Hamilton Beach Brands Holding Co (HBB) 2023 Q1 法說會逐字稿

Good morning. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Hamilton Beach Brands First Quarter 2023 Earnings Conference Call. (Operator Instructions) Lou Anne Nabhan, Head of Investor Relations, you may begin your conference.

早上好。我叫艾瑪，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加 Hamilton Beach Brands 2023 年第一季度收益電話會議。 （操作員說明）投資者關係主管 Lou Anne Nabhan，你可以開始你的會議了。

Thank you, Emma, and good morning, everyone. Welcome to our first quarter 2023 earnings conference call and webcast. Yesterday, after the market closed, we issued our first quarter 2023 earnings release and filed our 10-Q with the SEC. Copies are available on our website.

謝謝你，艾瑪，大家早上好。歡迎來到我們的 2023 年第一季度收益電話會議和網絡直播。昨天，收市後，我們發布了 2023 年第一季度收益報告，並向美國證券交易委員會提交了 10-Q 報告。我們的網站上提供了副本。

Our speakers today are Greg Trepp, President and Chief Executive Officer; and Sally Cunningham, Senior Vice President and Chief Financial Officer. Also participating in the Q&A will be Scott Tidey, Senior Vice President, Global Sales.

我們今天的發言人是總裁兼首席執行官 Greg Trepp；高級副總裁兼首席財務官 Sally Cunningham。全球銷售高級副總裁 Scott Tidey 也將參與問答環節。

Our presentation today includes forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in either the prepared remarks or during the Q&A. Additional information regarding these risks and uncertainties is available in our earnings release and our annual report on Form 10-K for the year ended December 31, 2022. The company disclaims any obligation to update these forward-looking statements, which may not be updated until our next quarterly conference call, if at all. And now I will turn the call over to Greg.

我們今天的演講包括前瞻性陳述。這些陳述存在風險和不確定性，可能導致實際結果與準備好的評論或問答中表達的結果大不相同。有關這些風險和不確定性的更多信息，請參閱我們截至 2022 年 12 月 31 日止年度的收益發布和 10-K 表格年度報告。公司不承擔任何更新這些前瞻性陳述的義務，這些陳述可能要到我們的下一個季度電話會議，如果有的話。現在我將把電話轉給格雷格。

Thank you, Lou Anne. Good morning, everyone. Thank you for joining us. I plan to take the next few minutes to provide an overview of our performance for the first quarter of 2023 and discuss our expectations for the remainder of the year. Then Sally will discuss our financials in more detail. After that, we will take your questions.

謝謝你，婁安妮。大家，早安。感謝您加入我們。我計劃在接下來的幾分鐘內概述我們 2023 年第一季度的業績，並討論我們對今年剩餘時間的預期。然後 Sally 將更詳細地討論我們的財務狀況。之後，我們將回答您的問題。

During our last earnings call, I discussed that we expected a solid full year for the soft first half, with the first quarter being the most challenging period. As a result of the expected continuation of both soft consumer demand and retailer inventory rebalancing, our total revenue decreased 12.4%. Early in the first quarter, many large retailers significantly reduced their orders as they continue to rebalance their inventory levels in connection with finalizing their fiscal year 2022 results. Retailer order patterns rebounded to more normalized levels as the first quarter unfolded. Our company has also made good progress addressing the inventory challenges from last year, which were driven by supply chain disruptions. We gained strong momentum in the fourth quarter of 2022 and entered this year in a good position.

在我們上次的財報電話會議上，我討論了我們預計疲軟的上半年會是穩健的一年，而第一季度是最具挑戰性的時期。由於消費者需求疲軟和零售商庫存重新平衡的預期持續，我們的總收入下降了 12.4%。在第一季度初，許多大型零售商大幅減少了訂單，因為他們繼續重新平衡與最終確定 2022 財年業績相關的庫存水平。隨著第一季度的展開，零售商訂單模式反彈至更正常的水平。我們公司在解決去年因供應鏈中斷造成的庫存挑戰方面也取得了良好進展。我們在 2022 年第四季度獲得了強勁勢頭，並以良好的狀態進入了今年。

In the first quarter, we further reduced our inventory levels and at a slightly better rate than anticipated. We ended the first quarter with inventory at $132 million compared to $196 million at the end of last year's first quarter and our peak of $244 million at the end of September.

