GrowGeneration Corp (GRWG) 2022 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the GrowGeneration Second Quarter 2022 Earnings Results Conference Call. Today's call is being recorded.

女士們，先生們，美好的一天，歡迎參加 GrowGeneration 2022 年第二季度收益結果電話會議。今天的電話正在錄音。

For opening remarks, I'll turn the call over to Clay Crumbliss from ICR. Please go ahead.

對於開場白，我將把電話轉給 ICR 的 Clay Crumbliss。請繼續。

And welcome, everyone, to the GrowGeneration Second Quarter 2022 Earnings Results Conference Call. Today's call is being recorded. With us today are Mr. Darren Lampert, Co-Founder and Chief Executive Officer; and Jeff Lasher, Chief Financial Officer of GrowGeneration Corp.

歡迎大家參加GrowGeneration 2022年第二季度收益結果電話會議。今天的電話正在錄音。今天與我們在一起的是聯合創始人兼首席執行官 Darren Lampert 先生；和 GrowGeneration Corp 的首席財務官 Jeff Lasher。

You should have access to the company's second quarter earnings press release issued after the market closed today. This information is available on the Investor Relations section of GrowGeneration's website at ir.growgeneration.com.

您應該可以訪問今天收市後發布的公司第二季度收益新聞稿。該信息可在 GrowGeneration 網站 ir.growgeneration.com 的投資者關係部分獲得。

Certain comments made on this call include forward-looking statements, which are subject to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs concerning future events and are subject to several risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements.

對此電話會議的某些評論包括前瞻性陳述，這些陳述受 1995 年《私人證券訴訟改革法案》的安全港條款的約束。這些前瞻性陳述基於管理層當前對未來事件的預期和信念，並受制於可能導致實際結果與這些前瞻性陳述中描述的結果大不相同的若干風險和不確定性。

Please refer to today's press release and other filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any of the forward-looking statements made today.

請參閱今天的新聞稿和提交給 SEC 的其他文件，詳細討論可能導致實際結果與今天做出的任何前瞻性陳述中明示或暗示的結果存在重大差異的風險。

During the call, we will use some non-GAAP financial measures as we describe business performance. The SEC filings as well as the earnings press release, which provide reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures, are all available on our website.

在電話會議期間，我們將使用一些非公認會計準則財務指標來描述業務績效。 SEC 文件以及收益新聞稿提供了非 GAAP 財務指標與最直接可比的 GAAP 指標的對賬，都可以在我們的網站上找到。

Following our prepared remarks, we will take questions from research analysts. We ask that you please limit yourself to 1 question and 1 follow-up. If you have additional questions, please reenter the queue and we will take them as time allows. Now I will turn the call over to our Co-Founder and CEO, Darren Lampert. Darren?

在我們準備好的評論之後，我們將回答研究分析師的問題。我們要求您將自己限制在 1 個問題和 1 個跟進。如果您還有其他問題，請重新進入隊列，我們將在時間允許的情況下處理。現在我將把電話轉給我們的聯合創始人兼首席執行官 Darren Lampert。達倫？

Thanks, Clay, and good afternoon, everyone. Thank you for joining us today to discuss our second quarter 2022 financial results. I will begin with a brief discussion of the challenges that continue to pressure all aspects of the U.S. cannabis and hydroponic markets. I'll then provide an overview of how our GrowGen business is performing, and I'll highlight the aggressive proactive steps we are taking to adapt. Then I'll finish by reiterating our confidence in the longer-term strategic plan for GrowGeneration. I will then turn the call over to our CFO, Jeff Lasher, who will take you through the details of our second quarter results and our updated full year 2022 guidance.

謝謝，克萊，大家下午好。感謝您今天加入我們，討論我們 2022 年第二季度的財務業績。我將首先簡要討論繼續給美國大麻和水培市場的各個方面帶來壓力的挑戰。然後，我將概述我們的 GrowGen 業務的表現，並重點介紹我們為適應而採取的積極主動的步驟。最後，我將重申我們對 GrowGeneration 長期戰略計劃的信心。然後，我將把電話轉給我們的首席財務官 Jeff Lasher，他將帶您了解我們第二季度業績的詳細信息以及我們更新的 2022 年全年指導。

I would like to start by thanking each one of our employees across our corporate center and 62 retail locations for your continued support of GrowGen. It's been a challenging few months, but I, along with the rest of the executive team, appreciate your hard work and dedication to our vision and strategic plan.

首先，我要感謝我們公司中心和 62 個零售點的每一位員工對 GrowGen 的持續支持。幾個月來充滿挑戰，但我和其他執行團隊一樣，感謝你們的辛勤工作和對我們願景和戰略計劃的奉獻。

It will not come as a surprise to anyone on this call that the cannabis industry is currently experiencing an unprecedented and prolonged downturn that is negatively impacting all participants across the cannabis value chain, from growers to suppliers to retailers.

在這次電話會議上，任何人都不會感到意外，大麻行業目前正經歷前所未有的長期低迷，這對大麻價值鏈中的所有參與者產生負面影響，從種植者到供應商再到零售商。

For GrowGen, while our sales and profit generation in the first half of the year have clearly underperformed our original expectations, and while we're planning for the lull to continue through the second half, we remain dedicated to controlling the areas of the business which we are able to control.

對於 GrowGen 而言，雖然我們上半年的銷售額和利潤產生明顯低於我們最初的預期，雖然我們計劃在下半年繼續保持平靜，但我們仍致力於控制業務領域我們能夠控制。

We identified early the need to proactively make changes in our business, and we're shifting our priorities to put less focus on our 5 strategic imperatives and put even more emphasis on cost controls, inventory reduction and cash generation.

我們很早就確定了主動改變業務的必要性，我們正在改變我們的優先事項，減少對 5 項戰略要務的關注，更加重視成本控制、減少庫存和產生現金。

As a result of our actions over the last few months, which we will discuss in more detail later, I want to reassure you, GrowGen is on solid financial footing. We have a strong balance sheet, and we don't anticipate the need for external debt or equity issuance. We currently have $65.6 million of cash and cash equivalents with zero debt. As we sit here today, we feel very good about our liquidity position well into the foreseeable future, and the company has the ability to meet the operational needs of the business without additional capital, even if the current market conditions persist.

由於我們過去幾個月的行動，我們將在稍後更詳細地討論，我想向你保證，GrowGen 的財務基礎穩固。我們擁有強大的資產負債表，我們預計不需要外債或股票發行。我們目前擁有 6560 萬美元的現金和現金等價物，債務為零。當我們今天坐在這裡時，我們對在可預見的未來很長一段時間內的流動性狀況感到非常滿意，即使當前的市場狀況持續存在，公司也有能力在沒有額外資本的情況下滿足業務的運營需求。

As it relates to the broader industry, supply and demand remains out of equilibrium, with a large oversupply of cannabis in the marketplace. As a result, growers have slowed CapEx projects, which is directly pressuring hydroponic sales year-to-date. The trends are most pronounced in major markets, such as California, Oklahoma and Michigan, which represent, in aggregate, over 56% of our retail sales.

由於它與更廣泛的行業相關，供需仍然不平衡，市場上大麻供過於求。結果，種植者減緩了資本支出項目，這直接給今年迄今為止的水培銷售帶來了壓力。這一趨勢在加利福尼亞、俄克拉荷馬和密歇根等主要市場最為明顯，這些市場合計占我們零售額的 56% 以上。

In summary, we've seen cannabis demand and, therefore, hydroponic demand, slow nationwide, and we're not able to accurately predict when the industry will get out of this rut. On a positive note, we do see continued opportunities for cultivation growth in emerging states and regions, including the Northeast, Midwest and New England, which over time is where we will focus our store expansion and commercial efforts.

總而言之，我們已經看到大麻需求，因此水培需求在全國范圍內放緩，我們無法準確預測該行業何時會擺脫這種陳規。積極的一面是，我們確實看到新興州和地區的種植增長機會持續存在，包括東北部、中西部和新英格蘭，隨著時間的推移，我們將重點關注這些地區的門店擴張和商業努力。

In addition, there have been some positive developments on the legislative front. The state of California recently eliminated the cultivation tax that will make legal cannabis more competitive in the marketplace where wholesale cannabis prices remain well below year ago levels. At the federal level, lawmakers in the United States Senate have introduced new legislation that, if passed, would pave the way to federal cannabis legalization. While the general consensus is that the build faces an uphill battle to overcome the Republican filibuster, we were encouraged that the conversation on Capitol Hill seems to be gaining traction again.

此外，立法方面也取得了一些積極進展。加利福尼亞州最近取消了種植稅，這將使合法大麻在批發大麻價格仍遠低於一年前水平的市場上更具競爭力。在聯邦一級，美國參議院的立法者提出了新的立法，如果獲得通過，將為聯邦大麻合法化鋪平道路。雖然普遍的共識是，為了克服共和黨的阻撓議事，該建築面臨一場艱苦的戰鬥，但我們感到鼓舞的是，國會山上的對話似乎再次獲得了關注。

As we said before, we manage our day-to-day operations and plan for the future under the going assumption that cannabis is not federally legalized in the U.S. In other words, our business model does not depend on that outcome. That said, we think it's only a matter of time until lawmakers in Washington catch up with the American public who overwhelmingly support federal cannabis legalization.

