J & J Snack Foods Corp (JJSF) 2023 Q2 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the J&J Snack Foods Fiscal Year 2023 Second Quarter Earnings Conference Call. (Operator Instructions)

女士們先生們，美好的一天，感謝你們的支持。歡迎來到 J&J Snack Foods 2023 財年第二季度收益電話會議。 （操作員說明）

At this time, I would like to turn the conference over to Mr. Norberto Aja of Investor Relations. Sir, please begin.

此時，我想將會議轉交給投資者關係部的 Norberto Aja 先生。先生，請開始。

Thank you, operator, and good morning, everyone. Thank you for joining the J&J Snack Foods' fiscal 2023 Second Quarter Conference Call. We'll start in just a minute with management's comments and your questions. But before doing so, let me take a minute to read the safe harbor language. This call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements made on this call that do not relate to matters of historical facts should be considered forward-looking statements, including statements regarding management's plans, strategies, goals and objectives and our anticipated financial performance as well as industry-wide supply constraints and the ongoing impact of COVID-19 on our business.

謝謝接線員，大家早上好。感謝您加入 J&J Snack Foods 2023 財年第二季度電話會議。稍後我們將開始討論管理層的評論和您的問題。但在此之前，讓我花點時間閱讀安全港語言。本次電話會議包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。本次電話會議上作出的所有與歷史事實無關的陳述均應視為前瞻性陳述，包括有關管理層計劃、戰略的陳述、目標和目標以及我們預期的財務業績以及全行業的供應限制和 COVID-19 對我們業務的持續影響。

These statements are neither promises or guarantees that involve known and unknown risks, uncertainties and other important factors that may cause results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors discussed in our annual report on Form 10-K for the year ended September 24, 2022, and other filings with the Securities and Exchange Commission, could cause actual results to differ materially from those indicated by the forward-looking statements made on this call today.

這些陳述既不是涉及已知和未知風險、不確定性和其他重要因素的承諾或保證，這些因素可能導致結果、業績或成就與前瞻性陳述明示或暗示的任何未來結果、業績或成就存在重大差異。我們在截至 2022 年 9 月 24 日止年度的 10-K 表格年度報告以及向美國證券交易委員會提交的其他文件中討論的因素可能導致實際結果與本次電話會議上所做的前瞻性陳述所表明的結果存在重大差異今天。

Any such forward-looking statements represent management's estimates as to the date of this call, May 2, 2023. While we may elect to update forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause earnings to change. In addition, we may also reference certain non-GAAP metrics on the call today, including adjusted EBITDA, operating income or earnings per share, all of which are reconciled to the nearest GAAP metric in the company's earnings press release, which can be found in the Investor Relations section of our website.

任何此類前瞻性陳述均代表管理層對本次電話會議日期（2023 年 5 月 2 日）的估計。雖然我們可能會選擇在未來的某個時候更新前瞻性陳述，但我們不承擔任何這樣做的義務，即使隨後事件導致收入發生變化。此外，我們還可能在今天的電話會議上引用某些非 GAAP 指標，包括調整後的 EBITDA、營業收入或每股收益，所有這些都與公司收益新聞稿中最接近的 GAAP 指標相一致，可以在我們網站的投資者關係部分。

Joining me on the call today is Dan Fachner, our Chief Executive Officer; along with Mr. Ken Plunk, our Chief Financial Officer. Following management's prepared remarks, we will go ahead and open the call for a question-and-answer session. With that, I would now like to turn the call over to Mr. Dan Fachner, J&J Snack Foods' Chief Executive Officer. Please go ahead, Dan.

今天和我一起參加電話會議的是我們的首席執行官 Dan Fachner；以及我們的首席財務官 Ken Plunk 先生。在管理層準備好的評論之後，我們將繼續進行問答環節。有了這個，我現在想把電話轉給 J&J Snack Foods 的首席執行官 Dan Fachner 先生。請繼續，丹。

Thank you, Norberto, and good morning, everyone. We appreciate you joining us to discuss our fiscal 2023 second quarter results. I'm pleased to report that our positive momentum continued in the fiscal second quarter, as sales this quarter was the highest second quarter sales in company history and was driven by strong demand across all 3 business segments.

謝謝你，Norberto，大家早上好。感謝您加入我們討論我們 2023 財年第二季度的業績。我很高興地報告，我們在第二財季繼續保持積極勢頭，因為本季度的銷售額是公司歷史上最高的第二季度銷售額，並且受到所有 3 個業務部門的強勁需求的推動。

While the year began with ongoing economic and inflationary challenges for our industry, it is clear that consumers continue to show strong demand for iconic brands and diverse offerings of fun and indulgent products. We saw marked improvements in unit volumes in fiscal Q2, including strong performances in soft pretzels, churros, frozen novelties and frozen beverages. Higher volumes, combined with the impact of price increases enacted in fiscal 2022, resulted in a 20% increase in net sales to $337.9 million.

雖然年初我們的行業面臨著持續的經濟和通貨膨脹挑戰，但很明顯，消費者繼續對標誌性品牌以及各種有趣和放縱的產品表現出強烈的需求。我們看到第二財季的單位銷量有顯著改善，包括軟椒鹽捲餅、油條、冷凍新奇食品和冷凍飲料的強勁表現。銷量增加，加上 2022 財年價格上漲的影響，導致淨銷售額增長 20% 至 3.379 億美元。

J&J also generated healthy year-over-year improvements across several key performance metrics, including gross margins and distribution expenses, resulting in strong earnings growth for the quarter. Taking a closer look at our segment performance. Food Services increased 23.8% to $218.3 million, including approximately $16 million in Dippin' Dots sales and $3.3 million of sales related to new products and expanded customer placements. Overall, segment growth reflects a 28.3% rise in soft pretzels, a healthy 42.8% increase in churros and a more than 264% increase in frozen novelties, including incremental Dippin' Dots sales.

強生還在幾個關鍵績效指標（包括毛利率和分銷費用）上實現了健康的同比改善，導致本季度盈利增長強勁。仔細看看我們的細分市場表現。食品服務增長 23.8% 至 2.183 億美元，其中包括約 1600 萬美元的 Dippin' Dots 銷售額和 330 萬美元與新產品和擴大客戶安置相關的銷售額。總體而言，細分市場的增長反映出軟椒鹽捲餅增長 28.3%，油條健康增長 42.8%，冷凍新奇產品增長超過 264%，包括 Dippin' Dots 的增量銷售。

Retail sales increased 13.7% to $46.4 million, including $2.5 million of sales related to the recent launch of our SuperPretzel filled knots and the expansion of handhelds with a major retailer. Retail segment growth was also driven by strong sales in frozen novelties, soft pretzels and biscuit. Frozen beverage sales increased 13.7% to $73.2 million, reflecting an 18.2% rise in beverage sales, led by strong consumption trends across amusement, restaurant, retail and food service venues as well as a healthy rebounding theater channel.

零售銷售額增長 13.7% 至 4,640 萬美元，其中 250 萬美元的銷售額與我們最近推出的 SuperPretzel 填充結和與一家大型零售商合作的手持設備擴張相關。冷凍新奇、軟椒鹽捲餅和餅乾的強勁銷售也推動了零售業務的增長。冷凍飲料銷售額增長 13.7% 至 7,320 萬美元，反映出飲料銷售額增長 18.2%，主要得益於娛樂、餐廳、零售和餐飲服務場所的強勁消費趨勢以及健康的影院渠道反彈。

Machine repair and maintenance revenues increased 7.5% versus the prior year while equipment sales increased 9.4% on the back of healthy customer installation volume. While overall inflation has stabilized, we continue to experience year-over-year pressures on key commodity inputs, such as flour, oils, eggs, mixes and sugar. We estimate inflationary impacts of approximately 9% compared to a year ago, as our industry continues to manage through these historically high cost pressures. Despite these continued challenges, we delivered 26.8% gross margin in fiscal Q2 '23, which compares favorably to the 23.2% gross margin in the prior year. Overall gross margin improvement reflects the benefits of our pricing action last year and the early impact of our initiatives to improve cost management and productivity.

機器維修和保養收入比上年增長 7.5%，而設備銷售額在健康的客戶安裝量的支持下增長 9.4%。雖然總體通脹已經穩定，但我們繼續面臨關鍵商品投入的同比壓力，例如麵粉、油、雞蛋、混合物和糖。我們估計與一年前相比，通貨膨脹的影響約為 9%，因為我們的行業繼續應對這些歷史性的高成本壓力。儘管面臨這些持續的挑戰，我們在 23 財年第二季度的毛利率為 26.8%，高於上一年的 23.2% 的毛利率。整體毛利率的改善反映了我們去年定價行動的好處以及我們改善成本管理和生產力的舉措的早期影響。

We are aggressively investing and positioning J&J for its next phase of growth, and it is clear that our strategy is delivering results. So before turning the call over to Ken, I'll briefly touch on the excellent work our teams have done and continue to do to optimize our business for the future. Starting with sales, marketing and product innovation, very proud of this group. We remain focused on leveraging consumers' affinity for our brands to prioritize growth of our core products, while also capitalizing on opportunities for increased product innovation and extensions across all 3 business segments. We are gaining placements in key channels, including theaters, QSR, casual dining and retail, leading to market share gains in our core products with several notable achievements in Q2.