第一季度，我們進一步降低了庫存水平，降幅略好於預期。我們在第一季度末的庫存為 1.32 億美元，而去年第一季度末的庫存為 1.96 億美元，9 月底的峰值為 2.44 億美元。

Our debt came down as well. At the end of March, our debt was $79 million. If you recall, we said in our last call, we expected to end the first quarter at approximately $90 million, and we were pleased to beat that estimate. We delivered strong cash flow before financing in the first quarter of $34.3 million compared to a use of $21.2 million in the 2022 first quarter because of our progress and significantly improving working capital. Despite our first soft first quarter, we are optimistic about the potential for a solid full year. We are encouraged by the placements and promotions we have secured for the back half of the year across a wide variety of categories and customers.

我們的債務也減少了。截至 3 月底，我們的債務為 7900 萬美元。如果你還記得的話，我們在上次電話會議中說過，我們預計第一季度末的收入約為 9000 萬美元，我們很高興超過了這一估計。由於我們的進步和營運資金的顯著改善，我們在第一季度的融資前交付了 3430 萬美元的強勁現金流，而 2022 年第一季度使用了 2120 萬美元。儘管第一季度表現疲軟，但我們對全年穩健發展的潛力持樂觀態度。我們對今年下半年在各種類別和客戶中獲得的展示位置和促銷活動感到鼓舞。

Our commercial market is expected to grow in 2023, not as strong as 2022, but certainly strong, somewhere in the mid- to high-single digits. That could change, of course, but we expect it to be a solid contributor. While we continue to project total revenue in 2023 to be flat with 2022, we believe there could be upside, depending on consumer and retailer spending patterns. Over a longer horizon, we are excited about the prospects provided by the significant groundwork that we have laid over the past few years. We successfully navigated many challenges that were related to the pandemic and supply chain disruptions. Throughout that period, we continue to invest in the development of innovative products and expand our brand portfolio. We now have a growing number of licensed brands for premium products. We also have several new exclusive multiyear agreements under which we develop, market and distribute appliances in markets that are new to us.

我們的商業市場預計將在 2023 年增長，雖然不如 2022 年強勁，但肯定強勁，達到中高個位數。當然，這可能會改變，但我們希望它能成為一個可靠的貢獻者。雖然我們繼續預計 2023 年的總收入與 2022 年持平，但我們認為可能會有上行空間，具體取決於消費者和零售商的支出模式。從長遠來看，我們對過去幾年奠定的重要基礎所提供的前景感到興奮。我們成功應對了與大流行病和供應鏈中斷相關的許多挑戰。在此期間，我們繼續投資開發創新產品並擴大我們的品牌組合。我們現在擁有越來越多的優質產品授權品牌。我們還有幾項新的獨家多年期協議，根據這些協議，我們在新市場開發、營銷和分銷電器。

We began to focus on the large and fast-growing home health and wellness market in the past few years and believe this initiative will begin to have a positive impact on our results this year. We expect to benefit from our growing participation in the global commercial market. We believe we are well positioned to benefit from these investments in 2023 and beyond. Our company has a long record of developing innovative solutions that improve everyday living based on studying consumer preferences and pain points. Our innovation in new products continues to play a key role in our ability to secure placements and promotions.

我們在過去幾年開始關注龐大且快速增長的家庭保健市場，相信這一舉措將開始對我們今年的業績產生積極影響。我們希望從我們對全球商業市場的日益參與中受益。我們相信，我們有能力在 2023 年及以後從這些投資中受益。我們公司在開發創新解決方案方面有著長期的記錄，這些解決方案基於對消費者偏好和痛點的研究來改善日常生活。我們在新產品方面的創新繼續在我們確保安置和促銷的能力方面發揮關鍵作用。

To give you a few examples, we have introduced a number of new slow cookers, including our Proctor Silex Double-Dish that enables cooks to prepare 2 menu items at a time. Our Weston 2-in-1 indoor smoker and slow cooker is very popular, and early models can be frost and brown. We have many new oven models that can air fry, bake, broil or toast. We put a lot of innovation in our coffee makers. We offer more capacity, rapid brew, multiple brew strengths, personal brewing in one machine, hot or iced options, and a choice of thermal or glass carafes.

