Lazydays Holdings Inc (GORV) 2022 Q3 法說會逐字稿

My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lazydays Holdings, Inc. Third Quarter 2022 Financial Results Conference Call.

我叫羅布，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Lazydays Holdings, Inc. 2022 年第三季財務業績電話會議。

(Operator Instructions)

（操作員說明）

Debbie Harrell, Corporate Controller, you may begin your conference.

Debbie Harrell，公司財務總監，您可以開始會議了。

Good morning, everyone, and thank you for joining us. On the call with me are John North, our Chief Executive Officer; and Nick Tomashot, our Chief Financial Officer.

大家早安，感謝您加入我們。與我通話的有我們的執行長約翰‧諾斯 (John North)；以及我們的財務長 Nick Tomashot。

Before we begin, I would like to remind everyone that we will be discussing forward-looking information including potential future financial performance, which is subject to risks, uncertainties and assumptions that could cause actual results to differ materially from such forward-looking statements and information. Such risks, uncertainties, assumptions and other factors are identified in our earnings release and other periodic filings with the SEC as well as the Investor Relations section of our website. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results and any or all of our forward-looking statements may prove to be inaccurate.

在開始之前，我想提醒大家，我們將討論前瞻性信息，包括未來潛在的財務業績，這些信息受到風險、不確定性和假設的影響，可能導致實際結果與此類前瞻性陳述和信息存在重大差異。此類風險、不確定性、假設和其他因素已在我們的收益報告和向 SEC 提交的其他定期文件以及我們網站的投資者關係部分中確定。因此，前瞻性陳述不應被視為對實際結果的預測，並且我們的任何或所有前瞻性陳述可能被證明是不準確的。

We can make no guarantees about our future performance, and we undertake no obligation to update or revise our forward-looking statements. On this call, we will discuss certain non-GAAP financial measures. Please refer to our earnings press release, which is available on our website for how we define these measures and reconciliations to the closest comparable GAAP measures.

我們不能對我們未來的業績做出任何保證，我們也不承擔更新或修改我們的前瞻性陳述的義務。在這次電話會議上，我們將討論某些非公認會計準則財務指標。請參閱我們的收益新聞稿，該新聞稿可在我們的網站上找到，了解我們如何定義這些指標以及與最接近的可比較公認會計原則指標的調節。

With that, I'd like to turn the call over to John.

有了這個，我想把電話轉給約翰。

Thanks, Debbie. Good morning, everyone. It's nice to be with you today.

謝謝，黛比。大家早安。今天很高興和你在一起。

I'll start with some thematic comments and initial observations. I'll turn it over to Nick to walk you through some financial highlights, and then we'll take any Q&A thereafter. It's a bit of an atypical call as it is my first opportunity to speak to analysts and investors since joining the organization almost 60 days ago. Of course, given the scale of operations and the attendant complexity of the retail segment we operate in, many of my thoughts thus far are preliminary. I am getting to know our leadership team, learning of the dynamics of our business and triangulating our strategy based on the expectations around the broader industry in the balance of 2022 and into 2023.

我將從一些主題評論和初步觀察開始。我會將其交給尼克，讓他帶您了解一些財務要點，然後我們將進行任何問答。這是一次有點不尋常的電話會議，因為這是我自 60 天前加入該組織以來第一次有機會與分析師和投資者交談。當然，考慮到我們經營的零售領域的營運規模和隨之而來的複雜性，到目前為止我的許多想法都是初步的。我正在了解我們的領導團隊，了解我們業務的動態，並根據 2022 年和 2023 年更廣泛行業的預期來制定我們的策略。

One thing that is immediately and abundantly clear is the strength of our culture. I have had the chance to meet many of our employees to spend time with our leaders in both our corporate office and the field and to observe, firsthand, what we called the Lazydays way. The culture is deep and impressive in our company. While I'm fortunate to join the team with such an important hallmark of success already in place, it is also my goal to enhance and reinforce these cultural elements that will position us to grow and achieve more success in the future.

顯而易見的一件事是我們文化的力量。我有機會見到我們的許多員工，與我們公司辦公室和現場的領導者共度時光，並親眼觀察我們所謂的懶惰日 (Lazydays) 方式。我們公司的文化深厚且令人印象深刻。雖然我很幸運能夠加入這個已經擁有如此重要的成功標誌的團隊，但我的目標也是增強和加強這些文化元素，這將使我們在未來成長並取得更大的成功。

Certainly, over the last 3 years, there has been more than ample precedent in companies declaring unprecedented times. Instead of repeating the mantra, I'll note that our role as leaders -- as stewards of the company require us to be nimble, to respond in both good times and bad, and to seek the strategic opportunities that often arise as a result of disruption to the marketplace and the economy.

