ImmuCell Corp (ICCC) 2024 Q1 法說會逐字稿

Good morning, and welcome to the ImmuCell Corporation reports first quarter ended March 31, 2024, unaudited financial results conference call.

早安，歡迎參加 ImmuCell 公司報告截至 2024 年 3 月 31 日的第一季未經審計的財務業績電話會議。

(Operator Instructions) Please note this event is being recorded.

（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference call over to Joe Diaz of Lytham Partners.

我現在想將電話會議轉給 Lytham Partners 的喬·迪亞茲 (Joe Diaz)。

Please go ahead.

請繼續。

Thank you, Nick.

謝謝你，尼克。

Good morning and welcome to all.

早上好，歡迎大家。

As Nick indicated, my name is Joe Diaz and I'm with Lytham Partners.

正如尼克所指出的，我的名字是喬·迪亞茲 (Joe Diaz)，我在 Lytham Partners 工作。

We're the investor relations consulting firm for ImmuCell.

我們是 ImmuCell 的投資者關係顧問公司。

I thank all of you for joining us today to discuss the unaudited financial results for the quarter ended March 31, 2024.

感謝大家今天加入我們討論截至 2024 年 3 月 31 日的季度未經審計的財務業績。

Listeners are reminded and cautioned that statements made by management during the course of this call include forward-looking statements, which include any statements that refers to future events or expected future results or predictions about steps the company plans to take in the future.

提醒聽眾並注意，管理層在本次電話會議期間發表的聲明包括前瞻性聲明，其中包括任何涉及未來事件或預期未來結果或對公司計劃未來採取的步驟的預測的聲明。

These statements are not guarantees of performance and are subject to risks and uncertainties that could cause actual results, outcomes or events to differ materially from those discussed today.

這些陳述不是對績效的保證，並且存在風險和不確定性，可能導致實際結果、成果或事件與今天討論的內容有重大差異。

Additional information regarding forward-looking statements and the risks and uncertainties that could impact future results, outcomes or events, is available under the cautionary note regarding forward-looking statements or the safe harbor statement provided with the press release and the Form 10-K that the company filed last night, along with the company's other periodic filings with the SEC.

有關前瞻性陳述以及可能影響未來結果、成果或事件的風險和不確定性的更多信息，請參閱有關前瞻性陳述的警告說明或新聞稿和 10-K 表格中提供的安全港聲明。昨晚提交了該文件，以及該公司向美國證券交易委員會提交的其他定期文件。

Information discussed on today's call speaks only as of today, Wednesday, May 15, 2024.

今天的電話會議討論的資訊僅截至今天，即 2024 年 5 月 15 日星期三。

The company undertakes no obligation to update any information discussed on today's call.

該公司沒有義務更新今天電話會議中討論的任何資訊。

Please note that references to certain non-GAAP financial measures may be made during today's call.

請注意，今天的電話會議可能會提及某些非公認會計準則財務指標。

The company included definitions of these terms as well as reconciliations of these figures to the most comparable GAAP financial measures in last night's press release in order to better assist you in understanding its financial performance.

該公司在昨晚的新聞稿中包含了這些術語的定義以及這些數據與最具可比性的公認會計原則財務指標的調節，以更好地幫助您了解其財務表現。

With that said, let me turn the call over to Michael Brigham, President and CEO of ImmuCell Corporation, after which we will open the call for your questions.

話雖如此，讓我將電話轉給 ImmuCell 公司總裁兼執行長 Michael Brigham，之後我們將開始電話會議回答您的問題。

Michael?

麥可？

Thanks, Joe, and good morning, everyone.

謝謝喬，大家早安。

This is the story of the really good and a bit of the frustrating.

這是一個非常美好又有點令人沮喪的故事。

With regards to the first quarter, I would like to speak about two financing disclosures that I think help demonstrate what we believe could be a critical turning point for our business.

關於第一季度，我想談談兩項財務揭露，我認為這有助於證明我們認為這可能是我們業務的關鍵轉折點。

First, product sales were up 111% during the first quarter of 2024 compared to the first quarter of 2023 and sales were up 33% during the trailing 12-month period ended March 31, 2024 compared the trailing 12-month period ended March 31, 2023.