舉幾個例子，我們推出了一些新的慢燉鍋，包括我們的 Proctor Silex Double-Dish，它使廚師能夠一次準備 2 個菜單項。我們的 Weston 2 合 1 室內煙熏慢燉鍋非常受歡迎，早期型號可以是霜狀和棕色。我們有許多新的烤箱型號，可以空氣炸、烘烤、烤或烤。我們對咖啡機進行了大量創新。我們提供更大的容量、快速沖泡、多種沖泡強度、一台機器上的個人沖泡、熱或冰的選擇，以及熱水壺或玻璃水壺的選擇。

We also continue to invest in our strategic initiatives, which are ongoing programs that have helped us stay strong over the past several years. They are designed to increase revenue, expand operating margin and generate strong cash flow over time. These initiatives support our overarching goal of long-term value creation. Four of our initiatives are focused on expanding our presence in markets where we can increase the sale of higher-priced, higher-margin products. These include the premium, commercial, home health and wellness markets as well as our core market that focuses on our Hamilton Beach and Proctor Silex brands. The other 2 initiatives support our growth plans in all markets. These include accelerating our digital transformation and leveraging partnerships and acquisitions.

我們還繼續投資於我們的戰略計劃，這些計劃是持續進行的計劃，幫助我們在過去幾年保持強勁。它們旨在增加收入、擴大營業利潤率並隨著時間的推移產生強勁的現金流。這些舉措支持我們創造長期價值的總體目標。我們的四項舉措側重於擴大我們在市場上的影響力，在這些市場上我們可以增加高價、高利潤產品的銷售。其中包括高端、商業、家庭保健和健康市場，以及我們專注於 Hamilton Beach 和 Proctor Silex 品牌的核心市場。其他 2 項舉措支持我們在所有市場的增長計劃。其中包括加速我們的數字化轉型以及利用合作夥伴關係和收購。

Let me briefly discuss each one. First, our initiative to lead in the global commercial market. Our growth plans for this market include new products, expanding customer relationships in both the food service and hospitality businesses, and investing in e-commerce. We continue to leverage our leadership and heritage positions in the blending and mixing categories, while we expand into new areas, including back-of-the-house solutions. Examples of new products with excellent market reception are our new Summit Edge high-performance blender, our MixStation heavy-duty drink mixer that makes milkshake treats, and our new BigRig line of immersion blenders, all of which are gaining traction globally.

讓我簡要地討論每一個。第一，我們主動引領全球商業市場。我們針對該市場的增長計劃包括新產品、擴大食品服務和酒店業的客戶關係，以及投資電子商務。我們繼續利用我們在混合和混合類別中的領導地位和傳統地位，同時我們擴展到新領域，包括後台解決方案。我們的新產品 Summit Edge 高性能攪拌機、製作奶昔的 MixStation 重型飲料攪拌機以及我們新的 BigRig 浸入式攪拌機系列等新產品獲得了極好的市場反響，所有這些產品都在全球範圍內獲得關注。

Next, our initiative to gain share in the premium market. We plan to further expand our presence in the premium market with continued new product development, digital marketing and by pursuing additional licensing agreements and other collaborative arrangements. We are very excited about our newest agreement that we announced in early March with a company known as Numilk.

接下來，我們主動在高端市場獲得份額。我們計劃通過持續的新產品開發、數字營銷以及尋求額外的許可協議和其他合作安排，進一步擴大我們在高端市場的影響力。我們對 3 月初與一家名為 Numilk 的公司宣布的最新協議感到非常興奮。

The company provides fresh ingredients for making plant-based milks, including almond milk and oat milk, lattes and protein shakes, either in the home or by commercial establishments such as coffee shops. Numilk's ingredients are delivered in pouches. Users combine the ingredients with water in a blender-type appliance to produce fresh nondairy drinks on demand. Numilk's products are known for their high quality and excellent taste.

