Hamilton Beach Brands Holding Co (HBB) 2024 Q2 法說會逐字稿

Thank you for standing by.

謝謝你的支持。

I am Augusto and I will be your conference operator today.

我是奧古斯托，今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to the Hamilton Beach Brands Holding Company Q2 earnings conference call and webcast.

此時此刻，我歡迎大家參加漢彌爾頓海灘品牌控股公司第二季財報電話會議和網路廣播。

(Operator Instructions)

（操作員說明）

Thank you.

謝謝。

I would now like to turn the call over to Lou Anne Nabhan, Head of Investor Relations.

我現在想將電話轉給投資者關係主管 Lou Anne Nabhan。

Please go ahead.

請繼續。

Thank you, Augusto.

謝謝你，奧古斯托。

Good morning, everyone, and welcome to the Hamilton Beach Brands second quarter 2024 earnings conference call and webcast.

大家早安，歡迎參加漢密爾頓海灘品牌 2024 年第二季財報電話會議和網路廣播。

Yesterday after the stock market closed, we filed with the SEC our Form 10-Q for the quarter ending June 30, 2024, and we issued our second quarter 2024 earnings release.

在昨天股市收盤後，我們向 SEC 提交了截至 2024 年 6 月 30 日的季度的 10-Q 表格，並發布了 2024 年第二季財報。

Both documents are available on our corporate website.

這兩份文件均可在我們的公司網站上取得。

Our speakers today are Greg Trepp, Chief Executive Officer; Scott Tidey, President; and Sally Cunningham, Senior Vice President, Chief Financial Officer and Treasurer.

今天我們的演講者是執行長 Greg Trepp；史考特·泰迪，總裁；以及資深副總裁、財務長兼財務主管 Sally Cunningham。

Our presentation today includes forward-looking statements.

我們今天的演示包括前瞻性陳述。

These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in either our prepared remarks or during the q-and-a.

這些陳述存在風險和不確定性，可能導致實際結果與我們準備好的評論或問答中表達的結果有重大差異。

Additional information regarding these risks and uncertainties is available in our 10-Q and our earnings release and our annual report on Form 10-K for the year ended December 31, 2023.

有關這些風險和不確定性的更多信息，請參閱我們的 10-Q 財報和截至 2023 年 12 月 31 日止年度的 10-K 表格年度報告。

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.

該公司不承擔更新這些前瞻性聲明的義務，這些聲明可能要到我們下一次季度電話會議才會更新（如果有的話）。

And now I will turn the call over to Greg.

現在我將把電話轉給格雷格。

Thank you, Lou Anne.

謝謝你，盧安妮。

Good morning, everyone.

大家早安。

Thank you for joining us.

感謝您加入我們。

Our agenda today is that I will make some brief opening comments.

我們今天的議程是我將發表一些簡短的開場評論。

Scott will discuss our performance in more detail.

斯科特將更詳細地討論我們的表現。

Sally will review our financial results, after that we will take your questions.

莎莉將審查我們的財務業績，然後我們將回答您的問題。

We were pleased to deliver a very strong second quarter.

我們很高興第二季業績非常強勁。

Our revenue of $156.2 million was a second quarter record and increased 14% from a year ago.

我們第二季的營收為 1.562 億美元，創歷史新高，比去年同期成長 14%。

Starting with the third quarter of last year, we began to show significant year-over-year improvement in our gross profit margin.

從去年第三季開始，我們的毛利率開始出現年比顯著改善。

In every quarter since that time, we have delivered above our historical range as our team has done an effective job, keeping our gross profit margins strong while remaining competitive in the marketplace.

自那時以來，我們的每個季度的業績都高於歷史水平，因為我們的團隊卓有成效，保持了強勁的毛利率，同時保持了市場競爭力。

The second quarter of this year, gross profit margin was 24% -- 25.9% compared to 20% a year ago.

今年第二季度，毛利率為24%－25.9%，去年同期為20%。

Our operating profit in the second quarter of $10 million increased significantly from last year and was driven primarily by our revenue growth and gross profit margin expansion.

我們第二季的營業利潤為 1000 萬美元，較去年大幅成長，這主要是由我們的收入成長和毛利率擴張所推動的。

Another achievement that began in 2023 was significant progress in reducing pandemic related excess inventory, the corresponding debt to more normalized levels.

2023 年開始的另一項成就是在減少疫情相關的過剩庫存方面取得重大進展，將相應的債務降至更正常化的水平。

As a result of our disciplined focus on all elements of net working capital, we have made further progress this year.

由於我們嚴格關注淨營運資本的所有要素，我們今年取得了進一步的進展。

As of June 30 of this year, we generated $37 million of cash from operating activities and used it to reinvest in our business and return value to shareholders.