當然，在過去的三年裡，有許多公司宣布前所未有的時代的先例。我不想重複這句口頭禪，而是指出，我們作為領導者的角色——作為公司的管理者，要求我們保持敏捷，無論順境還是逆境都能做出反應，並尋求經常因以下原因而出現的戰略機會：對市場和經濟的干擾。

The third quarter of 2022 marked the lack of leverage in our SG&A expense. Those are the facts and they manifest in our results reported earlier today. However, our team has not been sitting idle waiting for this to occur. Over the past 90 days, we have been working diligently on improving the health of our inventory, particularly by reducing 2022 model year units, finding operational efficiencies both large and small, and challenging our stores to improve performance across all business lines.

2022 年第三季我們的 SG&A 支出缺乏槓桿作用。這些都是事實，它們體現在我們今天早些時候報告的結果中。然而，我們的團隊並沒有閒著等待這一切的發生。在過去 90 天裡，我們一直在努力改善庫存狀況，特別是減少 2022 年車型銷售、提高大大小小的營運效率，並要求我們的商店提高所有業務線的績效。

We look forward to updating you on our progress in these areas on future calls. You'll also notice we have changed our financial disclosures attached to the press release distributed this morning. We believe in transparency in our operations and prefer that our results speak for themselves. Committing to detailed and robust sharing of information allows our stakeholders to objectively evaluate our performance and hopefully, engenders credibility in our team as stewards of your capital. We hope you will find this additional data helpful in your analysis.

我們期待在未來的電話會議上向您通報我們在這些領域的最新進展。您還會注意到，我們已經更改了今天早上發布的新聞稿所附的財務披露資訊。我們相信我們的營運透明度，並希望我們的結果不言而喻。致力於詳細而有力的資訊共享使我們的利害關係人能夠客觀地評估我們的績效，並希望能夠提高我們團隊作為您資本管理者的可信度。我們希望您會發現這些附加數據對您的分析有所幫助。

Now a few initial words around our strategy before I turn things over to Nick to take you through our results. I'm incredibly excited by the future that lies ahead for Lazydays. We have a one-of-a-kind brand, a great network of 18 stores operating profitably today with 4 more locations currently under construction. Additionally, there is a rich pipeline of opportunities in the marketplace to support both further acquisitions and greenfield development. Our mandate will be to profitably grow the company and to deploy the free cash flow generated to add incremental scale and network effects to our business.

在我把事情交給尼克來帶你了解我們的結果之前，先簡單介紹一下我們的策略。我對 Lazydays 的未來感到無比興奮。我們擁有一個獨一無二的品牌，一個由 18 家門市組成的龐大網絡，目前已實現盈利，另外 4 家門市目前正在建設中。此外，市場上還有豐富的機會來支持進一步收購和綠地開發。我們的任務是使公司獲利成長，並利用所產生的自由現金流來增加我們業務的規模和網路效應。

Clearly, line of sight to 100 or more stores as possible as evidenced by several competitors that have already achieved that scale in our space. We will be both disciplined and relentless in driving our operating performance, working hard to be the partner of choice for our OEM partners and ensuring we diversify our revenue mix to reduce reliance on new unit sales. Used units, finance and insurance, and in particular, fixed operations provides a more consistent counterbalance to reduce income-saving volatility due to the inevitable cyclical swings in the RV sector.

顯然，我們的目標是盡可能開設 100 家或更多商店，幾家競爭對手已經在我們的領域實現了這一規模，這證明了這一點。我們將嚴格遵守紀律，堅持不懈地提高我們的經營業績，努力成為我們的 OEM 合作夥伴的首選合作夥伴，並確保我們的收入結構多元化，以減少對新銷售的依賴。二手車、金融和保險，特別是固定業務提供了更一致的平衡，以減少因房車行業不可避免的周期性波動而帶來的收入波動。

As we add stores, the leverage of our infrastructure can pay dividends not available with competitors at a smaller scale. Using the size and sophistication of our company we can deliver superior relationships with vendors, optimize shared services functions and develop and refine specialized knowledge and capabilities in areas including technology and marketing that just aren't available to smaller companies.

當我們增加商店時，我們的基礎設施的槓桿作用可以帶來較小的競爭對手無法獲得的紅利。利用我們公司的規模和成熟度，我們可以與供應商建立良好的關係，優化共享服務功能，並開發和完善小公司無法獲得的技術和行銷等領域的專業知識和能力。

This leads to below-line efficiencies and higher net income and cash flows that are otherwise not possible as a stand-alone store. In the departure from our past strategy, we aspire to own our real estate. We believe mortgage financing can still provide ample capital to not retire our growth and achieve a structural cost advantage over time.

這會帶來線下效率以及更高的淨利潤和現金流，而這是獨立商店不可能實現的。與我們過去的策略不同，我們渴望擁有自己的房地產。我們相信，抵押貸款融資仍然可以提供充足的資本，不至於讓我們的成長停滯，並隨著時間的推移實現結構性成本優勢。

As a broader matter, we believe in making decisions for the long-term benefit of our customers, our employees, our shareholders, our communities and the world around us. This framework is simple, but not easy. We endeavor to commit our time and our treasure in pursuit of durable excellence including, for example, our investment in owning our land and maintaining a conservative capitalization. If successful, our horizon will be a competitive advantage over time.