該公司提供用於製作植物奶的新鮮原料，包括杏仁奶和燕麥奶、拿鐵咖啡和蛋白奶昔，可在家中或在咖啡店等商業場所使用。 Numilk 的成分以袋裝形式提供。用戶在攪拌機類型的設備中將原料與水混合，以按需生產新鮮的非乳製飲料。 Numilk 的產品以其高品質和極佳的口感而聞名。

The Numilk system also saves customers money, reduces our shipping costs and has a positive environmental impact. What Numilk needed was a next-generation appliance and a partner to help scale their business. We are delighted to have been selected to design the new specialty appliances for use by consumers and commercial customers. We also will provide sales, marketing and distribution of the new appliances. We are in the design and engineering phase and plan to launch the new products in early 2024.

Numilk 系統還為客戶節省了資金，降低了我們的運輸成本，並對環境產生了積極影響。 Numilk 需要的是下一代設備和幫助擴展其業務的合作夥伴。我們很高興被選中設計供消費者和商業客戶使用的新型專用電器。我們還將提供新電器的銷售、營銷和分銷。我們正處於設計和工程階段，併計劃在 2024 年初推出新產品。

The plant-based milk market and household penetration are growing fast. Globally, sales were approximately $20 billion. We expect U.S. sales to grow approximately 10% annually. More people are trying plant-based milks, and we are very excited about the potential for this business. We are also excited about the continued strong growth prospects for the Bartesian cocktail machine, which we also helped design and sell. Last year, we introduced the new duet model and the professional model for commercial use. It has been exciting to partner with Bartesian for the creation of fast growth in this new category. A key growth driver has been Bartesian's commitment to develop more than 50 cocktail flavors.

植物基牛奶市場和家庭滲透率正在快速增長。在全球範圍內，銷售額約為 200 億美元。我們預計美國銷售額每年增長約 10%。越來越多的人正在嘗試植物奶，我們對這項業務的潛力感到非常興奮。我們也對 Bartesian 雞尾酒機的持續強勁增長前景感到興奮，我們也幫助設計和銷售了它。去年，我們推出了新的二重奏模式和商業用途的專業模式。很高興與 Bartesian 合作，在這個新類別中實現快速增長。一個關鍵的增長動力是 Bartesian 致力於開發 50 多種雞尾酒口味。

Our CHI brand continues to grow in sales and share of the garment care category and has established itself as a leading premium brand. Our newest CHI products include a mini-iron and a full-sized handheld steamer. New Hamilton Beach Professional products include our cast iron electric griddle, cordless hand mixer and a variable speed hand blender.

我們的 CHI 品牌在服裝護理品類的銷售額和份額方面持續增長，並已確立了自己作為領先高端品牌的地位。我們最新的 CHI 產品包括迷你熨斗和全尺寸手持蒸籠。新的 Hamilton Beach Professional 產品包括我們的鑄鐵電烤盤、無繩手持攪拌機和變速手持攪拌機。

Our Weston line includes a number of new products in several categories, including vacuum sealers, dehydrators and other innovations in the preservation, processing and prep categories. Our Wolf Gourmet countertop appliances continue to appeal to consumers in the luxury market.

我們的 Weston 系列包括多個類別的許多新產品，包括真空封口機、脫水機和保存、加工和準備類別的其他創新產品。我們的 Wolf Gourmet 檯面電器繼續吸引奢侈品市場的消費者。

Next, our initiative to expand in the home health and wellness market. We are pleased with the progress we are making to increase our participation in the large and fast-growing home health and wellness market. Our focus is on the air purification, water filtration and home medical markets. We are particularly excited about the prospects for the home medical market. The trends are well known. An aging population is increasingly living with and managing chronic health conditions. Demand for personalized health care solutions is rising in lockstep. The need exists in younger demographics as well. The health care industry increasingly is looking for new ways to enable patients to manage their medical needs in their homes due to decreasing supply of physicians, nurses and clinicians. Emerging technologies are enabling patients to manage many medical needs at home, using adherence tools, diagnostic systems and connected solutions.