正如我們之前所說，我們在大麻在美國沒有聯邦合法化的持續假設下管理我們的日常運營和未來計劃。換句話說，我們的商業模式不依賴於這一結果。也就是說，我們認為華盛頓的立法者趕上絕大多數支持聯邦大麻合法化的美國公眾只是時間問題。

The first half of 2022 hasn't been easy, but we've made a lot of progress, strengthening our business over the last 6 months. As I mentioned earlier, our balance sheet is strong and healthy. We have $65.6 million of unencumbered cash. We reduced inventory by $7 million from $106 million to $99 million in the second quarter through a combination of inventory management and selling out of closeout product.

2022 年上半年並不容易，但我們取得了很大進展，在過去 6 個月加強了我們的業務。正如我之前提到的，我們的資產負債表強勁而健康。我們有 6560 萬美元的未支配現金。通過結合庫存管理和售罄產品，我們在第二季度將庫存從 1.06 億美元減少到 9900 萬美元，減少了 700 萬美元。

If there's a silver lining to this exceptionally difficult operating environment, we've used this opportunity to more closely evaluate our retail footprint and cost structure. Throughout the first half of the year, we've reduced our expense base by roughly $1.5 million a quarter through a combination of labor management and tighter day-to-day expense controls. In the second half of the year, we are projecting a decrease of an additional $1 million a quarter sequentially, primarily through store closures and expense control.

如果這種異常困難的運營環境有一線希望，我們會利用這個機會更密切地評估我們的零售足跡和成本結構。在今年上半年，通過勞動力管理和更嚴格的日常費用控制，我們每季度將費用基數減少了大約 150 萬美元。在今年下半年，我們預計每個季度將再減少 100 萬美元，主要是通過商店關閉和費用控制。

In total, we estimate that our annual run rate expense will be down about $13 million by year-end 2022 when compared to Q4 2021 pace. That is, $26 million of expenses in Q4 2021, down to $22.7 million in Q4 2022, not including annualized contributions from HRG and MMI. While dismissing employees is never an easy decision, I'm confident we've made the right choices to strengthen the company and better position GrowGen to make a strong recovery.

總的來說，我們估計到 2022 年底，與 2021 年第四季度的速度相比，我們的年度運營費用將減少約 1300 萬美元。也就是說，2021 年第四季度的支出為 2600 萬美元，到 2022 年第四季度降至 2270 萬美元，不包括 HRG 和 MMI 的年度貢獻。雖然解僱員工從來都不是一個容易的決定，但我相信我們已經做出了正確的選擇來加強公司和更好地定位 GrowGen 以實現強勁復甦。

In terms of our store count, we've closed 2 stores in July, and we'll be closing an additional 3 to 5 stores this year. The majority of these consolidations are simply eliminating redundancies in the footprint to unlock those stranded costs. In fact, we expect very little, if any, lost sales due to these closures as most of the stores were within 20 miles of another GrowGen retail location.

就我們的門店數量而言，我們在 7 月份關閉了 2 家門店，今年我們將再關閉 3 到 5 家門店。這些整合中的大多數只是消除了足跡中的冗餘，以釋放這些擱淺的成本。事實上，我們預計這些關閉導致的銷售損失很小（如果有的話），因為大多數商店都在另一個 GrowGen 零售店的 20 英里範圍內。

As a reminder, we recently opened our new greenfield location in Jackson, Mississippi and our new location at Ardmore, Oklahoma that opened earlier this year, is performing as well as can be expected given the market conditions. As of now, we've scaled back store opening plans and only have 2 to 4 locations planned before year-end as we have shifted our priorities to manage through this downturn.

提醒一下，我們最近在密西西比州傑克遜市開設了新的綠地地點，今年早些時候在俄克拉荷馬州阿德莫爾開設的新地點在市場條件下表現良好。截至目前，我們已經縮減了開店計劃，在年底前只計劃開設 2 到 4 個地點，因為我們已經轉移了優先事項來應對這次低迷。

Notwithstanding, we have signed leases that will be opening retail locations in Missouri, New Jersey and Virginia. The takeaway is we still believe there are compelling opportunities to acquire and build new stores in states where we don't yet have a physical presence throughout the eastern parts of the country and in the Midwest.

儘管如此，我們已經簽署了將在密蘇里州、新澤西州和弗吉尼亞州開設零售店的租約。要點是，我們仍然相信，在我們尚未在美國東部和中西部地區開設實體店的州內，有令人信服的機會來收購和建立新店。

As I hope you can see, we are actively prioritizing working capital optimization to preserve our capital base while rightsizing our cost structure to reduce our breakeven and enhance our future margin structure. We believe that when the cannabis industry eventually recovers, these efforts have put GrowGen in a better place to emerge stronger with an even more attractive financial algorithm as the leading hydroponic retailer and private label supplier.

正如我希望你所看到的，我們正在積極優先優化營運資金以保護我們的資本基礎，同時調整我們的成本結構以降低我們的盈虧平衡並提高我們未來的利潤率結構。我們相信，當大麻產業最終復甦時，這些努力使 GrowGen 處於一個更好的位置，通過更具吸引力的金融算法作為領先的水培零售商和自有品牌供應商變得更強大。

Our private label strategy remains one of the top imperatives this year. We are driving sales of proprietary brands and private label products. And we're investing in resources to provide customer service, product development and distribution excellence. Private label accounted for $6.5 million of retail sales which is around 11% of our overall retail and e-commerce sales.

我們的自有品牌戰略仍然是今年的首要任務之一。我們正在推動自有品牌和自有品牌產品的銷售。我們正在投資資源以提供卓越的客戶服務、產品開發和分銷。自有品牌的零售額為 650 萬美元，約占我們整體零售和電子商務銷售額的 11%。

Drip Hydro, our proprietary nutrient and additive line launched in GrowGen stores during the second quarter, is off to a strong start. In our non-retail store segment, our acquisition of HRG is enabling us to expand the distribution of some of our 400 private label SKUs to 750 hydroponic stores across the U.S. We've already made good progress against this goal during the second quarter. Revenue from our non-retail distribution business, including HRG, MMI, Power SI, Char Coir and other own brands totaled 16% of sales in the second quarter but contributed over 21% of gross profit.

Drip Hydro 是我們第二季度在 GrowGen 商店推出的專有營養素和添加劑系列，開局良好。在我們的非零售店領域，我們對 HRG 的收購使我們能夠將我們的 400 個自有品牌 SKU 中的一些分銷擴展到美國的 750 家水培商店。我們在第二季度已經在實現這一目標方面取得了良好進展。我們非零售分銷業務的收入，包括 HRG、MMI、Power SI、Char Coir 和其他自有品牌，在第二季度佔銷售額的 16%，但貢獻了超過 21% 的毛利潤。

I want to make a few points about our performance in the quarter. Clearly, we are not satisfied with the current sales trends in the business. Our second quarter comparable sales declined 57% year-over-year with generally equal distribution of dollar sales across April, May and June. We did not see a seasonal increase in revenue in June, which historically showed an increase of over 10%. Same-store sales remain under pressure from declining demand for durable goods, including lighting and HVAC products, as well as lower demand from large commercial accounts.

我想對我們在本季度的表現提出幾點意見。顯然，我們對當前的業務銷售趨勢並不滿意。我們第二季度的可比銷售額同比下降了 57%，美元銷售額在 4 月、5 月和 6 月的分佈基本相同。我們沒有看到 6 月份的收入出現季節性增長，歷史上顯示增長超過 10%。由於對耐用品（包括照明和暖通空調產品）的需求下降以及大型商業客戶的需求下降，同店銷售仍面臨壓力。

We also have not seen a material improvement in the July trend, which was down approximately 52% compared to last year on a same-store comp basis. On a positive note, private label sales and margins have held up relatively well, and we generated positive operating cash flow in the second quarter of $3.8 million due to our concerted efforts to reduce inventory, optimize our working capital and preserve cash.

我們也沒有看到 7 月份的趨勢有實質性改善，與去年同期相比下降了約 52%。積極的一面是，自有品牌的銷售和利潤率保持相對良好，由於我們齊心協力減少庫存、優化營運資金和保留現金，我們在第二季度產生了 380 萬美元的正經營現金流。

In terms of profitability, we had a GAAP net loss in the quarter, inclusive of goodwill and intangible impairment. We delivered an adjusted EBITDA loss in the second quarter of $2.9 million with a gross margin of 28.5%.

在盈利能力方面，我們在本季度出現了 GAAP 淨虧損，包括商譽和無形減值。我們在第二季度實現了 290 萬美元的調整後 EBITDA 虧損，毛利率為 28.5%。

These results in 2Q included a few items worth noting. Freight transportation costs were $3.8 million in the quarter, which we estimate is roughly triple our volume adjusted historical normal. And we expect these elevated costs to continue in the back half of the year as we look to minimize procurement through rebalancing inventory and store closures. We incurred $0.5 million of severance costs related to workforce reduction, and we incurred $800,000 of bad debt expense.

第二季度的這些結果包括一些值得注意的項目。本季度的貨運成本為 380 萬美元，我們估計大約是我們調整後的歷史正常值的三倍。我們預計這些高昂的成本將在今年下半年繼續存在，因為我們希望通過重新平衡庫存和關閉商店來最大限度地減少採購。我們發生了與裁員相關的 50 萬美元的遣散費，以及 80 萬美元的壞賬費用。

The declining macro environment in the industry have adversely impacted the enterprise value since our last quarterly report. This triggered a review of goodwill and intangible assets acquired in business combinations over the last few years. The impairment expense is a result of declining enterprise values throughout the peer group.