首先，與2023 年第一季相比，2024 年第一季的產品銷售額成長了111%，截至2024 年3 月31 日的過去12 個月的銷售額與截至3 月31 日的過去12 個月的銷售額成長了33%， 2023 年。

So again, 111% quarter over quarter, 33% of trailing 12 over trailing 12.

同樣，季度環比為 111%，落後 12 支球隊的 33% 超過落後 12 支球隊。

This improvement is largely the result of increased production output.

這種改進主要是產量增加的結果。

By implementing and optimizing and multiyear investment to increase our production capacity, we achieved $7.2 million worth of production during the first quarter of 2024, which annualizes to $28.7 million or about 96% of our $30 million full capacity estimate.

透過實施和優化以及多年投資來提高產能，我們在 2024 年第一季實現了價值 720 萬美元的產量，全年產量達到 2,870 萬美元，約占我們 3,000 萬美元滿產能估計的 96%。

This level of production remains our aspirational goal, but we do not expect that it can be repeated or exceeded on a regular basis.

這種生產水準仍然是我們的理想目標，但我們不期望能夠定期重複或超越它。

The $7.3 million in sales recorded during the first quarter of 2024 represents an all-time quarterly sales record for us.

2024 年第一季的銷售額為 730 萬美元，創下了我們歷史上的季度銷售記錄。

The next highest quarter was $6 million recorded during the first quarter of 2022.

第二高季紀錄是 2022 年第一季的 600 萬美元。

Second, with those strong sales, we were able to turn earnings before interest taxes, depreciation and amortization or EBITDA of negative $1.6 million during the quarter ended March 31, 2023, to positive EBITDA of $377,000 during the quarter ended March 31, 2024.

其次，憑藉強勁的銷售業績，我們能夠將截至2023 年3 月31 日的季度的息稅折舊攤銷前利潤或EBITDA 為負160 萬美元，轉為截至2024 年3 月31 日的季度的正EBITDA 377,000 美元。

Our gross margin as percentage of product sales improved from 9% during the quarter ended March 31, '23, to 32% during the quarter ended March 31, '24, but this is still well short of our 45% target.

我們的毛利率佔產品銷售額的百分比從截至2023年3月31日的季度的9%提高到截至2024年3月31日的季度的32%，但這仍然遠低於我們45%的目標。

Cash is tight.

現金緊張。

In response, we have frozen certain capital expenditure investments for the time being.

作為回應，我們暫時凍結了某些資本支出投資。

But we have no draw outstanding on our $1 million line of credit that is available to us until September of 2025.

但截至 2025 年 9 月，我們可獲得的 100 萬美元信貸額度並未償還款項。

So that was the big picture.

這就是大局。

With regards to the other financial results, the press release provides the full unaudited P&L results and some unaudited summary balance sheet data.

關於其他財務業績，新聞稿提供了完整的未經審計的損益表結果和一些未經審計的資產負債表摘要數據。

Further, our Form 10-Q provides all the unaudited financial details and management's discussion and analysis.

此外，我們的 10-Q 表格提供了所有未經審計的財務細節以及管理層的討論和分析。

I will not take our time on this call to review all that in detail.

我不會在這次電話會議上花時間詳細回顧所有這些內容。

I would like to add that we have been driven by data as we remediated the contamination events that have plagued us recently.

我想補充一點，我們在修復最近困擾我們的污染事件時一直受到數據的驅動。

Improvements made throughout our production process are allowing us to come back into full production.

整個生產過程中所做的改進使我們能夠恢復全面生產。

We believe that the operational improvements implemented are allowing us to run more effectively at a higher output level going forward.

我們相信，實施的營運改善將使我們能夠在更高的產出水準上更有效地運作。

To be successful, we must avoid future significant contamination events and equipment breakdowns and operate with good production yields.

為了取得成功，我們必須避免未來發生重大污染事件和設備故障，並以良好的產量運作。

So we will remain focused on the commercial opportunity we have the first defense, but as is often the case in the regulatory approval process, we are frustrated by yet another regulatory delay in our efforts to bring retained to market.