我們正在為強生的下一階段增長積極投資和定位，很明顯我們的戰略正在取得成果。因此，在將電話轉給 Ken 之前，我將簡要介紹一下我們的團隊為優化未來業務所做的並將繼續做的出色工作。從銷售、營銷和產品創新開始，我為這個團隊感到自豪。我們仍然專注於利用消費者對我們品牌的親和力來優先發展我們的核心產品，同時也利用機會增加所有 3 個業務部門的產品創新和擴展。我們在主要渠道（包括劇院、QSR、休閒餐飲和零售）中獲得了展示位置，導致我們的核心產品的市場份額增加，並在第二季度取得了多項顯著成就。

ICEE, America's #1 frozen beverage brand, continues to gain share in the QSR and fast casual channels. The team is currently working on several customers to test the placement of ICEE in the venues, representing incremental placement opportunities. The ICEE rollout across Moe's Southwest Grill is also progressing well, with 95 locations installed to date and a total of 200 locations by calendar year-end.

美國排名第一的冷凍飲料品牌 ICEE 繼續在快餐店和快餐店渠道獲得份額。該團隊目前正在與幾個客戶合作，以測試 ICEE 在場館中的放置情況，這代表著增加的放置機會。 Moe's Southwest Grill 的 ICEE 部署也進展順利，迄今為止已安裝 95 個位置，到日曆年年底將安裝 200 個位置。

In terms of product innovation, we launched ICEE and SLUSH PUPPIE branded frozen pops across major retailers in late Q2, and the initial response has been very, very positive. Last quarter, we announced a new relationship with Checkers to install 800 new machines. To date, we've installed about 250 machines with the remainder targeted to be completed by the end of July. Our SUPERPRETZEL brand remains the soft pretzel category leader across channels. We continue to see significant growth opportunities in both foodservice and retail channels. We are expanding placement of our existing pretzel products and excited to be launching new SUPERPRETZEL branded filled knots, Bavarian sticks and mini dogs in retail later this summer.

在產品創新方面，我們在第二季度末在主要零售商中推出了 ICEE 和 SLUSH PUPPIE 品牌的冷凍汽水，最初的反響非常非常積極。上個季度，我們宣布與 Checkers 建立新的合作關係，安裝 800 台新機器。迄今為止，我們已經安裝了大約 250 台機器，其餘機器預計在 7 月底前完成。我們的 SUPERPRETZEL 品牌仍然是跨渠道的軟椒鹽捲餅類別的領導者。我們繼續在餐飲服務和零售渠道中看到顯著的增長機會。我們正在擴大現有椒鹽捲餅產品的佈局，並很高興在今年夏天晚些時候在零售店推出新的 SUPERPRETZEL 品牌填充結、巴伐利亞棒和迷你狗。

Our expanded production capabilities enable us to aggressively grow our SUPERPRETZEL business. Our frozen novelty brand, including the Luigi's Italian Ice, WHOLE FRUIT and Dogsters also experienced healthy dollar and unit growth during the second quarter. We're also seeing solid sales momentum of these brands with key retail partners. We are also extremely pleased with the early success of our Hola! Churros brand, with sales growing 43% this quarter and a healthy 37% year-to-date. As America's #1 producer of Churros, we see significant near- and long-term growth opportunities of our branded products with major U.S. food distributors, as well as the QSR, fast casual and retail channels.

我們擴大的生產能力使我們能夠積極發展我們的 SUPERPRETZEL 業務。我們的冷凍新奇品牌，包括 Luigi's Italian Ice、WHOLE FRUIT 和 Dogsters，在第二季度也經歷了健康的美元和單位增長。我們還看到這些品牌與主要零售合作夥伴的強勁銷售勢頭。我們也對 Hola 的早期成功感到非常高興！ Churros 品牌，本季度銷售額增長 43%，今年迄今增長 37%。作為美國排名第一的 Churros 生產商，我們看到我們的品牌產品與美國主要食品分銷商以及 QSR、快速休閒和零售渠道的重大近期和長期增長機會。

We expect to launch the Hola! Churros brand in our retail channel in 2023 with the first shipments to commence in September. Finally, while the second quarter was a seasonally slow period for Dippin' Dots, we've made significant progress expanding into new channels and positioning the business for a very strong summer. The Dippin' Dots team worked quickly to install freezers in over 290 Regal theaters and plans for additional locations in the third quarter. The team also secured a test with AMC theaters and another theater chain, which plans to be in 200-plus locations in the back half of the year. We have a strong pipeline of opportunities as we leverage the breadth of our customer base and execute our cross-selling strategy.

我們期待推出 Hola! Churros 品牌將於 2023 年進入我們的零售渠道，首批發貨將於 9 月開始。最後，雖然第二季度是 Dippin' Dots 的季節性淡季，但我們在拓展新渠道和為業務強勁的夏季定位方面取得了重大進展。 Dippin' Dots 團隊迅速在 290 多家 Regal 劇院安裝了冷凍機，併計劃在第三季度安裝更多地點。該團隊還獲得了 AMC 影院和另一家連鎖影院的測試，後者計劃在今年下半年在 200 多個地點進行測試。當我們利用我們廣泛的客戶群並執行我們的交叉銷售策略時，我們擁有大量的機會。

In terms of product innovation, we continue to find new ways to leverage the combined power of our brands by recently launching an ICEE branded Cherry and Blue Raspberry ICEE Dippin' Dots flavor in March. This new product is Dippin' Dots' best product launch ever, exceeding the best by over 40% unit growth. Also, we continue to evaluate Dippin' Dots branded frozen novelty products for retail channel.

在產品創新方面，我們繼續尋找新的方法來利用我們品牌的綜合力量，最近在 3 月份推出了 ICEE 品牌的櫻桃和藍莓 ICEE Dippin' Dots 口味。這款新產品是 Dippin' Dots 有史以來推出的最佳產品，銷量增長超過最佳 40%。此外，我們繼續評估零售渠道的 Dippin' Dots 品牌冷凍新奇產品。

Turning to our operating initiatives. We have taken a number of actions over the last couple of years to increase efficiency and expand our capabilities to grow this business. Operationally, we continue to expand our production capacity and now have 5 new automated lines supporting growth opportunities in churros, pretzels and frozen novelties. A sixth line will be added in Q3. This added capacity supports our aggressive plans to grow sales of our core products. In addition, we are completing the geographic optimization of our distribution and warehousing network by consolidating to a handful of locations, including 3 new state-of-the-art distribution centers. The first RDC will open in June in Terrell, Texas, while the other 2 are expected to come online later this year and early next year. The opening of these new RDCs will allow us to go from 30-plus shipping locations to somewhere between 6 and 8 strategically located facilities and will significantly reduce our reliance on third parties for storage and logistics management.

轉向我們的運營計劃。在過去的幾年裡，我們採取了一系列行動來提高效率並擴大我們發展這項業務的能力。在運營方面，我們繼續擴大我們的生產能力，現在有 5 條新的自動化生產線支持油條、椒鹽捲餅和冷凍新奇食品的增長機會。第 6 行將在第三季度添加。這種增加的能力支持我們增加核心產品銷售的積極計劃。此外，我們正在通過整合到少數幾個地點（包括 3 個最先進的新配送中心）來完成配送和倉儲網絡的地理優化。第一個 RDC 將於 6 月在得克薩斯州的 Terrell 開放，而另外兩個 RDC 預計將在今年晚些時候和明年初上線。這些新 RDC 的啟用將使我們能夠從 30 多個運輸地點增加到 6 到 8 個戰略位置設施，並將顯著減少我們對第三方存儲和物流管理的依賴。

Two of these RDCs will also include freezer capacity for Dippin' Dots product to support expanding growth opportunities and more efficient distribution capabilities. This aligns with our strategic initiatives announced in fiscal 2022, including the implementation of a new ERP system and the outsourcing of our shipping logistics to NFI. This supply chain transformation will play a pivotal role in reducing distribution costs and providing better service to our customers. We are confident that these combined initiatives position us for strong sales growth and improved operational efficiencies and reduced distribution costs and provide the platform to deliver incremental profitability.

其中兩個 RDC 還將包括 Dippin' Dots 產品的冷凍能力，以支持不斷擴大的增長機會和更高效的分銷能力。這符合我們在 2022 財年宣布的戰略舉措，包括實施新的 ERP 系統以及將我們的航運物流外包給 NFI。這種供應鏈轉型將在降低分銷成本和為客戶提供更好的服務方面發揮關鍵作用。我們相信，這些聯合舉措使我們能夠實現強勁的銷售增長、提高運營效率和降低分銷成本，並提供平台來實現增量盈利。

As it relates to M&A, the integration of Dippin' Dots into the J&J systems, processes, customer channels and operations is going just as planned. Also, we continue to evaluate potential M&A opportunities that complement our brand portfolio and our business model. In summary, we are confident that the foundation we are building is further strengthening the long-term competitiveness of our business and positioning J&J to deliver new levels of growth and shareholder returns. We have strong growth momentum heading into the back half of fiscal 2023, supported by our core brands and products.

由於涉及併購，將 Dippin' Dots 整合到強生系統、流程、客戶渠道和運營中正按計劃進行。此外，我們繼續評估潛在的併購機會，以補充我們的品牌組合和我們的商業模式。總而言之，我們相信我們正在建立的基礎將進一步加強我們業務的長期競爭力，並使強生定位於實現新水平的增長和股東回報。在我們的核心品牌和產品的支持下，我們在 2023 財年下半年擁有強勁的增長勢頭。

Strategically, the team is focused on transforming the business, investing in our brands and capacity to grow, while implementing initiatives to help us operate more efficiently. Our leadership team is aligned around these strategic initiatives, and the organization is excited about the opportunities ahead of us to continue building on J&J Snack Foods, long-term record growth and success.