從更廣泛的角度來看，我們相信為客戶、員工、股東、社區和周圍世界的長期利益做出決策。這個框架很簡單，但並不容易。我們努力投入時間和財富來追求持久的卓越，包括我們對擁有土地和維持保守資本的投資。如果成功，隨著時間的推移，我們的視野將成為競爭優勢。

Finally, I'd like to officially welcome Kelly Porter to the team and to publicly recognize Nick for his hard work as CFO as he transitions into retirement. Kelly's first day was Monday, and I'm pleased to report she is on the ground with us in Tampa. She has over 25 years of automotive experience and I can't think of a better partner to add to our senior leadership team as we pursue the strategic objectives I outlined a few minutes ago.

最後，我要正式歡迎凱利·波特加入團隊，並公開認可尼克在退休過渡期間作為財務長所做的辛勤工作。凱莉第一天是星期一，我很高興地報告她在坦帕與我們一起工作。她擁有超過 25 年的汽車產業經驗，在我們追求我幾分鐘前概述的策略目標的過程中，我想不出更好的合作夥伴來加入我們的高階領導團隊。

So to Nick, I'd say thank you and to Kelly, I say welcome. I couldn't be more excited. With that, I'll turn the call over to Nick to take you through our results.

所以我要對尼克說謝謝，對凱利說歡迎。我非常興奮。接下來，我會將電話轉給尼克，讓您了解我們的結果。

Thank you, John.

謝謝你，約翰。

Please note that unless stated otherwise, the 2022 third quarter comparisons are versus the same 3-month period in 2021. Total revenue for the second quarter was $334 million, an increase of 4.7% from 2021. On a same-store basis, total revenue declined $15.2 million. Total unit sales, excluding wholesale units, were 3,712, up 103 units or 2.9%. On a same-store basis, unit sales excluding wholesale, were down 274 units or 7.6%. The average selling price for new units increased 3.4% and the average selling price for preowned units decreased 4.8%.

請注意，除非另有說明，2022 年第三季的比較是與2021 年同期的三個月進行的。收入減少了 1520 萬美元。總銷量（不含批發單位）為 3,712 輛，成長 103 輛，即 2.9%。以同店計算，不包括批發的銷量下降 274 輛，即 7.6%。新單位的平均售價上漲 3.4%，二手單位的平均售價下降 4.8%。

Our same-store results were affected by the impact of Hurricane Ian, which affected our Florida locations' ability to deliver units at September month-end. We believe this is purely a timing difference and expect the impact on full year results to be minimal.

我們的同店業績受到伊恩颶風的影響，這影響了我們佛羅裡達州門市在 9 月底的交付能力。我們認為這純粹是時間上的差異，預計對全年業績的影響很小。

Finance and insurance, or F&I revenue declined 7.7% to $18.6 million. Same-store F&I revenue was down 15.5%, reflecting a lower financing attachment rate, primarily as a result of more cash buyers due to rising interest rates. Revenue in service, body and parts as well as other operations was $14.4 million, an increase of 12.2% compared to 2021. On a same-store basis, it was $13.3 million, up 3.5%. Gross profit, excluding noncash LIFO adjustments, was $79.7 million, down $9.9 million versus 2021.

金融和保險或 F&I 收入下降 7.7% 至 1,860 萬美元。同店 F&I 收入下降 15.5%，反映出融資附加率較低，主要是由於利率上升導致現金買家增加。服務、車身和零件以及其他業務的收入為 1,440 萬美元，較 2021 年增長 12.2%。不包括非現金後進先出調整的毛利為 7,970 萬美元，比 2021 年下降 990 萬美元。

Gross margin, excluding LIFO adjustments, decreased to 23.9% compared to 28.1% in 2021. Our margin declines reflect both the normalization of consumer demand and product availability as well as discounting to improve inventory mix and reduced 2022 model year inventory.

不包括後進先出調整的毛利率下降至23.9%，而2021 年為28.1%。車型庫存的減少。

SG&A for the quarter was $55.8 million, up $7.4 million compared to prior year. $5.3 million of this increase is attributable to overhead associated with the Portland, Oregon, Vancouver, Washington and Milwaukee, Wisconsin dealerships acquired in August 2021. The Monticello, Minnesota dealership opened in March 2022 and the Tulsa, Oklahoma dealership acquired in July 2022. Q3 SG&A's percentage of gross profit increased from 53% to 73% in 2022, reflecting a more normalized level for steady state of our business. Adjusted net income was $11.1 million for the quarter, down from $28.8 million last year. Adjusted fully diluted earnings per share were $0.54 compared to $1.16 in 2021.

