clear on that and didn't have a meaningful impact on margins either.

需要明確的是，它的影響較小，而且對利潤率也沒有產生有意義的影響。

Okay, sure.

好吧，當然。

And then just given the tougher backdrop for new unit sales, is there any change in how you're thinking about the importance of used this year?

然後，考慮到新銷售的嚴峻背景，您對今年二手車重要性的看法是否有任何變化？

We put a high importance on used in all years, but -- so we -- I would say no.

我們多年來都非常重視使用，但是 - 所以我們 - 我會說不。

We don't put any more or less importance on used because we have a high -- it's a big part of our business in every year.

我們對二手貨的重視程度並沒有增加或減少，因為我們有很高的要求——這是我們每年業務的重要組成部分。

That's fair.

這很公平。

And then just for inventory across the industry, I think in the prepared remarks you did mention that a portion of the increase in inventory was due to the softer than expected 4Q.

然後就整個行業的庫存而言，我認為您在準備好的評論中確實提到庫存增加的一部分是由於第四季度的疲軟所致。

When you guys look across the industry, I mean, I think you also said another quarter or 2 until things are sort of normalized, but can you sort of walk-through, maybe a bit more detailed what you're seeing, when we could expect to see wholesale and retail a bit more aligned?

當你們縱觀整個行業時，我的意思是，我認為你們還說過再過一個季度或兩個季度，直到事情正常化，但是你們能否介紹一下，也許更詳細一些你們所看到的，當我們可以時期望看到批發和零售更加一致嗎？

Yes, that's -- again, we'd just be guessing, Fred.

是的，那是——再說一次，我們只是猜測，弗雷德。

We don't know what everybody's got in their lots.

我們不知道每個人都有什麼。

We don't know what everybody's sales is.

我們不知道每個人的銷售額是多少。

We do see the industry stats as they come out, but they're -- again, they're a month or 2 delayed.

我們確實看到了行業統計數據的公佈，但它們再次延遲了一兩個月。

So we'd just be guessing on what we think.

所以我們只是猜測我們的想法。

Based on everything we've heard in our analysis and what we know from our own dealerships, we think we've got a quarter or 2 more before industries kind of balance out.

根據我們在分析中聽到的一切以及我們從經銷商那裡了解到的情況，我們認為在行業達到平衡之前，我們還需要四分之一或兩個季度的時間。

But again, remember, for most of the country, we're in a slower period right now.

但再次請記住，對於全國大部分地區來說，我們現在正處於一個緩慢的時期。

Those of us in the South, they're certainly in our stronger period.

我們南方人肯定正處於我們的強盛時期。

So it's really going to be -- the summer's going to dictate.

所以這確實是——夏天將決定一切。

So Q2 and Q3 are going to be really important in where inventories end up.

因此，第二季和第三季對於庫存最終的情況將非常重要。

Sure.

當然。

That totally makes sense.

這完全有道理。

And just sort of tweaking into the retail comments, I think you made a comment about retail being more aligned, assuming that we're above a 10% decline in retail.

只是對零售評論進行了一些調整，我認為您對零售業的評論更加一致，假設我們的零售業下降了 10% 以上。

Can you just sort of -- are you guys assuming a 10% decline for the industry, like, what was sort of behind that?

你們能否假設該產業會下降 10%，例如，這背後的原因是什麼？

We're assuming somewhere between 0 and 10%.

我們假設介於 0 到 10% 之間。

That's probably the best we can tell you.

這可能是我們能告訴你的最好的了。

In that space what we're experiencing and what we're hearing from our partners, business partners and others, we just think if it's more than 10%, that it's going to obviously slow the work off of excess inventory.

在這個領域，我們正在經歷的事情以及我們從合作夥伴、業務合作夥伴和其他人那裡聽到的情況，我們只是認為如果超過 10%，就會明顯減緩過剩庫存的處理速度。

That's the best I can tell you.

這是我能告訴你的最好的了。

Your next question comes from Steve Dyer with Craig-Hallum.

您的下一個問題來自史蒂夫戴爾和克雷格哈勒姆。

Just to dig into the inventory question a little bit more.

只是為了進一步深入研究庫存問題。

You had talked last quarter about a little bit of difficulty in procuring good used inventory, any change there or is it still tough?

上個季度您曾談到在採購優質二手庫存方面遇到了一些困難，有什麼變化嗎？

Modest change, Steve.

適度的改變，史蒂夫。

I think it's a little easier to get used inventory.