從戰略上講，該團隊專注於業務轉型，投資於我們的品牌和發展能力，同時實施舉措以幫助我們更高效地運營。我們的領導團隊圍繞這些戰略舉措保持一致，組織對我們面前的機會感到興奮，可以繼續在 J&J Snack Foods 的基礎上繼續發展，實現長期創紀錄的增長和成功。

I would now like to turn the call over to Ken Plunk, CFO, to review our financial performance. Ken?

我現在想將電話轉給首席財務官 Ken Plunk，以審查我們的財務業績。肯？

Thank you, Dan, and good morning, everyone. I am pleased with our financial results for the quarter. More importantly, I am pleased with the opportunities we have in front of us to grow and improve these results. Hopefully, it is evident that we are making progress across our various initiatives and well positioned for long-term success.

謝謝丹，大家早上好。我對我們本季度的財務業績感到滿意。更重要的是，我很高興我們有機會發展和改善這些成果。希望很明顯，我們正在通過各種舉措取得進展，並為長期成功做好準備。

Taking a look at the fiscal second quarter, net sales for the quarter totaled $337.9 million, a 20% increase versus the prior year period and a 15% increase versus the first 6 months of fiscal 2022. The strong top line result was driven by growth across all 3 of our business segments, reflecting the health and resiliency of our business. Our largest segment, Food Service, experienced a 23.8% increase in sales to $218.3 million, representing 65% of total company sales.

看看第二財季，該季度的淨銷售額總計 3.379 億美元，比去年同期增長 20%，比 2022 財年的前 6 個月增長 15%。強勁的營收業績是由增長推動的橫跨我們所有 3 個業務部門，反映了我們業務的健康和彈性。我們最大的部門，食品服務，銷售額增長 23.8% 至 2.183 億美元，占公司總銷售額的 65%。

The strong performance was a result of healthy growth across the segment, including 264.2% increase in frozen novelties, which also benefited from the Dippin' Dots acquisition, a 42.8% increase in churros, a 28.3% increase in soft pretzels and a relatively flat performance by both handheld and bakery, down 1% and up 1.6%, respectively. These results included approximately $16 million in Dippin' Dots sales, in line with our expectations, given the seasonality of this business.

強勁的表現是整個細分市場健康增長的結果，包括冷凍新奇產品增長 264.2%，這也得益於對 Dippin' Dots 的收購，油條增長 42.8%，軟椒鹽捲餅增長 28.3%，以及相對平穩的表現手持設備和麵包店分別下降 1% 和上升 1.6%。考慮到該業務的季節性，這些結果包括約 1600 萬美元的 Dippin' Dots 銷售額，符合我們的預期。

Moving to our Retail segment. Sales increased 13.7% to $46.4 million compared to the same period in fiscal 2022. Growth in this segment was driven by contributions from all subcategories, including 283.4% increase in handhelds, 9.8% increase in frozen novelties and 3% and 1.7% increase in biscuit and soft pretzel sales, respectively, versus the prior year. As it relates to our third segment, Frozen Beverages, sales were $73.2 million or a 13.7% increase versus Q2 '22, led by growth across all 3 subcategories. Beverage sales increased 18.2%. Repair and maintenance revenue increased 7.5%, the machine revenue rose 9.4% compared to the previous year period.

轉到我們的零售部門。與 2022 財年同期相比，銷售額增長 13.7% 至 4640 萬美元。該細分市場的增長受到所有子類別的貢獻推動，包括手持設備增長 283.4%，冷凍新奇增長 9.8%，餅乾增長 3% 和 1.7%和軟椒鹽捲餅的銷售額分別與上一年相比。由於它涉及我們的第三個部分，即冷凍飲料，銷售額為 7320 萬美元，比 22 年第二季度增長 13.7%，這主要得益於所有 3 個子類別的增長。飲料銷售額增長了 18.2%。維修保養收入同比增長 7.5%，機器收入同比增長 9.4%。

Moving down to the income statement. Gross profit came in at $90.4 million or a 38.3% increase versus prior year, leading to a gross margin for fiscal 2023 second quarter of 26.8%, favorably comparing to 23.2% in Q2 of fiscal '22. In fact, this marks the highest Q2 gross margin since Q2 of fiscal 2019. While overall inflation has stabilized, we continue to experience year-over-year pressures on key commodity inputs, such as flour, oil, eggs, mixes and sugar. As Dan mentioned earlier, we estimate our inflation at approximately 9% compared to a year ago.

向下移動到損益表。毛利潤為 9040 萬美元，比上年增長 38.3%，導致 2023 財年第二季度的毛利率為 26.8%，高於 22 財年第二季度的 23.2%。事實上，這是自 2019 財年第二季度以來最高的第二季度毛利率。雖然整體通脹已經穩定，但我們繼續面臨關鍵商品投入的同比壓力，例如麵粉、油、雞蛋、混合物和糖。正如 Dan 之前提到的，我們估計我們的通貨膨脹率與一年前相比約為 9%。

So we were pleased with our gross margin improvement in the face of these continued inflationary headwinds and see these results as further affirmation that our operational initiatives are beginning to have the expected results and positive impact on our business.

因此，面對這些持續的通脹逆風，我們對毛利率的改善感到滿意，並將這些結果視為進一步肯定我們的運營計劃開始產生預期結果並對我們的業務產生積極影響。

Taking a look at expenses. Total operating expenses increased $18.9 million or 30.9% and represented 23.7% of sales for the quarter compared to 21.8% in Q2 of 2022. The increase largely reflects the addition of Dippin' Dots to our business compared to a year ago and ongoing inflationary pressures across many of our expense lines, in particular distribution expenses. Distribution expenses increased from 34.7% versus the prior year, representing 11.3% of sales compared to 10.1% in fiscal '22. However, we saw a significant improvement on a sequential basis compared to fiscal 2023 Q1 and fiscal 2022 Q4 when distribution expenses represented 12% and 12.4% of sales, respectively.

看一下費用。總運營費用增加了 1890 萬美元或 30.9%，佔本季度銷售額的 23.7%，而 2022 年第二季度為 21.8%。這一增長主要反映了與一年前相比，我們的業務增加了 Dippin' Dots，以及持續的通貨膨脹壓力我們的許多費用項目，尤其是分銷費用。分銷費用比上一年增加了 34.7%，佔銷售額的 11.3%，而 22 財年為 10.1%。然而，與 2023 財年第一季度和 2022 財年第四季度相比，我們看到環比有了顯著改善，當時分銷費用分別佔銷售額的 12% 和 12.4%。

These improvements were led by a stabilizing inflationary environment and improved logistics management across our business. Marketing and selling expenses represented 7.1% of sales versus 7.5% in the prior year period, as the marketing team continues to do a great job driving efficiencies and targeting how we allocate marketing dollars. Administrative expenses were 5.3% of sales in Q2 2022 compared to 4.1% in Q2 of last year, reflecting addition of Dippin' Dots in this year's expenses. As a reminder, Dippin' Dots is a highly seasonal business, with most of its profitability, taking place over the second half of the year. As such, and as expected, it had a negative impact on our results in the second quarter.

這些改進是由穩定的通貨膨脹環境和改善我們業務的物流管理所帶動的。營銷和銷售費用佔銷售額的 7.1%，而去年同期為 7.5%，因為營銷團隊繼續出色地提高效率並確定我們分配營銷資金的方式。 2022 年第二季度，管理費用佔銷售額的 5.3%，而去年第二季度為 4.1%，反映了今年費用中增加了 Dippin' Dots。提醒一下，Dippin' Dots 是一項季節性很強的業務，其大部分盈利發生在下半年。因此，正如預期的那樣，它對我們第二季度的業績產生了負面影響。

This led to an operating income of $10.2 million, favorably comparing to $4.1 million in Q2 2022 or a year-over-year increase of 149.3%. Adjusted operating income was $12.1 million, also comparing favorably to $4.7 million in Q2 2022. After considering income taxes of $2.4 million compared to $0.9 million in Q2 of fiscal '22, net earnings increased to $6.9 million, resulting in reported diluted earnings per share of $0.36. This compares to $0.17 in the prior year period. Adjusted diluted earnings per share was $0.43 compared to $0.19 in Q2 of 2022.

這導致營業收入為 1020 萬美元，高於 2022 年第二季度的 410 萬美元或同比增長 149.3%。調整後的營業收入為 1210 萬美元，也高於 2022 年第二季度的 470 萬美元。考慮到 240 萬美元的所得稅（相比 22 財年第二季度的 90 萬美元），淨收益增至 690 萬美元，導致報告的攤薄每股收益為0.36 美元。相比之下，去年同期為 0.17 美元。調整後的攤薄每股收益為 0.43 美元，而 2022 年第二季度為 0.19 美元。

Adjusted EBITDA increased 52.5% to $27.5 million from $18 million in the prior year period, and our effective tax rate was 26% in the second quarter. Taking a look at our liquidity position, we continue to maintain a healthy balance sheet, including $47.7 million in cash and marketable securities and approximately $92 million in debt. In addition, we have ample availability under our revolver of approximately $123 million of additional borrowing capacity. This affords us the flexibility to strategically invest and support our business. We are currently investing close to $100 million in the year across various growth initiatives, including completing the execution of new product lines and the investments in RDCs.