自上一季報以來，行業宏觀環境下滑對企業價值產生了不利影響。這引發了對過去幾年在企業合併中獲得的商譽和無形資產的審查。減值費用是整個同業集團企業價值下降的結果。

Net of these items, we estimate our adjusted EBITDA would have been more consistent with the first quarter, reflecting the difficult decisions we've made throughout the quarter to rightsize our expense structure and ultimately reduce the company's breakeven point.

扣除這些項目後，我們估計調整後的 EBITDA 將與第一季度更加一致，這反映了我們在整個季度做出的艱難決定，以調整我們的費用結構並最終降低公司的盈虧平衡點。

As Jeff will detail for you shortly, we are reducing our guidance for both net revenue and adjusted EBITDA for the full year 2022. On the top line, the revised guidance reflects the third and fourth quarter that closely resembles the trends we saw in the second quarter, which, as you will recall, was sequentially softer than the first quarter.

正如 Jeff 將很快為您詳細介紹的那樣，我們正在降低對 2022 年全年淨收入和調整後 EBITDA 的指導。最重要的是，修訂後的指導反映了與我們在第二季度看到的趨勢非常相似的第三和第四季度正如您所記得的那樣，該季度比第一季度連續疲軟。

From a margin perspective, we expect continued pressure from elevated freight costs to be at least partially offset by the ongoing benefit of reduced G&A expense and the mix benefit from a higher proportion of private label sales.

從利潤率的角度來看，我們預計運費上漲帶來的持續壓力至少部分被 G&A 費用減少的持續收益和自有品牌銷售比例增加帶來的混合收益所抵消。

With that, I'll turn the call over to our CFO, Jeff Lasher.

有了這個，我將把電話轉給我們的首席財務官 Jeff Lasher。

Thank you, Darren. First, I will address our second quarter financial results, and then I will discuss our updated full year 2022 guidance.

謝謝你，達倫。首先，我將介紹我們的第二季度財務業績，然後我將討論我們更新的 2022 年全年指引。

For the second quarter, GrowGeneration generated revenue of $71.1 million versus $125.9 million in the second quarter of 2021, representing a decline of approximately 44%. The decrease in revenues was primarily attributable to a 57% decrease in same-store sales revenue and an $8.3 million decline in e-commerce revenue. This was partially offset by a $7 million increase in non-retail businesses, including the acquisition and integration of HRG and MMI into our distribution and other segment, which increased that segment's sales to $12 million this quarter from $5 million a year ago.

第二季度，GrowGeneration 的收入為 7110 萬美元，而 2021 年第二季度為 1.259 億美元，下降了約 44%。收入下降的主要原因是同店銷售收入下降 57%，電子商務收入下降 830 萬美元。這被非零售業務增加 700 萬美元部分抵消，包括收購 HRG 和 MMI 並將其整合到我們的分銷和其他部門，這使該部門的銷售額從一年前的 500 萬美元增加到本季度的 1200 萬美元。

Our same-store sales for the second quarter 2022 were $44.8 million compared to prior year sales of $104.1 million, representing a 57% decline against the comparable (inaudible) operated in both periods for 2021 and 2022.

我們 2022 年第二季度的同店銷售額為 4480 萬美元，而上一年的銷售額為 1.041 億美元，與 2021 年和 2022 年兩個時期的可比（聽不清）相比下降了 57%。

Gross profit margin was 28.5% for the second quarter of 2022, up approximately 140 basis points sequentially from the first quarter. Gross profit dollar generation in the second quarter decreased 43% from the prior year, including the impact of additions -- of acquisitions and new stores in our retail stores, e-commerce and our non-retail segment.

2022 年第二季度的毛利率為 28.5%，比第一季度環比增長約 140 個基點。第二季度產生的毛利潤比去年同期下降了 43%，包括增加的影響——我們的零售店、電子商務和非零售部門的收購和新店。

Our retail gross margins in the quarter were flat to last year, but aggregate gross margins benefited from the decline in e-commerce volume as a percentage of total sales from 10% of revenue to 5% of revenue, as well as an increase in mix of distribution and other segment revenue from 4% of revenue to 17% of revenue.

我們本季度的零售毛利率與去年持平，但總毛利率受益於電子商務量佔總銷售額的百分比從收入的 10% 下降到收入的 5%，以及組合的增加分銷和其他部門的收入從收入的 4% 提高到收入的 17%。

The Distribution and other segment has meaningfully more favorable gross margin than the retail and e-commerce segment.

分銷和其他部門的毛利率明顯高於零售和電子商務部門。

We did have a significant headwind on a gross margin -- percentage basis from freight and shipping expense. On an absolute basis, freight expense is in line with last year. But, as Darren mentioned, with the decline in sales volume, the percent of revenue spent on freight increased substantially in the second quarter. Core operating costs and other operational expenses declined sequentially from the first quarter.

我們確實在毛利率上遇到了很大的阻力——運費和運輸費用的百分比。在絕對基礎上，運費與去年持平。但是，正如達倫所說，隨著銷量的下降，第二季度用於貨運的收入百分比大幅上升。核心運營成本和其他運營費用較第一季度環比下降。

Overall, the expense directly associated with revenue production declined from $14.5 million in Q1 to $13.8 million in Q2.

總體而言，與收入生產直接相關的費用從第一季度的 1450 萬美元下降到第二季度的 1380 萬美元。

Selling, general and administrative or SG&A costs were $10.6 million in the second quarter, of which, $1.1 million was derived from stock-based compensation. This compares to $10.3 million in Q1 with $1.6 million of stock-based compensation expense. Total SG&A expenses were impacted by $500,000 of severance-related expenses and $800,000 of bad debt expense, more than double the amount of bad debt related expense on Q1.

第二季度的銷售、一般和行政或 SG&A 成本為 1060 萬美元，其中 110 萬美元來自股票薪酬。相比之下，第一季度為 1030 萬美元，股票薪酬費用為 160 萬美元。 SG&A 總費用受到 500,000 美元的遣散費相關費用和 800,000 美元的壞賬費用的影響，是第一季度壞賬相關費用的兩倍多。

Compared to the same period last year, SG&A expenses increased $100,000 in the second quarter of 2022, with overall savings offset by the addition of HRG and MMI and the previously mentioned increase in bad debt. On a year-over-year basis, we added 6 retail locations from 58 to 64 stores in the second quarter, which also contributed to the increase in second quarter store operating costs on an absolute basis versus the comparable period 1 year ago.

與去年同期相比，2022 年第二季度 SG&A 費用增加了 100,000 美元，整體節省被 HRG 和 MMI 的增加以及前面提到的壞賬增加所抵消。與去年同期相比，我們在第二季度增加了 6 個零售點，從 58 家商店增加到 64 家商店，這也導致第二季度商店運營成本與一年前可比期間相比有所增加。

As Darren outlined, we have taken a number of steps to rightsize operating expense, including resizing the payroll, consolidation of the e-commerce web stores that reduced marketing expenses, rationalizing our store count and other operational changes.

正如 Darren 概述的那樣，我們已經採取了許多措施來調整運營費用，包括調整工資單、整合電子商務網絡商店以減少營銷費用、合理化我們的商店數量和其他運營變更。

Depreciation and amortization of intangibles was $4.8 million in the second quarter of 2022. In addition, as Darren mentioned, the company had a onetime impairment of goodwill and intangibles associated with a previous acquisition.

2022 年第二季度無形資產的折舊和攤銷為 480 萬美元。此外，正如 Darren 所提到的，該公司曾因之前的收購而對商譽和無形資產進行過一次減值。

This $127.8 million will not impact the day-to-day operations of the business and is related to the contraction of the company's enterprise value. This onetime noncash expense resulted in a valuation allowance expense of additional $1 million associated with the temporary impairment of deferred tax assets as we do not project the ability to use those operating loss credits in the foreseeable future. However, the loss generated will result in a tax refund of approximately $3 million later in 2022.

這 1.278 億美元不會影響企業的日常運營，並與公司企業價值的收縮有關。這筆一次性非現金費用導致額外 100 萬美元的估值準備費用與遞延稅項資產的臨時減值有關，因為我們不預測在可預見的未來使用這些經營損失抵免的能力。但是，所產生的損失將導致在 2022 年晚些時候退還約 300 萬美元的稅款。

Income tax was a benefit of $283,000 in the quarter. The income tax provision was impacted by the valuation allowance of $1 million. For 2022, we are forecasting a financial loss for tax purposes. But with the valuation allowance, we do not expect significant income tax provision benefit or expense for the remainder of the year.

本季度所得稅為 283,000 美元帶來了收益。所得稅撥備受到 100 萬美元估值津貼的影響。對於 2022 年，我們預測出於稅收目的的財務損失。但有了估值津貼，我們預計今年剩餘時間不會有重大的所得稅撥備收益或費用。

Net loss for the second quarter was $136.4 million or $2.24 and per diluted share compared to net income of $6.7 million or $0.11 per diluted share from the comparable year ago quarter. Just a reminder that impairment and income tax expense represents a preliminary amount and remain subject to change following the completion of normal quarter-end accounting procedures.

第二季度淨虧損為 1.364 億美元或每股攤薄收益 2.24 美元，而去年同期淨收入為 670 萬美元或每股攤薄收益 0.11 美元。只是提醒一下，減值和所得稅費用代表初步金額，在完成正常的季度末會計程序後仍可能發生變化。

Adjusted EBITDA, which excludes the expenses associated with interest, taxes, depreciation, amortization, impairment and share-based compensation expense, was a loss of $2.9 million for the second quarter of 2022 compared to income of $14.5 million in the second quarter of 2021. We estimate this quarter's adjusted EBITDA loss includes roughly $1.3 million of unusual items that we expect should either become less impactful or will not repeat going forward, including bad debt expense and cost of labor reductions.