截至今年 6 月 30 日，我們從經營活動中產生了 3,700 萬美元的現金，並將其用於對我們的業務進行再投資，並向股東回報價值。

We feel very good about the strength of our financial position as we enter the second half of this year and believe we are well positioned to deliver excellent results for the full year 2024.

進入今年下半年，我們對自己的財務狀況感到非常滿意，並相信我們有能力在 2024 年全年取得優異的業績。

And finally, I am pleased with the progress and seamless transition, as Scott has assumed the role of President since the Board directed him to that position in February of this year.

最後，我對進展和無縫過渡感到滿意，因為自今年 2 月董事會指示 Scott 擔任總裁以來，他已擔任該職位。

For a long planned succession process is proceeding very well.

長期計劃的繼任過程進展順利。

And now I will turn it over to Scott.

現在我將把它交給史考特。

Thank you, Greg.

謝謝你，格雷格。

I'm happy to reiterate Greg's comments that we are pleased with the excellent financial results we have achieved and that the momentum we carried into this year has continued.

我很高興重申格雷格的評論，即我們對所取得的出色財務業績感到滿意，並且我們今年的勢頭仍在繼續。

Our financial success has been driven by continued progress with our strategic initiatives.

我們的財務成功得益於我們策略舉措的持續進展。

The initiatives enabled us to continue to deliver revenue growth that outperform the small kitchen appliance industry, which has been modestly down this year.

這些舉措使我們能夠繼續實現收入成長，超過今年小幅下滑的小型廚房電器行業。

As you've heard, our revenue increased by 14% in the second quarter.

如您所知，我們第二季的營收成長了 14%。

Let me discuss the initiatives that have had particularly strong impact on our revenue growth.

讓我討論一下對我們的收入成長有特別重大影響的舉措。

First, our focus on driving the growth of our flagship brands, Hamilton Beach Proctor Silex and our core North American market.

首先，我們專注於推動旗艦品牌 Hamilton Beach Proctor Silex 和核心北美市場的成長。

In a second quarter, revenue for the core consumer products increased 13%.

第二季度，核心消費產品收入成長13%。

We have gained market share across North America overall and in several individual categories.

我們已經獲得了整個北美市場以及多個單獨類別的市場份額。

These are outstanding achievements that are directly attributed to our exceptional strong culture of innovation and deep capabilities for new product development.

這些傑出成就直接歸功於我們卓越的強大創新文化和深厚的新產品開發能力。

Our company has a long history of developing innovative solutions that improve everyday living in the small appliance category.

我們公司在開發改善小家電類別日常生活的創新解決方案方面有著悠久的歷史。

Our teams study consumer needs and pain points, and then we refresh existing products or develop entirely new products as we work to delight consumers.

我們的團隊研究消費者的需求和痛點，然後更新現有產品或開發全新產品，努力取悅消費者。

We continuously hone our innovation skill set that we can generate even richer consumer insights.

我們不斷磨練我們的創新技能，以便能夠產生更豐富的消費者洞察。

Products with unique and proprietary consumer benefits, of course, yield more revenue and profit.

當然，具有獨特和專有的消費者利益的產品會產生更多的收入和利潤。

Such projects or products are easier to place at retail and to keep placements longer.

此類項目或產品更容易在零售中放置，並且放置時間更長。

Our goal, therefore, is to maximize innovation with unique consumer benefits.

因此，我們的目標是最大化創新並為消費者帶來獨特的利益。

Our new product offerings in the coffee category include our FlexBrew Advanced 5-in-1 Coffee Maker, other new coffee makers, espresso machines and kettles.

我們在咖啡類別中的新產品包括 FlexBrew Advanced 5 合 1 咖啡機、其他新型咖啡機、濃縮咖啡機和水壺。

New motorized appliances include regular personal blenders, hand and stand mixers, and juices.

新的電動電器包括普通個人攪拌機、手持式和立式攪拌機以及果汁。

In our heat group, we have new slow cookers, including models that defrost, a number of air fryer toaster ovens, and indoor searing grill with an infuser, toasters, roasters, and griddle, and especially items like our Casadio maker.

在我們的熱力組中，我們有新的慢燉鍋，包括除霜型號、一些氣炸鍋、烤麵包機、帶浸泡器的室內燒烤架、烤麵包機、烤爐和煎鍋，尤其是像我們的Casadio 機這樣的產品。

We couldn't be more excited about our lineup of new products and how well retailers and consumers have received them.

我們對我們的新產品陣容以及零售商和消費者對它們的接受程度感到非常興奮。

Our goal is to further increase our growing share for our core brands.