因此，我們將繼續關注我們擁有的第一道防線的商業機會，但正如監管審批過程中經常發生的情況一樣，我們對我們將保留推向市場的努力的又一次監管延遲感到沮喪。

The FDA recently issued a CMC technical section incomplete letter in response to our third submission of the CMC technical section for retail.

FDA 最近發布了一封 CMC 技術部分不完整的信函，以回應我們第三次提交的零售 CMC 技術部分。

Pursuant to the incomplete letter, the FDA provided some minor questions about our submission requiring a fourth submission of the CMC technical section, which is typically subject to a six-month review.

根據這封不完整的信函，FDA 對我們提交的資料提出了一些小問題，要求我們第四次提交 CMC 技術部分的資料，該部分通常需要經過六個月的審查。

However, the FDA has indicated that this resubmission potentially could be handled through a shortened review period because the open items are not complex.

然而，FDA 表示，由於未決項目並不複雜，因此重新提交可能可以透過縮短審核期來處理。

Most critical to the timeline, however, is that the FDA has also require that we not resubmit the CMC technical section until the inspectional observations at the facilities of our drug product contract manufacturer are resolved.

然而，對時間表而言最關鍵的是，FDA 也要求我們在藥品合約製造商設施的檢查結果得到解決之前不得重新提交 CMC 技術部分。

Given the unique facts and circumstances, we are working with the FDA and our drug product contract manufacturer to obtain an expedited review.

鑑於獨特的事實和情況，我們正在與 FDA 和我們的藥品合約製造商合作，以獲得快速審查。

This is part of the process and we are continuing to move forward.

這是這個過程的一部分，我們正在繼續前進。

Regardless, we remain poised and excited to revolutionize the way that subclinical mastitis is treated in today's dairy market with a novel alternative to traditional antibiotics without FDA required no discard or meat withhold claims.

無論如何，我們仍然準備和興奮地用一種傳統抗生素的新型替代品徹底改變當今乳製品市場上亞臨床乳腺炎的治療方式，而無需 FDA 要求任何丟棄或肉類扣留聲明。

Lastly, I encourage you to review the press release and the quarterly report on Form 10-Q that we filed last night.

最後，我鼓勵您查看我們昨晚提交的新聞稿和 10-Q 表格季度報告。

Also, please have a look at our corporate presentation slide deck.

另外，請查看我們的企業簡報幻燈片。

I believe it provides a very good summary of our business strategy and objectives as well as our current financial results.

我相信它很好地總結了我們的業務策略和目標以及我們當前的財務表現。

A May update was just posted to our website last night; see the Investors section of our website and click on corporate presentation or contact us for a copy.

昨晚，我們的網站剛發布了五月的更新；請參閱我們網站的投資者部分，然後點擊公司介紹或聯絡我們以取得副本。

With that said, I'll be happy to take your questions.

話雖如此，我很樂意回答您的問題。

Let's have the operator open up the lines, please.

請讓接線員打開線路。

(Operator Instructions) Frank Gasker, Private Investor.

（操作員說明）Frank Gasker，私人投資者。

First of all, Mike, sure, relief having kind of sales for the quarter.

首先，麥克，當然，本季的銷售有所好轉。

Keep it up.

繼續努力吧。

I share that sentiment.

我也有同樣的感受。

Very exciting.

非常令人興奮。

Thank you.

謝謝。

My question deals with the [shop] and the offering.

我的問題涉及[商店]和產品。

Could you clarify that in regard to -- at the market and how you go about designating or allowing a certain quantity after time?

您能否澄清一下—在市場上，以及您如何在一段時間後指定或允許一定數量？

Yes, Frank, I think one of the big benefits of the ATM is its flexibility.

是的，弗蘭克，我認為 ATM 的一大好處就是它的靈活性。

So the answer to your question can change day to day, week to week, month to month.

因此，你的問題的答案可能每天、每週、每月都在變化。

I think the biggest distinction between the ATM instrument versus the more traditional offering is that the traditional offering would have gone out at, frankly, a significant discount to market.

我認為 ATM 工具與更傳統的產品之間的最大區別在於，坦白說，傳統產品的售價會比市場大幅折扣。

And with this vehicle, we can just sort of watch the market and make adjustments as appropriate.