調整後的 EBITDA（不包括與利息、稅收、折舊、攤銷、減值和股權激勵相關的費用）在 2022 年第二季度虧損 290 萬美元，而 2021 年第二季度的收入為 1450 萬美元。我們估計本季度調整後的 EBITDA 損失包括大約 130 萬美元的不尋常項目，我們預計這些項目的影響會降低或不會在未來重複，包括壞賬費用和勞動力成本減少。

Related to the balance sheet, the company ended the quarter with $55.6 million of cash and $10 million of marketable securities that are mature and available for sale. Total liquidity was $65.6 million at the end of 2022.

與資產負債表相關的是，該公司在本季度末擁有 5560 萬美元的現金和 1000 萬美元的成熟且可供出售的有價證券。截至 2022 年底，總流動資金為 6560 萬美元。

The company reduced inventory by $6.9 million, offset partially by a $2.2 million increase in prepaid inventory. We also consumed about $4.4 million for payments associated with technology and distribution investments. Cash generated from operations in the quarter was $3.8 million, primarily from the reduction in inventory.

該公司將庫存減少了 690 萬美元，部分被預付庫存增加 220 萬美元所抵消。我們還花費了大約 440 萬美元用於與技術和分銷投資相關的付款。本季度運營產生的現金為 380 萬美元，主要來自庫存減少。

I will now discuss our updated expectations for the balance of the year. We saw an acceleration of declines from first quarter sequentially into the second quarter. We have not seen an improvement in the third quarter to date through July from those 2Q lows. As such, we are now expecting and planning for comparable store sales across the country in the second half of the year to resemble the first half.

我現在將討論我們對今年餘額的最新預期。從第一季度到第二季度，我們看到下降加速。迄今為止，截至 7 月的第三季度，我們沒有看到從第二季度的低點有所改善。因此，我們現在預計和計劃今年下半年全國可比門店銷售額與上半年相似。

Specifically, July was down 52% on a same-store sales basis. As a result, we are now forecasting comparable sales declines at or below Q2 results for Q3 and continued degradation in comparable store sales for the fourth quarter.

具體而言，7 月份同店銷售額下降了 52%。因此，我們現在預測第三季度的可比銷售額下降或低於第二季度的結果，第四季度可比商店的銷售額將繼續下降。

Overall, we anticipate revenue to be down $30 million to $55 million in the second half of 2022 compared to first half revenue of $152.9 million. We are now expecting full year 2022 revenue to be between $250 million and $275 million and full year adjusted EBITDA to be $12 million loss to $15 million loss, all including the contribution from recent acquisitions.

總體而言，我們預計 2022 年下半年收入將下降 3000 萬美元至 5500 萬美元，而上半年收入為 1.529 億美元。我們現在預計 2022 年全年收入將在 2.5 億美元至 2.75 億美元之間，全年調整後 EBITDA 為虧損 1200 萬美元至 1500 萬美元，所有這些都包括最近收購的貢獻。

The middle of our guidance range embeds a continuation of the current trends we are seeing today and the low end contemplates a further deterioration in the operating environment.

我們的指導範圍的中間是我們今天看到的當前趨勢的延續，而低端則考慮到運營環境的進一步惡化。

We expect gross margins to remain under pressure throughout the balance of the year due to lower sales volume that produces deleverage of the supply chain as well as discounting and elevated freight costs. We expect adjusted EBITDA in the third quarter of 2022 to be a loss in the range of $3 million to $5 million, weighed down by elevated gross margin pressures, additional employee separation and store closure costs and other expenses.

我們預計，由於銷量下降導致供應鏈去槓桿，以及折扣和運費上漲，毛利率將在今年餘下時間繼續承壓。我們預計 2022 年第三季度調整後的 EBITDA 將虧損 300 萬至 500 萬美元，原因是毛利率壓力上升、額外的員工離職和商店關閉成本以及其他費用。

We expect operating expenses to be controlled and sequentially down in the third and fourth quarters as we are now planning for fewer retail store openings than we previously expected to add to the absolute dollar expense in Q4.

我們預計第三季度和第四季度的運營費用將受到控制並連續下降，因為我們現在計劃的零售店開業數量少於我們之前預期的第四季度絕對美元支出。

We are continuing to take steps in executing our business strategy to focus on generating cash from operations during this challenging industry environment. We are planning for total capital investments outside of acquisitions, primarily for new store build-outs and technology investments of $6 million to $9 million for the back half of 2022. Thus far, we have spent $8.8 million in 2022.

在這個充滿挑戰的行業環境中，我們將繼續採取措施執行我們的業務戰略，專注於從運營中產生現金。我們計劃在收購之外進行總資本投資，主要用於 2022 年下半年的 600 萬至 900 萬美元的新店建設和技術投資。到目前為止，我們在 2022 年已經花費了 880 萬美元。

We have opened a new location in Ardmore, Oklahoma, near the Texas border and relocated stores in Auburn, Maine as well as Redding, California. Our new Jackson, Mississippi location in July -- opened in July. We have closed 2 stores and plan to close 3 to 5 additional locations, and we are in the process of reviewing additional store closures. We estimate year-end store count to be around 60.

我們在靠近德克薩斯州邊境的俄克拉荷馬州阿德莫爾開設了新店，並搬遷了緬因州奧本和加利福尼亞州雷丁的商店。我們於 7 月在密西西比州傑克遜市開設的新店 - 於 7 月開業。我們已經關閉了 2 家商店，併計劃再關閉 3 到 5 家門店，我們正在審查更多的商店關閉情況。我們估計年終門店數量約為 60 家。

With that, I will turn the call back to Darren for closing remarks.

有了這個，我將把電話轉回給達倫做結束語。

Before we open the line for your questions, I want to reiterate that while 2022 is not shaping up as we initially expected, we are making the tough decisions necessary to ensure we're in the best place possible to emerge stronger than ever when the industry eventually turns around.

在我們為您提出問題之前，我想重申，雖然 2022 年並未像我們最初預期的那樣發展，但我們正在做出必要的艱難決定，以確保我們處於最佳位置，在行業變得比以往任何時候都更強大最終轉身。

We are actively focused on the areas of the business that we can control and we acted quickly beginning back in January to reduce cost and prepare to weather the industry downturn. We accelerated those efforts even further during the second quarter by delaying a few of our strategic goals this year in favor of rightsizing our core structure with significant workforce reductions, including a couple of high-level executive positions and store count rationalization.

我們積極專注於我們可以控制的業務領域，並從一月份開始迅速採取行動，以降低成本並準備好度過行業低迷時期。我們在第二季度進一步加快了這些努力，推遲了今年的一些戰略目標，以支持通過大幅裁員來調整我們的核心結構，包括幾個高級管理職位和商店數量合理化。

As an update on our 5 key initiatives, our e-commerce sites have been combined, and we are actively working on efficient operation of profitable web stores. We have opened 5 new and relocated locations but scaled back mid-term openings considering the industry-wide sales slowdown. Our technology improvements are delayed until later this year.

作為我們 5 項關鍵舉措的更新，我們的電子商務網站已合併，我們正在積極致力於高效運營可盈利的網上商店。我們已經開設了 5 個新的和搬遷的地點，但考慮到整個行業的銷售放緩，我們縮減了中期的開業人數。我們的技術改進推遲到今年晚些時候。

We continue to expand private label penetration with 11% of retail sales from brands that we have control over, and our distribution and other segments continue to be an area that shows incremental revenue and beneficial margins. We have not changed investment activities in this segment.

我們繼續擴大自有品牌的滲透率，11% 的零售銷售額來自我們控制的品牌，我們的分銷和其他部門繼續成為收入增加和利潤豐厚的領域。我們沒有改變這部分的投資活動。

We remain committed to the expansion of our proprietary and distributed brands outside our own retail locations into 750 independent locations. We are very satisfied with the results of both Char Coir and Power Si and are very excited to have introduced Drip Hydro nutrients and additives. The addition of MMI strengthens our position to gain indoor vertical cultivation projects with their leading benching and racking systems.

我們仍然致力於將我們的專有和分銷品牌擴展到我們自己的零售店以外的 750 個獨立地點。我們對 Char Coir 和 Power Si 的結果非常滿意，並且非常高興能夠引入 Drip Hydro 營養素和添加劑。 MMI 的加入加強了我們憑藉其領先的長凳和貨架系統獲得室內垂直種植項目的地位。

Controlled environmental agriculture and sustainable ag are only in the developmental stage, and we believe more local communities will invest in sustainable indoor vertical farms for local production of leafy greens, tomatoes, fruits and other food products.

可控環境農業和可持續農業僅處於發展階段，我們相信更多的當地社區將投資於可持續的室內垂直農場，用於當地生產綠葉蔬菜、西紅柿、水果和其他食品。

GrowGen remains on solid financial footing with a strong balance sheet, a healthy liquidity position and solid cash generation. We are confident that when the cannabis cycle turns and the excess supply in the marketplace eventually normalizes, GrowGen will be well positioned to recover quickly with a more attractive expense structure on a lower G&A base from which to build.

