車美仕 (KMX) 2023 Q1 法說會逐字稿

Good day, and welcome to the CarMax First Quarter Fiscal Year 2023 Earnings Release Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to David Lowenstein. Please go ahead, sir.

美好的一天，歡迎參加 CarMax 2023 財年第一季度收益發布電話會議。今天的會議正在錄製中。在這個時候，我想把會議交給大衛洛文斯坦。請繼續，先生。

Thank you, Orlando. Good morning. Thank you for joining our Fiscal 2023 First Quarter Earnings Conference Call. I'm here today with Bill Nash, our President and CEO; Enrique Mayor-Mora, our Executive Vice President and CFO; and Jon Daniels, our Senior Vice President, CarMax Auto Finance Operations.

謝謝你，奧蘭多。早上好。感謝您參加我們的 2023 財年第一季度收益電話會議。今天我和我們的總裁兼首席執行官比爾·納什（Bill Nash）一起來到這裡； Enrique Mayor-Mora，我們的執行副總裁兼首席財務官；我們的 CarMax 汽車金融業務高級副總裁 Jon Daniels。

Let me remind you our statements today that are not statements of historical fact, including statements regarding the company's future business plans, prospects and financial performance, are forward-looking statements we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our current knowledge, expectations and assumptions and are subject to substantial risks and uncertainties that could cause actual results to differ materially from our expectations.

讓我提醒您，我們今天的陳述不是歷史事實陳述，包括有關公司未來業務計劃、前景和財務業績的陳述，是我們根據美國《私人證券訴訟改革法案》的安全港條款做出的前瞻性陳述1995. 這些陳述基於我們目前的知識、預期和假設，並受到可能導致實際結果與我們的預期大不相同的重大風險和不確定性的影響。

In providing projections and other forward-looking statements, we disclaim any intent or obligation to update them. For additional information on important facts that could affect these expectations, please see our Form 8-K filed with the SEC this morning and our annual report on Form 10-K for the fiscal year ended February 28, 2022 previously filed with the SEC. Should you have any follow-up questions after the call, please feel free to contact our Investor Relations department at (804) 747-0422 extension 7865.

在提供預測和其他前瞻性陳述時，我們不承擔任何更新它們的意圖或義務。有關可能影響這些預期的重要事實的更多信息，請參閱我們今天上午向 SEC 提交的 8-K 表格以及我們之前向 SEC 提交的截至 2022 年 2 月 28 日的財政年度的 10-K 表格年度報告。如果您在通話後有任何後續問題，請隨時致電 (804) 747-0422 轉 7865 聯繫我們的投資者關係部門。

Lastly, let me thank you in advance for asking only one question and getting back in the queue for more follow-ups. Bill?

最後，讓我提前感謝您只提出一個問題並重新排在隊列中以進行更多跟進。賬單？

Thank you, David. Good morning, everyone, and thanks for joining us. For the first quarter of FY '23, our diversified business model delivered total sales of $9.3 billion, up 21% compared with last year's first quarter driven by growth in average selling prices and wholesale volume gains, partially offset by a decline in retail used units sold. Across our retail wholesale channels, we sold approximately 427,000 cars in total during the first quarter, down 5.5% versus last year's period.

謝謝你，大衛。大家早上好，感謝您加入我們。在 23 財年第一季度，我們多元化的商業模式實現了 93 億美元的總銷售額，與去年第一季度相比增長了 21%，這主要得益於平均售價和批發量的增長，部分被零售二手單位的下降所抵消賣。在我們的零售批發渠道，我們在第一季度共售出約 427,000 輛汽車，比去年同期下降 5.5%。

In our retail business, total unit sales in the first quarter declined 11% and used unit comps were down 12.7% versus the first quarter last year. Our performance was driven by the same macro factors that led to a market-wide decline in used auto sales during the quarter, including lapping material stimulus benefits paid in the prior year, widespread inflationary pressures, including challenges to vehicle affordability and lower consumer confidence.

在我們的零售業務中，與去年第一季度相比，第一季度的總單位銷售額下降了 11%，二手單位組合下降了 12.7%。我們的業績受到相同宏觀因素的推動，這些因素導致本季度整個市場的二手車銷量下降，包括上一年支付的物質刺激福利、廣泛的通脹壓力，包括對汽車負擔能力的挑戰和消費者信心下降。

We began the first quarter with a double-digit decline in comp sales during March, continuing the fourth quarter performance we discussed in our last earnings call. Comps then improved sequentially with May ending in a low single-digit decline. While we don't intend to talk about it each quarter, market share data provides additional context to our performance and indicates that our relative performance remains strong. Based on external data, we gained share each month from January through April, the latest period for which title data is available.

我們在第一季度開始時，3 月份的銷售額出現了兩位數的下降，延續了我們在上次財報電話會議中討論的第四季度業績。 Comps 隨後環比改善，5 月以低個位數下降結束。雖然我們不打算每個季度都談論它，但市場份額數據為我們的業績提供了額外的背景，並表明我們的相對業績仍然強勁。根據外部數據，從 1 月到 4 月，我們每個月都獲得了份額，這是可獲得標題數據的最新時期。

We believe this share gain reflects the strength of our business model and omnichannel platform, which gives us the ability to successfully manage through cycles like this one. In short, we remain focused on delivering the most customer-centric experience in the industry, and we believe we are well-positioned to deliver a profitable market share gains in any environment.

我們相信這一份額增長反映了我們的商業模式和全渠道平台的實力，這使我們有能力成功地管理像這樣的周期。簡而言之，我們仍然專注於提供業內最以客戶為中心的體驗，我們相信我們已做好準備，可以在任何環境中實現可盈利的市場份額增長。

We reported first quarter retail gross profit per used unit of $2,339, up $134 per unit versus the prior year period. We continue to focus on striking the right balance between covering cost increases, maintaining margin and passing along efficiencies to consumers to support vehicle affordability. Wholesale units were up 2.7% versus the first quarter last year despite a calendar shift, which negatively impacted auction volume compared with the prior year.

我們報告第一季度每使用單位的零售毛利潤為 2,339 美元，比去年同期增加 134 美元。我們將繼續專注於在彌補成本增加、保持利潤和將效率傳遞給消費者以支持車輛負擔能力之間取得適當的平衡。儘管日曆發生變化，但與去年第一季度相比，批發單位增長了 2.7%，與去年相比對拍賣量產生了負面影響。

Wholesale volume was also pressured by our decision to reallocate some older vehicles from wholesale to retail to meet consumer demand for lower-priced vehicles. We estimate that without these 2 factors, our wholesale unit growth would have been above 10%. Wholesale gross profit per unit was $1,029, in line with $1,025 a year ago.

我們決定將一些舊車從批發轉為零售，以滿足消費者對低價車輛的需求，也給批發量帶來了壓力。我們估計，如果沒有這兩個因素，我們的批發單位增長率將超過 10%。每單位的批發毛利潤為 1,029 美元，與一年前的 1,025 美元持平。

We are pleased that we continue to drive wholesale unit growth even as we lapped last year's nationwide launch of our instant online appraisal offering on carmax.com and in the face of the industry-wide decline in used sales. We believe our wholesale business provides an incremental growth lever and is a valuable component of our diversified business model. We bought approximately 362,000 vehicles from consumers and dealers during the first quarter, up 6% versus last year's period. We continue to be the nation's largest buyer of vehicles from consumers purchasing approximately 345,000 cars in the quarter, up 3% versus last year's record results.

我們很高興我們繼續推動批發單位的增長，儘管我們去年在 carmax.com 上推出了全國范圍的即時在線評估服務，並且面對整個行業的二手銷售下降。我們相信我們的批發業務提供了增量增長槓桿，是我們多元化業務模式的重要組成部分。我們在第一季度從消費者和經銷商處購買了大約 362,000 輛汽車，比去年同期增長 6%。我們繼續成為美國最大的汽車買家，消費者在本季度購買了約 345,000 輛汽車，比去年的創紀錄業績增長了 3%。

This enabled our self-sufficiency to remain above 70% during the quarter. We also sourced approximately 17,000 vehicles through our MaxOffer, our digital appraisal product for dealers that we mentioned during our last call. This was up 183% versus last year's period. As a reminder, buying directly from consumers and dealers lowers our acquisition costs, enhances our inventory selection and provides profitable incremental wholesale volume.

這使我們的自給自足率在本季度保持在 70% 以上。我們還通過我們在上次電話會議中提到的經銷商數字評估產品 MaxOffer 採購了大約 17,000 輛汽車。這比去年同期增長了 183%。提醒一下，直接從消費者和經銷商處購買降低了我們的採購成本，增強了我們的庫存選擇，並提供了有利可圖的增量批發量。

CarMax Auto Finance, or CAF, delivered income of $204 million, down from $242 million during the same period last year as the provision for loan losses normalized versus last year's favorable adjustment. Jon will provide more detail on customer financing, the loan loss provision and CAF's contribution in a few moments.