我們的目標是進一步增加我們核心品牌不斷增長的份額。

We will continue to devote significant resources to investing in our core competencies that are critical to creating a competitive advantage, including innovation, new product development, and robust digital marketing.

我們將繼續投入大量資源投資於對創造競爭優勢至關重要的核心能力，包括創新、新產品開發和強大的數位行銷。

Next, I will discuss our progress to gain share in the premium market.

接下來，我將討論我們在高端市場獲得份額的進展。

In the second quarter, sales of premium products increased 20%, another outstanding achievement.

第二季度，高階產品銷售成長20%，再創佳績。

Our chief brand premium garment care products continue to make a significant contribution to our sales growth in this market.

我們的主品牌優質服裝護理產品繼續為我們在該市場的銷售成長做出重大貢獻。

She is one of the premium brands that we license.

她是我們授權的優質品牌之一。

The brand is incredibly strong in the high end beauty and personal care market.

該品牌在高端美容和個人護理市場中非常強大。

We have leveraged this outstanding reputation for the benefit of our CHI brand irons and garment steamers.

我們利用這項卓越聲譽為我們的 CHI 品牌熨斗和掛燙機帶來好處。

We placed significant emphasis on innovation and new product development for our CHI products.

我們非常重視 CHI 產品的創新和新產品開發。

This year, we have introduced three new irons and a garment steamer, featuring CHI's Lava technology.

今年，我們推出了三款新熨斗和一台蒸氣掛燙機，採用 CHI 的 Lava 技術。

Lava is a great key conductor, and we're excited to deploy this innovative technology in our products.

熔岩是一種出色的關鍵導體，我們很高興在我們的產品中部署這項創新技術。

We have generated significant incremental and new placements of our CHI line, expect this brand to being a meaningful contributor to our sales and premium products this year.

我們的 CHI 系列已經產生了顯著的增量和新的展示位置，預計該品牌今年將為我們的銷售和優質產品做出有意義的貢獻。

Under exclusive multiyear agreement, the Bartesian premium cocktail maker has also been a performer in our premium market lineup.

根據獨家多年協議，Bartesian 優質雞尾酒製造商也是我們高端市場陣容中的佼佼者。

This year, we're extending the line to include a duet model that features two spirit bottles as compared to the four bottles that come with the original model and is available at a lower price.

今年，我們擴展了產品線，推出了二重奏模型，該模型具有兩個酒精瓶，而原始模型附帶四個瓶子，並且價格更低。

We will also introduce a premier model and a cordless model.

我們還將推出高級型號和無線型號。

We've been pleased with our trademark license agreements for our lines of Clorox air purifiers and Brita hub countertop electric water filtration systems.

我們對 Clorox 空氣清淨機系列和 Brita hub 檯面電動水過濾系統系列的商標授權協議感到滿意。

This year we're extending our Clorox line with our largest yet room air purifier as well as a countertop steam sanitizer and a Clorox humidifier.

今年，我們將擴大 Clorox 產品線，推出迄今為止最大的室內空氣清淨機、檯面蒸汽消毒器和 Clorox 加濕器。

We are also adding a contact model to our Brita Hub product.

我們也在 Brita Hub 產品中新增了聯絡人模型。

Note that our Clorox and Brita products also provide a revenue stream from consumable filters.

請注意，我們的 Clorox 和 Brita 產品也透過消耗性過濾器提供收入來源。

This year, we introduced our newest premium brand, Numilk as part of an exclusive multiyear agreement.

今年，作為獨家多年協議的一部分，我們推出了最新的優質品牌 Numilk。

We're providing the next generation of specialty appliances to create a variety of fresh plant based milk products.

我們提供下一代專用設備來生產各種新鮮植物奶產品。

The Numilk Home Machine has just become available on certain e-commerce sites.

Numilk 家用機器剛剛在某些電子商務網站上上市。

And our sales team is pursuing additional opportunities in retail stores.

我們的銷售團隊正在零售店尋找更多機會。

Our own premium brands Hamilton Beach Professional, Weston also benefit from our innovation and new product development and continue to perform well in the market.

我們自己的優質品牌 Hamilton Beach Professional、Weston 也受惠於我們的創新和新產品開發，並繼續在市場上表現出色。

We plan to continue to support the growth of all premium brands with new product development, digital marketing, as well as adding new brands through additional partnerships or acquisitions.

我們計劃繼續透過新產品開發、數位行銷以及透過額外的合作夥伴關係或收購增加新品牌來支持所有優質品牌的發展。

Next, our strategic initiative to lead in the global commercial market.

接下來，我們的策略舉措是引領全球商業市場。

In the second quarter, revenue from our global commercial market increased 5.5%.