GrowGen 憑藉強勁的資產負債表、健康的流動性狀況和穩健的現金產生保持穩健的財務基礎。我們有信心，當大麻週期轉向並且市場上的過剩供應最終正常化時，GrowGen 將處於有利地位，可以在較低的 G&A 基礎上以更具吸引力的費用結構快速恢復。

Thank you for your time today, and thank you for your support of GrowGeneration. We will now take your questions. Operator?

感謝您今天的寶貴時間，也感謝您對 GrowGeneration 的支持。我們現在將回答您的問題。操作員？

(Operator Instructions) We'll take our first question from Scott Fortune with ROTH Capital Partners.

（操作員說明）我們將回答 Scott Fortune 與 ROTH Capital Partners 的第一個問題。

I just want to focus, Darren, obviously, a lot of exposure in California, your kind of center of your store base there. We're seeing cultivation licenses up for renewal in October. It sounds like mainly, California cultivators are not planning this year on renewing license. And ongoing pressure for a lot of these small growers. What's your sense of California kind of that playing out in the rest of the year and then your footprint in California from a store base side of things?

我只想集中註意力，達倫，很明顯，在加利福尼亞有很多曝光率，那裡是你商店基地的中心。我們看到在 10 月份更新種植許可證。聽起來主要是，加州的種植者今年不打算更新許可證。許多這些小種植者面臨著持續的壓力。你對加州在今年餘下的時間裡上演的那種感覺是什麼感覺？然後你從商店基地方面在加州的足跡？

Yes, Scott, I know you -- as you know, Scott, California is the epicenter of cannabis and always will be. There is a tremendous base of cultivators in the state of California. And there's also a tremendous -- this tremendous illegal market coming out of California. And we believe you will see an equilibrium somewhere. You've seen positive events in California over the last few months with the state tax giving back almost $160 a pound to the cultivators out in California.

是的，斯科特，我認識你——你知道，加利福尼亞州的斯科特是大麻的中心，而且永遠都是。加利福尼亞州擁有龐大的種植基地。還有一個巨大的——來自加利福尼亞的巨大非法市場。我們相信你會在某個地方看到平衡。在過去的幾個月中，您在加利福尼亞州看到了積極的事件，州稅向加利福尼亞州的種植者返還了每磅近 160 美元。

We've seen a very slow outdoor season in California, which usually bodes well for the indoor markets. Our bread and butter in California is the legal market, it's the indoor grows. So we feel pretty comfortable with where the market is, and we opened a store in L.A. last year that is progressing well. And our California stores, albeit down, have been stable over the last few months.

我們已經看到加利福尼亞的戶外季節非常緩慢，這通常對室內市場來說是個好兆頭。我們在加利福尼亞的麵包和黃油是合法市場，它是室內種植的。所以我們對市場的位置感到很舒服，去年我們在洛杉磯開了一家店，進展順利。在過去幾個月裡，我們在加州的門店雖然數量下降，但一直保持穩定。

Got it. I appreciate the color there. And then can you provide a little more touch points from the top customers on the commercial side versus small operators kind of ordering, tenants in California with some of those other [pressure] states. What percentage of revenue is driven from kind of the recurring fertilizers and [mediums] now versus more of the equipment purchases overall for your business now?

知道了。我很欣賞那裡的顏色。然後，您能否提供更多來自商業方面頂級客戶的接觸點，而不是小型運營商的訂單，加利福尼亞州的租戶以及其他一些[壓力]州。現在有多少百分比的收入來自經常性肥料和[培養基]，而不是現在為您的企業購買的更多設備？

Yes. I think what you've seen this year, Scott, with the downturn in the cannabis markets and the downturn in the capital builds, we have probably seen a shift to about 75% on the consumable products and 25% on the capital build products. But we do believe with the growth of this industry, you will see a resurgence of capital build projects in the future. When that occurs, we just don't know right now.

是的。我認為你今年所看到的情況，斯科特，隨著大麻市場的低迷和資本建設的低迷，我們可能已經看到消費品產品的比例下降到 75% 左右，資本建設產品的比例下降到 25%。但我們確實相信，隨著這個行業的發展，您將在未來看到資本建設項目的複蘇。當這種情況發生時，我們現在還不知道。

You're seeing some positive talk right now on Capitol Hill from Schumer and Booker. More articles were out today. So you're starting to see that compromise going into the midterm elections. And like anyone, we certainly have our fingers crossed.

你現在在國會山看到舒默和布克的一些積極談話。今天有更多文章發表。所以你開始看到這種妥協進入中期選舉。和任何人一樣，我們當然會祈禱。

And as you know, as the cannabis markets right now are about a $20 billion market. And the forecast still are $100 billion by the end of the year. And when you compare it to the wine and spirits markets almost at that $1 trillion mark, we think there's tremendous upside. But in the growth of any industry, you do see ups and downs. And unfortunately, right now, Scott, you're seeing down. You heard it from Hydrofarm and Hawthorne this week, and the markets have been tremendously challenging. And GrowGen has taken all steps that we can and we will continue to take steps to stabilize this business and bring it back to profitability.

如您所知，目前的大麻市場約為 200 億美元。到今年年底，預測仍將達到 1000 億美元。當你將它與將近 1 萬億美元大關的葡萄酒和烈酒市場進行比較時，我們認為有巨大的上升空間。但在任何行業的發展中，你都會看到起起落落。不幸的是，現在，斯科特，你看到了失望。本週您從 Hydrofarm 和 Hawthorne 聽到了這一消息，市場一直充滿挑戰。 GrowGen 已採取一切措施，我們將繼續採取措施穩定這項業務並使其恢復盈利。

We'll take our next question from Aaron Grey with Alliance Global Partners.

我們將向 Alliance Global Partners 的 Aaron Gray 提出我們的下一個問題。

So first question for me. I just want to look at the broader cannabis landscape in your customer base. So capital markets environment, very difficult for them right now, which always kind of has been given federal illegality. And that creates difficulty in retaining an ROI, particularly when you think about the 280E headwinds that your customers face.

所以我的第一個問題。我只想看看您的客戶群中更廣泛的大麻景觀。所以資本市場環境，現在對他們來說非常困難，這總是被賦予聯邦非法性。這給保持 ROI 帶來了困難，尤其是當您考慮到客戶面臨的 280E 逆風時。

So I guess my question is, as we're kind of facing this reset now, oversupply in key markets, pricing pressure, which makes it even more difficult to be profitable, especially cash flow with the 280E. How do you think about changes that are going to be needed at the federal level to really get that shift back to where you might have been last year? And do you think SAFE would be enough for that if 280E was not being included and it was more just on the depository banking side?

所以我想我的問題是，由於我們現在正面臨這種重置，主要市場供過於求，定價壓力，這使得盈利變得更加困難，尤其是 280E 的現金流。您如何看待聯邦層面需要做出的改變才能真正讓這種轉變回到去年的水平？如果不包括 280E 並且更多地只是在存款銀行方面，您認為 SAFE 是否足夠？

I think to start with, Aaron, the SAFE Act certainly brings legitimacy to the markets, which I think everyone is looking for. We all know that build-outs and new facilities cost a lot of money. And right now, what you're seeing right now is on the cultivator side, they're also preserving cash for the future. So what you're seeing is just a tremendous amount of individuals that are just -- they're happy with what they have right now.

亞倫，我認為首先，《安全法》肯定會給市場帶來合法性，我認為這是每個人都在尋找的。我們都知道擴建和新設施要花費很多錢。而現在呢，你現在看到的是修煉的人，他們也在為未來存錢。所以你看到的只是大量的人——他們對自己現在擁有的東西感到滿意。

Again, if the industry stays at the level it is right now, there's enough facilities to handle that. So really, the question that we'll have, and I think it's more of a question for the American public is cannabis -- is the cannabis industry going to grow from where it is today to where the estimates are in the future? And we still do believe that in the future, you will see a tremendous amount of business coming in from typical ag and indoor growing, which should be a boost for the hydroponic and the CEA industry on a go-forward basis.

同樣，如果該行業保持在現在的水平，那麼就有足夠的設施來處理這個問題。所以真的，我們將面臨的問題，我認為對於美國公眾來說，更多的問題是大麻——大麻產業是否會從現在的水平發展到未來的估計水平？而且我們仍然相信，在未來，您會看到大量來自典型農業和室內種植的業務，這應該會推動水培和 CEA 行業向前發展。

But we do believe that the SAFE Act will give a boost to the market. So it will give a boost to the capital equipment markets. And what you're seeing right now also is as new states come on board, albeit much slower than we expected, there are capital builds right now going on in New Jersey and New York. You're seeing them starting in Mississippi, but very slowly, Virginia, Missouri. So you're starting to see builds -- we're seeing builds all the time, but just not at the same level we saw a year ago.

但我們確實相信《安全法》將提振市場。因此，它將提振資本設備市場。你現在看到的是，隨著新州的加入，儘管速度比我們預期的要慢得多，但新澤西州和紐約州目前正在進行資本建設。你看到他們從密西西比州開始，但非常緩慢，弗吉尼亞州、密蘇里州。所以你開始看到構建 - 我們一直在看到構建，但與一年前看到的水平不同。

I appreciate that color. That's really helpful there. And it's given you guys cash position, which sort of made strong -- you mentioned about how you don't need to take on any more equity or debt, and you guys are taking your own initiatives on the expenses side.