CarMax 汽車金融 (CAF) 的收入為 2.04 億美元，低於去年同期的 2.42 億美元，因為貸款損失準備金與去年的有利調整相比正常化。 Jon 將在稍後提供有關客戶融資、貸款損失準備金和 CAF 貢獻的更多詳細信息。

At this point, I'd like to turn the call over to Enrique, who will provide more information on our first quarter financial performance. Enrique?

在這一點上，我想將電話轉給恩里克，他將提供有關我們第一季度財務業績的更多信息。恩里克?

Thanks, Bill, and good morning, everyone. First quarter net earnings per diluted share was $1.56, down from $2.63 a year ago. While the decline in used sales was a key contributor, the comparison was also impacted by the following 2 items: first, as Jon will discuss, an $82 million year-over-year swing in the provision for loan losses, reflecting a more normalized environment; second, earnings in last year's first quarter reflected a $22 million unrealized gain on an investment.

謝謝，比爾，大家早上好。第一季度每股攤薄淨收益為 1.56 美元，低於一年前的 2.63 美元。雖然二手銷售額下降是一個關鍵因素，但比較也受到以下兩項影響：首先，正如喬恩將討論的那樣，貸款損失準備金同比波動 8200 萬美元，反映了更加正常化的環境;其次，去年第一季度的收益反映了 2200 萬美元的未實現投資收益。

Total gross profit was $875 million, down 5% from last year's first quarter. This decrease was driven primarily by the 11% drop in total used unit sales, which was partially offset by the increase in retail gross profit per unit and the continued growth in wholesale units. Wholesale vehicle margin was $192 million, up 3% despite the headwinds in the quarter that Bill noted. Other gross profit was $120 million, down 15% from last year's first quarter. This decrease was driven primarily by the effects of lower retail unit sales on service and EPP profits.

總毛利潤為 8.75 億美元，比去年第一季度下降 5%。這一下降主要是由於二手單位總銷售額下降 11%，但部分被單位零售毛利潤的增加和批發單位的持續增長所抵消。儘管比爾指出本季度存在不利因素，但批發汽車利潤率為 1.92 億美元，增長 3%。其他毛利潤為 1.2 億美元，比去年第一季度下降 15%。這一下降主要是由於零售單位銷售額下降對服務和 EPP 利潤的影響。

Service results declined $31 million as lower sales and secondarily, impacts from inflationary pressures drove a deleveraging results. EPP gross profit decreased by $18 million or 13%, slightly more than the retail unit sales rate decline. While penetration was stable at approximately 61%, this year's first quarter also reflected a $2.3 million unfavorable shift in the return reserve adjustments versus last year's period.

服務業績下降了 3100 萬美元，原因是銷售額下降，其次是通脹壓力的影響推動了去槓桿化結果。 EPP 毛利潤下降 1800 萬美元或 13%，略高於零售單位銷售率的下降。雖然滲透率穩定在 61% 左右，但今年第一季度的回報儲備調整與去年同期相比也出現了 230 萬美元的不利變化。

Partially offsetting this decline in other gross profit was favorability in third-party finance income, which improved by $8 million, with income of $3.4 million compared to a cost of $4.6 million last year. This improvement was driven by lower Tier 3 volume compared with last year's first quarter. First quarter also benefited from $20 million of margin contribution from Edmunds.

部分抵消了其他毛利潤下降的是第三方財務收入的有利情況，增加了 800 萬美元，收入為 340 萬美元，而去年的成本為 460 萬美元。與去年第一季度相比，Tier 3 交易量減少，推動了這一改善。第一季度還受益於 Edmunds 的 2000 萬美元利潤貢獻。

On the SG&A front, expenses for the first quarter increased to $657 million, up 19% from the prior year's quarter due to an increase in staffing costs and marketing, the continued investment in our strategic initiatives, growth costs related to the increase in appraisal buys and new stores and the consolidation of Edmunds. SG&A as a percent of gross profit deleveraged to 75% from 59.9% during the first quarter last year.

在 SG&A 方面，第一季度的支出增加到 6.57 億美元，比去年同期增長 19%，原因是人員成本和營銷成本增加、對我們的戰略計劃的持續投資、與評估購買增加相關的增長成本和新店和埃德蒙茲的合併。 SG&A 佔毛利潤的百分比從去年第一季度的 59.9% 下降至 75%。

The increase in SG&A dollars over last year was mainly due to 3 factors: first, a $61 million increase in compensation and benefits, excluding share-based compensation, driven by the annualization of the strong growth in staffing we experienced in the back half of last year; the inclusion of Edmunds' payroll this quarter versus a year ago, wage pressures; and the ramp in field staffing in anticipation of a stronger tax season. Partially offsetting this increase was a $16 million decrease in share-based compensation.

SG&A 美元比去年增加主要是由於 3 個因素：首先，薪酬和福利增加了 6100 萬美元，不包括基於股份的薪酬，這是由於我們在去年下半年經歷的員工人數強勁增長的年度化推動年;將埃德蒙茲本季度的工資單與一年前相比，工資壓力；以及在預期稅收季節更強勁的情況下增加現場人員配置。以股份為基礎的薪酬減少了 1600 萬美元，部分抵消了這一增長。

Second, a $26 million increase in other overhead. The primary drivers of this increase include investments to advance our technology platforms and strategic initiatives as well as growth-related costs. Third, a $16 million increase in advertising expense. This increase was primarily due to last year's lower level of spend in the first quarter, given our event tight inventory position and robust customer demand. In addition, this quarter's spend had anticipated a stronger tax season.

其次，其他管理費用增加了 2600 萬美元。這一增長的主要驅動力包括投資以推進我們的技術平台和戰略計劃以及與增長相關的成本。第三，廣告費用增加了 1600 萬美元。這一增長主要是由於去年第一季度的支出水平較低，因為我們的活動庫存狀況緊張和客戶需求旺盛。此外，本季度的支出預計會出現更強勁的稅收季節。

We've navigated many challenging consumer cycles throughout our history and remain committed to operating efficiently and effectively in every macro environment. We have already begun to better align staffing in our stores and CECs to consumer demand as part of our ability to quickly adapt our business.

在我們的歷史中，我們已經度過了許多具有挑戰性的消費者周期，並始終致力於在每個宏觀環境中高效運營。作為我們快速調整業務能力的一部分，我們已經開始更好地調整我們商店和 CEC 的人員配置以適應消費者的需求。

From a capital structure perspective, we remain in a very strong position. We ended the quarter with an adjusted debt to capital ratio in the middle of our targeted range of 35% to 45%. We also generated sufficient cash to both pay down our revolver by more than $580 million and increased the pace of our share repurchase program relative to the back half of fiscal year '22. In the first quarter, we repurchased approximately 1.6 million shares for $158 million.

從資本結構的角度來看，我們仍然處於非常有利的地位。我們在本季度末調整後的債務與資本比率在我們的目標範圍 35% 至 45% 的中間。相對於 22 財年下半年，我們還產生了足夠的現金來支付我們的左輪手槍超過 5.8 億美元，並加快了我們股票回購計劃的步伐。第一季度，我們以 1.58 億美元回購了約 160 萬股股票。

First quarter also marked our entry into the New York City metro market. We opened a store in Edison, New Jersey. And in the second quarter, we expect to open stores in Wayne, New Jersey and East Meadow, New York. We anticipate adding 2 more stores in this market next year.

第一季度也標誌著我們進入紐約市地鐵市場。我們在新澤西州的愛迪生開了一家商店。第二季度，我們預計將在新澤西州韋恩和紐約東梅多開設門店。我們預計明年會在這個市場再增加 2 家門店。

Now I'd like to turn the call over to Jon.

現在我想把電話轉給喬恩。

Thanks, Enrique, and good morning, everyone. CarMax Auto Finance business delivered solid results again this quarter despite the volatile broader lending environment. During the first quarter, CAF's net loans originated was over $2.4 billion. The weighted average contract rate charged to new customers was 9%, which was in line with the year ago but has significantly increased from 8.2% in the previous quarter. The majority of this quarter-over-quarter change came from increased rates charged to consumers rather than from the mix of credit.