第二季度，我們全球商業市場的營收成長了5.5%。

We are a leading provider of commercial small appliances to the foodservice and hospitality industries worldwide.

我們是全球餐飲服務和酒店業商用小家電的領先供應商。

We focus on developing products that create a competitive advantage in our heritage blending and mixing categories as well as products that provide for expansion and new categories, including the food service operations that typically exist in the back of the house.

我們專注於開發在我們的傳統混合和混合類別中創造競爭優勢的產品，以及提供擴展和新類別的產品，包括通常存在於房子後面的食品服務業務。

Our commercial products are sold in more than 100 countries and more than 50% of the revenue is from outside the US.

我們的商業產品銷往 100 多個國家，超過 50% 的收入來自美國境外。

Building the strength in e-commerce, which is becoming more important in the commercial market is also a focus.

加強電子商務的實力也是一個重點，電子商務在商業市場中變得越來越重要。

The strategies that we were implementing this year to drive continued growth of this business include successfully launching our new powerful Summit Edge Blender, increasing our focus on food processing products such as our big rig immersion blenders, leveraging new business we have obtained with large hotel chains in the hospitality industry.

我們今年為推動該業務的持續成長而實施的策略包括成功推出功能強大的新型 Summit Edge 攪拌機、加大對大型浸入式攪拌機等食品加工產品的關注力度、利用我們與大型連鎖酒店獲得的新業務在酒店業。

Continue to increase sales with cruise ships, leveraging our partnerships with Bartesian and Numilk.

利用我們與 Bartesian 和 Numilk 的合作夥伴關係，繼續增加遊輪銷售。

Bartesian sales are focused on restaurants, bars and hotels.

巴氏銷售主要集中在餐廳、酒吧和旅館。

And Numilk sales have particularly strong potential with coffee shops.

努米爾克 (Numilk) 在咖啡店的銷售潛力尤其強勁。

And finally, we continue to build strength in digital marketing.

最後，我們持續增強數位行銷方面的實力。

We are very optimistic about the potential for the global commercial market to provide significant opportunities in terms of revenue growth and margin expansion in future years.

我們對全球商業市場在未來幾年的收入成長和利潤擴張方面提供重大機會的潛力非常樂觀。

Next is our initiative to accelerate the growth of Hamilton Beach Health.

接下來是我們加速 Hamilton Beach Health 發展的舉措。

While this business has not yet having a material impact on our financial results, we are excited about the growth opportunities we believe it provides, and there have been several accomplishments this year that I'd like to highlight.

雖然這項業務尚未對我們的財務業績產生重大影響，但我們對它提供的成長機會感到興奮，而且我想強調今年取得的幾項成就。

Since this market is still new to us, let me recap some of the key points we'd like for investors to understand.

由於這個市場對我們來說仍然陌生，讓我回顧一下我們希望投資者了解的一些要點。

In 2021, we began pursuing opportunities to increase our participation in the large and fast growing home health and wellness market.

2021 年，我們開始尋求機會，增加對龐大且快速成長的家庭健康和保健市場的參與。

Rapid growth is being driven by technology, innovation, and a growing shortage of medical staff that formerly treated certain conditions in office settings.

技術、創新以及以前在辦公室環境中治療某些疾病的醫務人員日益短缺推動了快速成長。

New solutions such as remote therapeutic monitoring, are improving accessibility to healthcare services for many people.

遠距治療監測等新解決方案正在改善許多人獲得醫療保健服務的機會。

They enable providers to identify changes in patient status and facilitate faster interventions.

它們使提供者能夠識別患者狀態的變化並促進更快的干預。

For most importantly, they enable patients to participate more actively in their healthcare management, leading to more favorable outcomes.

最重要的是，它們使患者能夠更積極地參與醫療管理，從而獲得更有利的結果。

We created a Hamilton Beach Health brand, drawing on decades of experience as a trusted resource in the home.

我們憑藉著數十年作為值得信賴的家庭資源的經驗，創造了 Hamilton Beach Health 品牌。

In February 2024, Hamilton Beach Health acquired HealthBeacon plc in medical technology firm and strategic partner of ours.

2024 年 2 月，Hamilton Beach Health 收購了醫療科技公司 HealthBeacon plc，也是我們的策略夥伴。

The acquisition combines the trusted brand name of Hamilton Beach and our leadership in innovation, engineering, product development and distribution capabilities with HealthBeacon's digital expertise, patented technologies, and customer relationships.

此次收購將漢密爾頓海灘值得信賴的品牌名稱以及我們在創新、工程、產品開發和分銷能力方面的領先地位與 HealthBeacon 的數位專業知識、專利技術和客戶關係結合起來。

HealthBeacon got its start as a developer of digitally connected devices that enable patients to manage at home chronic conditions that require the use of injectable medications, and it provides other health services.