有了這個工具，我們就可以觀察市場並做出適當的調整。

The downside is, it takes a lot longer to raise some money because you just sort of nibbling at the market.

缺點是，籌集資金需要更長的時間，因為你只是在蠶食市場。

So it kind of looked at that real hard around year-end and going into the first quarter and pros and cons and kind of decided, this was a good opportunity to raise a little bit of money without the anticipated, more significant discount.

因此，我們在年底和第一季進行了認真的審視，考慮了利弊，並決定，這是一個籌集一點資金的好機會，而無需預期的更大幅度的折扣。

But I guess the short answer your question is, it is management discretion, Board discretion really on a day-to-day basis.

但我想你的問題的簡短答案是，這是管理層的自由裁量權，董事會的自由裁量權實際上是日常的。

Okay.

好的。

So some shares have in fact, been of the

所以有些股票其實是

[risen sole]?

[上升鞋底]？

Yeah, so perhaps I should have included that in my comments, but it is in our disclosures.

是的，所以也許我應該將其包含在我的評論中，但它包含在我們的披露中。

You can see that in both the financial footnotes, there's a equity section footnote, then there's a subsequent event footnote.

您可以看到，在兩個財務腳註中，都有一個權益部分腳註，然後有一個後續事件腳註。

And then in the very beginning of the MD&A, really this replaces repeat the same information, about $300,000 has been raised of gross proceeds.

然後，在 MD&A 的一開始，這確實取代了重複相同的訊息，已籌集了約 30 萬美元的總收益。

Okay.

好的。

I did see that.

我確實看到了。

As far as you do not disclose or do you?

至於你不透露還是你透露？

When in fact you are selling or not selling?

事實上你什麼時候賣或不賣？

Well, through me, the Board communicates to the banker and set thresholds of both volume and price.

好吧，董事會透過我與銀行家溝通並設定數量和價格的門檻。

And I think there are quarterly, I know there are quarterly reports, we report the results of that interaction and that activity.

我認為有季度報告，我知道有季度報告，我們報告互動和活動的結果。

Okay.

好的。

You've answered all my questions.

你已經回答了我所有的問題。

Thank you very much.

非常感謝。

Alright.

好吧。

Thank you, Frank.

謝謝你，弗蘭克。

Michael Potter, Monarch Capital Group.

邁克爾·波特，君主資本集團。

Hey, Michael.

嘿，麥可。

How are you doing?

你好嗎？

Hey, very well.

嘿，很好。

Thank you.

謝謝。

So certainly, a mixed quarter on the news front.

當然，新聞方面的季度表現好壞參半。

Congratulations operationally, obviously kind of scratching my head on in regards to retain.

從操作上來說，恭喜你，顯然在保留方面有點摸不著頭腦。

Can you walk us through the inspectional observation?

您能向我們介紹一下檢查觀察嗎？

What is the process here and the timeline?

這裡的流程和時間表是怎麼樣的？

You get time to process?

你有時間處理嗎？

Yeah, honestly, it is live.

是的，老實說，它是直播的。

It is active.

它是活躍的。

It is undetermined.

尚未確定。

There's going to be a lot of back and forth that we're not going to be party to.

將會有很多我們不會參與的來回。

It's directly between the FDA and Northbrook.

它直接位於 FDA 和諾斯布魯克之間。

But Northbrook does communicate very well with us.

但諾斯布魯克確實和我們溝通得很好。

So we'll get status reports.

所以我們會拿到狀態報告。

But their ability to respond is that their discretion, I would add they're a big company.

但他們的反應能力在於他們的判斷力，我想補充一點，他們是一家大公司。

They have other products.

他們還有其他產品。

They're motivated beyond just retain to get it right.

他們的動力不僅僅是堅持把事情做好。

And then once they do that, it will be up to the FDA to determine how quick they review and how quick and what the results of that review is.

一旦他們這樣做了，FDA 將決定他們的審查速度以及審查的結果是什麼。

So it is frustrating not to have a more definitive answer to, but we just don't have that at this point.

因此，沒有更明確的答案令人沮喪，但目前我們還沒有。

It's just very, very fresh.