謝謝，恩里克，大家早上好。儘管更廣泛的貸款環境波動，CarMax 汽車金融業務在本季度再次取得了穩健的業績。第一季度，CAF 的淨貸款總額超過 24 億美元。向新客戶收取的加權平均合同費率為 9%，與去年同期持平，但較上一季度的 8.2% 顯著增加。這一季度環比變化的大部分來自向消費者收取的利率增加，而不是來自信貸組合。

As the Fed clearly signaled the interest rate hikes at the beginning of the calendar year, CAF was able to quickly test and methodically adjust consumer rates to carefully manage sales, finance margin and penetration. As a result of these proactive rate changes, CAF's penetration in the first quarter, net of 3-day payoffs, was 39.3% compared with 43.7% last year. Of importance, CAF saw its penetration level improved during the quarter as we observed banks and credit unions raising their own consumer rates during this period.

由於美聯儲在年初明確表示加息，CAF 能夠快速測試並有條不紊地調整消費者利率，以謹慎管理銷售、融資利潤率和滲透率。由於這些積極的費率變化，第一季度 CAF 的滲透率（扣除 3 天收益）為 39.3%，而去年為 43.7%。重要的是，CAF 在本季度的滲透水平有所提高，因為我們觀察到銀行和信用合作社在此期間提高了自己的消費者利率。

Our Tier 2 partners continue to compete for the attractive CarMax business, resulting in a penetration rate of 25.2% compared with 22.8% last year. Tier 3 accounted for 7.1% of used unit sales compared with 10% a year ago, and we believe this is an indication that these customers have been impacted the most by challenges to vehicle affordability.

我們的二級合作夥伴繼續爭奪有吸引力的 CarMax 業務，滲透率從去年的 22.8% 提高到 25.2%。 Tier 3 佔二手車銷量的 7.1%，而一年前為 10%，我們認為這表明這些客戶受到汽車負擔能力挑戰的影響最大。

CAF income for the quarter was $204 million, a decrease of 15% or $37 million from the same period last year. I want to take a moment to clarify the year-over-year swing in our loan loss provision. You will recall that last year, CAF recognized $24 million of income in Q1 related to the loan loss provision as we continue to adjust our reserve based on favorable loss performance versus expectations set at the start of the COVID pandemic. CAF's loan loss provision this quarter was $58 million, reflecting a more normalized dollar amount given the loss performance observed within the quarter.

本季度 CAF 收入為 2.04 億美元，比去年同期減少 15% 或 3700 萬美元。我想花點時間澄清一下我們的貸款損失準備金的同比波動。您會記得，去年，CAF 在第一季度確認了與貸款損失準備金相關的 2400 萬美元收入，因為我們繼續根據有利的損失表現與 COVID 大流行開始時設定的預期調整我們的準備金。 CAF 本季度的貸款損失準備金為 5800 萬美元，考慮到本季度觀察到的損失表現，反映了更加正常化的美元金額。

Significantly offsetting the provision headwind was our total interest margin, which grew $53 million year-over-year, including a $36 million increase in interest and fee income and a $17 million reduction in interest expense. The lower interest expense was supported by a $9 million benefit from our hedging strategy.

顯著抵消了撥備逆風的是我們的總息差，同比增長 5300 萬美元，其中包括 3600 萬美元的利息和費用收入增加以及 1700 萬美元的利息支出減少。較低的利息費用得到了我們對沖策略帶來的 900 萬美元收益的支持。

The current quarter's provision of $58 million resulted in an ending reserve balance of $458 million or 2.85% of managed receivables. This is a slight increase from the 2.77% at the end of the fourth quarter and includes a 5 basis point adjustment for the growth in Tier 2 and Tier 3 volume originated by CAF. We remain confident in both the resiliency of the CAF consumer and our ability to serve them well. While delinquency rates have increased, our Tier 1 credit losses remain comfortably within our historical operating range of 2% to 2.5%.

本季度撥備 5800 萬美元導致期末準備金餘額為 4.58 億美元，佔管理應收賬款的 2.85%。這比第四季度末的 2.77% 略有增加，其中包括對 CAF 發起的二級和三級交易量增長進行 5 個基點的調整。我們對 CAF 消費者的彈性和我們為他們提供良好服務的能力仍然充滿信心。雖然拖欠率有所增加，但我們的一級信用損失仍保持在 2% 至 2.5% 的歷史運營範圍內。

At this point, I would like to also provide an update on our industry-leading online finance experience. As a reminder, our unique finance-based shopping engine, or FBS, allows for multiple lenders to decision a single customer or co-applicants on our entire retail inventory, providing a full suite of personalized decisions available at the consumers' fingertips within carmax.com.

在這一點上，我還想提供有關我們行業領先的在線金融體驗的最新信息。提醒一下，我們獨特的基於金融的購物引擎 (FBS) 允許多個貸方在我們的整個零售庫存上決定單個客戶或共同申請人，從而在 carmax 內提供一整套個性化的決策，讓消費者觸手可及。 com。

During the month of March, we further enhanced this experience by trusting a no impact to your credit score prequalification feature along with the streamlined application process that provides real-time credit decisions on our full inventory. We are extremely excited about the results thus far. It is currently available to approximately 25% of our online customers and we anticipate scaling nationwide during the rest of the year.

在 3 月份，我們相信不會影響您的信用評分資格預審功能以及簡化的申請流程，該流程可為我們的全部庫存提供實時信用決策，從而進一步增強了這種體驗。我們對迄今為止的結果感到非常興奮。它目前可供我們大約 25% 的在線客戶使用，我們預計在今年剩餘時間內在全國范圍內擴展。

Now I'll turn the call back over to Bill.

現在我將把電話轉回給比爾。

Great. Thank you, Jon. Thank you, Enrique. For the past several years, our priorities and investments have focused on building a leading e-commerce platform that integrates buying and selling cars with our best-in-class store experience. I'm pleased to share that during the first quarter, we achieved a significant milestone as we have now enabled online self-progression capabilities for all of our retail customers. Our journey at this point required a massive organizational transformation, and I want to thank all our associates for their tremendous support throughout as we work together to create our omnichannel experience for our customers.

偉大的。謝謝你，喬恩。謝謝你，恩里克。在過去的幾年裡，我們的優先事項和投資都集中在建立一個領先的電子商務平台，該平台將汽車買賣與我們一流的商店體驗相結合。我很高興與大家分享，在第一季度，我們實現了一個重要的里程碑，因為我們現在為所有零售客戶啟用了在線自我進步功能。在這一點上，我們的旅程需要進行大規模的組織轉型，我要感謝我們所有的員工在我們共同努力為客戶創造全渠道體驗的過程中給予的大力支持。

In regard to our first quarter online metrics, approximately 11% of retail unit sales were online, up from 8% in the prior year's quarter. Approximately 54% of retail unit sales were omni sales this quarter, down slightly from 56% in the prior year's quarter. Online, omni and in-person sales can vary from quarter-to-quarter, depending on consumer preferences and how they choose to interact with us. While we expect our online and omni sales to grow over time, our goal is to provide the best experience, whether that's in-store, online or a seamless combination of the 2.

關於我們第一季度的在線指標，大約 11% 的零售單位銷售額來自在線，高於去年同期的 8%。本季度約有 54% 的零售單位銷售額為全方位銷售，略低於去年同期的 56%。在線、全方位和麵對面的銷售可能會因季度而異，具體取決於消費者的偏好以及他們選擇與我們互動的方式。雖然我們預計我們的在線和全方位銷售會隨著時間的推移而增長，但我們的目標是提供最佳體驗，無論是店內、在線還是兩者的無縫結合。

Our wholesale auctions remain virtual. So 100% of wholesale sales, which represents 23% of total revenue, are considered online transactions. Total revenue resulting from online transactions was approximately 31%. This is up from 24% in last year's first quarter. Our e-commerce engine, combined with our unparalleled nationwide physical footprint, is a competitive advantage. Our ability to deliver integration across digital and physical transactions gives us access to the largest total addressable market relative to others in our industry and is a key differentiator.

我們的批發拍賣仍然是虛擬的。因此，佔總收入 23% 的 100% 批發銷售被視為在線交易。在線交易產生的總收入約為 31%。這高於去年第一季度的 24%。我們的電子商務引擎與我們無與倫比的全國實體足跡相結合，是一項競爭優勢。我們提供跨數字和物理交易集成的能力使我們能夠進入相對於我們行業中的其他公司而言最大的總潛在市場，並且是一個關鍵的差異化因素。

We're now going to turn our efforts to further improving the experience for our customers and our associates by focusing on the seamlessness of our online and in-store offerings. Some of our key areas of focus include: first, as Jon just mentioned, we're deploying a more sophisticated version of our finance-based shopping product. As interest rates rise, consumers' ability to confidently secure financing is more important than ever. The expansion of our best-in-class prequalification product, once fully deployed, will provide frictionless and seamless access to multi-lender credit terms on every car within our retail inventory whether the consumer chooses to browse and purchase from the comfort of their home, walk the lot on their own with their mobile device or shop alongside one of our exceptional sales consultants.