接下來，我們主動擴大家庭健康和保健市場。我們很高興我們在增加對龐大且快速增長的家庭健康和保健市場的參與方面取得的進展。我們的重點是空氣淨化、水過濾和家庭醫療市場。我們對家庭醫療市場的前景感到特別興奮。趨勢是眾所周知的。人口老齡化越來越多地與慢性健康狀況共存並加以管理。對個性化醫療保健解決方案的需求正在同步增長。年輕人群也存在這種需求。由於醫生、護士和臨床醫生的供應減少，醫療保健行業越來越多地尋找新方法，使患者能夠在家中管理他們的醫療需求。新興技術使患者能夠使用依從性工具、診斷系統和連接的解決方案在家中管理許多醫療需求。

Our sweet spot is working with companies specialized in breakthrough technologies that need a commercialization partner. These partnerships enable us to leverage our strengths in brand, product development, sourcing and logistics. Our initial participation in the home medical market is through an agreement with a company called HealthBeacon Limited. HealthBeacon is a great partner and a leading developer of smart tools for managing injectable medications at home. Our initial product is called the Smart Sharps Bin from Hamilton Beach Health powered by HealthBeacon.

我們的最佳選擇是與專門從事需要商業化合作夥伴的突破性技術的公司合作。這些夥伴關係使我們能夠利用我們在品牌、產品開發、採購和物流方面的優勢。我們最初參與家庭醫療市場是通過與一家名為 HealthBeacon Limited 的公司達成的協議。 HealthBeacon 是一個很好的合作夥伴，也是家庭注射藥物管理智能工具的領先開發商。我們最初的產品名為 Smart Sharps Bin，來自 Hamilton Beach Health，由 HealthBeacon 提供支持。

In 2022, we set up a selling infrastructure and began initial distribution. Together with our partner, we expect to drive sales through new agreements with specialty pharmacies. We are also exploring additional opportunities to collaborate with HealthBeacon and other prospective partners in the home medical market and hope to finalize additional partnerships over the next few quarters.

2022 年，我們建立了銷售基礎設施並開始了初始分銷。我們希望與我們的合作夥伴一起，通過與專業藥店的新協議來推動銷售。我們還在探索與 HealthBeacon 和家庭醫療市場中其他潛在合作夥伴合作的更多機會，並希望在未來幾個季度內完成更多的合作夥伴關係。

We have expanded our participation in the air purifier category. In 2022, we introduced 6 new Clorox-brand True HEPA models, and initial consumer response has been favorable. This year, we are adding an extra large room model. The air purifier market is expected to continue to be strong, given the benefits these machines provide in addressing consumer concerns about indoor air quality.

我們擴大了對空氣淨化器類別的參與。 2022 年，我們推出了 6 款全新的 Clorox 品牌 True HEPA 型號，最初的消費者反響良好。今年，我們增加了一個超大房間模型。鑑於這些機器在解決消費者對室內空氣質量的擔憂方面所提供的好處，預計空氣淨化器市場將繼續保持強勁勢頭。

Earlier this year, we created a new category with the launch of Brita Hub, an electric countertop water filtration system. The electric system processes clean, great-tasting water from the tap much faster than traditional pitchers. Initial reception has been favorable.

今年早些時候，我們創建了一個新類別，推出了電動檯面水過濾系統 Brita Hub。電力系統比傳統水罐更快地處理來自水龍頭的干淨、美味的水。初步反響良好。

Now I will turn to our initiative to drive core growth. As we work to expand in new markets, we remain intently focused on accelerating the growth of our core brands, Hamilton Beach and Proctor Silex. In 2022, we introduced 40 new product platforms, 32 for Hamilton Beach and 8 for Proctor Silex. Plans are in place to drive growth of these 2 brands, including innovative new product development and continued investment in digital marketing. To point out just one example of our innovation, this year, we are celebrating the 10-year anniversary of the introduction of our highly successful breakfast sandwich maker, an innovation created entirely by our product development team. This appliance continues to resonate with consumers and sell well.