調整後的 EBITDA 從去年同期的 1800 萬美元增長 52.5% 至 2750 萬美元，第二季度我們的有效稅率為 26%。看看我們的流動性狀況，我們繼續保持健康的資產負債表，包括 4770 萬美元的現金和有價證券以及大約 9200 萬美元的債務。此外，我們的左輪手槍有充足的可用資金，可提供約 1.23 億美元的額外借貸能力。這使我們能夠靈活地進行戰略投資和支持我們的業務。我們目前在今年投資近 1 億美元用於各種增長計劃，包括完成新產品線的執行和對 RDC 的投資。

In summary, these results reaffirm the health, resilience and potential of our business. As we enter the second half of the fiscal year, we continue to raise the bar in every aspect of how we do business and feel confident in our ability to effectively navigate this dynamic environment and deliver on our goals to create added value for our shareholders.

總之，這些結果再次證實了我們業務的健康、彈性和潛力。隨著我們進入本財年的下半年，我們將繼續提高我們開展業務的各個方面的標準，並對我們有效駕馭這種動態環境和實現為股東創造附加值的目標的能力充滿信心。

I would now like to open the call to questions. Operator?

我現在想開始提問。操作員？

(Operator Instructions) Our first question or comment comes from the line of Connor Rattigan from Consumer Edge.

（操作員說明）我們的第一個問題或評論來自 Consumer Edge 的 Connor Rattigan。

So I want to spend a little time talking about food service traffic. So it really seems like things rebounded nicely, especially in theaters. So I mean, QSRs really seem to be holding up nicely across the space. I mean -- I guess, maybe could you maybe parse out by venue sort of what you're seeing traffic-wise and maybe if anything is coming in ahead of your expectations?

所以我想花點時間談談餐飲服務流量。所以看起來事情真的反彈得很好，尤其是在影院。所以我的意思是，QSR 似乎真的在整個空間中表現良好。我的意思是——我想，也許你可以按地點分析你所看到的交通情況，以及是否有任何超出你預期的事情發生？

That's a great question, Connor. Traffic is one of those things that we're keeping a really close eye on. As you know, when we ended the first quarter, we were a little concerned about it. And then as we came into the second quarter -- as we entered into the second quarter here, the traffic patterns seemed to rise throughout the quarter, and we're really pleased about that. But it's something that we're going to watch really, really closely. It may be started to slow in the quarter and ended strong. But now we're into that all-important next 6 months for this business. And so we're going to watch it really closely with threats of a recession out there and the things that we all read day-to-day that's one of those things that we have to be really mindful of. And so we're doing that.

這是一個很好的問題，康納。交通是我們非常密切關注的事情之一。如您所知，當我們結束第一季度時，我們有點擔心。然後當我們進入第二季度時——當我們在這裡進入第二季度時，整個季度的流量模式似乎都在上升，我們對此感到非常高興。但這是我們將非常、非常密切地關注的事情。它可能在本季度開始放緩並以強勁勢頭結束。但現在我們進入了對這項業務至關重要的未來 6 個月。因此，我們將密切關注經濟衰退的威脅以及我們每天都在閱讀的內容，這是我們必須真正注意的事情之一。所以我們正在這樣做。

I don't know if I feel like we're completely out of the woods, but I love where we're at right now.

我不知道我是否覺得我們已經完全走出困境，但我喜歡我們現在所處的位置。

That makes total sense. And then typically those next 6 critical months, right, it sounds like things are going really well with Dippin' Dots, so with about $13 million in sales last quarter and $16 million this quarter, and I know that business is very heavily backloaded. But I mean, I guess, as far as that distribution rollout goes, adding incremental theaters and whatnot, are we sort of right around where you expected? Or are you maybe ahead of -- maybe ahead of schedule on that distribution rollout?

這是完全有道理的。然後通常是接下來的 6 個關鍵月份，對吧，聽起來 Dippin' Dots 的事情進展得非常順利，所以上個季度的銷售額約為 1300 萬美元，本季度為 1600 萬美元，而且我知道業務的負載非常大。但我的意思是，我想，就發行版的推出而言，增加增量影院等等，我們是否在你預期的範圍內？還是您可能提前 - 可能提前發布該分發版？

Well, you know what, when we bought it, we were pretty aggressive about what we think we can do with that business, and I remain really aggressive about what we're doing with it. So I would say we're right about on par with where we think we need to be. I put a lot of pressure on that team. The group is a really solid group. They've integrated very well with the total J&J company. We're doing a great job in cross-selling activity across all of our channels. I like what we have coming in. And I would say they're right about on par with what we would have expected.

好吧，你知道嗎，當我們購買它時，我們對我們認為我們可以用該業務做些什麼非常積極，而且我對我們正在做的事情仍然非常積極。所以我想說我們與我們認為我們需要達到的水平差不多是正確的。我給那支球隊很大的壓力。該組是一個非常可靠的組。他們與整個強生公司整合得很好。我們在所有渠道的交叉銷售活動中做得很好。我喜歡我們的成果。而且我會說他們是正確的，與我們的預期相當。

Okay. Great. Good stuff, guys. And then just one more for me here at the end. So I mean, in any other world, COGS inflation of 9% would be [shopping,] but at last here we are. So just a bit of a 2-parter here. So I'm not sure if you quantified COGS inflation last quarter, if so, can you remind us what that was? And also just sort of looking at your inputs and maybe where you're hedging these at right now, should we sort of expect that 9% to be more of an annual run rate, given the movement in ag and other commodities? Or just how should we think about that?

好的。偉大的。好東西，伙計們。最後再給我一個。所以我的意思是，在任何其他世界，9% 的 COGS 通貨膨脹將是 [購物]，但我們終於到了。所以這裡只是一個 2-parter。所以我不確定你是否量化了上個季度的 COGS 通脹，如果是，你能提醒我們那是什麼嗎？而且只是看看你的投入，也許你現在在哪裡對沖這些，我們是否應該期望 9% 的年運行率更高，考慮到 ag 和其他商品的走勢？或者我們應該如何考慮？

Yes. Connor, this is Ken, great question. And there's always going to be variations of what's happening with inflation. There's year-over-year comparison, which, again, you're comparing to kind of the prestorm of inflation a year ago, at least so far. And then we're going to get to overlapping that later in Q3 and Q4. But that's what's creating the really pronounced continued inflation year-over-year because of what last year was. Flour has come down since last quarter. Cheese and dairy has come down since last quarter. Diesel has come down, but only $0.10 since last quarter. So there are things moving. They're just not moving as fast, and they're lapping kind of the pre-inflation time of the same quarter a year ago.

是的。康納，這是肯，問得好。通貨膨脹總是會發生變化。與去年同期相比，您再次將其與一年前的通貨膨脹風暴進行比較，至少到目前為止是這樣。然後我們將在第三季度和第四季度的晚些時候重疊。但這正是造成真正顯著的同比持續通貨膨脹的原因，因為去年是這樣。自上個季度以來，麵粉價格有所下降。奶酪和奶製品自上個季度以來有所下降。柴油價格有所下降，但自上個季度以來僅下降了 0.10 美元。所以有些東西在移動。它們只是沒有那麼快地移動，而且它們正在接近一年前同一季度的通貨膨脹前時間。

We came out of Q1 with our internally measured inflation still in the mid-teens, and now we're at 9%. And we kind of calibrate that also with external metrics. If you look at recent data on CPI, food, whether it's at-home or in a restaurant, that's still at 8.5% to 9%, Production Price Index still in the upper 8s. So that kind of compares to our internal measurements of that 9% in the current quarter.

我們在第一季度結束時，內部測量的通貨膨脹率仍處於十幾歲左右，現在是 9%。我們也用外部指標來校準它。如果你看看最近的 CPI 數據，食品，無論是在家裡還是在餐館，它仍然在 8.5% 到 9%，生產價格指數仍然在 8% 以上。因此，這與我們在本季度對 9% 的內部測量結果進行了比較。

As we go forward, again, we're still expecting gradual improvement but not as much as what I would have thought 2 quarters ago. And that could change. Eggs is a wildcard. I think sugar is kind of the new problem. It's up near double digits and projected to go higher. But it will be a marginal improvement, I think. And then you will get the benefit later in Q3 and 4 of lapping double-digit inflation of a year ago. I think that's where the year-over-year comparison will change a little bit.

在我們前進的過程中，我們仍然期待逐步改善，但不如我 2 個季度前的想法那麼多。這可能會改變。雞蛋是通配符。我認為糖是一種新問題。它接近兩位數，預計會更高。但我認為這將是一個邊際改善。然後你將在第三季度晚些時候和第四季度獲得超過一年前兩位數通脹的好處。我認為這就是同比比較會發生一點變化的地方。

(Operator Instructions) Our next question or comment comes from the line of Jonathan Andersen from William Blair.

（操作員說明）我們的下一個問題或評論來自 William Blair 的 Jonathan Andersen。

And just following up on that last question about inflation. I guess one of the things I'm curious about is where you are today with respect to pricing to offset that inflation? And I know it's kind of a year-over-year comparison that you provided 9% in the quarter, how does your pricing and the pricing contribution in the quarter kind of marry up with the inflation that you're experiencing now? And would you expect to make any adjustments to pricing one way or the other in the near to medium term?

只是跟進關於通貨膨脹的最後一個問題。我想我很好奇的一件事是你今天在定價方面的位置以抵消通貨膨脹？而且我知道這是一種同比比較，你在本季度提供了 9%，你的定價和本季度的定價貢獻如何與你現在經歷的通貨膨脹相結合？您是否希望在中短期內以一種或另一種方式對定價進行任何調整？

Jon, let me start, and then I'll let Ken talk a little bit about it. We've had the conversation around pricing. And over the last year, we took an awful lot of pricing, right, as so did many other people. To date this year, as a reminder, we took pricing in January in the ICEE Group and have not done anything on the Snack Foods side to date. We are looking at it very closely. We're going to watch it closely. And we might do some spot increases where needed in different areas, but there's a real balance to making sure that you have the right pricing and watching the elasticity of your products. And so we're going to be careful as we do that, but we're going to watch it really closely. Ken, maybe you want to touch on the numbers there.