本季的 SG&A 為 5,580 萬美元，比去年同期增加 740 萬美元。其中530 萬美元的成長歸因於2021 年8 月收購的俄勒岡州波特蘭、溫哥華、華盛頓和威斯康辛州密爾瓦基經銷店的相關管理費用。俄克拉荷馬州塔爾薩經銷店於2022 年7 月收購。該季度調整後淨利潤為 1,110 萬美元，低於去年的 2,880 萬美元。調整後完全稀釋每股收益為 0.54 美元，而 2021 年為 1.16 美元。

Now to discuss liquidity and capital allocation. As of September 30, we had cash and cash equivalents of $100.8 million, an increase of $2.7 million from December 31, 2021. We were comfortably in compliance with our debt covenants, and our covenant leverage ratio stood at 0.21 at the end of the quarter. As of September 30, 2022, our revolving credit facility was undrawn and we had $14.8 million of non-Floorplan debt outstanding. Between our cash balance, available credit on our facility of $61.7 million and estimated proceeds available through mortgages on owned real estate, we estimate total available liquidity of $177.5 million.

現在討論流動性和資本配置。截至 9 月 30 日，我們的現金和現金等價物為 1.008 億美元，比 2021 年 12 月 31 日增加了 270 萬美元。截至 2022 年 9 月 30 日，我們的循環信貸額度尚未提取，我們還有 1,480 萬美元的未償非平面圖債務。在我們的現金餘額、6,170 萬美元的可用信貸以及透過自有房地產抵押貸款獲得的估計收益之間，我們估計可用流動性總額為 1.775 億美元。

From the start of the year through November 3, 2022, we had repurchased approximately 2.7 million shares of common stock at an average price of $16.54, retired over 18% of our shares outstanding. We remain opportunistic repurchases of our stock, and we'll have a balanced approach to capital allocation including internal investment, acquired and organic growth and share repurchases in the future.

從年初到 2022 年 11 月 3 日，我們以平均價格 16.54 美元回購了約 270 萬股普通股，回購了超過 18% 的已發行股票。我們仍然會機會主義地回購股票，並且我們將採取平衡的資本配置方法，包括內部投資、收購和有機成長以及未來的股票回購。

With that, we can open the call to questions. Operator?

這樣，我們就可以開始提問了。操作員？

(Operator Instructions)

（操作員說明）

Your first question comes from the line of Steve Dyer from Craig Hallum.

你的第一個問題來自克雷格·哈勒姆（Craig Hallum）的史蒂夫·戴爾（Steve Dyer）。

I guess starting sort of big picture, you've touched a little bit on some of it, John. Sort of in your first couple of months of the job, maybe any sort of observations that stand out and/or are there a couple of real opportunities that you sort of see here over the next, call it, 1 to 2 years getting started?

我想從大局開始，你已經觸及了其中的一些內容，約翰。在你工作的頭幾個月裡，也許有任何突出的觀察結果和/或你在接下來的一到兩年內看到了一些真正的機會？

Sure. I mean it's early. I think I hit 60 days here Friday. So I'm definitely still in listening mode, probably, more than talking mode. But I think, in general, a lot of the evolution that automotive retail went through over the last, let's call it, 15 or 20 years is pretty applicable here. I think, focusing on maximizing used, F&I and then particularly the service business, which is probably quite a bit different than I anticipated, just in terms of the complexity and timelines required to do stuff compared to a car, I think, are all really important.

當然。我的意思是現在還早。我想我週五在這裡已經滿 60 天了。所以我肯定仍然處於聆聽模式，可能比說話模式更多。但我認為，總的來說，汽車零售業在過去（我們可以稱之為 15 或 20 年）經歷的許多演變在這裡非常適用。我認為，專注於最大限度地利用二手車、F&I，然後特別是服務業務，這可能與我的預期有很大不同，我認為，就與汽車相比，做事所需的複雜性和時間表而言，都是真的重要的。

And those will, I think, probably reduce volatility in terms of just our revenue levels and then the associated profitability. So that's, I think, a big focus and something that we've already been talking about in operations, which is just how do we make sure we've got the flywheel effect of all these businesses working together. And then I think I've got a pretty different approach and Kelly and I have talked a lot about acquisitions going forward. And I think we had a real focus on opening locations, de novo in the past. And that's great. We'll continue to do that. We've got several under construction, but I think looking for acquisitions that are operating today is going to be something that we also want to really prioritize and fortunately, Kelly and I both come from a background where we've seen that work really well over a long-time horizon.