我認為獲得二手庫存會更容易。

We're a little better positioned than we were last quarter on that.

在這方面，我們的處境比上個季度好一些。

So I think it's easy in a little bit, we're seeing a little better inventory opportunity on used.

所以我認為這很容易，我們看到二手庫存有更好的機會。

Okay.

好的。

Just on the parts and service side, just given some of the slowness in sales, any more focus or any more, I guess, initiatives you can talk about on the parts and service F&I side, just to sort of improve that mix?

只是在零件和服務方面，考慮到銷售的一些緩慢，我想，您可以在零件和服務 F&I 方面談論更多的關注或更多的舉措，只是為了改善這種組合？

And then secondly, I noticed that gross margin in that segment was a little bit below the typical range in the quarter, any color to that?

其次，我注意到該細分市場的毛利率略低於本季的典型範圍，有什麼顏色嗎？

Yes.

是的。

So on -- yes, parts and services, you know is a really important part of our strategy going forward.

等等——是的，零件和服務，你知道是我們未來策略的一個非常重要的部分。

It's one of the 3 focus areas for us.

這是我們的三個重點領域之一。

To remind you, the 3 focus areas are: a great customer experience, best-in-class customer experience, service excellence and geographic expansion.

提醒您，這 3 個重點領域是：卓越的客戶體驗、一流的客戶體驗、卓越的服務和地理擴張。

Service excellence means we want to be the best service provider in the industry.

卓越的服務意味著我們希望成為業界最好的服務提供者。

We think that will help improve our margins, help improve the volatility in our business, and we continue to put a lot of energy into that, and we think over the next 1 to 2 years it's going to have a fairly significant impact on our business.

我們認為這將有助於提高我們的利潤率，有助於改善我們業務的波動性，我們將繼續投入大量精力，我們認為在未來的一到兩年內，這將對我們的業務產生相當重大的影響。

So we are keeping the focus there.

所以我們將重點放在那裡。

Nick, I don't know, you want to comment on the margin question?

尼克，我不知道，您想對保證金問題發表評論嗎？

Yes, if you look at the individual other lines of business, margins are up on each of them.

是的，如果你看看其他各個業務領域，你會發現它們的利潤率正在上升。

So what you're seeing is when they're all put together that it's in the aggregate that they're down a bit.

所以你看到的是，當它們全部放在一起時，它們總體上有所下降。

Got it, makes sense.

明白了，有道理。

And then just for a modeling perspective to help us out there, any commentary or help you can give us around the contribution or expected contribution of the 2 acquisitions in 2019?

然後，只是為了從建模角度幫助我們，您可以就 2019 年兩次收購的貢獻或預期貢獻向我們提供任何評論或幫助嗎？

We're not giving that out at this point in time, Steve.

史蒂夫，我們現在不會透露這一點。

Sorry.

對不起。

(Operator Instructions) Your next question comes from Paul Penney with Northland Securities.

（操作員說明）您的下一個問題來自 Northland Securities 的 Paul Penney。

This is Greg on for Paul.

這是保羅的格雷格。

Just a follow up on inventory.

只是對庫存進行跟進。

Do you think your bargaining power with OEMs has improved, given their increased capacity and their challenges bringing down inventory?

鑑於原始設備製造商產能的增加和減少庫存的挑戰，您認為您與原始設備製造商的議價能力是否有所提高？

Yes and no.

是和不是。

I think if -- I think what typically happens is, in slow moving product we're seeing that opportunities exist.

我認為如果——我認為通常發生的情況是，在緩慢移動的產品中，我們看到機會的存在。

So -- but you have to balance that with, do you want to take on more inventory at a lower cost?

所以，但你必須平衡這一點，你想以更低的成本獲得更多的庫存嗎？

And do you want to take it on, on slower moving product?

您想在移動速度較慢的產品上採取行動嗎？

That's typically -- we don't -- we like to run our business where our inventory is balanced with demand in all of our products, we like to have a mix of products that turns well.

這通常是——我們不——我們喜歡在我們的庫存與所有產品的需求平衡的情況下經營我們的業務，我們喜歡有一個運作良好的產品組合。

So if it's a product that isn't turning well, and we can get it really cheap, that's not necessarily attractive to us because we're not going to do any better from a return on investment standpoint on that product than we do -- would on something that wasn't discounted that turns faster.