喬恩，讓我開始，然後我會讓肯稍微談談。我們已經就定價進行了討論。在過去的一年裡，我們採取了很多定價，對，就像其他許多人一樣。今年到目前為止，作為提醒，我們在 1 月份對 ICEE 集團進行了定價，並且迄今為止還沒有在休閒食品方面做任何事情。我們正在非常仔細地研究它。我們將密切關注它。我們可能會在不同領域根據需要進行一些現貨增加，但在確保您擁有正確的定價和觀察產品的彈性方面存在真正的平衡。因此，我們在這樣做時會非常小心，但我們會非常密切地觀察它。肯，也許你想談談那裡的數字。

Yes. Well, I think if you remember, kind of the last few quarters, we had a price increase late in 2021. We had second one in the March, April time frame, '22, and then we had the third one around the September, October. So we've lapped one of those, and we've lapped pieces of the second one. So just kind of remind everybody of that. But in terms of your question on pricing, I think Dan and I always sit here and kind of say, well, if we had known kind of what's happening in the next 30 days in the next quarter, we might have, in some cases, been more aggressive even late last year because in Q1 -- from Q4 to Q1, there was still slight increases in inflation. I think the number was around 40 to 50 basis points.

是的。好吧，我想如果你還記得的話，在過去的幾個季度裡，我們在 2021 年底提價了。我們在 22 年 3 月、4 月的時間框架內進行了第二次提價，然後在 9 月左右進行了第三次提價，十月。所以我們已經研磨了其中的一個，並且我們已經研磨了第二個的碎片。所以只是提醒大家這一點。但就你關於定價的問題而言，我認為 Dan 和我總是坐在這裡說，好吧，如果我們知道下一季度未來 30 天會發生什麼，在某些情況下，我們可能會，甚至在去年年底變得更加激進，因為在第一季度——從第四季度到第一季度，通脹仍然略有上升。我認為這個數字大約是 40 到 50 個基點。

So we're always kind of saying when is the right time. And I think as we said here, there was probably a little bit more opportunity to take in some spots, particularly in retail. But I think we're pretty well calibrated with price in the ICEE business and the Dippin' Dots business and really the Food Service business. And I think the retail side is just something we continue to watch, and it's tricky with how we're competing in retail for volume and space and a lot of the retailers are pushing back right now. But you watch it day by day, and I think there may be pockets where we may need to do something at some point if things don't stabilize.

所以我們總是說什麼時候合適。而且我認為正如我們在這裡所說的那樣，可能有更多機會進入某些地方，特別是在零售業。但我認為我們在 ICEE 業務和 Dippin' Dots 業務以及真正的食品服務業務中已經很好地校準了價格。而且我認為零售方面只是我們繼續關注的事情，而且我們在零售領域競爭數量和空間的方式很棘手，很多零售商現在都在反擊。但是你日復一日地觀察它，我認為如果情況不穩定，我們可能需要在某些時候做點什麼。

That's really helpful. So would it be -- I'm trying to kind of hone in on a number here. I'm not sure if it's going to be possible. But the organic growth in the quarter was strong at I think around 14%, 15%, excluding the Dippin' Dots contribution. Is price -- would it be fair to say that the price right now is maybe -- the majority of that around 2/3 of that in volume positive as well, but maybe not contributed at the same level of price?

這真的很有幫助。那就這樣吧——我想在這裡磨練一個數字。我不確定這是否可能。但本季度的有機增長強勁，我認為約為 14%、15%，不包括 Dippin' Dots 的貢獻。價格——可以公平地說，現在的價格可能是——其中大部分大約 2/3 的數量也是積極的，但可能不會以相同的價格水平做出貢獻？

Yes. I mean price, that's probably a fair number, I would say. Again, it depends on category and situation. I mean, I'll just tell you for the ICEE Frozen business on the beverage side, they had volume growth of just over 10%, total growth of 18.2%, I think. So that is a really good sign. And a lot of that is the theater industry, as we mentioned, that's really starting to rebound and the outlook of the theater folks is really positive as well.

是的。我的意思是價格，我會說這可能是一個合理的數字。同樣，這取決於類別和情況。我的意思是，我只想告訴你飲料方面的 ICEE Frozen 業務，我認為它們的銷量增長略高於 10%，總增長率為 18.2%。所以這是一個非常好的跡象。正如我們提到的，其中很大一部分是劇院行業，它真的開始反彈，劇院人的前景也非常樂觀。

But I do want to be clear, there is a really nice influx of volume growth in our quarter this year -- I mean, this quarter, led by ICEE and even Food Service. Retail had volume growth, but it was a little bit lower. And candidly, we're very proud of that because if you look at recent data, all of retail, most of them are reporting still declines in volumes and we had a slight increase in volume in retail.

但我確實想明確一點，今年我們這個季度的銷量增長非常好——我的意思是，這個季度，由 ICEE 甚至食品服務引領。零售業有銷量增長，但略有下降。坦率地說，我們為此感到非常自豪，因為如果你看看最近的數據，所有零售業，他們中的大多數都報告銷量仍在下降，而我們的零售量略有增加。

Sure. Yes. That's really helpful. The last one that I'll ask is related to gross margin. You made good -- as you pointed out, made good progress, both year-over-year and progress sequentially. I think you've talked a bit in the past various times about restoring the gross margin rate to 30% or better kind of pre-pandemic levels maybe. Is that -- what's the, as you sit here today, kind of the time line that you're thinking about? Is that still kind of a target? Or what's the target? And what's a reasonable way to think about the time line for perhaps getting there?

當然。是的。這真的很有幫助。我要問的最後一個問題與毛利率有關。你做得很好——正如你所指出的，取得了良好的進展，無論是同比還是連續進展。我想你在過去多次談到過將毛利率恢復到 30% 或更好的大流行前水平。那是——當你今天坐在這裡時，你正在考慮的時間線是什麼？這仍然是一個目標嗎？或者目標是什麼？考慮可能到達那裡的時間線的合理方法是什麼？

Great question, Jon. Yes, we're still bullish on getting ourselves to that 30% gross profit margin. We believe that we have a really good chance of getting there still, as we've been saying in the back half of the year probably as soon as the third quarter. And we think that's still a reality. So we're going to continue to fight for that and think we have a good chance to have it.

好問題，喬恩。是的，我們仍然看好自己達到 30% 的毛利率。我們相信我們仍然有很大的機會到達那裡，正如我們在今年下半年所說的那樣，可能最快在第三季度。我們認為這仍然是現實。因此，我們將繼續為此而戰，並認為我們有很好的機會獲得它。

Our next question or comment comes from the line of Todd Brooks from The Benchmark Company.

我們的下一個問題或評論來自 The Benchmark Company 的 Todd Brooks。

A few quick questions for you. One, the organic growth that we saw in the second quarter, which was very impressive, can we talk to how much of that has been unlocked by the new lines coming on so far this year, Dan? Or is most of the incremental growth from what those new lines will unlock from a capacity standpoint to benefit the company more in the second half of the year?

幾個簡單的問題。第一，我們在第二季度看到的有機增長非常令人印象深刻，丹，我們能談談今年到目前為止推出的新線路釋放了多少增長嗎？或者，從產能的角度來看，這些新生產線的大部分增量增長是否會在今年下半年使公司受益更多？

I think that we'll continue to build those new lines with the exception of a couple of the frozen novelty lines just came on over this past quarter. And so we'll continue to see a nice build from those. The frozen novelty lines came on more in that first quarter-ish time frame or slightly one before that. And that will help us keep up with the level of business that we do during the summer months in the frozen novelty side, but I love what we're doing with the new lines around churros and you see that growth happening there by the numbers and also on the pretzel side and being able to release some new innovative products. And so I think most of the growth is still yet to come from those lines.

我認為我們將繼續建立這些新線路，除了上個季度剛剛出現的幾條凍結的新奇線路。因此，我們將繼續從中看到一個不錯的構建。在第一季度左右的時間範圍內或稍早於此，凍結的新奇線路出現得更多。這將幫助我們跟上我們在夏季幾個月在冷凍新奇方面所做的業務水平，但我喜歡我們在油條周圍的新生產線上所做的事情，你會看到那裡的增長是通過數字和同樣在椒鹽脆餅方面，能夠發布一些新的創新產品。因此，我認為大部分增長仍未來自這些產品線。

Is there a way, Dan or Ken to think about what these new lines can contribute to organic growth as we're looking over the next, let's say, 2 to 4 quarters just from the capacity to either launch new products or meet demand that maybe you weren't meeting last year?

Dan 或 Ken 有沒有辦法考慮這些新產品線可以為有機增長做出什麼貢獻，因為我們正在展望下一個，比方說，2 到 4 個季度，僅僅是從推出新產品或滿足需求的能力你去年沒見過面？

Yes, I mean, I don't have an exact number, Todd, it gets pretty hairy, when you kind of try to look at all the impacts, whether it's new products, innovation. I mean what I could tell you is if those lines -- when those lines get up to the capacity we expect, everything else being equal, we think those probably present $150 million to $200 million opportunity, once all those lines are at capacity.