我認為，這些可能會減少我們的收入水平以及相關盈利能力的波動性。所以，我認為，這是一個重點，也是我們在營運中已經討論過的事情，這就是我們如何確保我們獲得所有這些業務協同工作的飛輪效應。然後我認為我採取了一種完全不同的方法，凱利和我已經談論了很多關於未來收購的問題。我認為我們過去真正關注的是從頭開始開設地點。那太好了。我們將繼續這樣做。我們有幾個正在建設中，但我認為尋找今天正在運營的收購也將是我們真正要優先考慮的事情，幸運的是，凱利和我都來自我們已經看到這種工作非常有效的背景在很長一段時間內。

And I think the disruption in the marketplace, certainly that we're experiencing and others are experiencing, probably helps break some of those opportunities loose. So sitting here with a balance sheet that's in pretty good shape, a lot of cash and capital ready to deploy if we have attractive opportunities and then a market that might be -- maybe becoming a bit more rational in terms of pricing expectations as the world returns to normal, is a pretty powerful setup, and I think we're really excited about that. We'll talk more about detailed stuff next quarter, but that's probably a good start for now.

我認為市場的混亂，當然是我們正在經歷的以及其他人正在經歷的，可能有助於打破其中一些機會。因此，坐在這裡，資產負債表狀況良好，如果我們有有吸引力的機會，則可以部署大量現金和資本，然後市場在定價預期方面可能會變得更加理性，因為世界恢復正常，是一個非常強大的設置，我認為我們對此感到非常興奮。我們將在下個季度討論更多詳細內容，但這可能是現在的一個好的開始。

Okay. Yes, that's helpful. Sort of leads into my next question around sort of general capital allocation, sort of your background in organizations. There's always been a very structured, specific, disciplined framework. And as you noted, you're inheriting a nice balance sheet and a lot of different options with that. Are you able or willing at least at this early point to kind of talk about how you view capital allocation going forward in terms of the different priorities and strategies?

好的。是的，這很有幫助。這有點引出了我的下一個問題，涉及一般資本配置，以及您在組織中的背景。一直有一個非常結構化、具體、有紀律的框架。正如您所指出的，您繼承了一個不錯的資產負債表以及許多不同的選擇。您是否能夠或願意至少在這個早期階段談論您如何看待未來不同優先事項和策略的資本配置？

Yes, absolutely. We were, I think, pretty aggressive repurchases of our stock and have continued to do so through our quiet period as evidenced by the disclosure we made around purchasing stock through basically yesterday. The price -- average price paid has come down a bit. We have a pretty specific format and framework that we've used pretty successfully in the past in terms of repurchasing shares in greater quantities if the price falls. And I think the story is a little bit misunderstood, if I'm honest. I mean, we're trading at a pretty cheap multiple, in my opinion, especially relative to where private transactions seem to be clearing in the marketplace. And so if we have opportunity to deploy capital accretively there and by ourselves as opposed to a different acquisition we have to integrate. That's a pretty easy decision. And the cheaper the stock is, the more conviction I have is that's where we should focus.

是的，絕對是。我認為，我們對我們的股票進行了相當積極的回購，並且在我們的安靜時期繼續這樣做，正如我們昨天圍繞購買股票所做的披露所證明的那樣。價格－平均支付價格下降。我們有一個非常具體的格式和框架，過去在股價下跌時大量回購股票方面非常成功地使用過。老實說，我認為這個故事有點被誤解了。我的意思是，在我看來，我們的交易價格相當便宜，尤其是相對於市場上私人交易似乎正在清算的情況而言。因此，如果我們有機會自行在那裡增加資本部署，而不是進行其他收購，我們就必須進行整合。這是一個非常簡單的決定。股票越便宜，我就越堅信這才是我們該關注的焦點。

Conversely, we really want to build scale to the organization. I think there's real network effect and benefits to having more roofs. And so it's a balance between those, right? We're going to continue to invest in the organic business. I think there's opportunity to drive additional revenue through some capital investment in our existing footprint. I think we've maybe been a little bit starved for some capital in the past relative to running the company for operations as opposed to a financial return.

相反，我們確實希望擴大組織規模。我認為擁有更多屋頂具有真正的網路效應和好處。所以這是這些之間的平衡，對嗎？我們將繼續投資有機業務。我認為有機會透過對我們現有業務的一些資本投資來增加額外收入。我認為過去我們可能有點缺乏一些資本來經營公司的營運而不是財務回報。

So I think that will be the third piece of it. But I think mostly what you're going to see is, hopefully, some really great acquisition opportunities. Some greenfields here and there where they make sense and then pretty aggressive share repurchases if the market continues to either not appreciate or understand our story, which certainly looking at the share price at $12 and change, I think, has to be true still.

所以我認為這將是第三部分。但我認為您將看到的主要是希望有一些非常好的收購機會。如果市場繼續不欣賞或不理解我們的故事，我認為，考慮到股價在 12 美元並發生變化，這肯定仍然是事實。

Yes, would agree. A couple of quick ones just on the quarter and more, sort of, micro questions, I guess, and I'll give them to you both and then wait for you to listen or wait for you to answer. First, as it relates to inventories, obviously, going from arguably the most robust period to something softer, sort of still probably TBD. Where are your inventories relative to where you'd like them and feel free to give any color on used new age versus not, et cetera?