HealthBeacon 最初是數位連接設備開發商，這些設備使患者能夠在家中管理需要使用注射藥物的慢性病，​​並提供其他健康服務。

The primary system we provide is called the Smart Sharps Bin from Hamilton Beach Health.

我們提供的主要係統稱為 Hamilton Beach Health 的智慧銳器箱。

Patients receive a countertop device that is connected to an app that uses patented technology to provide medication reminders, tracking and 24, 7 patient support.

患者會收到一個與應用程式連接的檯面設備，該應用程式使用專利技術提供用藥提醒、追蹤和 24 小時、7 小時患者支援。

The content of a top device has a protected container inside it, serves as a receptacle used sharps.

頂部裝置的內容物內部有一個受保護的容器，用作使用過的銳器的容器。

Once the bin begins to fill up, technology provides an alert for a new one to be sent automatically and the patient returns the container with used sharps and a prepaid package for safe disposals.

一旦垃圾箱開始裝滿，技術就會發出警報，自動發送新的垃圾箱，患者將裝有用過的銳器和預付費包裹的容器歸還，以便安全處置。

This system is sold primarily through specialty pharmacies.

該系統主要透過專業藥房銷售。

These health care providers appreciate that our system supports patient adherence to the prescribed treatments, which in turn improves health outcomes.

這些醫療保健提供者讚賞我們的系統支援患者遵守規定的治療，從而改善健康結果。

The revenue model subscription based and has a significant higher margin than other products in our portfolio.

基於訂閱的收入模式，其利潤率明顯高於我們投資組合中的其他產品。

We believe HealthBeacon is an attractive investment with the potential to increase shareholder value over time as the business has scaled and expanded.

我們相信 HealthBeacon 是一項有吸引力的投資，隨著業務規模的擴大，股東價值有可能隨著時間的推移而增加。

Growth plans, including adding new patients with existing specialty pharmacy customers, attracting new specialty pharmacies, and increasing the number of conditions are treated -- an increase in the number of conditions that are treated using the system.

增長計劃，包括增加現有專科藥房客戶的新患者、吸引新的專科藥房以及增加治療的​​病症數量——增加使用該系統治療的病症數量。

As previously discussed, our Hamilton Beach health business is expected to have a modest (technical difficulty) in 2024 due to planned investments in the business as HealthBeacon continues its startup phase.

如前所述，由於 HealthBeacon 繼續啟動階段，計劃對漢密爾頓海灘健康業務進行投資，因此預計 2024 年我們的漢密爾頓海灘健康業務將面臨適度的（技術難度）。

Hamilton Beach Health is expected to contribute to operating profit in 2025 and beyond.

Hamilton Beach Health 預計將在 2025 年及以後貢獻營業利潤。

Hamilton Beach Health is also exploring additional collaborations to further expand our focus on providing home health care management solutions.

Hamilton Beach Health 也正在探索其他合作，以進一步擴大我們對提供居家醫療保健管理解決方案的關注。

In closing, it has been rewarding to see our team accomplished so much during the first half of this year.

最後，看到我們的團隊在今年上半年取得如此多的成就，我感到很欣慰。

We're excited to soon enter the holiday season.

我們很高興即將進入假期。

We believe we are well positioned to continue to build upon the momentum we carried into 2024 and which we have advanced as the years unfolded.

我們相信，我們處於有利位置，能夠繼續鞏固我們在 2024 年所保持的勢頭以及隨著時間的推移所取得的進展。

I reiterate Greg's comments that we expect to deliver a very good performance for the year 2024.

我重申 Greg 的評論，即我們預計 2024 年將取得非常好的業績。

And now I will turn over our discussion to Sally.

現在我將把我們的討論轉交給莎莉。

Thank you, Scott.

謝謝你，斯科特。

Good morning, everyone.

大家早安。

I will start with our second quarter 2024 results compared to the second quarter of 2023.

首先，我將比較 2024 年第二季的業績與 2023 年第二季的情況。

As you've heard this morning, we are pleased with our performance.

正如您今天早上所聽到的，我們對我們的表現感到滿意。

Total revenue in the second quarter was a record $156.2 million quarter over quarter, revenue increased 14% based on higher volume and a favorable mix, partially offset by expected average price decreases.

第二季總收入環比達到創紀錄的 1.562 億美元，由於銷量增加和有利的組合，收入增長了 14%，但部分被預期平均價格下降所抵消。

More than half of the growth is attributable to the US consumer market, which reflected the incremental and new placements that Scott discussed.