現在我將轉向我們推動核心增長的舉措。在我們努力拓展新市場的同時，我們仍然專注於加速我們的核心品牌 Hamilton Beach 和 Proctor Silex 的發展。 2022 年，我們推出了 40 個新產品平台，其中 32 個用於 Hamilton Beach，8 個用於 Proctor Silex。已經制定了推動這兩個品牌增長的計劃，包括創新的新產品開發和對數字營銷的持續投資。僅舉一個我們創新的例子，今年，我們正在慶祝我們非常成功的早餐三明治機推出 10 週年，這是一項完全由我們的產品開發團隊創造的創新。該設備繼續引起消費者的共鳴並暢銷。

Moving on to our initiative to accelerate our digital transformation. The e-commerce channel represents a very strong and fast-growing part of our business. Brand reputation, product features, innovation and star ratings all play a critical role in driving online sales, and these are all areas where we excel. Our e-commerce capabilities have become increasingly sophisticated, and we are continuing to invest in them. Approximately 50% of the U.S. retail industry revenue is now sold through the e-commerce channel, and the Internet is increasingly influencing brand perceptions and consumer purchases. We are increasing our participation with pure-play and omni-channel customers, supporting growth in digital engagement with online marketing programs and expanding our direct-to-consumer distribution operation.

繼續我們加速數字化轉型的舉措。電子商務渠道代表了我們業務中非常強大且快速增長的部分。品牌聲譽、產品功能、創新和星級評分都在推動在線銷售方面發揮著關鍵作用，而這些都是我們擅長的領域。我們的電子商務能力變得越來越成熟，我們將繼續對其進行投資。美國零售業收入的大約 50% 現在是通過電子商務渠道銷售的，互聯網對品牌認知和消費者購買的影響越來越大。我們正在增加我們與純遊戲和全渠道客戶的參與，通過在線營銷計劃支持數字參與的增長，並擴大我們直接面向消費者的分銷業務。

Finally, we have an initiative to leverage partnerships and acquisitions. We have significantly increased our focus on this initiative. We prioritize opportunities that will provide entry into consumer or commercial markets where we can become a stronger participant. We are actively engaged in the pursuit of additional partnerships that could drive growth in all of our markets. Looking ahead, as we have indicated, we expect the second quarter to still be challenging, although not as much as the first quarter. As we enter the second half of the year, we believe that our strategic initiatives and innovative new products position us well to deliver a solid year. Now I will turn the call over to Sally.

最後，我們有一項利用合作夥伴關係和收購的舉措。我們大大增加了對這一舉措的關注。我們優先考慮能夠進入消費者或商業市場的機會，在這些市場中我們可以成為更強大的參與者。我們正在積極尋求更多的合作夥伴關係，以推動我們所有市場的增長。展望未來，正如我們所指出的，我們預計第二季度仍將充滿挑戰，儘管不如第一季度那麼嚴峻。隨著我們進入今年下半年，我們相信我們的戰略舉措和創新的新產品使我們能夠很好地度過一個堅實的一年。現在我將把電話轉給莎莉。

Great. Thank you, Greg. Good morning, everyone. I'll start with our first quarter 2023 results compared to the first quarter of 2022. Net sales for the first quarter of 2023 were $128.3 million compared to $146.4 million for the prior year. This decrease was primarily driven by overall lower unit volume, resulting from the previously mentioned soft consumer demand and retailer rebalancing early in the quarter.

偉大的。謝謝你，格雷格。大家，早安。我將從我們 2023 年第一季度的業績與 2022 年第一季度的對比開始。2023 年第一季度的淨銷售額為 1.283 億美元，而去年同期為 1.464 億美元。這一下降主要是由於整體銷量下降，這是由於前面提到的疲軟的消費者需求和本季度初零售商的再平衡。

Gross profit was $20.9 million or 16.3% of total revenue compared to $28.2 million or 19.3% in the prior year. Margin compression was due to unfavorable customer and product mix and de-leveraging of fixed charges. These were offset slightly by lower expenses for outside warehousing and labor compared to the prior year due to lower inventory levels. Selling, general and administrative expenses were $25.9 million for the first quarter of 2023 compared to $15.4 million in the prior year. As previously disclosed, in the first quarter of 2022, we recorded a $10 million insurance recovery. Excluding the insurance recovery, the first quarter 2022 SG&A was $25.4 million. Operating loss in the first quarter was $5.1 million compared to operating profit in the prior year of $12.7 million or $2.7 million, excluding the insurance recovery. Net interest expense increased from $1.3 million compared to $700,000 due to higher interest rates, offset by lower average debt compared to the prior year.