我很欣賞那種顏色。那裡真的很有幫助。它給了你們現金頭寸，這有點強 - 你提到你不需要承擔更多的股權或債務，你們在開支方面採取了自己的舉措。

On the flip side of it, I'm sure you guys are better positioned than many of your competitors and even other people within the hydroponic supply chain potentially. So during these times -- maybe not now, how do you think about potentially getting more aggressive and finding opportunistic M&A opportunities? Is that not something you might think about on the horizon? Is that something you might be seeing some (inaudible) might be even more cash constrained while dealing with fundamental headwinds that you guys are as well? So I'd love to get your outlook in terms of whether or not there would be M&A that might be opportunistic right now for you guys.

另一方面，我相信你們比許多競爭對手甚至水培供應鏈中的其他人都處於更好的位置。所以在這些時期——也許不是現在，你如何看待可能變得更加激進並尋找機會主義的併購機會？這不是你可能會想到的嗎？在處理你們也是如此的基本逆風時，您可能會看到一些（聽不清）可能會受到更多現金限制的事情嗎？因此，我很想了解您的觀點，即現在是否會有併購對你們來說可能是機會主義的。

Yes, Aaron, I think you know me well enough, and you know the company well enough: if there's a deal on the table that makes sense for GrowGen, we will look hard -- certainly hard at it, whether it's on the product side of it or on the store side of it. If it's accretive and it's for the right price, we're always looking.

是的，亞倫，我想你足夠了解我，你也足夠了解這家公司：如果桌面上有對 GrowGen 有意義的交易，我們會努力尋找——當然會努力，無論是在產品方面它或它的商店一側。如果它是增值的並且價格合適，我們一直在尋找。

Right now, it has to be the right price. And we look at deals all the time still. But fortunately and unfortunately, we haven't pulled the trigger. We pulled the trigger on 2 deals earlier this year. One was, I think, the last day of December, MMI, and we bought HRG this year. and we're very satisfied with both those acquisitions.

現在，它必須是合適的價格。我們仍然一直在關注交易。但幸運的是，我們還沒有扣動扳機。今年早些時候，我們觸發了 2 筆交易。我想，一個是 12 月的最後一天，MMI，我們今年買了 HRG。我們對這兩項收購都非常滿意。

So it's not that we've been that quiet this year. We have done some acquisitions and store openings. But right now, we're balancing the two. And if something comes by our desk that we believe makes sense and it's for the right price, we certainly will take a hard look at it.

所以這並不是說我們今年一直那麼安靜。我們進行了一些收購和開店。但現在，我們正在平衡兩者。如果我們認為我們的辦公桌上出現了一些我們認為有意義且價格合適的東西，我們肯定會認真研究它。

We'll take our next question from Ryan Meyers, Lake Street Capital Markets.

我們將向 Lake Street Capital Markets 的 Ryan Meyers 提出下一個問題。

First one for me. So the 3 to 4 stores that you plan on opening. Just kind of curious what your level of confidence is that you're going to be able to generate some solid business out of these in the near term? And really, any color around those 3 to 4 openings would be helpful.

第一個給我。因此，您計劃開設的 3 到 4 家商店。只是有點好奇你的信心水平是多少，你將能夠在短期內從這些中產生一些穩固的業務？實際上，這 3 到 4 個開口周圍的任何顏色都會有所幫助。

Yes, a couple of things. They are new markets, Ryan, and we do feel quite comfortable. We have business in those markets already. We have a very vibrant commercial team out there. So these aren't new states for us. They're just new states for us with location to better serve the cultivators and growers in those states.

是的，有幾件事。他們是新市場，瑞恩，我們確實感覺很舒服。我們已經在這些市場開展業務。我們有一個非常有活力的商業團隊。所以這些對我們來說不是新的狀態。對於我們來說，它們只是新的州，可以更好地為這些州的種植者和種植者服務。

The stores that we're building in New Jersey, Virginia and Missouri are smaller than our average stores. So we will definitely supply them to our supply chain. But we're quite confident that we'll get these stores profitable as we did with Ardmore, Oklahoma about 6 months ago.

我們在新澤西、弗吉尼亞和密蘇里建立的商店比我們的平均商店要小。因此，我們一定會將它們供應到我們的供應鏈中。但我們非常有信心讓這些商店像大約 6 個月前在俄克拉荷馬州阿德莫爾所做的那樣盈利。

Great. That's helpful. And then, Darren, you kind of alluded to this on the call, but given the tough cannabis market, what kind of opportunities are you guys seeing out there within EA -- vertical growing, indoor growing -- for agriculture? And do you have really anything in the pipeline there?

偉大的。這很有幫助。然後，達倫，你在電話會議上提到了這一點，但鑑於大麻市場艱難，你們在 EA 中看到了什麼樣的農業機會——垂直種植、室內種植？你真的有什麼正在籌備中嗎？

It's still been very slow. We see certain transactions on the hemp side of it. But on the other side of it, we're starting to see -- we're starting to sell some products into the colleges that are starting to build greenhouses on premises, but it's been a very, very slow uptake.

它仍然非常緩慢。我們在大麻方面看到了某些交易。但另一方面，我們開始看到——我們開始向開始在校內建造溫室的大學銷售一些產品，但這是一個非常非常緩慢的吸收過程。

We think it's going to be a 2023 project for GrowGen. We've certainly been working on our business this year, and 95% of what we do right now is into the cannabis space. So we have plenty of work to do on our other side of the business. But we do believe in the next couple of years, you'll see that industry starting to gain some traction.

我們認為這將是 GrowGen 的 2023 年項目。我們今年肯定一直在努力開展業務，我們現在所做的 95% 都在大麻領域。因此，我們在業務的另一端還有很多工作要做。但我們相信在接下來的幾年裡，你會看到這個行業開始獲得一些牽引力。

We'll take our next question from Andrew Carter with Stifel.

我們將回答 Andrew Carter 和 Stifel 的下一個問題。

I guess the first thing I wanted to ask and backing up on the initiatives, I want to have kind of an understanding of where you are in terms of harmonizing. Number one, are all your stores and distribution centers kind of integrated from a back-office perspective, ERP, where you have visibility? And then on the new distribution centers, are they in the place where they're starting to enable the company's supply chain? Or is it still kind of test and learn and not really benefit until kind of 2023? First one.

我想我想問的第一件事並支持這些倡議，我想了解你在協調方面的位置。第一，您所有的商店和配送中心是否都從後台的角度進行了整合，ERP，您可以在哪裡看到？然後在新的配送中心，它們是否在開始啟用公司供應鏈的地方？或者它仍然是一種測試和學習，直到 2023 年才真正受益？第一。

Jeff, I'm going to send it over to you.

傑夫，我要把它寄給你。

Yes, Andrew, so just so you understand on the door side, the 63 stores are connected together. There's a variety of systems that we use within the organization, the retail store side, all of the acquisitions that we have acquired over the last couple of years get plugged into our systems the same day we acquire them and we start receiving data information from them.

是的，安德魯，所以你在門口就明白了，這 63 家商店是連接在一起的。我們在組織內使用各種系統，零售店方面，我們在過去幾年中收購的所有收購都在我們獲得它們的同一天插入我們的系統，我們開始從他們那裡接收數據信息.

We do have a technology investment that will go in next year that will supplant that and provide better efficiencies for us. We're still doing quality control and validation and some exercises on that technology investment.

我們確實有一項技術投資，該投資將在明年進行，它將取代它並為我們提供更好的效率。我們仍在進行質量控制和驗證，以及對該技術投資的一些練習。

The distribution centers, we have one active, and we have one that's still waiting on final development, which will be in Ohio. They will provide opportunities for us to be more efficient in the distribution of our private label business as well as our own distributed brands business, which is their primary focus in the near term and then longer term, the capabilities to service the stores with a variety of different products as well as e-commerce deliveries. So we're looking forward to that as we build out the network. But the primary benefit for the distribution center strategy will really be longer term.

配送中心，我們有一個活躍的，我們還有一個仍在等待最終開發的，它將在俄亥俄州。他們將為我們提供機會，讓我們更有效地分銷我們的自有品牌業務以及我們自己的分銷品牌業務，這是他們近期和長期的主要關注點，能夠為商店提供各種服務不同的產品以及電子商務交付。因此，我們在構建網絡時對此充滿期待。但配送中心戰略的主要好處確實是長期的。

Okay. Yes, I'll ask it offline. I'm a little confused on the first one. But second question I want to ask is you have visibility in what's going on in the competition out there. Are kind of the competing private label retail -- or sorry, hydroponics retailers trying to hang on? Is there rationalization going as the new states are opening, are you seeing them start to open right alongside you where you're planting flags? Anything you can help us to give us about how the competitive set is going.

好的。是的，我會離線詢問。我對第一個有點困惑。但我想問的第二個問題是，你對競爭中發生的事情有了解。是競爭的自有品牌零售 - 或者抱歉，水培零售商試圖堅持下去？隨著新州的開放，是否會進行合理化，您是否看到它們開始在您插旗的地方在您旁邊開放？您可以幫助我們向我們提供有關競爭組合進展情況的任何信息。

Yes. I think, Andrew, what you're seeing from competition right now is lessening. We haven't seen many new store groups pop up of late. Most -- really just opened a large store in Mississippi, I think we're probably the only one in Mississippi right now. But I think you're seeing the doldrums straight around the industry right now. Everyone is feeling it. You heard it from Hydrofarm. You heard it from Hawthorne. You heard the degradation in their sales going on in 2022. And that's from individual stores not buying. So we do believe that -- we hear from stores every day. So we have -- we certainly have the ear to the ground, and we understand what's going on in the industry. And I think the competitors are probably feeling it worse than GrowGen.