真是非常非常新鮮。

Okay.

好的。

And when were we notified by the FDA that they were not moving forward with the approval?

FDA 何時通知我們他們不再繼續批准？

Yeah.

是的。

It was right on as expected, right on the [180 point] and that was -- well, I think we'd even disclosed it.

正如預期的那樣，正好在 [180 點]，那就是——嗯，我想我們甚至已經披露了它。

It is May 10.

現在是 5 月 10 日。

It is May10.

現在是 5 月 10 日。

So this is all fresh and we're just getting our arms around this to going forward pragmatically.

所以這一切都是新鮮的，我們只是圍繞這個問題務實地向前邁進。

Exactly, right?

非常正確？

That's what I meant by the good and the frustrating.

這就是我所說的好的和令人沮喪的。

The good you've pointed out the sales, the frustrating is this wow, this was end stage, late in the game and we didn't get the complete.

你指出了銷售的好處，但令人沮喪的是，哇，這是最後階段，在遊戲後期，我們沒有得到完整的結果。

So yeah, over the weekend, over the week so far, over the coming weeks, will just be a lot of back-and-forth.

所以，是的，週末、到目前為止的一周、未來幾週，將會有很多來回。

How quickly can Northbrook respond, how effectively can Norbert respond and how quickly can the FDA concur?

諾斯布魯克 (Northbrook) 的反應速度有多快，諾伯特 (Norbert) 的反應效率如何，FDA 的同意速度有多快？

Got it.

知道了。

Okay, thanks, Mike.

好的，謝謝，麥克。

We will look forward to more information as you get it.

我們期待您獲得更多資訊。

For sure.

一定。

Thanks, Michael.

謝謝，麥可。

Yup.

是的。

Maynard Fernandes, McDill Columbus.

梅納德·費爾南德斯，麥克迪爾·哥倫布。

Good morning.

早安.

ICC has now achieved 95% of maximum production volume, but still has not turned to profit for the quarter.

ICC目前已實現最大產量的95%，但該季度仍未扭虧為盈。

How can ICC turn to profit if not with 95% of production volume?

如果產量達不到95%，ICC如何轉虧為盈？

That's the first question.

這是第一個問題。

Second question is when do you project to produce a profit?

第二個問題是你預計什麼時候能產生利潤？

Thank you.

謝謝。

Yeah.

是的。

That's a fair question, Maynard.

這是一個公平的問題，梅納德。

The best answer I have is the first thing I turn to is statement of cash flows, and I just look at the depreciation.

我得到的最好答案是我首先要看現金流量表，我只看折舊。

So it's not a bottom-line profit; it is cash flow positive.

所以這不是底線利潤；而是利潤。現金流為正。

When you look at EBITDA, and that's obviously not a GAAP measure.

當你查看 EBITDA 時，你會發現這顯然不是 GAAP 指標。

So that's not -- while the depreciation expenses in our GAAP reports, the EBITDA figure is just in our press release.

所以這不是——雖然我們的 GAAP 報告中有折舊費用，但 EBITDA 數據只是在我們的新聞稿中。

So I think that's step one.

所以我認為這是第一步。

And then transition from this product development retain driven loss to cash flow.

然後從產品開發保留驅動損失過渡到現金流。

And then to P&L next, but I didn't put a projection on a date for that.

接下來是損益表，但我沒有預測具體日期。

It really is a transition here.

這裡確實是一個過渡。

We're looking at '24 as how strong we can keep the sales, how quickly we can reduce some expenses as this retain project that drives almost all of our product development expense as that moves from development to commercial.

我們正在考慮“24”，我們可以保持銷售的強勁程度，我們可以多快地減少一些費用，因為這個保留項目在從開發到商業化的過程中幾乎推動了我們所有的產品開發費用。

So a lot of events in '24 to answer that question.

24 年發生的很多事件都可以回答這個問題。

Thank you for your answers.

謝謝您的回答。

Thank you, Maynard.

謝謝你，梅納德。

Yeah.

是的。

Sean Kirkwood, SRK capital.

肖恩柯克伍德 (Sean Kirkwood)，SRK 首都。

Hi, Mike.