毛利為 2090 萬美元，佔總收入的 16.3%，上年為 2820 萬美元，佔總收入的 19.3%。利潤率壓縮是由於不利的客戶和產品組合以及固定費用的去槓桿化。由於較低的庫存水平，與上一年相比，外部倉儲和人工費用的減少略微抵消了這些影響。 2023 年第一季度的銷售、一般和管理費用為 2590 萬美元，而去年同期為 1540 萬美元。如前所述，在 2022 年第一季度，我們錄得 1000 萬美元的保險賠償。不包括保險回收，2022 年第一季度的 SG&A 為 2540 萬美元。第一季度的營業虧損為 510 萬美元，而去年同期的營業利潤為 1270 萬美元或 270 萬美元，不包括保險賠償。由於利率上升，淨利息支出從 130 萬美元增加到 700,000 美元，但被與上一年相比較低的平均債務所抵消。

Other expense was $16,000 for the first quarter compared to $1.5 million in the prior year. First quarter 2022 included losses driven by the liquidation of our former Brazilian subsidiary, which did not recur in 2023. The effective tax rate on loss was 24.7% for the first quarter of 2023 compared to 32% on income for the prior year. The first quarter 2022 effective tax rate was unfavorably impacted by interest and penalties on unrecognized tax benefits and a valuation allowance related to the Brazil liquidation that did not recur in 2023. Net loss for the first quarter was $4.8 million or $0.34 per diluted share compared to net income of $7.2 million or $0.51 per diluted share for the prior year. Excluding the tax-affected insurance recovery, net loss for the prior quarter was $300,000 or $0.02 per diluted share.

第一季度的其他費用為 16,000 美元，而去年同期為 150 萬美元。 2022 年第一季度包括我們前巴西子公司清算造成的損失，該損失在 2023 年沒有再次發生。2023 年第一季度的實際損失稅率為 24.7%，而上一年的收入稅率為 32%。 2022 年第一季度實際稅率受到未確認稅收優惠的利息和罰款以及與 2023 年未發生的巴西清算相關的估值津貼的不利影響。第一季度淨虧損為 480 萬美元或攤薄後每股虧損 0.34 美元，相比之下上一年的淨收入為 720 萬美元或每股攤薄收益 0.51 美元。不包括受稅收影響的保險賠償，上一季度的淨虧損為 300,000 美元或攤薄後每股虧損 0.02 美元。

Now turning to our balance sheet and cash flows. Net cash provided by operating activities was $34.9 million compared to cash used for operating activities of $20.8 million in the prior year. The change was primarily due to net working capital, which provided cash of $39.9 million in 2023 compared to a use of cash of $24.9 million in the first quarter of 2022. On March 31, 2023, net debt was $77.1 million compared to $110 million on December 31, 2022, and $118.3 million on March 31, 2022. Net debt was significantly reduced year-over-year due to our focus on working capital improvements.

現在轉向我們的資產負債表和現金流量。經營活動提供的現金淨額為 3490 萬美元，而上一年用於經營活動的現金為 2080 萬美元。這一變化主要是由於淨營運資金，與 2022 年第一季度的 2490 萬美元相比，2023 年提供了 3990 萬美元的現金。2023 年 3 月 31 日，淨債務為 7710 萬美元，而 2023 年第一季度為 1.1 億美元2022 年 12 月 31 日和 2022 年 3 月 31 日為 1.183 億美元。由於我們專注於改善營運資本，淨債務同比大幅減少。

As of March 31, 2023, we had $53.1 million of available borrowing capacity under our credit facility. First quarter capital expenditures totaled $464,000, which was flat compared to last year. With major investments in infrastructure behind us, including our new ERP system and our new U.S. distribution center, we have been able to significantly decrease capital investments compared to recent years. Capital expenditures for 2023 are expected to be in the $4 million to $5 million range.