我們現在將努力通過專注於我們在線和店內產品的無縫性來進一步改善我們的客戶和員工的體驗。我們關注的一些關鍵領域包括：首先，正如 Jon 剛才提到的，我們正在部署我們基於金融的購物產品的更複雜版本。隨著利率上升，消費者有信心獲得融資的能力比以往任何時候都更加重要。我們一流的資格預審產品的擴展一旦完全部署，無論消費者選擇在舒適的家中瀏覽和購買，我們的零售庫存中的每輛汽車都將提供無摩擦和無縫的多貸方信貸條款，使用他們的移動設備自行步行或與我們的一位出色的銷售顧問一起購物。

A second area of focus is continuing to leverage data science, automation and AI to improve efficiency and effectiveness across our buying organizations, business offices and Customer Experience Centers. Finally, we will continue to use MaxOffer to acquire vehicles and build on our market-leading position as a buyer of cars. With MaxOffer, we can utilize the Edmunds sales team to open new markets and sign up new dealers for the service. It's another example of our ongoing focus on innovating and finding new opportunities in the white space adjacent to our existing capabilities.

第二個重點領域是繼續利用數據科學、自動化和人工智能來提高我們的採購組織、業務辦公室和客戶體驗中心的效率和有效性。最後，我們將繼續使用 MaxOffer 購買車輛，並鞏固我們作為汽車買家的市場領先地位。借助 MaxOffer，我們可以利用 Edmunds 銷售團隊開拓新市場並為該服務簽約新經銷商。這是我們持續關注創新並在與我們現有能力相鄰的空白空間中尋找新機會的另一個例子。

We are currently live in over 30 markets and anticipate launching additional markets throughout FY '23. Staying on Edmunds for a moment, I want to acknowledge that as of June 1, we reached the 1-year anniversary of this acquisition. We are glad to have all of the talented Edmunds' associates on our team and have been very pleased with the value that's been created so far. We are equally excited about our path forward as we continue to build out together our vehicle and customer acquisition programs.

我們目前生活在 30 多個市場中，並預計在 23 財年推出更多市場。在 Edmunds 停留片刻，我想承認，截至 6 月 1 日，我們迎來了此次收購一周年。我們很高興擁有 Edmunds 的所有才華橫溢的員工加入我們的團隊，並對迄今為止創造的價值感到非常滿意。隨著我們繼續共同構建我們的車輛和客戶獲取計劃，我們對前進的道路同樣感到興奮。

Before closing, while I want to acknowledge there's uncertainty in the market and in regard to consumer behavior, we believe that our fundamentals are strong and that our diversified business model enables us to gain profitable market share in any environment. Multiple opportunities exist to grow the business as we roll forward, and we're excited about the future.

在結束之前，雖然我想承認市場和消費者行為方面存在不確定性，但我們相信我們的基本面是強勁的，我們多元化的商業模式使我們能夠在任何環境中獲得有利可圖的市場份額。隨著我們向前發展，存在多種發展業務的機會，我們對未來感到興奮。

With that, we'll be happy to take your questions. Orlando?

有了這個，我們很樂意回答您的問題。奧蘭多？

(Operator Instructions) And we will take our first question from Brian Nagel with Oppenheimer.

（操作員說明）我們將向奧本海默的 Brian Nagel 提出第一個問題。

Can you hear me?

你能聽到我嗎？

Yes, Brian.

是的，布賴恩。

I'm sorry about that if I (inaudible). Congrats on the continued progress. So the question I want to ask is this, from a bigger picture perspective. As we look at the sales trends here, and Bill, in your prepared comments, you mentioned, again, some of the same factors. Obviously, the difficult comparisons last year against stimulus and then elevated prices, confidence and such. But as we're progressing now into '22, are you seeing more clearly kind of how the consumer really is -- how the consumer is behaving? The underlying health of the consumer? And what's really driving the business at this point? Particularly as you mentioned the, I guess, the strengthening trend through fiscal Q1. Is the health of the consumer gain better? Is that more of a function of comparisons?

如果我（聽不清），我很抱歉。祝賀繼續取得進展。所以我想問的問題是，從更大的角度來看。當我們在這裡查看銷售趨勢時，比爾在您準備好的評論中，您再次提到了一些相同的因素。顯然，去年與刺激措施以及隨後的價格上漲、信心等因素進行了艱難的比較。但是隨著我們現在進入 22 世紀，您是否更清楚地看到了消費者的真實情況——消費者的行為方式？消費者的潛在健康狀況？在這一點上真正推動業務的是什麼？特別是正如你提到的，我猜是第一財季的走強趨勢。消費者的健康狀況是否更好？這更像是比較的功能嗎？

Yes, Brian. Look, I think overall, the consumer is absolutely a little softer just because of all the things that I've talked about. I think it's hard to quantify. If you think about lapping over stimulus vehicle affordability, the general inflationary pressures, rising interest rates. If you think about those, it's hard to quantify the impact of each one. Now I would tell you, the further we've gotten from lapping the stimulus, obviously, the better we performed. As I noted in my opening remarks, we got sequentially better on comps throughout the quarter, which is encouraging.

是的，布賴恩。看，我認為總體而言，僅僅因為我談到的所有事情，消費者絕對會更溫和一些。我認為很難量化。如果你考慮一下刺激汽車的負擔能力、總體通脹壓力、利率上升。如果你考慮這些，很難量化每一個的影響。現在我要告訴你，我們離刺激越遠，顯然我們的表現就越好。正如我在開場白中指出的那樣，我們在整個季度的比賽中都取得了更好的成績，這是令人鼓舞的。

But that being said, I think the consumer's softer. But they're still there's still some demand out there. And I think that's what we're trying to really maximize on. And we're taking several steps to take advantage of that. It's one of the reasons why we're -- we continue to take efficiencies and pass what we can along to consumers to make the vehicle a bit more affordable.

但話雖這麼說，我認為消費者更軟。但他們仍然有一些需求。我認為這就是我們真正想要最大化的。我們正在採取幾個步驟來利用這一點。這就是我們為什麼要這樣做的原因之一——我們繼續提高效率，並將我們所能提供的東西傳遞給消費者，以使車輛更實惠。

In my opening remarks, I talked about selling a little bit more of older vehicles, making the vehicle is a little bit more affordable because we know some of the consumers are looking for that. In fact, Brian, you followed us long enough to know that we used to have what we called a ValueMax, which was really 6 years old -- older than 6 or more than 60,000 miles. Typically, that type of inventory runs, let's call it, in a given year, 20% to 25% of our sales. Well, for this quarter, it was more like 35% of our sales. So there is some demand for that.

在我的開場白中，我談到銷售更多舊車，使車輛更實惠一些，因為我們知道一些消費者正在尋找它。事實上，布賴恩，你跟踪我們的時間已經夠長了，以至於我們知道我們曾經擁有我們所謂的 ValueMax，它真的有 6 年的歷史——比 6 大或超過 60,000 英里。通常，這種類型的庫存在給定的一年中占我們銷售額的 20% 到 25%。好吧，在本季度，它更像是我們銷售額的 35%。所以有一些需求。

And I think the other thing I would point out is it's the reason why we also have the lending platform that we do, that we have great third-party lenders and CAF just to make sure that we can get the most competitive interest rate for our customers. So I think those are the things that we're doing to kind of work through this. And while the consumer is softer, there's still some demand out there.

而且我認為我要指出的另一件事是，這就是為什麼我們也擁有我們所做的借貸平台的原因，我們擁有出色的第三方貸方和 CAF，只是為了確保我們可以獲得最具競爭力的利率。顧客。所以我認為這些是我們正在做的事情來解決這個問題。儘管消費者疲軟，但仍有一些需求。

That's very helpful. But I mean if I could just slip one follow-up into that. So are you seeing -- as you look at maybe across the different cohorts of your business, higher priced vehicles, lower-priced vehicles. Are you seeing a now more significant demand dynamic across those cohorts?

這很有幫助。但我的意思是，如果我可以對此進行後續跟進。您是否看到了——當您查看您的業務的不同群體時，價格較高的車輛，價格較低的車輛。您是否看到這些群體的需求動態更加顯著？

On the vehicle prices?

關於車輛價格？

Yes. This year (inaudible). Okay.

是的。今年（聽不清）。好的。

What's interesting about it, Brian, is if you look back a year ago, 70% of our inventory was under $25,000. Fast forward to today, it's more like 43% to 45%. And that's really a result of inflationary pressures, which again is one of the reasons why we're focused on getting more affordable inventory out there. So that's what our big push is right now. Now realizing some folks aren't interested in a higher mile car and -- or an older car. But again, that's what our focus is right now.