是的，會同意。我想，有幾個關於本季的快速問題以及更多一些微觀問題，我會把它們給你們倆，然後等你們聽或等你們回答。首先，因為它與庫存相關，顯然，從可以說是最強勁的時期到了更疲軟的時期，可能仍然是待定的。您的庫存相對於您想要的位置在哪裡，並且可以隨意對二手新時代與未使用的新時代給予任何顏色，等等？

And then secondly, wondering if you can give same-store sales, that's something that historically the company has never done, which I've never really understood and isn't really industry practice, but I'm curious as to if you're able to do that yet.

其次，想知道你是否可以提供同店銷售，這是公司歷史上從未做過的事情，我從來沒有真正理解過，也不是真正的行業慣例，但我很好奇你是否還能夠做到這一點。

Yes. So the second question is probably easier than the first. Take a look at our press release, I think you'll find there's pretty robust disclosure there. I know it's earnings season, there's lots going on. So when you guys have to take a look, let us know if there's other disclosures, it would be helpful, but we tried to be a lot more robust and transparent. And that's really a strategic thought on our side. I mean, we want to be easy to understand. And we want to be accountable to performance. And so we're trying to really lay stuff out in a way that hopefully demonstrates that builds credibility as a management team to our investors.

是的。所以第二個問題可能比第一個問題更容易。看看我們的新聞稿，我想您會發現其中的披露非常強烈。我知道現在是財報季，有很多事情發生。因此，當你們必須查看時，請告訴我們是否有其他披露，這會很有幫助，但我們試圖變得更加穩健和透明。這確實是我們的戰略思想。我的意思是，我們希望易於理解。我們希望對績效負責。因此，我們正在努力以一種希望向投資者展示作為管理團隊建立可信度的方式真正地展示內容。

In terms of your first question on inventory, I think correctly prior to me even arriving, the strategy was around making sure our inventory is healthy. And I think that's an important distinction. It's not just about shrinking the inventory. It's also about having the right stuff. And I think that's a nuance that I've learned, and we've observed in the automotive space for a couple of decades.

關於你關於庫存的第一個問題，我認為在我到達之前正確的是，策略是確保我們的庫存健康。我認為這是一個重要的區別。這不僅僅是減少庫存。它還涉及擁有正確的東西。我認為這是我了解到的一個細微差別，並且我們在汽車領域觀察了幾十年。

And yes, you want to have less units and there's some seasonality, but there are minimum levels that you need and one maxim that is abundantly true is that you don't have this stuff, you don't need to sell, right? So we may end up having to discount some things because we've got more inventory than we would like, but that's preferable to not be able to make a sale because you don't have something on the ground. And so I think we've been balancing that.

是的，你希望擁有更少的單位，並且有一些季節性，但是你需要最低水平，並且一個非常正確的格言是你沒有這些東西，你不需要出售，對嗎？因此，我們最終可能不得不對某些東西打折，因為我們的庫存比我們想要的多，但這比因為你沒有東西而無法進行銷售要好。所以我認為我們一直在平衡這一點。

We've been really focusing on working through prior model year stuff. I think the used opportunity is a big one, and I know our operations team is more focused on that, and I put emphasis on that since I've arrived. And certainly, when you see our unit sales on a same-store basis, down 15% almost in used, I think that's a bit of an opportunity.

我們一直非常專注於解決先前車型年份的問題。我認為所利用的機會是一個很大的機會，我知道我們的營運團隊更關注這一點，自從我到達以來我就一直強調這一點。當然，當你看到我們的同店單位銷售額幾乎下降了 15% 時，我認為這是一個機會。

We've definitely seen a little bit of margin pressure as we've been working through some of the older stuff, which is good. And I think we're in a healthier spot. We do have pretty decent operations in the south in the (inaudible), right? So we're in Florida, we're in Arizona. And that seasonality is a little different. And so you want to be prepared for the winter too. And so I think we're in a good spot.

我們確實看到了一點利潤壓力，因為我們一直在研究一些舊的東西，這很好。我認為我們處於一個更健康的境地。我們在南部確實有相當不錯的業務（聽不清楚），對嗎？所以我們在佛羅裡達州，我們在亞利桑那州。而且季節性有點不同。所以你也想為冬天做好準備。所以我認為我們處於一個很好的位置。

I think generally, the industry seems to be a little bit more rational than they have been in the past. And I think that starts with the OEMs, in particular, who seem to be managing this maybe better than they had historically. And I think you've heard that from others in the space, not just us, but that seems to be holding true this time. And I think October was maybe a little better than we've expected, right? I think things have held in with the consumer more than I think people initially feared in the summer. And I think that's something we've been reacting to and can manage through pretty appropriately. So I'm comfortable. I think we've got some -- still some moves to make. We've got some stuff that we can't sell because it's under recall and we got some prior model year stuff we need to continue to work through. But the team is really focused on that and we'll get our arms around it.