嗨，麥克。

Good morning.

早安.

Hi, Sean.

嗨，肖恩。

How are you?

你好嗎？

Good.

好的。

I have a few questions about margins.

我有幾個關於利潤的問題。

From the 10-Q, it sounds like maybe it was yield that is causing margins to be lower than the 45% target?

從 10-Q 來看，聽起來可能是收益率導致利潤率低於 45% 的目標？

Can you just speak a little bit more detail about what is affecting those margins?

能更詳細地談談影響這些利潤的因素嗎？

Yield is always a big one and it is variable.

產量總是很大而且是可變的。

I mean, just a biological process and we will chime it as tight as possible, but they do go up and down.

我的意思是，這只是一個生物過程，我們會盡可能緊密地配合它，但它們確實會上下波動。

It's just that milk is our source raw material, cows that produce it.

只是牛奶是我們的原料，是生產牛奶的乳牛。

You know, I'm not to digress too far, but one of our marketing positions that we take is that don't vaccinate your cows, use first defense.

你知道，我不想離題太遠，但我們採取的行銷立場之一是不要給你的乳牛接種疫苗，使用第一道防禦。

So you don't have to be subject to the variability that is inevitable with the commercial vaccine response.

因此，您不必受到商業疫苗反應不可避免的變異性的影響。

So what our customers see on the commercial side, we see every day in our production plan.

因此，我們的客戶在商業方面看到的，我們每天都在我們的生產計劃中看到。

So it is variable.

所以它是可變的。

And the other factor I would add to that is, these contaminations are expensive.

我要補充的另一個因素是，這些污染的成本很高。

They did drag down the margin.

他們確實拉低了利潤率。

Moving forward with better yields and moving forward with lessened or eliminated contaminations would certainly improve the margin.

提高產量並減少或消除污染肯定會提高利潤。

That's definitely the goal.

這絕對是目標。

And I think we also need to accept the fact that this is a difficult product to make.

我認為我們還需要接受這樣一個事實：這是一個很難製造的產品。

It is expensive to make.

製作成本昂貴。

I was looking at some numbers just last night.

昨晚我正在查看一些數字。

Back before Tri-Shield, we were a $10 million company, 10 million in sales.

在 Tri-Shield 推出之前，我們是一家價值 1000 萬美元的公司，銷售額為 1000 萬美元。

Tri-Shield has really changed our top line.

Tri-Shield 確實改變了我們的營收。

A lot of growth, a lot of customer demand coming from Tri-Shield, but it is more expensive to make.

Tri-Shield 帶來了大量的成長和客戶需求，但製造成本更高。

So I was disappointed not surprised by the stress on the margin when you consider those three factors.

因此，當你考慮這三個因素時，我對邊際壓力感到失望，並不感到驚訝。

But I'd much rather be a multi format company with Tri-Shield than a smaller company with just the relatively less expensive bolus offering.

但我更願意成為一家擁有 Tri-Shield 的多格式公司，而不是一家只提供相對便宜的推注產品的小公司。

Okay.

好的。

I mean, it looks like contamination was only about 1% of the margin in the quarter, if I read that correctly.

我的意思是，如果我沒看錯的話，看起來污染只佔本季利潤的 1% 左右。

But how do you improve margins from here to your target of 45%?

但如何將利潤率從現在提高到 45% 的目標呢？

Yeah, we're going to push all those buttons.

是的，我們將按下所有這些按鈕。

There are things we can do to influence yields and control the process.

我們可以採取一些措施來影響產量並控制製程。

Control and the process eliminates, hopefully eliminate, or at least mitigates those contamination challenges.

控制和流程可以消除、預期消除或至少減輕這些污染挑戰。

And then volume.

然後是音量。

We had a lot of fixed costs.

我們有很多固定成本。

Higher volume over those fixed costs is always going to work in our favor.

高於這些固定成本的銷售量總是對我們有利。

And yeah, it's certainly a priority, but I respect the question and it is a management goal to get that percentage, but I also have to balance that with the dollars.

是的，這當然是優先事項，但我尊重這個問題，獲得這個百分比是管理目標，但我也必須用美元來平衡它。

We don't pay the bills with percentages.