超過一半的成長歸因於美國消費市場，這反映了斯科特討論的增量和新安置。

Revenue increased in our Mexican and Latin American markets, where our teams have also added incremental placements and new business.

我們的墨西哥和拉丁美洲市場的收入增加，我們的團隊也增加了增量安置和新業務。

Revenue decreased in our Canadian markets, which continues to experience some overall weakness.

我們的加拿大市場收入下降，整體持續疲軟。

In our global commercial markets, revenue increased 5.5%.

在我們的全球商業市場，收入成長了 5.5%。

Also included in the second quarter was new revenue from our HealthBeacon acquisition, which was immaterial.

第二季還包括收購 HealthBeacon 帶來的新收入，但這並不重要。

Gross profit totaled $40.5 million or 25.9% of total revenue compared to $27.4 million or 20% of total revenue in last year's second quarter.

毛利總計 4,050 萬美元，佔總營收的 25.9%，而去年第二季毛利為 2,740 萬美元，佔總營收的 20%。

This 590 basis point expansion in the gross profit margin was attributable to lower product costs and a favorable product mix.

毛利率成長 590 個基點得益於產品成本下降和有利的產品組合。

Selling, general and administrative expenses increased to $30.4 million compared to $26.6 million in the second quarter of 2023, about 60% of the increase is related to the addition of HealthBeacon's SG&A expenses.

銷售、一般和管理費用增加至 3,040 萬美元，而 2023 年第二季為 2,660 萬美元，其中約 60% 的成長與 HealthBeacon SG&A 費用的增加有關。

The remainder is attributable to non-cash incentive compensation related to stock price appreciation as well as increased advertising expenses.

其餘部分則歸因於與股價升值以及廣告費用增加相關的非現金激勵補償。

Operating profit increased significantly to $10 million compared to operating profit of $700,000 a year ago, reflecting our strong revenue growth and gross profit margin expansion.

與一年前的營業利潤 70 萬美元相比，營業利潤大幅增加至 1,000 萬美元，反映出我們強勁的營收成長和毛利率擴張。

Net interest expense was $115,000 compared to $773,000 a year ago.

淨利息支出為 115,000 美元，而一年前為 773,000 美元。

This reduction is on lower debt levels and higher interest income, about a 50%, 50% split.

這一減少是基於較低的債務水平和較高的利息收入，分別約為 50%、50%。

Income tax expense was $3 million compared to $114,000 a year ago, which is commiserate with our change in operating profit.

所得稅費用為 300 萬美元，而一年前為 114,000 美元，這與我們營業利潤的變化相符。

Net income was $6 million or $0.42 per diluted share, a significant improvement compared to net income of $100,000, or $0.01 per diluted share a year ago.

淨利潤為 600 萬美元，即稀釋後每股收益 0.42 美元，與一年前的淨利潤 10 萬美元，即稀釋後每股收益 0.01 美元相比，有了顯著改善。

Now turning to our balance sheet and cash flow.

現在轉向我們的資產負債表和現金流。

For the six months ended June 30, 2024, net cash provided by operating activities was $37.1 million compared to cash provided of $57.3 million a year ago.

截至 2024 年 6 月 30 日的六個月，經營活動提供的現金淨額為 3,710 萬美元，而一年前提供的現金為 5,730 萬美元。

Net working capital in the current period provided $38.8 million compared to $69 million a year ago.

本期淨營運資本為 3,880 萬美元，而去年同期為 6,900 萬美元。

The '23 and '24 periods benefited from the continued focus on collections that led to DSO improvements.

'23 和 '24 時期受益於對館藏的持續關注，這導致了 DSO 的改進。

The 2023 period benefited from significant excess inventory reduction activity.

2023 年期間受惠於大量過剩庫存削減活動。

Capital expenditures were $1.5 million in the current and prior year periods.

本期及上年度期間的資本支出為 150 萬美元。

We allocated our strong cash flow to fund the acquisition of HealthBeacon in the first quarter of this year and to return value to our shareholders through the quarterly dividend and share repurchases.

我們將強勁的現金流分配給今年第一季收購 HealthBeacon 的資金，並透過季度股息和股票回購為股東回報價值。

We paid $3.1 million in dividends during the second quarter of 2024.

我們在 2024 年第二季支付了 310 萬美元的股息。

Our Board has approved a stock repurchase program for the purchase of up to $25 million of the company's Class A common stock starting January 1, 2024, and ending December 31, 2025.

我們的董事會已批准一項股票回購計劃，從 2024 年 1 月 1 日起至 2025 年 12 月 31 日止，購買最多 2,500 萬美元的公司 A 類普通股。

During the three months ended June 30, 2024, we repurchased 220,212 shares at prevailing market prices for an aggregate purchase price of $4 million, leaving $21 million authorized for repurchase.