是的，我的意思是，我沒有確切的數字，托德，當你嘗試查看所有影響時，它會變得非常毛茸茸，無論是新產品還是創新。我的意思是我可以告訴你的是，如果這些線路 - 當這些線路達到我們預期的容量時，其他一切都相同，我們認為一旦所有這些線路都達到容量，這些線路可能會提供 1.5 億至 2 億美元的機會。

And that capacity for us is really in the 80% to 85% range. It's going to take us a bit of time to get there, some faster than others. When we did the business cases on these investments, I mean, the returns are typically 2 to 4 years depending on the situation. But that's kind of what the outlook could be, once we're able to leverage these lines completely.

我們的產能實際上在 80% 到 85% 之間。我們需要一些時間才能到達那裡，有些時間會比其他時間快。當我們對這些投資進行商業案例分析時，我的意思是，根據具體情況，回報通常為 2 至 4 年。但這就是前景，一旦我們能夠完全利用這些線路。

That's great. Second question, it sounds like now you found your West Coast RDC, you're giving us some timing for when the 3 facility should roll out. Can we just talk about the consolidation into the 3 facilities and the consolidation of shipping points? And if you're looking at a longer-term view on where distribution expenses can get back to, can we get back to the high single digits that we saw historically with this new facility structure?

那太棒了。第二個問題，聽起來你現在找到了你的西海岸 RDC，你給了我們一些時間來確定 3 設施應該何時推出。我們可以談談合併到 3 個設施和合併運輸點嗎？而且，如果您從長遠來看分銷費用可以回到哪裡，我們能否回到我們在這種新設施結構中看到的歷史上的高個位數？

Todd, that is the absolute goal for the leadership team, and we talk about that a lot. We do expect to get back to those high single digits and in hopes that as we have this all in place, that we'll be able to get maybe even something better than what used to be. You're right, we did identify a West Coast RDC, and that one is on schedule to open up early in 2024, somewhere around February 1. And we're really excited about the way that that's coming together. We think we've spaced them out appropriately to be able to handle it, as we move to them, and we think that can have a really big impact on our business.

托德，這是領導團隊的絕對目標，我們經常討論這個問題。我們確實希望回到那些高個位數，並希望當我們擁有這一切時，我們將能夠獲得比過去更好的東西。你是對的，我們確實確定了一個西海岸 RDC，並且該 RDC 按計劃於 2024 年初開放，大約在 2 月 1 日左右。我們對這一切的結合方式感到非常興奮。我們認為我們已經將它們適當地隔開，以便在我們轉向它們時能夠處理它，我們認為這會對我們的業務產生非常大的影響。

That's great. And then final one for me. If we look at the product newness and successes at retail, can you just talk about slotting fees maybe, would slotting fees run in the quarter? And what does the year-over-year comparison look like in slotting fees with all the new product activity that you have?

那太棒了。然後是我的最後一個。如果我們看看零售產品的新穎性和成功，你能不能談談進場費，進場費會在本季度運行嗎？您擁有的所有新產品活動的進場費的同比比較情況如何？

Yes. Well, we're definitely investing in placement, Todd. And we think long term, that will benefit us. I don't have an exact comparison in terms of what we spent in slotting fees a year ago versus now here with me. But I can tell you that we're spending more. And I think we're spending in the right places, but it's something that as we get into this quarter and back half of the year, we'll look to figure out the right way to balance all that to ensure that we're getting ultimate value for the space we're in.

是的。好吧，我們肯定會投資安置，托德。我們認為從長遠來看，這將使我們受益。我無法準確比較一年前和現在在場費上的花費。但我可以告訴你，我們正在花費更多。而且我認為我們在正確的地方支出，但這是我們進入本季度和今年下半年的事情，我們將尋求找到平衡所有這些的正確方法，以確保我們得到我們所處空間的最終價值。

There's a lot of retailers doing a lot of LTO-type promotions, and I don't know if you've been in any of the retail stores recently, you may have seen us on some of the end caps. But it's an investment in that space and in marketing those brands that we think will ultimately pay off for us. But I do not have here in front of me kind of what it was a year ago.

有很多零售商在做很多 LTO 類型的促銷活動，我不知道你最近是否去過任何一家零售店，你可能在一些端蓋上看到過我們。但這是對那個領域和營銷我們認為最終會為我們帶來回報的品牌的投資。但是我面前沒有一年前的樣子。

Our next question or comment comes from the line of Andrew Wolf from CL King.

我們的下一個問題或評論來自 CL King 的 Andrew Wolf。

The sales pipeline and answering (inaudible) sounds like it's pretty robust plus you put it in your release, and it remains pretty good. So my experience has been that an organization when there's not enough capacity, the whole sales process kind of -- it doesn't grind to a halt, but the sales guys are -- and women aren't -- they're not going full tilt if they know it can't get fulfilled. Does that kind of happen there and now you're -- there's more of an aggressive sales overall, just campaign because the stuff can get filled, the salespeople can get their commissions, et cetera?

銷售渠道和回答（聽不清）聽起來非常強大，而且你把它放在你的發布中，而且它仍然非常好。所以我的經驗是，當一個組織沒有足夠的能力時，整個銷售過程有點——它不會停止，但銷售人員——而女性不會——他們不會去如果他們知道它無法實現，就會全力以赴。這種情況是否發生在那裡，現在你 - 總體上有更多積極的銷售，只是因為可以填補這些東西，銷售人員可以得到他們的佣金，等等？

Well, no, that's absolutely correct, Andrew. We've talked about this. And we've gotten to a pretty high level of capacity in our plants on our core products. And any good salesperson wants to absolutely deliver excellent service to their customers. And we've struggled a little bit with that to keep up with the kind of volume that we've had. It is really the core reason for investing in ourselves and investing in these new lines. And we are now being able to aggressively go out and sell those things that we want to sell and continue to grow the business.

嗯，不，那是絕對正確的，安德魯。我們談過這個。我們的核心產品工廠的產能已經達到了相當高的水平。任何優秀的銷售人員都希望為客戶提供卓越的服務。我們一直在努力跟上我們所擁有的那種數量。這確實是投資我們自己和投資這些新線路的核心原因。我們現在能夠積極地走出去，出售那些我們想賣的東西，並繼續發展業務。

And we have just a really great pipeline coming on all fronts, really, not just the Snack Foods side, but the churros, now that being able to make those at the rate and pretzels in different shapes and sizes, and we're really excited about what the future holds with that. And the team is out there aggressively selling and it's nice to see.

我們在各個方面都有一個非常好的管道，真的，不僅僅是休閒食品方面，還有油條，現在能夠以不同的速度製作這些和不同形狀和大小的椒鹽捲餅，我們真的很興奮關於未來會怎樣。團隊在那裡積極銷售，很高興看到。

Okay. And just specifically on the -- you mentioned a retail launch of Hola! Churros, is that going to be a national or regional or -- I mean, is this a sort of a big launch or sort of a crawl-walk-run? I mean what should -- how should we think about expectations for that specific line?

好的。特別是關於——你提到了 Hola 的零售發布！ Churros，這是全國性的還是地區性的，或者——我的意思是，這是一種大型發射還是一種爬行-步行-跑步？我的意思是我們應該如何考慮對該特定線路的期望？

Well, we're out there selling it very heavily. And we've had a lot of good feedback on it already. I think it's too soon to tell whether it will be a national launch or not and how big that will be but I will say that when you just think about the product line and churros coming of age, that we're really excited about it. And as we sell it to our retailers out there, we're getting a lot of good feedback from it. And so we think that's going to go very well.

好吧，我們在那裡賣得很厲害。我們已經收到了很多很好的反饋。我認為現在判斷它是否會在全國推出以及它有多大還為時過早，但我會說，當你想到產品線和油條成熟時，我們真的很興奮。當我們把它賣給我們的零售商時，我們從中得到了很多好的反饋。所以我們認為這會很順利。

All right. And I'd like to follow up on the 30% goal on the gross margin. It's great to hear you say it could happen as soon as this quarter. Maybe Ken or whichever you guys or both of you, there's a lot of different puts and takes that are -- caused a lot of variability and pressure on gross margin, but to me, it looks like -- and I think people have been kind of poking at this, it looks like a lot of these headwinds are either abating or turning into tailwinds, particularly input cost inflation and your pricing.

好的。我想跟進 30% 的毛利率目標。很高興聽到您說最快本季度就會發生。也許 Ken 或你們中的任何一個，或者你們兩個，有很多不同的投入和投入 - 對毛利率造成了很大的可變性和壓力，但對我來說，它看起來 - 我認為人們一直很友善仔細研究這一點，看起來很多這些逆風要么正在減弱，要么變成順風，尤其是投入成本通脹和定價。

But as we look at the back half, it's also -- I mean, if you've hit 30% plus in the back half, is that reasonable that, that can be into 2024? Because there's also a lot of seasonality in there. And I think you alluded to in the release and in some of the commentary, there's some increased promotionality, it sounds like maybe the retailers who, with their volumes not being good are asking for that. So there's a lot of puts and takes. If you could just walk us through some of those major ones as you guys think about your -- how you're planning your gross margin?

但是當我們看後半部分時，它也是——我的意思是，如果你在後半部分達到 30% 以上，那是否合理，可以到 2024 年？因為那裡也有很多季節性。我想你在新聞稿和一些評論中提到，促銷活動有所增加，聽起來可能是那些銷量不佳的零售商要求這樣做。所以有很多投入和投入。如果你們能在你們考慮你們的時候向我們介紹一些主要的——你們是如何計劃你們的毛利率的？

Yes. I mean, first of all, I think Dan spoke about it, Andrew, as we look to Q3 and Q4, we like the trajectory we're on. We're getting better at managing some of the costs, some cases, inflation, deflation is helping a little bit. And also I think we're doing some things to manage that and improve margins that way. We're also going to be mixing out the business really strongly in Q3 and Q4 with the growth that we're having in IC and then adding really the peak seasons for Dippin' Dots. So the combination of all that makes us feel pretty confident that we're going to get to that 30% range here in Q3 and Q4.