因此，如果這是一種表現不佳的產品，而我們可以非常便宜地買到它，那麼這對我們來說不一定有吸引力，因為從投資回報的角度來看，我們不會在該產品上做得比我們更好 -會購買那些沒有打折但周轉速度更快的東西。

So that's kind of how we view it.

這就是我們的看法。

I would say there are opportunities out there, select opportunities, but they tend to be on slower moving product, which isn't necessarily something we want to get into.

我想說的是，那裡有機會，有選擇的機會，但它們往往是發展較慢的產品，這不一定是我們想要進入的領域。

But on product that turns well, you're not seeing the type of discount that maybe others are getting.

但對於表現良好的產品，您不會看到其他人可能獲得的折扣類型。

Okay, that's helpful.

好的，這很有幫助。

And then I know you don't want to give a lot of detail on this, but in general, does the acquisition pipeline remain pretty robust?

然後我知道您不想提供太多細節，但總的來說，收購管道是否仍然相當穩健？

And do you think that industry weakness has improved your negotiating power in any way?

您認為產業疲軟是否以任何方式提高了您的談判能力？

Hard to answer the second question.

第二個問題很難回答。

It's hard to answer whether it's improved our negotiating power.

很難回答這是否提高了我們的談判能力。

We have a lot to look at.

我們有很多值得關注的地方。

I would say, we're not interested in most of the things we see, but there's a lot to look at, and we're pretty comfortable with the -- we have a lot on our plate, and we're comfortable with the pipeline, and we're comfortable with the prices, very comfortable with the prices we're paying.

我想說，我們對看到的大多數東西都不感興趣，但是有很多東西值得看，而且我們對此感到非常滿意——我們有很多事情要做，而且我們對管道，我們對價格感到滿意，對我們支付的價格感到非常滿意。

Good to hear.

很高興聽到。

Last one for me, which is the -- beside the macro factors that are obviously beyond your control, what would you consider to be the most significant challenges currently and maybe in the next 12 months or so?

我的最後一個問題是——除了明顯超出您控制範圍的宏觀因素之外，您認為當前以及未來 12 個月左右最重大的挑戰是什麼？

That's a tough question, I think just maintaining margins.

這是一個棘手的問題，我認為只是維持利潤率。

We are -- we want to focus on maintaining margins.

我們希望專注於維持利潤率。

We don't want to get into a race to the bottom because demand has slowed.

我們不想因為需求放緩而陷入逐底競爭。

And so far we've been able to do that pretty well.

到目前為止，我們已經做得很好了。

And then just making sure we don't overextend ourselves, I would say, because we do have a lot going on.

我想說的是，然後確保我們不會過度擴張，因為我們確實有很多事情要做。

We just acquired 2 dealerships.

我們剛收購了 2 家經銷商。

We're opening a third dealership either late in 2019 or probably more likely early 2020, and we just got a lot going on.

我們將在 2019 年底或更可能在 2020 年初開設第三家經銷店，而且我們正在進行許多工作。

That, combined with running our core business, is a lot.

再加上我們的核心業務的運營，這個數字就很大了。

We don't -- I would say, overextending ourselves and remaining focused is a probably a key management challenge right now.

我們不——我想說，過度擴張和保持專注可能是目前的關鍵管理挑戰。

Your next question comes from Fred Wightman with Citi.

您的下一個問題來自花旗銀行的 Fred Wightman。

Guys, just one quick follow up.

夥計們，請快速跟進一下。

Given that we're sort of end of March here, can you talk about what you've seen from the retail show season so far?

鑑於我們現在已經是三月底了，您能談談到目前為止您在零售展會季中看到的情況嗎？

Some other people talked about decent attendance, excluding rather the closure rates were a little bit lower.

其他一些人談到了良好的出席率，但不包括關閉率稍微低一些。

Is that similar to what you were seeing?

是不是跟你看到的很相似？

Yes, we would agree with that, Fred.

是的，我們同意這一點，弗雷德。

(Operator Instructions) There are no further questions queued up at this time, I'll turn the call back over to Bill Murnane.

（操作員說明）目前沒有其他問題排隊，我會將電話轉回給 Bill Murnane。

Great.

偉大的。

Thanks, Denise.

謝謝，丹妮絲。

Thanks, everyone, for joining us today.

謝謝大家今天加入我們。

We look forward to meeting with you again next quarter.

我們期待下個季度再次與您見面。

Have a great day.

祝你有美好的一天。

Thank you.

謝謝。

This concludes today's conference call.

今天的電話會議到此結束。

You may now disconnect.

您現在可以斷開連線。