截至 2024 年 6 月 30 日的三個月內，我們以現行市價回購了 220,212 股股票，總購買價為 400 萬美元，授權回購金額為 2,100 萬美元。

We continue to repurchase shares in the third quarter.

我們在第三季繼續回購股票。

Net debt or total debt minus cash and cash equivalents was $12.8 million compared to $57.8 million on June 30, 2023.

淨債務或總債務減去現金和現金等價物為 1,280 萬美元，而 2023 年 6 月 30 日為 5,780 萬美元。

Our revolving credit facility expires on June 30, 2025.

我們的循環信貸額度將於 2025 年 6 月 30 日到期。

Given current market conditions, including unfavorable pricing terms, we have not yet completed our refinancing of the facility.

鑑於當前的市場狀況，包括不利的定價條款，我們尚未完成該設施的再融資。

And accordingly, all amounts outstanding have been classified as current liabilities on the balance sheet.

因此，所有未償還金額已在資產負債表上歸類為流動負債。

Based on the current status of the refinancing and our history of successfully refinancing our debt, we believe that it is probable that the facility will be refinanced before its maturity.

根據再融資的現狀以及我們成功為債務再融資的歷史，我們認為該貸款很可能會在到期前進行再融資。

We believe that funds available from cash on hand to facility and operating cash flows will provide sufficient liquidity to meet our operating needs and commitments arising during the next 12 months.

我們相信，手頭現金可用於融資和營運現金流將提供足夠的流動性，以滿足我們未來 12 個月的營運需求和承諾。

In 2022, our Board approved the termination of our overfunded US defined benefit pension plan.

2022 年，我們的董事會批准終止資金過剩的美國固定福利退休金計畫。

Since that time, we had engaged in a thoughtful process and converted the funds to conservative investments during the termination process.

從那時起，我們就進行了深思熟慮的流程，並在終止過程中將資金轉換為保守投資。

Benefit obligations under the plan will be settled through a combination of lump sum payments to eligible plan participants and the purchase of a group annuity contract under which future benefit obligations will be transferred to a third party insurance company.

該計劃下的福利義務將透過向符合資格的計劃參與者一次性付款和購買團體年金合約的方式來解決，根據該合同，未來的福利義務將轉移給第三方保險公司。

We expect to finalize the termination process in the third quarter of this year.

我們預計將在今年第三季完成終止流程。

Upon termination, the deferred loss within accumulated other comprehensive income will be recognized as a non-cash charge and reflected in net income.

終止後，累計其他綜合收益中的遞延損失將確認為非現金費用並反映在淨利潤中。

The deferred loss is $6.5 million as of June 30, 2024.

截至 2024 年 6 月 30 日，遞延損失為 650 萬美元。

More importantly, we will receive we will benefit from the surplus assets in the plan, which were $12.2 million as of December 31, 2023.

更重要的是，我們將從該計劃的剩餘資產中受益，截至 2023 年 12 月 31 日，該剩餘資產為 1,220 萬美元。

We plan to use the surplus assets over the next few years to fund our other existing employee retirement benefits, which may include the company match for our 401K plan and to our profit sharing awards.

我們計劃在未來幾年內使用剩餘資產為我們其他現有的員工退休福利提供資金，其中可能包括公司與我們的 401K 計劃和利潤分享獎勵的匹配。

Planned use of the surplus assets will free cash that otherwise would have been used for these purchases purposes, thereby increasing free cash flow in 2025 and 2026.

計劃使用剩餘資產將釋放原本用於這些購買目的的現金，從而增加 2025 年和 2026 年的自由現金流。

Let me turn to our outlook.

讓我談談我們的前景。

In 2024, the retail marketplace for small kitchen appliances is expected to be modestly below 2023.

2024 年，小型廚房電器的零售市場預計將略低於 2023 年。

As Scott reported, we expect that future progress with our strategic initiatives will enable us to continue to deliver above market revenue performance.

正如史考特所報導的，我們預期我們的策略計畫的未來進展將使我們能夠繼續提供高於市場的收入表現。

As we look towards the rest of 2024, we expect full year revenue to increase modestly and operating profit to increase significantly as compared to the full year of 2023.

展望 2024 年剩餘時間，我們預計全年營收將比 2023 年全年小幅成長，營業利潤將大幅成長。

I'd like to add a little more color to our outlook.

我想為我們的前景增添一點色彩。

As Greg mentioned in his opening remarks, starting in the third quarter of '23 and each quarter since, we have reported significantly expanded revenue, gross profit margin and operating profit, as demand, price and cost have normalized.