是的。我的意思是，首先，我認為丹談到了這一點，安德魯，當我們展望第三季度和第四季度時，我們喜歡我們所處的軌跡。我們在管理某些成本方面做得越來越好，在某些情況下，通貨膨脹、通貨緊縮有所幫助。而且我認為我們正在做一些事情來管理它並以這種方式提高利潤率。我們還將在第三季度和第四季度將業務與我們在 IC 領域的增長結合起來，然後真正為 Dippin' Dots 添加旺季。因此，所有這些因素的結合讓我們非常有信心我們將在第三季度和第四季度達到 30% 的範圍。

As we go further on and get into Q1, Q2 of next year, I think we're going to be much better, much closer at that. There may be a quarter or 2, and it's in the winter and sales of high-margin items, like ICEE and Dippin' Dots fall a bit, where those margins might not quite reach 30%, but I think our goal is that we're a business that year in and year out is in totality doing 30% or more gross margin, and I feel like we're heading in that direction.

隨著我們進一步進入明年的第一季度、第二季度，我認為我們會做得更好，更接近於此。可能會有一兩個季度，而且是在冬天，ICEE 和 Dippin' Dots 等高利潤商品的銷售額略有下降，這些利潤率可能達不到 30%，但我認為我們的目標是年復一年，我們的毛利率總體上達到 30% 或更高，我覺得我們正朝著這個方向前進。

I'm sorry, I was on mute. Can I ask another question around your distribution commentary?

對不起，我是靜音的。我可以圍繞您的發行評論再問一個問題嗎？

Sure.

當然。

If you're going to realize an ultimate taking it back down to where you were, so that's hundreds of basis points of lower margin, single digit [not] hundreds, but it's a big number. How much of that is rationalizing the sprawling distribution network that the company currently operates out of? How much of that is sort of NFI doing what they're doing? And lastly, how much of that is just the market kind of normalizing diesel prices coming down, maybe perhaps labor getting a little less tight? Can you just help us apportion how you guys think about this really big bucket of cost savings that you anticipate?

如果你要實現最終將其降低到原來的水平，那麼這是較低利潤率的數百個基點，個位數 [not] 數百，但這是一個很大的數字。其中有多少用於使公司目前運營的龐大分銷網絡合理化？其中有多少是 NFI 在做他們正在做的事情？最後，其中有多少只是市場正常化的柴油價格下降，也許勞動力變得不那麼緊張了？你能幫我們分攤一下你們是如何看待你預期的這一大筆成本節約的嗎？

This has been one of our top-5 strategies for a while. And the company potentially outgrew the distribution network that it had at one time. And so it was pretty clear to see that we needed to do something early on, but it's a big undertaking. And so getting ourselves from 30-plus distribution points down to, call it, 6% to 8% somewhere in that neighborhood is going to have a significant impact on the business. And you kind of touched on all the 3 things that will make it better and allow us to get down to our goal of that single high-digit number again.

一段時間以來，這一直是我們的前 5 大策略之一。而且公司的發展可能會超過它曾經擁有的分銷網絡。所以很明顯我們需要儘早做點什麼，但這是一項艱鉅的任務。因此，將我們自己從 30 多個分銷點減少到該社區某處的 6% 到 8% 將對業務產生重大影響。你有點觸及了所有 3 件事，這三件事會讓它變得更好，讓我們再次回到那個高位數字的目標。

I don't know if we have it broken down, Andrew, about how much each one of those 3 areas will impact it. But I know that we're confident that all 3 of those areas will allow us to make some significant gains in that area. And we're excited about the opportunity of opening these 3 new DCs, and we get a chance to kind of touch and fill the first one here in July, and teams are working really hard at making sure that we open that with excellence.

安德魯，我不知道我們是否將其分解為這 3 個領域中的每一個都會對其產生多大影響。但我知道我們有信心所有這 3 個領域將使我們能夠在該領域取得一些重大進展。我們很高興有機會打開這 3 個新的 DC，我們有機會在 7 月份接觸並填補第一個，團隊正在努力確保我們以卓越的方式打開它。

Yes. Andrew, there are various pieces to -- I think I've said this before, so I'll add this. We talked about our business case on the RDC strategy kind of going from this 30-ish to 6 to 8 and having these 3 dedicated RDCs at the time, we estimated that as at least a $10 million savings opportunity. And then we talked about the word with our partner and basically moving logistics management to them and thought that was around a $4 million opportunity.

是的。安德魯，有各種各樣的內容——我想我之前已經說過了，所以我來補充一下。我們討論了我們關於 RDC 戰略的商業案例，從 30 個左右到 6 個到 8 個，當時擁有這 3 個專用 RDC，我們估計這至少是一個 1000 萬美元的節省機會。然後我們與我們的合作夥伴討論了這個詞，基本上將物流管理轉移給了他們，我們認為這是一個大約 400 萬美元的機會。

Again, those were projections based on the business cases. And we still feel very good about what we're going to get out of all of that. You add that in where there will be some deflation that helps with some other things we're doing around things like inventory management, metrics we're putting in place, all of that combined gives us a lot of confidence that we're going to get this back down to that 9%, hopefully, below that range. I think that is certainly within our targets here, and we believe we will eventually get there once all this starts working in tandem.

同樣，這些是基於業務案例的預測。我們仍然對我們將從這一切中得到的東西感到非常滿意。你補充說，在會出現通貨緊縮的地方，這有助於我們圍繞庫存管理、我們正在實施的指標等其他事情做一些事情，所有這些結合起來讓我們充滿信心，我們將希望將其降低到 9%，低於該範圍。我認為這肯定在我們的目標之內，我們相信一旦所有這些開始協同工作，我們最終會實現目標。

Our next question or comment comes from the line of Robert Dickerson from Jefferies LLC.

我們的下一個問題或評論來自 Jefferies LLC 的 Robert Dickerson。

Just 2 quick questions for me. I guess, we're sitting here now early May. I think, Ken, you had a couple of comments on mix impact as we think about kind of the latter part of the fiscal year into next year, and I would assume conversations have been had with some of your -- or let's just say, kind of across channels as we get into these kind of heavier demand months. So any color you have either Dan or Ken or just kind of how those conversations have been going, let's say, with like -- with amusement parks, right?

只問我 2 個簡單的問題。我想，我們五月初就坐在這裡了。我想，肯，當我們考慮財政年度下半年到明年的時候，你對混合影響發表了一些評論，我想已經和你的一些人進行了對話——或者我們只是說，當我們進入這些需求量更大的月份時，就會出現跨渠道的情況。所以你有丹或肯的任何顏色，或者只是這些對話是如何進行的，比方說，與遊樂園一樣，對吧？

Like it's a -- last year, there's some pent-up demand. It seemed like it was kind of a banner year, this year, I don't know, maybe the economic backdrop little bit more pressured, but maybe going on amusement park is more cost effective than taking a trip to Europe, so I'm just trying to kind of gauge kind of how you've kind of feel demand as you start to enter kind of this core season. And then I have a quick profitability question.

就像是——去年，有一些被壓抑的需求。這似乎是標誌性的一年，今年，我不知道，也許經濟背景壓力更大，但也許去遊樂園比去歐洲旅行更划算，所以我當你開始進入這個核心季節時，只是想衡量一下你對需求的感覺。然後我有一個快速的盈利問題。

Yes. I'll kind of touch on this. So amusement park industry has been very good for us for quite some time. And as you talk to them today, they still feel pretty bullish about what's coming this year. So much of it is dependent on weather and the weather conditions throughout the next few months. But our big customers feel like they've got a really strong year coming. It was impacted in a negative way over this past quarter with all the rain and hard weather we had on the West Coast, our amusement park industry was impacted. But overall, we think that we'll continue to have a strong year.

是的。我會稍微談談這個。因此，遊樂園行業在相當長一段時間內對我們非常有利。當您今天與他們交談時，他們仍然對今年即將發生的事情感到非常樂觀。這在很大程度上取決於未來幾個月的天氣和天氣狀況。但是我們的大客戶覺得他們即將迎來非常強勁的一年。在過去的一個季度裡，由於我們在西海岸遇到的所有降雨和惡劣天氣，它受到了負面影響，我們的遊樂園行業受到了影響。但總的來說，我們認為我們將繼續擁有強勁的一年。

I just got back from CinemaCon, the theater industry, and they're feeling really, really strong about what's to come. They feel like they have a great lineup of some tremendous movies that are going to be released over the year and really even released over the next 3, 4 months. And so it was good to build that momentum with that group and the hopes of it coming back really strong this year. So we're encouraged by that.

我剛從劇院行業的 CinemaCon 回來，他們對即將發生的事情感到非常、非常強烈。他們覺得他們有一些很棒的電影陣容，這些電影將在一年內上映，甚至在接下來的 3、4 個月內上映。因此，很高興與該小組建立這種勢頭，並希望它在今年強勢回歸。所以我們對此感到鼓舞。

So I guess what I would say, Rob, is we feel good about what's coming over the next 6 months. We feel like we're positioned well. I like each segment of our business. I like what Dippin' Dots is doing. I like what ICEE is doing. And I like what the snack foods side of the business is doing. We feel good about what's to come.