布賴恩，有趣的是，如果你回顧一年前，我們 70% 的庫存低於 25,000 美元。快進到今天，它更像是 43% 到 45%。這實際上是通脹壓力的結果，這也是我們專注於獲得更實惠的庫存的原因之一。所以這就是我們現在的大力推動。現在意識到有些人對更高英里的汽車和 - 或舊車不感興趣。但同樣，這就是我們現在的重點。

Next question will come from John Healy with Northcoast Research.

下一個問題將來自 Northcoast Research 的 John Healy。

Wanted to try to follow up on that first question maybe in a little bit different way. When I think about, Bill, what you kind of talked about going on in the business, you've re-merchandised, you've got investments into the sales and the labor force. Obviously, those mature at different rates. But if you look at kind of going from low double-digit declines in, say, March or April to low single-digit declines now in comps, what would you attribute the improvement to? Is it conversion? Is it the people in the stores? Is it that consumer might have paused and they're realizing they have to make a transaction? Would just love to kind of hear how you and the team are attributing the sequential improvement and maybe to what initiatives or are they more consumer-related?

想嘗試以不同的方式跟進第一個問題。比爾，當我想到你所說的在業務中發生的事情時，你已經重新銷售，你已經對銷售和勞動力進行了投資。顯然，它們以不同的速度成熟。但是，如果您考慮從 3 月或 4 月的兩位數低位下降到現在的低個位數下降，您會將這種改善歸因於什麼？是轉換嗎？是店裡的人嗎？是消費者可能已經暫停並且他們意識到他們必須進行交易嗎？只是想听聽您和團隊如何將連續改進歸因於哪些舉措，或者它們與消費者更相關？

Yes, it's a good question, John. I mean, obviously, I'd love to tell you that it's because of our continued focus on improving the experience, getting the right inventory and they're improving prices and all that. Well, I do think that's a factor, I don't think you can ignore the fact that a year ago in March, the biggest stimulus checks hit the ground. And when you think about it, tax season this year versus last year would have looked very similar. The only difference, though, is last year, a $1,400 check went out to consumers during tax season. That did not happen this year. So that absolutely had an impact. So I'm not going to sit here and say it's all us that's driving that. I think there are some macro factors that are allowing it to improve the further you get away from that stimulus.

是的，這是一個很好的問題，約翰。我的意思是，很明顯，我很想告訴你，這是因為我們繼續專注於改善體驗，獲得正確的庫存，他們正在提高價格等等。嗯，我確實認為這是一個因素，我認為你不能忽視這樣一個事實，即一年前的 3 月，最大的刺激措施實施了。仔細想想，今年的報稅季與去年會非常相似。不過，唯一的區別是去年，在納稅季節向消費者發放了 1,400 美元的支票。今年沒有發生這種情況。所以這絕對有影響。所以我不會坐在這裡說是我們所有人都在推動它。我認為有一些宏觀因素可以讓它隨著你遠離刺激而得到改善。

I think as well, like our success in buying cars directly from consumers as reflected in our self-efficiency rate really allows us to buy those older cars. And as Bill talked about, our percent of sales coming from older cars went up because the consumer demand is there. Those cars are not easy to buy in auctions. So it's really a nod to our ability to buy cars directly from consumers.

我也認為，就像我們直接從消費者那裡購買汽車的成功一樣，反映在我們的自效率率上，確實讓我們能夠購買那些舊車。正如比爾所說，我們來自舊車的銷售額百分比上升，因為消費者需求在那裡。這些車在拍賣會上不容易買到。因此，這確實是對我們直接從消費者那裡購買汽車的能力的認可。

Great. And then just one follow-up question. I think you mentioned the auction calendar working against the wholesale business this quarter. Will that revert? Will we pick that up in Q2? I was just curious how the timing impact might or that there might be a benefit quarter here as we look out for the remainder of the year.

偉大的。然後只是一個後續問題。我想你提到了本季度不利於批發業務的拍賣日曆。那會恢復嗎？我們會在第二季度接手嗎？我只是好奇時間影響可能如何，或者在我們展望今年剩餘時間時，這裡可能會有一個受益季度。

Yes. No, great question. First of all, we're very pleased with the auction performance, wholesale performance in general. We're pleased with the fact that we actually grew it. The dynamic was that we had one less Monday sale and swapped it for a Tuesday. And Monday is a bigger auction volume day than a Tuesday. And that actually -- we got the benefit of that at some point last year. So that will not be a pickup.

是的。不，很好的問題。首先，我們對拍賣表現非常滿意，批發表現一般。我們對我們實際種植它的事實感到高興。動態是我們在星期一少了一次銷售，然後把它換成了星期二。週一是比周二更大的拍賣量日。實際上——我們在去年的某個時候從中受益。所以這不會是一個皮卡。

The other thing that I cited, though, was that we have made the decision to pull some what we normally run through the auctions and build those cars to retail. And absent those 2 things, if you pulled them out, the wholesale would have grown by more than 10%, which again, we're excited about.

不過，我引用的另一件事是，我們已經決定將一些我們通常在拍賣中運行的東西拉出來，並將這些汽車製造成零售。如果沒有這兩件事，如果你把它們拿出來，批發量會增長 10% 以上，這讓我們再次感到興奮。

Next, we'll hear from Sharon Zackfia with William Blair.

接下來，我們將聽取莎朗·扎克菲亞和威廉·布萊爾的來信。

So as you think about offering some more value-oriented cars, have you also considered kind of swaying from the -- I guess, I would say, fully reconditioned status that you've historically had, and maybe leaving some scratches or whatever and market it as is to further enhance the value proposition. I know that's been something you've been [leery] of in the past from a brand perspective. And then secondarily, obviously, there's a lot of concern that things are going to get worse before they get better. I mean how are you positioning from a controllable standpoint in the event that there's another leg down? I mean, how should we think about SG&A and what you can cut if you need to cut it?

因此，當您考慮提供更多以價值為導向的汽車時，您是否也考慮過從歷史上完全翻新的狀態中搖擺不定，並且可能會留下一些划痕或其他任何東西和市場它是為了進一步提升價值主張。我知道從品牌的角度來看，你過去一直對此持懷疑態度。其次，顯然，人們擔心事情會在好轉之前變得更糟。我的意思是，如果有另一條腿向下，你如何從可控的角度定位？我的意思是，我們應該如何考慮 SG&A 以及如果你需要削減它可以削減什麼？

Yes. Yes, I'll tackle that because I'm sure Enrique will have some comments on kind of the concerns going forward. From your first question, as far as the older inventory, Sharon, no, we're -- if we're going to make it a CarMax car, it's going to be a CarMax car. And you know you take these older cars, not all of them can make the cut. And we'll end up trying to run through -- some through retail, they won't make it. But we're bringing them up to the CarMax standard. So I think that answers your first question.

是的。是的，我會解決這個問題，因為我確信恩里克會對未來的擔憂發表一些評論。從你的第一個問題開始，就舊庫存而言，Sharon，不，我們是——如果我們要讓它成為 CarMax 汽車，它將成為 CarMax 汽車。而且您知道您會乘坐這些舊車，但並非所有人都可以晉級。我們最終會試圖通過零售——一些通過零售，他們不會成功。但我們正在將它們提升到 CarMax 標準。所以我認為這回答了你的第一個問題。

The other thing I would just point out there is those cars, and we've talked about this, but we haven't talked about it for a while. Those cars are generally more profitable. So they also provide us a tailwind when you think about margin management, pricing inventory, that kind of thing. So we'll continue to do that. We'll continue to bring them up to CarMax standards and not go with a lower standard.

我要指出的另一件事是那些汽車，我們已經討論過這個問題，但我們已經有一段時間沒有討論過了。這些汽車通常更有利可圖。因此，當您考慮利潤管理、庫存定價等這類事情時，它們也為我們提供了順風。所以我們將繼續這樣做。我們將繼續使它們達到 CarMax 標準，而不是降低標準。

As far as the concerns about what may manifest in the future with the consumer, where the consumer is going, Sharon, we've been through this several times in the past. And whether it's '08, '09 recession, whether it's the depths of COVID, we've been able to navigate it profitably both times, and we have lots of levers we've shown that we've been able to pull those levers whether they're expense levers. And you think about you can slow down some of your growth, you can slow down some of your initiatives, you can pull back on advertising, your variable will adjust. Or if it's just -- if you want to secure cash, you can modify your stock buyback, you can stop on some of your capital expenditures or delay it.