正如格雷格在開場白中提到的那樣，從 2023 年第三季度開始以及此後的每個季度，隨著需求、價格和成本的正常化，我們的收入、毛利率和營業利潤都顯著擴大。

And because of the favorable impact of our focus on cost management and continued progress with our strategic initiatives.

也因為我們對成本管理的關注以及我們的策略措施的持續進展所產生的有利影響。

As we move into the back half of 2024, our growth comparisons will begin to cycle the normalize results that began in the third quarter of 2023.

隨著進入 2024 年下半年，我們的成長比較將開始循環 2023 年第三季開始的正常化結果。

With respect to our revenue outlook, again, we expect full year revenue to increase modestly.

就我們的收入前景而言，我們再次預計全年收入將小幅成長。

We expect the revenue growth that we achieved in the first half of this year.

我們預計今年上半年我們將實現的收入成長。

Will be stronger than our estimated revenue growth in the second half due to these year-over-year comparisons.

由於這些同比比較，下半年的營收成長將強於我們的預期。

In the first half of 2023, revenue decreased by 9.7% as compared to the first half of 2022 due to soft consumer demand and conservative retailer inventory management and response to interest rate uncertainty in early 2023.

由於消費者需求疲軟、零售商庫存管理保守以及對2023年初利率不確定性的反應，2023年上半年收入較2022年上半年下降9.7%。

These unfavorable trends significantly rebound to normalized level in the second half of 2023, when our revenue increased by 3.8%, reflecting the rebound in retailer order plus -- excuse me retailer order patterns as well as our incremental placements of compelling new products.

這些不利趨勢在2023 年下半年顯著反彈至正常水平，當時我們的收入增長了3.8%，反映了零售商訂單的反彈以及零售商訂單模式的反彈以及我們引人注目的新產品的增量投放。

The momentum created in the back half of 2023 has carried into 2024.

2023 年下半年創造的動能已延續至 2024 年。

Moving to operating profits.

轉向營業利潤。

Again, we expect operating profit to increase significantly as compared to full year 2023.

我們再次預期營業利潤將較 2023 年全年大幅成長。

Operating profit growth in the first half of the year is expected to be stronger than the growth we had estimated for the second half, again, as we cycle over the expanded growth that started in Q3 of 2023.

隨著我們回顧 2023 年第三季開始的擴張成長，預計今年上半年的營業利潤成長將再次強於我們對下半年的預測。

In the first half of 2023, operating profit margin decreased by 7.8% due to the revenue declines that I just referenced, suppressed gross profit margins and the non-recurrence of a $10 million insurance recovery in the first half of 2022.

2023年上半年，由於我剛才提到的收入下降、毛利率受到抑制以及2022年上半年1000萬美元的保險追償不再出現，營業利潤率下降了7.8%。

In the second half of 2023 however, operating profit margin increased by 5% as these unfavorable trends significantly rebounded and demand, price, and costs reached normalized levels.

然而，到 2023 年下半年，由於這些不利趨勢顯著反彈，且需求、價格和成本達到正常水平，營業利潤率增加了 5%。

In addition, our cost management efforts and progress with our strategic initiatives enabled us to expand our gross profit margin well above our historical range to 26.5%.

此外，我們的成本管理努力和策略性舉措的進展使我們能夠將毛利率擴大到遠高於歷史水準的 26.5%。

We expect that gross profit margin in the second half of 2024 will be comparable to the second half of 2023.

我們預計2024年下半年的毛利率將與2023年下半年相當。

That concludes our prepared remarks.

我們準備好的演講到此結束。

We will now turn the line back to the operator for Q&A.

我們現在將把線路轉回接線生進行問答。

(Operator Instructions)

（操作員說明）

I'll turn the call back to Mr. Greg.

我會把電話轉回給格雷格先生。

Thank you.

謝謝。

Thank you.

謝謝。

As you've heard today, we are pursuing multiple avenues to continue to grow revenue, expand margins and deliver strong cash flow.

正如您今天所聽到的，我們正在尋求多種途徑來繼續增加收入、擴大利潤並提供強勁的現金流。

Our company is committed to increasing shareholder value over the long term.

我們公司致力於長期增加股東價值。

For the year 2024, we expect to deliver a significant increase on operating profit, reflecting our revenue growth and gross profit margin expansion.

2024 年，我們預計營業利潤將大幅成長，反映出我們的收入成長和毛利率擴張。

Look forward to finishing this year in a very strong position.

期待今年以非常有利的位置結束。

That concludes our report for today.

我們今天的報告到此結束。

Thank you again for joining our call.

再次感謝您加入我們的通話。