是的。我認為，安德魯，你現在從競爭中看到的正在減少。我們最近還沒有看到很多新的商店組出現。大多數——真的只是在密西西比開了一家大店，我想我們現在可能是密西西比唯一的一家。但我認為你現在直接看到了整個行業的低迷。每個人都在感受它。你是從 Hydrofarm 那裡聽到的。你是從霍桑那裡聽到的。你聽說他們的銷售額在 2022 年持續下降。那是因為個別商店沒有購買。所以我們確實相信——我們每天都會收到來自商店的消息。所以我們有 - 我們當然有耳朵，我們了解行業中正在發生的事情。而且我認為競爭對手的感覺可能比 GrowGen 更糟。

We'll take our next question from Eric Des Lauriers with Craig-Hallum.

我們將回答 Eric Des Lauriers 和 Craig-Hallum 的下一個問題。

You've mentioned this increasing mix of private label. You also mentioned some of these newer stores are going to be a bit smaller than perhaps what we're used to seeing. Certainly, you've gone through a bit of an evolution here and it sounds like so far in '22, it's been sort of a cold, hard assessment with some of these noticeable changes here. I was wondering if you could maybe just give us sort of an updated kind of north star of what you guys are looking for, whether that's a mix of e-commerce versus retail, overall store sizes like can you just give us a sort of high-level overview of how your north star or strategy has shifted within the past 6 months, call it?

您提到了這種越來越多的自有品牌組合。您還提到其中一些較新的商店可能會比我們過去看到的要小一些。當然，您在這裡經歷了一些演變，聽起來就像在 22 年到目前為止，這裡有一些明顯的變化，這是一種冷酷、艱難的評估。我想知道你是否可以給我們一些你們正在尋找的更新的北極星，無論是電子商務與零售的混合，整體商店規模，比如你能給我們一個高- 級別概述您的北極星或戰略在過去 6 個月內發生的變化，稱之為？

A couple of things, Eric. One, I don't think we've shifted that much. We have been steadfast with our private label rollouts looking to go from where we started, I think, a couple of years ago at 2%; we're now at 11%. So we've been pretty steadfast on that. Store acquisitions. This year, we have slowed down and we told Wall Street we were slowing down store acquisitions and going to an opening platform this year, albeit much less than we thought as we work on the business and work through the downturn of this industry.

有幾件事，埃里克。一，我不認為我們已經改變了那麼多。我們一直堅定不移地推出自有品牌，希望從幾年前開始的地方開始，我認為是 2%；我們現在是 11%。因此，我們對此非常堅定。商店收購。今年，我們放慢了腳步，我們告訴華爾街，我們正在放慢商店收購的速度，並在今年進入一個開放平台，儘管在我們開展業務並度過這個行業的低迷時期時，這比我們想像的要少得多。

Any time you see a slowdown in an industry, you need to caution yourself. And I think that's what GrowGen is doing right now. Our margins this year at 28.5% this quarter, I think it was a phenomenal feat during these times. As Jeff mentioned in his call, our shipping costs this quarter were over 3x the norm, [back past].

任何時候你看到一個行業放緩，你都需要警惕自己。我認為這就是 GrowGen 現在正在做的事情。我們今年本季度的利潤率為 28.5%，我認為在這些時期這是一項了不起的壯舉。正如傑夫在電話中提到的那樣，我們本季度的運輸成本是正常水平的 3 倍以上，[回到過去]。

So we've done a tremendous job managing supply chain, bringing inventory down and also bringing payroll down. We're looking at a $13 million drop this year in overall expenses. But GrowGen's thesis has not changed. It may have slowed down for the time as Wall Street is backed out, and we do believe that the federal government has slowed the industry down for the time being. But we do believe that you're in the first inning of 9 inning game, and that's always been what GrowGen has told Wall Street. That in the early innings, every once in a while, things slow down and they have slowed. And we are working through it. We've kept our balance sheet strong. We're bringing inventory levels now. And we'll continue to do business every day and help the cultivators and the growers in the United States do what they do.

因此，我們在管理供應鏈、降低庫存和降低工資方面做了大量工作。我們預計今年總支出將減少 1300 萬美元。但 GrowGen 的論點並沒有改變。隨著華爾街的退出，它可能已經放緩了一段時間，我們確實相信聯邦政府暫時放慢了這個行業的速度。但我們確實相信你處於 9 局比賽的第一局，而這一直是 GrowGen 告訴華爾街的。在早期的一局中，每隔一段時間，事情就會變慢，而且它們已經變慢了。我們正在努力解決它。我們的資產負債表保持強勁。我們現在帶來庫存水平。我們將繼續每天做生意，幫助美國的種植者和種植者做他們所做的事情。

Okay. That's helpful. Specifically on sort of private label, e-commerce and inventory. Can you just kind of give me a sense of how you're envisioning all those sort of evolving throughout the year? Or maybe even beyond as it relates to e-commerce and retail? I'm just sort of looking for what's your target mix of retail versus e-commerce is, if we're going to see a bit more of a push towards this e-commerce or omnichannel as you are looking to slow down some CapEx spending and conserve some costs. So maybe just kind of touch on how you're looking at your ideal mix of retail versus e-commerce? And then Jeff, maybe you can just kind of comment on how we should think about your ability to further wind down inventory throughout the year.

好的。這很有幫助。特別是在自有品牌、電子商務和庫存方面。您能否讓我了解一下您對全年所有這些發展的設想？或者甚至可能超越電子商務和零售？我只是在尋找零售與電子商務的目標組合是什麼並節省一些成本。因此，也許只是談談您如何看待零售與電子商務的理想組合？然後傑夫，也許你可以評論一下我們應該如何考慮你全年進一步減少庫存的能力。

I'll start, and I can just turn it over to Jeff. We are in the process of remodeling our online site; you will see a new rollout by year-end, hopefully, sooner. As we stated earlier, we've integrated our sites, Agron and growgeneration.com.

我會開始的，我可以把它交給傑夫。我們正在改造我們的在線網站；你會在年底看到一個新的推出，希望能更快。如前所述，我們已經整合了我們的網站 Agron 和 growgeneration.com。

Agron was specifically a commercial ordering site. Most of its business was big buildouts. It was lighting, dehumidification control systems. And that part of the industry has slowed dramatically. So what we have done is we've pivoted. We are redoing our sites. I think they're in final development right now. And it will be 2 sites in 1, both looking for business from the individual growers and the larger cultivators, but not as much weighted towards the large commercial builds.

Agron 是專門的商業訂購網站。它的大部分業務都是大型擴建。那是照明、除濕控制系統。該行業的這一部分已顯著放緩。所以我們所做的是我們已經轉向。我們正在重做我們的網站。我認為他們現在正處於最終開發階段。它將是 2 合 1 的站點，既從個體種植者和較大的種植者那裡尋找業務，但對大型商業建築的重視程度不高。

The stores, it's business as usual. Private label traction within our stores, at 11% of sales and going higher. We just launched Drip Hydro, which is off to a great start, which we believe will increase our private label sales going into the third and fourth quarters this year.

商店，一切照舊。我們商店內的自有品牌牽引力，佔銷售額的 11% 甚至更高。我們剛剛推出了 Drip Hydro，這是一個良好的開端，我們相信這將增加我們今年第三和第四季度的自有品牌銷售額。

So I believe it's business as usual at GrowGen, albeit, again, we're waiting for a turn in the industry. And as we wait for the turn, we believe we've made this company better this year. We've reduced costs tremendously. We are working on our balance sheet. And we're doing what needs to be done right now. And we do believe that the industry will turn. It may not be this year, it may be next year. We'll be going against much smaller comps next year. We're against a blistering comps from the first half of last year, as you all know.

因此，我相信 GrowGen 一切照舊，儘管我們再次等待行業的轉機。當我們等待轉機時，我們相信今年我們已經讓這家公司變得更好。我們大大降低了成本。我們正在處理我們的資產負債表。我們正在做現在需要做的事情。我們確實相信這個行業將會轉向。可能不是今年，可能是明年。明年我們將與小得多的比賽對抗。眾所周知，我們反對去年上半年的激烈競爭。

So we'll see where the industry goes. We'll see where, going into the midterm elections, if something gets passed on the SAFE Act or a combination of a couple of the different acts out there. But we still are very positive on what we built at GrowGen. We have 62 stores and we have we have different -- 3 different divisions of GrowGen and they're all performing.

因此，我們將看到該行業的發展方向。我們將在中期選舉中看到是否通過了《安全法案》或一些不同法案的組合。但是我們仍然對我們在 GrowGen 建立的東西非常積極。我們有 62 家商店，我們有不同的 - GrowGen 的 3 個不同部門，他們都在表演。

As far as the specific inventory actions that we've taken and the progress we've made on the inventory side, we ended the year with $106 million of inventory -- $105.6 million. That included the legacy business from 2021 as well as the acquired inventory when we acquired MMI. It went up to $106 million at the end of the first quarter, and then down to $99 million at the end of the second quarter.

就我們採取的具體庫存行動以及我們在庫存方面取得的進展而言，我們以 1.06 億美元的庫存結束了這一年——1.056 億美元。這包括 2021 年的遺留業務以及我們收購 MMI 時獲得的庫存。它在第一季度末上升到 1.06 億美元，然後在第二季度末下降到 9900 萬美元。

We have seen a decline in our revenue -- I'm sorry, in our inventory for the retail business over time. And that retail business decline for inventory continues to progress through the third quarter. And we have seen an investment that we've made on the HRG side to expand that business, and we've plateaued on that investment. In other words, we don't need a lot more inventory.