至於對消費者未來可能表現出什麼的擔憂，消費者的去向，Sharon，我們過去曾多次經歷過這種情況。無論是 08 年、09 年的經濟衰退，無論是 COVID 的深度，我們都能夠在兩次盈利的情況下駕馭它，而且我們有很多槓桿，我們已經證明我們能夠拉動這些槓桿，無論是它們是費用槓桿。你想想你可以放慢你的一些增長，你可以放慢你的一些主動性，你可以撤回廣告，你的變量會調整。或者如果只是——如果你想獲得現金，你可以修改你的股票回購，你可以停止你的一些資本支出或推遲它。

So these are just some of the levers that you know that we pulled in the past. And we're going to continue to monitor the conditions. But I'd tell you as I sit here today, yes, the consumer is soft, but now is not the time, I don't think, to be pulling back on our initiatives because the initiatives are what are going to really help us grow in the future. But that being said, we're certainly aware of the outside factors and we'll continue to monitor.

所以這些只是你知道我們過去拉過的一些槓桿。我們將繼續監測情況。但是，當我今天坐在這裡時，我會告訴你，是的，消費者是軟弱的，但我認為現在不是時候撤回我們的舉措，因為這些舉措將真正幫助我們在未來成長。但話雖如此，我們當然知道外部因素，我們將繼續監測。

Yes, I would just add to that by saying we're going to do -- our objective really is to ensure that our expenses are in line with customer demand, while at the same time, making sure that we're investing in the key areas of the business that are going to enable us to grow profitability and market share over time. And as I mentioned in my prepared remarks, we -- with a view of that, we've already begun to kind of align our cost structure to current demand through scheduling, through natural attrition. So we've already done those.

是的，我只想補充說我們將要這樣做——我們的目標實際上是確保我們的費用符合客戶需求，同時確保我們投資於關鍵使我們能夠隨著時間的推移提高盈利能力和市場份額的業務領域。正如我在準備好的評論中提到的那樣，我們 - 考慮到這一點，我們已經開始通過調度和自然減員使我們的成本結構與當前需求保持一致。所以我們已經做了這些。

And look, if a recession comes, we're confident in our ability to weather it as we're coming at it from a position of strength. We're profitable, we have a strong balance sheet, and we generate cash. So we feel -- again, as Bill mentioned, we've been through these cycles before, and we feel confident we can manage through it effectively while growing our market share as well.

看，如果經濟衰退來臨時，我們有信心度過它，因為我們正處於強勢地位。我們是盈利的，我們有一個強大的資產負債表，我們產生現金。所以我們覺得 - 正如比爾提到的那樣，我們之前已經經歷過這些週期，我們相信我們可以有效地管理它，同時增加我們的市場份額。

Our next question will come from Rajat Gupta with JPMorgan.

我們的下一個問題將來自摩根大通的 Rajat Gupta。

Great. Nice indication on the retail gross profit per unit. Can you help us unpack that a little bit versus the prior quarter? What drove the sequential uptick there? Is it recommissioning savings? Is it just the sourcing mix? Is it pricing-related? Curious if you could bucket those, if possible, and I have a follow-up.

偉大的。單位零售毛利的良好指標。與上一季度相比，您能幫我們解開這一點嗎？是什麼推動了那裡的連續上漲？是重新調試節省嗎？僅僅是採購組合嗎？它與定價有關嗎？如果可能的話，我很好奇你是否可以將這些存儲起來，我有一個後續行動。

Yes. Thanks for the question, Rajat. Yes, the way I think about it, and I talked about this in the opening remarks. We're really trying to walk up on balance here. We have some efficiencies. Historically, we've always passed our efficiencies along. And the big efficiencies that we're working with right now are the fact that we've got self-sufficiency still at a high. But we also have this new dynamic where we're selling to more older cars. And as I talked about earlier, these older cars generally carry more margins. So that's also an opportunity to manage your margin and pass along efficiencies to the consumers.

是的。謝謝你的問題，拉賈特。是的，我是這麼想的，我在開場白中談到了這一點。我們真的想在這裡保持平衡。我們有一些效率。從歷史上看，我們一直在傳遞我們的效率。我們現在正在使用的最大效率是我們的自給自足率仍然很高。但我們也有這種新的動力，我們正在向更多的舊車銷售。正如我之前談到的，這些舊車通常帶來更多利潤。因此，這也是管理您的利潤並將效率傳遞給消費者的機會。

And this quarter, obviously, it's a little higher than last year and even our 5-year average, and that's because with these efficiencies, we continue to pass along in price savings, but we also took a little bit more to the bottom line. And we monitor sales elasticity, competitors, inventory levels, that kind of things. And we'll continue to do that going forward. But we feel really good about our margin position right now. And bearing any other big changes and keeping an eye on the testing, we feel good about the margins going forward as well.

顯然，本季度比去年甚至我們的 5 年平均水平略高，這是因為有了這些效率，我們繼續節省了價格，但我們也為底線付出了更多。我們監控銷售彈性、競爭對手、庫存水平等。我們將繼續這樣做。但我們現在對我們的保證金頭寸感覺非常好。並且承受任何其他重大變化並密切關注測試，我們對未來的利潤率也感到滿意。

Got it. Got it. Relatively on that topic, maybe just shifting to SG&A. I mean, is any of this like change in the sourcing mix or trying to maintain that GPO coming in some way, at the expense of more cost on the SG&A side? Now you're at roughly $2,700 per unit and this is the seasonally strongest quarter typically of the year. So curious like how -- what takes us down further as the year progresses? What are the areas of opportunity? If you could just give us some puts and takes on that front, on how the SG&A where units should progress going forward?

知道了。知道了。相對於那個話題，也許只是轉向 SG&A。我的意思是，這是否像採購組合的變化或試圖以某種方式維持 GPO 的到來，以犧牲 SG&A 方面的更多成本為代價？現在每單位的價格約為 2,700 美元，這通常是一年中季節性最強的季度。如此好奇——隨著時間的推移，是什麼讓我們進一步失望？有哪些機會領域？如果您可以在這方面給我們一些建議，關於 SG&A 單位應該如何向前發展？

Yes. I'll pass to Enrique in a second. But just to be clear, like these -- the margin improvements are not coming at the expense of SG&A. And the way we think about margin, when we're building the cars, we've absolutely seen inflationary pressures in the build of cars, which goes through the COGS, but we're also working very hard to offset those.

是的。我馬上傳給恩里克。但需要明確的是，就像這些一樣——利潤率的提高並不是以犧牲 SG&A 為代價的。我們考慮利潤率的方式，當我們製造汽車時，我們絕對看到了汽車製造中的通脹壓力，這會通過 COGS，但我們也在努力抵消這些壓力。

So not only are we passing along some savings to the consumer through some of these efficiencies. But I also feel like because we're offsetting these costs, that's also passing along to consumers because some competitors won't have levers. And as the costs go up, which everyone is seeing, whether it's gas, it's parts, it's labor. If they don't have levers to pull, their prices are going up. So I think about that as also an efficiency on price as well.

因此，我們不僅通過其中一些效率將一些節省轉嫁給消費者。但我也覺得因為我們正在抵消這些成本，這也傳遞給了消費者，因為一些競爭對手沒有槓桿。隨著成本的上升，每個人都看到了，無論是天然氣、零件還是勞動力。如果他們沒有槓桿可以拉動，他們的價格就會上漲。所以我認為這也是一種價格效率。

Yes. And I would say, just to build on that, there is some pressure on SG&A from the amount of buyers, right? We've had tremendous success around the amount of buyers. There we have to staff up to make sure we can accommodate that. And that then flows through our self-efficiency rate. So there is some pressure on SG&A. But what I'd tell you the story in Q1, an important story on the deleverage is really driven by a couple of things, right, year-over-year when you look at the deleverage.

是的。我想說，只是在此基礎上，買家數量對 SG&A 有一些壓力，對吧？我們在買家數量方面取得了巨大的成功。在那裡，我們必須配備人員以確保我們能夠適應這種情況。然後流向我們的自我效率。所以SG&A有一些壓力。但是我要在第一季度告訴你的故事，一個關於去槓桿的重要故事實際上是由幾件事驅動的，對，當你看去槓桿時，年復一年。

Number one is like we were understaffed last year in the first quarter. As you recall, going back to the pandemic coming out of the pandemic, we are understaffed. And we spent the back half of last year understaffed -- or staffing up. And so last year was understaffed. We also spent less on a per unit in marketing last year in the first quarter because our inventory was fairly limited. So we spent a little bit less and we had very strong demand. So we're comping over those 2 things in the first quarter, which put a fair bit of pressure on that leverage rate.