我們不按百分比支付帳單。

We pay with dollars.

我們用美元支付。

We need more gross margin dollars to pay the bills and to get back to Maynard's question, get back to profitability in its total dollars.

我們需要更多的毛利率來支付帳單，並回到梅納德的問題，恢復總獲利能力。

And even if that comes with a slightly less margin, I think that's a better alternative than being that bolus company at $10 million.

即使利潤率略低，我認為這也比成為那家價值 1000 萬美元的丸劑公司更好。

Okay.

好的。

These margins are historically much lower than say what you even did in your highest quarter of 2022.

從歷史上看，這些利潤率遠低於 2022 年最高季度的利潤率。

Do you see any improvement moving forward?

您認為未來有什麼改進嗎？

What should we expect going forward in Q2 and the remainder of the year?

我們對第二季和今年剩餘時間的預期會如何？

Is this a new normal of 33% margin?

這是 33% 利潤率的新常態嗎？

Well, yeah, the improvement.

嗯，是的，改進了。

The first step, as I mentioned, both in the call and in the filings is moving off that disaster is 9% to 32%.

正如我在電話會議和文件中提到的，第一步是消除 9% 到 32% 的災難。

Now the huge focus is how quickly and how close can we move from 32% to 45%?

現在最大的焦點是我們能多快、多接近地從 32% 上升到 45%？

We do always talk about the gross margin gap percentage.

我們總是談論毛利率差距百分比。

But the other thing I do look at is, again -- cash and depreciation is a component of our cost of goods.

但我確實關注的另一件事是——現金和折舊是我們商品成本的一部分。

I'd be happy with a near 45% margin.

如果利潤率接近 45%，我會很高興。

That could be 45% when you remove that the non-cash depreciation.

如果除去非現金折舊，則可能是 45%。

So we're looking at that measure, the cash flow measure and all of those buttons to increase that yield.

因此，我們正在研究該指標、現金流量指標以及所有提高收益率的按鈕。

So it is a future looking thing.

所以這是一個面向未來的事。

It will be subject to performance and subject to future disclosures.

它將取決於業績並取決於未來的披露。

How quickly and how close can we move from 32%, 33%, to 45%, at least 45% before depreciation.

我們能多快、多接近地從折舊前的 32%、33% 到 45%，至少 45%。

Is there any improvement as that as of today from the first quarter or we're still looking at 32%?

截至今天，與第一季相比是否有任何改善，或者我們仍然預期 32%？

Yeah, this answer may not satisfy you, Sean, but that is the truth.

是的，這個答案可能不能讓你滿意，肖恩，但這是事實。

We really -- the costing the production process is so complex.

我們確實——生產過程的成本計算非常複雜。

We get a view as with our auditors quarterly.

我們每季都會與審計師溝通一次意見。

There's really not a weekly or monthly way to accurately measure that.

實際上沒有每週或每月的方法來準確衡量這一點。

We can watch certain metrics as expect, anticipate certain trends.

我們可以如預期觀察某些指標，預測某些趨勢。

But I mean this is a six month production process.

但我的意思是這是一個六個月的生產過程。

So the best answer to that is quarterly to quarterly.

因此，最好的答案是每季一次。

In term views are not disclosed because they're just not accurate.

就術語而言，觀點並未公開，因為它們並不準確。

Okay.

好的。

That's fair.

這還算公平。

I appreciate the details.

我很欣賞細節。

Thank you.

謝謝。

Thank you, Sean.

謝謝你，肖恩。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the conference back over to Mr. Joe Diaz for any closing remarks.

我想將會議轉回由喬·迪亞茲先生發表閉幕詞。

Thanks, Nick, and thank all of you for joining on today's call.

謝謝尼克，也謝謝大家參加今天的電話會議。

We look forward to talking with you again to review the results of the second quarter, which ends on June 30, 2024, and that will be sometime during the week of August 12.

我們期待再次與您討論第二季的結果，該結果將於 2024 年 6 月 30 日結束，即 8 月 12 日當週的某個時間。

So thank you for your time.

謝謝您的寶貴時間。

Have a great day.

祝你有美好的一天。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。