我認為整體來說，這個行業似乎比過去更理性。我認為這首先要從原始設備製造商開始，尤其是他們在這方面的管理似乎比以前更好。我想你已經從這個領域的其他人那裡聽到了這一點，而不僅僅是我們，但這次似乎是正確的。我認為十月份的情況可能比我們預期的要好一些，對吧？我認為消費者對事情的承受力比人們最初在夏天擔心的要大。我認為我們一直在對此做出反應，並且可以非常適當地進行處理。所以我很舒服。我認為我們還有一些行動要做。我們有一些東西無法出售，因為它正在召回，而且我們有一些以前型號的東西需要繼續解決。但團隊確實專注於這一點，我們會全力以赴。

Your next question comes from the line of Mike Swartz from Truist Securities.

您的下一個問題來自 Truist Securities 的 Mike Swartz。

Good to hear from you. Just a couple of quick questions. One, just looking at the comparable unit volume for new, I think it was down around 3% during the quarter. Industry was down closer to 20%. Maybe give us some sense of context maybe even of why you outperformed the industry to such a great degree during the third quarter.

很高興收到你的來信。只是幾個簡單的問題。第一，僅查看新產品的可比單位銷量，我認為該季度下降了 3% 左右。工業下降接近20%。也許可以讓我們了解一些背景，甚至可以了解為什麼你們在第三季的表現如此之大。

Yes, I think it was really our operations team and a pretty concerted focus on trying to get our inventory healthy. If you look at our wholesale unit volume, it was up nearly 100% on a same-store basis. And I think we made the decision to deprioritize the used side of the business to get out of the stuff that was coming on trades and really to try to turn customers onto the new stuff and get the inventory healthy. We did some discounting. Certainly, the gross margins came down as a result, both in new and in used. But I think that was all designed to make sure that we're in a really strong position in terms of having a lot of model year 2023 stuff on hand and then the allocated product that we get from certain OEMs is in good shape, and we're ready for this winter that's coming.

是的，我認為這確實是我們的營運團隊的努力，並且非常一致地致力於保持我們的庫存健康。如果你看看我們的批發單位銷量，同店基礎上成長了近 100%。我認為我們決定取消二手業務的優先級，以擺脫交易中即將出現的商品，並真正嘗試將客戶轉向新商品並保持庫存健康。我們做了一些折扣。當然，新產品和二手產品的毛利率都會因此下降。但我認為這一切都是為了確保我們在手頭上有大量 2023 年款產品方面處於非常有利的地位，然後我們從某些 OEM 獲得的分配產品狀況良好，我們為即將到來的這個冬天做好準備。

I mean, Tampa, is probably 1/3 of our business, that one location. And they've got a gigantic show coming in January, and so we will be prepared for that, too. So I think those are the dynamics in the market and just a focus proves that we can move the business when we need to, which is encouraging.

我的意思是，坦帕這一地點可能占我們業務的 1/3。他們在一月將舉辦一場盛大的演出，所以我們也會為此做好準備。因此，我認為這些就是市場的動態，只要專注就證明我們可以在需要時轉移業務，這是令人鼓舞的。

Got you. Very helpful. And maybe relative to years past, and I know the past couple of years have been extremely abnormal for this industry. But I mean, how do you think about inventory turns, whether that's new, whether that's used or just a blended average, maybe relative to where the company sat prior to the pandemic?

明白你了。非常有幫助。也許相對於過去幾年，我知道過去幾年對這個行業來說是極度不正常的。但我的意思是，你如何看待庫存週轉率，無論是新的，還是使用過的，還是只是混合平均值，也許相對於公司在大流行之前的情況？

Well, I think it depends. It's hard to give a generalization because we operate stores in places as diverse as Minnesota and Florida. Your seasonality patterns or traffic patterns are very different. And traditionally, as you have a more robust network, I would expect to see inventory build in the spring and through the summer and then typically shrink in the fall. But that will be the exact wrong thing to do in Florida, for example. So we're a little bit unique in that way, probably a little bit more balanced right now as we have locations, that may change. We'll have to address that as we get there. But broadly speaking, I think you're going to see our inventory levels probably go up.

嗯，我認為這取決於。很難一概而論，因為我們在明尼蘇達州和佛羅裡達州等不同的地方經營商店。你們的季節性模式或流量模式非常不同。傳統上，由於您擁有更強大的網絡，我預計庫存將在春季和夏季增加，然後通常會在秋季減少。但例如在佛羅裡達州，這將是完全錯誤的做法。所以我們在這方面有點獨特，現在可能會更加平衡，因為我們有位置，這可能會改變。當我們到達那裡時，我們必須解決這個問題。但總的來說，我認為我們的庫存水準可能會上升。

I think, as I mentioned a moment ago, to Steve's question, if you don't have the stuff on hand, you can't sell it. And I think that's a lesson that we've learned. And particularly if we want to unlock opportunities in used and attract a different customer and offer a different payment option for people who may be fueling higher interest rates, that sort of thing. You need to have a little bit more diversity in your inventory. So I would expect to see those numbers go up a little bit.