所以我想我會說，Rob，我們對未來 6 個月內發生的事情感覺良好。我們覺得我們的定位很好。我喜歡我們業務的每個部分。我喜歡 Dippin' Dots 所做的事情。我喜歡 ICEE 正在做的事情。我喜歡休閒食品方面的業務。我們對即將發生的事情感覺良好。

Lovely. Cool. And then just, I guess, on the margin side, as it kind of pertains to each of the segments, right? I mean we're seeing a little bit of differentiation in kind of how your operating margin has been coming in, in food service and retail supermarket, while Q2 frozen beverages, I don't know, maybe that's the best you -- margin you've put up in any Q2, so I'm just curious, as we think on the go forward, is kind of the expectation here that the frozen beverage margin actually can continue to surpass what we've seen historically? Back to kind of a comment, I think, Ken made, that in itself can provide some of the margin mix positive while maybe kind of the ramp and reversion back to the margins we used to see in food service and retail supermarket could be a little slower? Because it's like -- basically, as we look at the back half of the year, frozen beverages always perform better on the margin side. But for the full year, food service and retail supermarket actually were pretty good, too. So I'm just trying to gauge really just the next couple of quarters, there's probably more acceleration of frozen beverages, maybe a little less acceleration of food service and retail.

迷人的。涼爽的。然後，我想，在利潤方面，因為它與每個細分市場有關，對吧？我的意思是，我們在食品服務和零售超市的營業利潤率方面看到了一些差異，而第二季度的冷凍飲料，我不知道，也許那是最好的 - 保證金你已經在任何第二季度提出，所以我很好奇，正如我們對未來的思考，這裡是否期望冷凍飲料利潤率實際上可以繼續超過我們歷史上看到的？回到某種評論，我認為，Ken 提出，這本身可以提供一些積極的利潤率組合，同時可能有點上升和回歸到我們過去在食品服務和零售超市看到的利潤率可能有點慢點？因為它就像——基本上，當我們回顧今年下半年時，冷凍飲料在利潤率方面總是表現更好。但就全年而言，餐飲服務和零售超市實際上也相當不錯。所以我只是想真正衡量接下來的幾個季度，冷凍飲料的加速可能會更多，食品服務和零售的加速可能會少一些。

Yes. I think you're spot on with your observation, Rob. On frozen ICEE, we feel really good about where we're at in terms of sales opportunities and where our margins are at and do expect them to continue to be where they're at, I don't know if they're at historical levels off the top of my head, Rob, but I can tell you they're meeting our expectations right now in terms of where we're at with rate on ICEE.

是的。我認為你的觀察很準確，羅伯。在凍結的 ICEE 上，我們對我們在銷售機會和利潤率方面所處的位置感覺非常好，並且確實希望它們繼續保持在它們所在的位置，我不知道它們是否處於歷史水平羅布，我的頭腦很平靜，但我可以告訴你，就我們在 ICEE 上的利率而言，他們現在正在滿足我們的期望。

On food service and retail, we're progressing but slower. I feel better about the ground we're making up on food service. That business segment operates a little bit differently in terms of how you kind of manage cost and price increases. And I think we probably have come closer on that one in. Retail, I do expect us to get better, and we're looking at some things right now on areas of improved margin. I mentioned earlier, what some of that impact was, which is us being a bit more promotional. We think that there are good long-term advantages to that. But there's also some cases where the pricing environment is a little bit tougher to navigate on Retail side and we're probably not yet covering all the cost increases from a year ago. But as those come down, we should continue to see that margin get better.

在餐飲服務和零售方面，我們正在取得進展，但速度較慢。我對我們在餐飲服務方面正在彌補的基礎感覺好多了。該業務部門在管理成本和價格上漲方面的運作方式略有不同。而且我認為我們可能已經接近了這一點。零售業，我確實希望我們會變得更好，我們現在正在研究提高利潤率領域的一些事情。我之前提到過，其中的一些影響是，我們的宣傳力度更大了。我們認為這有很好的長期優勢。但也有一些情況下，零售方面的定價環境有點難以駕馭，我們可能還沒有涵蓋一年前的所有成本增長。但隨著這些下降，我們應該繼續看到利潤率變得更好。

Our next question or comment is a follow-up from Mr. Todd Brooks from The Benchmark Company.

我們的下一個問題或評論來自 The Benchmark Company 的 Todd Brooks 先生的跟進。

So let me squeeze one more in here. We've talked about over the last couple of quarters, the negative impact that Dippin' Dots has had on operating expense because it just those incremental expenses against relatively seasonally soft revenues, we get into these next 2 quarters where there are strong quarters for Dippin' Dots. What do we see for sequential improvement in kind of the operating expense lines between marketing distribution and administration as Dippin' Dots instead of a drag turns into either a neutral or a contributor to maybe some leverage on those lines as we get to Q3 and Q4?

所以讓我在這裡再擠一個。我們在過去幾個季度討論過 Dippin' Dots 對運營費用的負面影響，因為它只是相對於季節性疲軟收入的增量費用，我們進入接下來的兩個季度，Dippin 有強勁的季度' 點。當我們進入第 3 季度和第 4 季度時，隨著 Dippin' Dots 而不是拖累變成中性或可能對這些線產生一些影響，我們看到營銷分銷和管理之間的運營費用線的連續改善是什麼？

Yes, Todd, this is Ken. You characterized that really well. Just to add a couple of things to that. Just over 70% of the sales of Dippin' Dots will be in Q3 and Q4. So that gives you kind of a magnitude of the seasonality of that. And then obviously, as you have higher sales that really nice margins that's going to mix out well across the business. And it's also going to cover on a rate basis the incremental SG&A cost of Dippin' Dots. And that's the point we're making in this quarter is you really add just a little over $10 million in SG&A costs this year for Dippin' Dots versus a year ago, we didn't have Dippin' Dots.

是的，托德，這是肯。你很好地描述了這一點。只是為了添加一些東西。 Dippin' Dots 超過 70% 的銷售額將出現在第三季度和第四季度。所以這給了你某種程度的季節性。然後很明顯，因為你有更高的銷售額，非常好的利潤率將在整個業務中很好地混合。它還將按比例支付 Dippin' Dots 的增量 SG&A 成本。這就是我們在本季度提出的觀點，與一年前相比，今年 Dippin' Dots 的 SG&A 成本實際上增加了 1000 萬美元多一點，我們沒有 Dippin' Dots。

If you take that out, we came in roughly where we were last year, about 4.1% of sales for SG&A expenses. So we will -- that will get better in terms of a leverage standpoint, when you put more sales in that business. The way I would kind of answer the other part of your question, distribution expenses, yes, we talked about, came in 11.3% overall for the company. It was at 12%, 12.4%, I think we'll continue to see that improve, particularly if diesel prices get a bit more aggressive on declining, they only down around $0.10. But we expect that to continue to move down. And I'm not going to throw out the exact number, but it should be below 11.3%. And then the other part, the P&L will certainly leverage a bit closer, I think what we do historically when we get into strong sales periods for Dippin' Dots.

如果你把它去掉，我們大致與去年持平，SG&A 費用約佔銷售額的 4.1%。所以我們會 - 當你在該業務中投入更多銷售額時，從槓桿的角度來看會變得更好。我會以某種方式回答你問題的另一部分，分銷費用，是的，我們談到過，占公司整體的 11.3%。它為 12%、12.4%，我認為我們會繼續看到這種改善，特別是如果柴油價格在下跌時變得更加激進，它們只會下跌 0.10 美元左右。但我們預計會繼續下降。我不會拋出確切的數字，但它應該低於 11.3%。然後是另一部分，損益表肯定會更接近一點，我認為當我們進入 Dippin' Dots 的強勁銷售期時，我們歷史上所做的事情。

Thank you. I'm showing no additional questions in the queue at this time. I'd like to turn the conference back over to Mr. Fachner and management for any closing remarks.

謝謝。我目前沒有在隊列中顯示其他問題。我想將會議轉回給 Fachner 先生和管理層，聽取任何閉幕詞。

Great. Thank you, and thank you for your time today. I hope our results and our comments clearly reflect why we are optimistic about the future of J&J Snack Foods and our ability to create value for employees, partners and shareholders. I'm so proud of the teams and all the hard work that they're doing out there. I mentioned earlier about being out of CinemaCon last week, where we were awarded Supplier of the Year by one of the largest theater chains and that just feels good to have that happen.

偉大的。謝謝你，也謝謝你今天抽出時間來。我希望我們的結果和我們的評論清楚地反映出我們為什麼對 J&J Snack Foods 的未來以及我們為員工、合作夥伴和股東創造價值的能力持樂觀態度。我為團隊和他們在那裡所做的所有辛勤工作感到驕傲。我之前提到過上週離開 CinemaCon，在那裡我們被最大的連鎖影院之一授予年度供應商獎，能夠實現這一點感覺真好。

We look forward to sharing our fiscal 2023 third quarter results with you later this year. And in the interim, should you have any questions or wish to speak to us, please contact our Investor Relations firm, JCIR, at (212) 835-8500. Thank you very much, and thanks for being on the call today.

我們期待在今年晚些時候與您分享我們 2023 財年第三季度的業績。在此期間，如果您有任何問題或希望與我們交談，請致電 (212) 835-8500 聯繫我們的投資者關係公司 JCIR。非常感謝，也感謝您今天接聽電話。

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.

女士們，先生們，感謝你們參加今天的會議。程序到此結束。您現在可以斷開連接。每個人，祝你有美好的一天。