我們的收入下降了——對不起，隨著時間的推移，我們的零售業務庫存有所下降。庫存的零售業務下降將持續到第三季度。我們已經看到我們在 HRG 方面進行了一項投資以擴大該業務，並且我們已經在該投資上處於穩定狀態。換句話說，我們不需要更多的庫存。

We do have some timing issues when it comes to some of our private label inventory that we bring in throughout the year on a seasonal basis in preparation for peak seasons and that ends up with some variances quarter-to-quarter. And -- but our plan is to continue to address inventory and keep the focus on our inventory as an opportunity for us to generate cash in the near term.

當涉及到我們全年為旺季準備的一些自有品牌庫存時，我們確實存在一些時間問題，最終導致季度間出現一些差異。而且 - 但我們的計劃是繼續解決庫存問題，並將重點放在我們的庫存上，以此作為我們在短期內產生現金的機會。

We'll take our next question from Andrew Chasanoff with Oppenheimer.

我們將向奧本海默的 Andrew Chasanoff 提出下一個問題。

Just in regards to top line, behind all the current industry noise, is there anything that gives you or anything that suggests potential rebound in sales once we get through the back half of 2022? And then I guess just in regards to Darren's prepared remarks, I guess what gives you confidence that the current sales lull is more cyclical in nature rather than structural?

就收入而言，在當前所有行業噪音的背後，是否有任何東西可以給你或任何暗示一旦我們度過 2022 年下半年，銷售可能會反彈？然後我想就達倫準備好的言論而言，我想是什麼讓你相信當前的銷售停滯在本質上更具週期性而不是結構性？

Yes, the answer to that is Hawthorne sales were down 63% a quarter. I think Hydrofarm probably more. So you've heard from our suppliers. And you've also heard from again, we understand the state of the industry. So we do believe that GrowGen is holding up much better than our peers and the rest of the industry. Like anything else, if you believe in the -- if you believe in the forecast for the underlying industry, which is the cannabis side of it, the cannabis growers and you believe in the growth forecast, the industry is in a lull right now, which will come back.

是的，答案是霍桑的銷售額每季度下降 63%。我認為 Hydrofarm 可能更多。所以你從我們的供應商那裡聽說過。你也再次聽到，我們了解行業的狀況。因此，我們確實相信 GrowGen 的表現要好於我們的同行和業內其他公司。像其他任何事情一樣，如果你相信 - 如果你相信對基礎行業的預測，即大麻的一面，大麻種植者，並且你相信增長預測，那麼該行業現在處於平靜狀態，這會回來。

If cannabis sales decline and don't go forward like forecasted, you may see some -- you may see some more severe issues with this industry. But from everything you hear out there and from the American people, you're hearing -- over 75% acceptance of cannabis right now and you're still seeing states that have not built out and people unable to get cannabis, and we still believe there's tremendous traction for this industry.

如果大麻銷售下降並且沒有像預期的那樣發展，你可能會看到一些——你可能會看到這個行業的一些更嚴重的問題。但是從你從那里和美國人民那裡聽到的一切，你聽到了——現在超過 75% 的人接受大麻，你仍然看到一些州還沒有建立起來，人們無法獲得大麻，我們仍然相信這個行業有巨大的吸引力。

And I think you've heard it from most of the cultivators out there, the MSOs, everyone still will tell you that this is the early innings of an industry and it's the making of an industry. And like anything else, it takes more than a few years to make an industry. This is -- it's the same thing happened with alcohol coming out of prohibition.

而且我想你已經從那裡的大多數修煉者那裡聽到了，MSO，每個人仍然會告訴你，這是一個行業的早期階段，它是一個行業的形成。和其他任何事情一樣，建立一個行業需要幾年以上的時間。這是 - 酒精從禁令中出來時也發生了同樣的事情。

Okay. No, that's very helpful. And I guess maybe my second question is -- do you guys consider like further legalization necessary for the intermediate to longer-term growth of the -- of I guess, GrowGen or the industry as a whole?

好的。不，這很有幫助。我想也許我的第二個問題是——你們認為對於 GrowGen 或整個行業的中長期增長需要進一步的合法化嗎？

We don't. But I think what you certainly will need is the SAFE Act, which certainly helps from the federal government. If the cultivators can't make money, it's going to be quite hard for them to continue in business. So what you're seeing right now with 280E, which is the tax ramifications to the growers, and the lack of money coming in through Wall Street, building facilities is quite expensive these days. Capital has to come into the industry. And without this SAFE Act, Wall Street has pulled back. And we do believe that there are a bunch of different bills right now that are pending going into the midterm elections. And we do believe that there is a likelihood that something does get passed that we do believe will bring tremendous help to the industry.

我們沒有。但我認為你肯定需要的是《安全法》，它肯定會得到聯邦政府的幫助。修煉的人如果不賺錢，就很難繼續經營下去了。所以你現在看到的 280E 是對種植者的稅收影響，以及華爾街缺乏資金，這些天建築設施非常昂貴。資本必須進入這個行業。如果沒有這個安全法案，華爾街已經退縮了。而且我們確實相信，現在有許多不同的法案正在等待中期選舉。而且我們確實相信，有可能會通過一些我們相信會給行業帶來巨大幫助的事情。

We'll take our final question from Glenn Mattson with Ladenburg.

我們將回答格倫馬特森和拉登堡的最後一個問題。

Most of them have been asked already. But just one more on the inventory, maybe can you just talk about the possibility of any obsolescence or anything like that? Is there a large portion of that made up of like equipment that's just not moving right now that maybe won't be -- is viable, 6 or 9 months down the road or something? And then what would be like the ideal days of inventory? Or what kind of level are you targeting as you kind of plateau at this lower level which perhaps might last for a little while?

他們中的大多數人已經被問過了。但是庫存上還有一個，也許你能談談任何過時或類似情況的可能性嗎？是否有很大一部分是由類似的設備組成的，這些設備現在只是不動，可能不會——可行，6 或 9 個月後還是什麼？那麼理想的庫存天數會是怎樣的呢？或者你的目標是什麼樣的水平，因為你在這個較低的水平上可能會持續一段時間？

Yes. So on the obsolescence opportunity or risk of the organization, we review that on a regular basis and adjust our inventory based on lower cost to market analysis that we do and try to position our inventory for the accounting purposes should reflect that risk. As far as opportunity to sell some products at lower than normal margin, that's a decision that we make on a regular basis. And we -- I think we mentioned that in the script that we are looking at some opportunities to discount in order to move some inventory off. Not a dramatic discount that we're selling below cost, but one in which we're aggressive in the marketplace to move product and gain market share over the course of the back half of the calendar year.

是的。因此，對於組織過時的機會或風險，我們會定期審查並根據我們所做的較低的市場分析成本調整我們的庫存，並嘗試為會計目的定位我們的庫存應該反映該風險。至於以低於正常利潤率銷售某些產品的機會，這是我們定期做出的決定。而且我們 - 我認為我們在腳本中提到我們正在尋找一些折扣機會，以減少一些庫存。不是我們以低於成本的價格銷售的顯著折扣，而是我們在市場上積極地在日曆年後半段移動產品並獲得市場份額的折扣。

As far as the opportunity for us to improve our gross margin return on investment of inventory or inventory turns, we're obviously always looking at opportunities for the rightsizing of inventory, but it's also important to recognize that we need to service our customers with a selection of products in our stores that are readily available. So there's a balancing act between the need for inventory to maintain the sales and the market share in the marketplace versus the pure spreadsheet analysis that would define a lower set of inventory. And we're constantly reviewing that and adjusting our inventory target levels based on that balance.

就我們提高庫存投資毛利率或庫存周轉率的機會而言，我們顯然一直在尋找調整庫存規模的機會，但同樣重要的是要認識到我們需要為客戶提供服務在我們的商店中選擇現成的產品。因此，在維持銷售和市場份額的庫存需求與定義較低庫存的純電子表格分析之間存在平衡。我們會不斷審查這一點，並根據這種平衡調整我們的庫存目標水平。

Okay. And then just quickly on the cost cuts, would you expect those to flow through rather quickly or just some cadence on (inaudible).

好的。然後很快就削減成本，您會期望那些會很快通過還是只是一些節奏（聽不清）。

We expect our Q3 cost structure to reflect the number of actions that we took in Q2 and for our Q3 cost structure to be lower than Q2.

我們希望我們的第三季度成本結構能夠反映我們在第二季度採取的行動數量，並且我們的第三季度成本結構將低於第二季度。

Ladies and gentlemen, this concludes today's question-and-answer session. I will now turn the call back to Clay Crumbliss for additional closing remarks.

女士們，先生們，今天的問答環節到此結束。我現在將電話轉回 Clay Crumbliss 以獲取更多結束語。

Thanks, Keith, and thank you, everyone, for your interest in GrowGeneration. Please reach out to ICR with additional questions at [growgenir@icrinc.com], and we look forward to updating you on our 3Q results later in the year. This concludes our call.

謝謝 Keith，也謝謝大家對 GrowGeneration 的關注。如有其他問題，請通過 [growgenir@icrinc.com] 與 ICR 聯繫，我們期待在今年晚些時候向您更新我們的第三季度業績。我們的電話到此結束。

Ladies and gentlemen, we appreciate your participation. You may now disconnect.

女士們，先生們，我們感謝您的參與。您現在可以斷開連接。