第一是我們去年第一季度人手不足。正如你所記得的那樣，回到大流行之後的大流行，我們人手不足。去年下半年，我們人手不足 - 或人員增加。所以去年人手不足。去年第一季度，由於我們的庫存相當有限，我們在營銷上的每單位支出也減少了。所以我們花的錢少了一點，我們的需求非常強勁。因此，我們在第一季度對這兩件事進行了比較，這給槓桿率帶來了相當大的壓力。

I think the second thing as well is in anticipation of a stronger tax season performance, we had staffed up in our stores and in our CECs and we had spent more in marketing. Now those sales didn't come. But as I've talked about, we're fairly nimble, and we can manage those back down, which is what we've already begun to do when it comes to staffing in the CECs and in our stores. And again, we're doing that through just attrition and through better scheduling, but we can manage it down. But I think it's important to understand that Q1 deleverage and what drove it.

我認為第二件事也是預期稅收季節表現會更強勁，我們已經在我們的商店和 CEC 中配備了人員，並且我們在營銷上花費了更多。現在那些銷售沒有來。但正如我所談到的，我們相當靈活，我們可以管理這些問題，這是我們在 CEC 和我們商店的人員配備方面已經開始做的事情。再說一次，我們只是通過減員和更好的安排來做到這一點，但我們可以管理它。但我認為重要的是要了解第一季度的去槓桿化以及推動它的原因。

Up next, we'll hear from Daniel Imbro with Stephens Inc.

接下來，我們將聽取 Stephens Inc. 的 Daniel Imbro 的消息。

I wanted to ask on the competitive environment for CAF right now. I think last quarter, we talked about how some of the other lenders were extending terms to 84 months, that they weren't passing through higher cost of funds. It feels like you mentioned in your prepared remarks that they were starting to pass through some of those higher cost of funds during the quarter. But just curious how the competitive backdrop is changing and, obviously, CAF penetration went down in the quarter. I mean, was that intentional on your part walking away from business? Or can you talk about what drove that?

我想問一下CAF現在的競爭環境。我認為上個季度，我們談到了其他一些貸方如何將期限延長至 84 個月，他們沒有通過更高的資金成本。感覺就像您在準備好的評論中提到他們在本季度開始通過一些較高的資金成本。但只是好奇競爭背景是如何變化的，很明顯，CAF 滲透率在本季度有所下降。我的意思是，你是故意離開業務的嗎？或者你能談談是什麼推動了這一點嗎？

Sure. Yes, I appreciate the question, Daniel. Yes, thanks for the recognition. In the prepared remarks, we did state I think the story or the headline for penetration this quarter was really about cash pricing moves. We're not walking away from business at all. If you look at the average APR we charge to our customers last quarter, it was 8.2%. This quarter, it's 9% largely coming from us passing along our increased costs onto the consumer.

當然。是的，我很欣賞這個問題，丹尼爾。是的，謝謝認可。在準備好的評論中，我們確實表示我認為本季度滲透率的故事或標題實際上是關於現金定價變動。我們根本沒有離開業務。如果您查看我們上個季度向客戶收取的平均年利率，則為 8.2%。本季度，9% 主要來自我們將增加的成本轉嫁給消費者。

It's always a delicate balance. You're trying to figure out managing, making sure you're highly competitive to your customer. Remember, we're competing directly with predominantly credit unions and to some degree, external banks. We installed it -- what we observed, we just went a little sooner than they did. Our kind of trough of penetration in the quarter was more in that February than March time frame, and we watched our competition. We observed them raise rates throughout the quarter. We were just a little sooner, and therefore, our penetration came back the case within the quarter.

這始終是一種微妙的平衡。您正在嘗試進行管理，以確保您對您的客戶具有很強的競爭力。請記住，我們主要與信用合作社直接競爭，在某種程度上，與外部銀行競爭。我們安裝了它——我們觀察到，我們只是比他們快一點。我們在本季度的那種滲透低谷在 2 月份比 3 月份更多，我們觀察了我們的競爭。我們觀察到他們在整個季度都加息。我們只是快了一點，因此，我們的滲透率在本季度內恢復了原狀。

So I think it will continue to be that way. Again, trying to manage our penetration, our net interest margin capture. And obviously, making sure we're extremely competitive for our customers. So it's a delicate balance. It will continue on, but we'll continue to watch what our competitors do and what the Fed does.

所以我認為它將繼續如此。再次，試圖管理我們的滲透，我們的淨息差捕獲。顯然，確保我們對客戶來說極具競爭力。所以這是一個微妙的平衡。它將繼續下去，但我們將繼續關注我們的競爭對手和美聯儲的所作所為。

And Jon, while our penetration went down, those consumers that brought their own financing went up.

喬恩，當我們的滲透率下降時，那些自己融資的消費者卻上升了。

Right. That's generally the offset. So in our space, usually a customer sees the car, they want it. They can either choose the financing from CAF or again, that's what's great about our program is they can go externally and not feel like they have to walk away from the car, and that's generally what they do. So they just chose to do that this quarter.

正確的。這通常是偏移量。所以在我們的空間裡，通常客戶看到汽車，他們想要它。他們可以選擇從 CAF 融資，也可以再次選擇，這就是我們計劃的優點，他們可以去外部，而不必離開汽車，這通常是他們所做的。所以他們只是選擇在本季度這樣做。

Up next, we'll take a question from Seth Basham with Wedbush Securities.

接下來，我們將回答 Wedbush Securities 的 Seth Basham 的問題。

This is Nathan Friedman on for Seth. The first question I want to ask is regarding retail gross profit per unit. Are you expecting this level of GPU going forward given the current used car pricing environment and a return to normalized or possibly accelerated depreciation through the duration of the year? And how should we be thinking about that?

這是塞思的內森弗里德曼。我想問的第一個問題是關於每單位零售毛利潤。考慮到當前的二手車定價環境，以及在一年中恢復正常或可能加速折舊，您是否期待這種水平的 GPU 向前發展？我們應該如何考慮呢？

Yes, Nathan, as I said earlier, we feel good about our margins. We've got some tailwinds there. I would tell you, we've navigated through times of depreciation before. I think we excel at it. And in those times of depreciation before, we've been able to maintain our margins. So I would expect that to be similar. I think the only times where our margins have come under pressure a little bit is when you see rapid, rapid depreciation over a very short period of time. But even then, it's short-lived.

是的，內森，正如我之前所說，我們對自己的利潤感覺良好。我們有一些順風。我會告訴你，我們以前經歷過折舊時期。我認為我們擅長它。在之前的貶值時期，我們已經能夠維持我們的利潤率。所以我希望這會是相似的。我認為我們的利潤率受到一點壓力的唯一時候是當你看到在很短的時間內快速、快速的貶值。但即便如此，它也是短暫的。

So we feel very comfortable about our ability to continue to maintain margins. But again, we're going to also -- like I said earlier, we'll be testing a lot of different things and making sure that we have an outward eye on where the consumer is and sales elasticity, competitors and all that.

因此，我們對繼續保持利潤率的能力感到非常自在。但同樣，我們還將 - 就像我之前所說的那樣，我們將測試很多不同的東西，並確保我們對消費者的位置和銷售彈性、競爭對手等等有一個向外的關注。

Got it. And my second question is focused on your strong net interest margin performance this quarter and the sequential increase here despite your last ABS securitizations margin experiencing pretty large sequential margin declines. Can you provide more detail or quantify how much benefit you experienced from your hedging strategy this quarter? And how you're envisioning net interest margins going forward?

知道了。我的第二個問題集中在您本季度強勁的淨息差表現以及此處的連續增長，儘管您上一次 ABS 證券化保證金經歷了相當大的連續保證金下降。您能否提供更多詳細信息或量化本季度您從對沖策略中獲得的收益？您如何設想未來的淨息差？

Sure. Yes, we -- Enrique, and I'll probably tag team on that. First, just to talk about the net interest margin growth that we saw during the quarter. Again, the key to remember is our business model and our accounting process is we earn it over time rather than a gain on sale model. So the assets that are providing our net interest margin in this quarter coming from a year ago, 2 years ago, 3 years ago, where spreads were incredibly healthy.

當然。是的，我們——恩里克，我可能會在這方面給團隊貼上標籤。首先，談談我們在本季度看到的淨息差增長。同樣，要記住的關鍵是我們的商業模式，我們的會計流程是我們隨著時間的推移賺取它，而不是銷售模式的收益。因此，在本季度為我們提供淨息差的資產來自一年前、兩年前、三年前，利差非常健康。

So obviously, what we bring on this quarter and most recent ABS transaction, it's really going to offset what we're rolling off of the portfolio. So it just so happens that timing is such that such, such strong margin assets still remain in our portfolio and will for some time. And eventually, if we can keep our margin high, we'll continue to keep -- manage that well, then the falloff will be may be minimized or at least slow on the downturn. With regard to hedging stretch, I'll let Enrique talk to that.