我認為，正如我剛才提到的，對於史蒂夫的問題，如果你手邊沒有這些東西，你就無法出售它。我認為這是我們學到的教訓。特別是如果我們想要釋放二手機會並吸引不同的客戶，並為可能導致更高利率的人提供不同的付款選項，諸如此類的事情。您的庫存需要更加多樣化。所以我預計這些數字會略有上升。

Obviously, there's a cost to that relative to the Floorplan. And certainly with rates going up, that's a further burden that we'll have to balance. But I think pretty universally, if you talk to our store leaders, they all say they'd rather have a little bit more inventory than they have historically. And we're very much of the mindset to let the store leaders have a little bit more autonomy and discretion in how they run their business because ultimately, they're the ones that know their customers and their markets the best. And I think that's a little bit of a change in how we've approached it in the past.

顯然，相對於平面圖而言，這是有成本的。當然，隨著利率的上升，這將是我們必須平衡的進一步負擔。但我認為，如果你與我們的商店領導者交談，他們都會說他們寧願擁有比歷史上更多的庫存。我們非常願意讓商店領導在如何經營業務方面擁有更多的自主權和判斷力，因為最終，他們是最了解客戶和市場的人。我認為這與我們過去的處理方式略有不同。

So I would expect to see turns probably go down a little bit rather than up, but we're comfortable with that. That's part of the business. And if you look at some of our competitors, their turns are at the 2x level even, right? So I think 2.5 or something like that isn't totally bananas.

因此，我預計轉彎率可能會下降而不是上升，但我們對此感到滿意。這是業務的一部分。如果你看看我們的一些競爭對手，他們的回合甚至達到了 2 倍的水平，對吧？所以我認為 2.5 或類似的東西並不完全是瘋狂的。

Okay. That's helpful. And then maybe one last question. Just on the decision to add the sales department or function of the Houston service facility, maybe just walk through the reasoning behind that? And then maybe talk about the working capital investment that was needed for that as well.

好的。這很有幫助。也許還有最後一個問題。就決定增加休士頓服務設施的銷售部門或職能而言，也許只是簡單說明背後的原因？然後也許還可以談談為此所需的營運資本投資。

Yes, I think there is a pretty rich history that any type of automotive dealership business, typically needs to sell stuff and then either to service it or to finance it. And I don't care if you're talking about CarMax or are you talking about automation or you're talking about Lazydays. I think there's been a lot of people who've tried to prove -- correctly prove that you can't do one or the other. They typically work together, and you need the durability of the service or the financing business and you need the cyclicality of the sales business to really have a business that produces the right kind of financial outcomes.

是的，我認為任何類型的汽車經銷業務都有相當豐富的歷史，通常需要銷售產品，然後對其進行維修或融資。我不在乎你是在談論 CarMax 還是在談論自動化或是你在談論 Lazydays。我認為有很多人試圖證明——正確地證明你不能做其中一個。它們通常一起工作，您需要服務或融資業務的持久性，以及銷售業務的周期性，才能真正擁有能夠產生正確財務成果的業務。

I think the Houston example was experiment. We spent a little bit of money to augment the facility. Certainly, there's a working capital on the used vehicle Floorplan side because not all of that is 100% financeable. But the new site is 100% financeable. And so really, it's a onetime capital call in terms of, you know let's call it, a low 7-figure number to do something with the sales department and then we're off and running. So pretty excited about that. We've got a great leader down there that's fired up, and that RV market is a really good one, the dealership itself is on the way up to Austin outside of Houston. And so I think it could be a wonderful opportunity for us really to plant a flag in Texas, which is one of the biggest states for RV sales in the country, right? So I think it's important for us to have a footprint there. And hopefully, we'll find more opportunities in the state of Texas in the future.

我認為休斯頓的例子是實驗。我們花了一點錢來擴充設施。當然，二手車平面圖方面有營運資金，因為並非所有這些都是 100% 可融資的。但新網站是 100% 可以融資的。所以實際上，這是一次一次性的資本調用，你知道，我們可以這樣稱呼它，一個低七位數的數字，與銷售部門一起做一些事情，然後我們就可以開始運行了。對此非常興奮。我們那裡有一位偉大的領導者，他熱情高漲，房車市場非常好，經銷商本身正在前往休斯頓郊外的奧斯汀。所以我認為這對我們來說可能是一個很好的機會，可以真正在德克薩斯州插上一面旗幟，德克薩斯州是美國房車銷售量最大的州之一，對嗎？所以我認為對我們來說在那裡留下足跡很重要。希望我們將來能在德州找到更多機會。

There are no further questions at this time. Mr. John North, I'll turn the call back over to you for some final closing remarks.

目前沒有其他問題。約翰諾斯先生，我會將電話轉回給您，請您做最後的總結發言。

Thanks for joining us. We'll talk to you soon.

感謝您加入我們。我們很快就會和你談談。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。