截至 2023 年 3 月 31 日，我們的信貸額度下有 5310 萬美元的可用借貸能力。第一季度資本支出總計 464,000 美元，與去年持平。憑藉對基礎設施的重大投資，包括我們新的 ERP 系統和新的美國配送中心，與近年來相比，我們已經能夠顯著減少資本投資。 2023 年的資本支出預計在 400 萬至 500 萬美元之間。

Now turning to our outlook. For the full year 2023, we expect revenue to be flat compared to 2022. At this time, revenue in the second half of 2023 is expected to increase modestly. As Greg reported, we are pleased with our progress in securing incremental placements and promotions for the second half. We believe there could be upside to our full year revenue outlook as we continue to finalize placements and promotions for the holiday selling season and depending on what happens with consumer consumption trends and retailer purchasing patterns. We expect gross profit margin to return to its historical range as the second half of the year unfolds. SG&A expenses, excluding the $10 million insurance recovery in 2022, are expected to increase moderately for the year due to higher employee-related costs as well as investments in new product advertising and additional staff to support direct sales of the company's commercial products in international markets.

現在轉向我們的前景。對於 2023 年全年，我們預計收入將與 2022 年持平。此時，預計 2023 年下半年的收入將小幅增長。正如 Greg 所報告的那樣，我們對下半年在確保增量安置和促銷方面取得的進展感到滿意。我們認為，隨著我們繼續完成假日銷售季的佈置和促銷活動，並取決於消費者消費趨勢和零售商購買模式的變化，我們的全年收入前景可能會有上升空間。隨著下半年的展開，我們預計毛利率將回到歷史區間。 SG&A 費用（不包括 2022 年 1000 萬美元的保險回收）預計今年將適度增加，原因是員工相關成本增加以及新產品廣告投資和額外員工支持公司商業產品在國際市場的直接銷售.

Operating profit for the full year 2023 is expected to increase compared to 2022, excluding the $10 million insurance recovery. Interest expense in 2023 is expected to increase compared to 2022 due to higher interest rates. Cash flow before financing in 2023 is expected to increase significantly compared to 2022 due to continued improvements in net working capital. That concludes our prepared remarks. We will now turn the line back to the operator for Q&A.

與 2022 年相比，預計 2023 年全年的營業利潤將有所增加，其中不包括 1000 萬美元的保險賠款。由於更高的利率，預計 2023 年的利息支出將比 2022 年增加。由於淨營運資本的持續改善，預計 2023 年融資前的現金流量將比 2022 年大幅增加。我們準備好的發言到此結束。我們現在將線路轉回接線員進行問答。

(Operator Instructions) Showing no questions at this time, I turn the call back to Mr. Greg Trepp for closing remarks.

（操作員說明）此時沒有顯示任何問題，我將電話轉回給 Greg Trepp 先生進行結束語。

Thank you, Emma. Hamilton Beach Brands has invested in the people and best practices to ensure we develop consumer-preferred products that have the right balance of trusted branding, innovation and quality to offer to our customers and consumers at the right price. As the company has expanded into more categories and price points, we have increased the attractiveness of our company to serve the needs of our customers.

謝謝你，艾瑪。 Hamilton Beach Brands 對人員和最佳實踐進行了投資，以確保我們開發出消費者喜歡的產品，這些產品在值得信賴的品牌、創新和質量之間取得了適當的平衡，並以合適的價格提供給我們的客戶和消費者。隨著公司擴展到更多的類別和價位，我們增加了公司的吸引力來滿足客戶的需求。

In 2023, we are very pleased to have been awarded incremental placements and promotions across a wide range of categories and a wide range of North American customers in brick-and-mortar, omni-channel and e-commerce retailers. We've also experienced very nice progress increasing our customer base within our global commercial business. We expect these gains to positively impact on the company in the third and fourth quarters. We continue to pursue additional promotions focused on the peak holiday period. That concludes our report today. Thank you again for joining our call.

在 2023 年，我們很高興在實體、全渠道和電子商務零售商中獲得了廣泛類別和廣泛北美客戶的增量展示位置和促銷活動。我們在全球商業業務中的客戶群增加方面也取得了非常好的進展。我們預計這些收益將在第三和第四季度對公司產生積極影響。我們將繼續針對假期高峰期推出更多促銷活動。我們今天的報告到此結束。再次感謝您加入我們的電話會議。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。