所以很明顯，我們在本季度和最近的 ABS 交易中帶來的東西，真的會抵消我們從投資組合中推出的東西。因此，恰逢時機如此，如此強勁的保證金資產仍將保留在我們的投資組合中，並將持續一段時間。最終，如果我們能夠保持較高的利潤率，我們將繼續保持 - 管理得好，那麼衰退可能會最小化或至少在經濟低迷時期放緩。關於對沖延伸，我會讓恩里克談談。

Yes. And as Jon mentioned in his prepared remarks, we had -- we experienced in the quarter a $9 million gain from a hedge benefit. And just to maybe explain that a little bit more, the vast majority of our receivables are funded through the securitization market, and we have an accounting hedge on all of those. But we also have alternative funding vehicles as we've been talking about for a few years, right, with our banking partners. A portion of those receivables have a cash flow hedge but not an accounting hedge. And that's really due to our desire to maintain flexibility in the funding profile.

是的。正如喬恩在他準備好的講話中提到的那樣，我們在本季度從對沖收益中獲得了 900 萬美元的收益。再解釋一下，我們的絕大多數應收賬款都是通過證券化市場提供資金的，我們對所有這些都有會計對沖。但我們也有替代融資工具，正如我們幾年來一直在與我們的銀行合作夥伴討論的那樣。這些應收賬款的一部分有現金流量套期，但沒有會計套期。這實際上是因為我們希望保持資金配置的靈活性。

So those receivables that don't have an accounting hedge get mark-to-market every quarter. So we benefited this quarter given the recent sharp and material change in interest rates. But moving forward, we'd only expect this to be material to any degree in periods again where there's sharp and material changes in the interest rate.

因此，那些沒有會計對沖的應收賬款每個季度都會按市值計算。因此，鑑於最近利率的急劇和重大變化，我們在本季度受益。但展望未來，我們預計這只會在利率發生劇烈和實質性變化的時期再次出現任何程度的重大變化。

And up next, we will take a question from John Murphy with Bank of America.

接下來，我們將回答美國銀行的約翰·墨菲的問題。

I just wanted to go back to the shift towards older vehicles. And Bill, I mean, as we look at the next few years, the 0 to 6-year old car population is likely to shrink pretty dramatically or not really recover much, if that because what we're seeing on new vehicle sales side, I mean vehicles just don't exist in reality. So as you look at going older to beyond 6 years, it just seems like there's a real opportunity in the 7- to 10-year old vehicles are high-quality products, they're very different than they were 10 to 20 years ago. So you can wrap them pretty well to the consumers. So they're good products for you to wrap and sell.

我只是想回到舊車的轉變。比爾，我的意思是，當我們展望未來幾年時，0 到 6 年的汽車保有量可能會大幅減少，或者不會真正恢復多少，如果這是因為我們在新車銷售方面看到的情況，我的意思是車輛在現實中並不存在。所以當你看到超過 6 年的舊車時，看起來 7 到 10 年的舊車是高質量的產品，它們與 10 到 20 年前有很大不同。因此，您可以將它們很好地包裝給消費者。因此，它們是您包裝和銷售的好產品。

So just curious, as we think about this idea that I think you said you went from 25% ValueMax or ValueMax-like vehicles to 35% this quarter, could that be significantly higher over time? And is this the kind of thing that could be not just sort of a move to offset some of the shortage of supply on the 0- to 6-year old side, but something to be more structural. And if you think 5 to 10 years down the line, could dramatically increase your addressable market for each store in total?

所以只是好奇，當我們想到這個想法時，我認為你說你本季度從 25% 的 ValueMax 或類似 ValueMax 的車輛增加到 35%，隨著時間的推移，這會顯著提高嗎？這種事情是否可能不僅僅是為了抵消 0 到 6 歲兒童的一些供應短缺，而是一種更具結構性的事情。如果您認為 5 到 10 年後，是否會大幅增加您每家商店的潛在市場？

Yes. Yes, it's a great question. The beauty of our business is whatever the consumers are looking for, we'll put out there. Now obviously, it's a little harder to find some of these vehicles and build them. We've been through a similar situation. If you go back to '08 and '09 in the recession when the new cars started to drop dramatically, it was actually more pronounced back then, I think what that did to like a 10-year supply of newer type cars. Because the SAAR was down to really low double digits, I think at one point, it's not even below that. So there was a that was this bubble that had to work itself through.

是的。是的，這是一個很好的問題。我們業務的美妙之處在於消費者在尋找什麼，我們會在那裡推出。現在顯然，要找到其中一些車輛並製造它們有點困難。我們也經歷過類似的情況。如果你回到 08 年和 09 年的經濟衰退時期，當時新車開始急劇下降，當時情況實際上更加明顯，我認為這對 10 年的新型汽車供應產生了影響。因為 SAAR 下降到非常低的兩位數，我認為在某一時刻，它甚至不會低於這個數字。所以有一個泡沫，它必須自己解決。

And I would expect to see a similar level, but not nearly to the magnitude that we saw back in '08 or '09. I would tell you, the great thing that's different than back then, we were able to navigate them. But the great thing that we have now that we didn't is just our self-sufficiency. And when I think about that type of inventory, our best source of that is from consumers. And so the fact that our self-sufficiency is so high, it just gives us a lot of that inventory.

我預計會看到類似的水平，但遠不及我們在 08 年或 09 年看到的幅度。我會告訴你，與當時不同的偉大之處在於，我們能夠駕馭它們。但我們現在擁有的最棒的東西就是我們的自給自足。當我考慮這種類型的庫存時，我們最好的來源是消費者。因此，我們的自給自足程度如此之高，它只是給了我們很多庫存。

I talked a little bit about those over 6, but it really doesn't matter. If you break it down 0 to 4 that's generally like a year ago, that's 66% of our sales or so. This quarter is about 50%. 5- to 7-year-old vehicles, again, it's 20% to 25%, now it's 30% to 35%. 8 plus, it's like 15%. It's across the board, and we have a better source of inventory now. So we're excited about the opportunity going forward.

我談了一些關於 6 歲以上的人，但這並不重要。如果你把它從 0 到 4 分解，這通常是一年前，那是我們銷售額的 66% 左右。本季度約為 50%。 5 到 7 年的車輛，同樣是 20% 到 25%，現在是 30% 到 35%。 8加，大約是15%。這是全面的，我們現在有更好的庫存來源。因此，我們對未來的機會感到興奮。

Okay. And maybe just to follow up on that, on the -- I mean, think on the acquisition side, you're doing a good job on the self-sufficiency side. But if we think about that consumer buying that vehicle, it sounds like they actually have a higher propensity than the younger vehicles to actually purchase online. I mean when you're looking at your omnichannel efforts and actually conversion based on the age groups. I mean, is that true that basically this 7-plus year old vehicles actually -- that buyer is actually more apt to buy online than sort of the 1- to 3-year olds bucket? I mean I'm just curious what you're seeing there.

好的。也許只是為了跟進這一點，我的意思是，想想在收購方面，你在自給自足方面做得很好。但是，如果我們考慮購買那輛車的消費者，聽起來他們實際上比年輕的車輛更傾向於在網上實際購買。我的意思是當你查看你的全渠道工作和基於年齡組的實際轉換時。我的意思是，基本上這輛 7 年以上的汽車實際上是真的嗎？那個買家實際上比 1 到 3 歲的車更傾向於在線購買？我的意思是我只是好奇你在那裡看到了什麼。

Yes, John, to be honest, off the top of my head, I don't know if that's necessarily true. I mean what we're seeing from an online sales perspective is it's a wide swath of consumers looking for different merchandise. So I don't think that's necessarily true that it's the older stuff that's selling online. There's some of it. I don't think it's disproportionate.

是的，約翰，老實說，在我的腦海中，我不知道這是否一定是真的。我的意思是，從在線銷售的角度來看，我們看到的是大量消費者在尋找不同的商品。因此，我認為在線銷售的舊產品不一定是正確的。有一些。我不認為這是不成比例的。

Up next, we'll hear from Michael Montani with Evercore ISI.

接下來，我們將聆聽 Evercore ISI 的 Michael Montani 的來信。

Great. I just wanted to ask first, if I could, if you all could share some incremental color around the buying trends you're seeing. I don't know if you can segment it out by income cohort kind of 40,000 and below versus 100,000-plus households. But just talk about maybe what you saw there in the quarter and then how that has evolved. If the sales have kind of stabilized at down low single digit.

偉大的。我只是想先問一下，如果可以的話，你們是否都可以圍繞你們所看到的購買趨勢分享一些增量色彩。我不知道您是否可以將其劃分為 40,000 及以下的收入群體與 100,000 多個家庭。但是，請談談您在本季度看到的情況以及它是如何演變的。如果銷售已經穩定在低個位數。

Mike, I don't have the cohort that you're looking for as far as household income. The -- both our online and in-store appraisal in has really resonated broadly with all consumers. I would tell you, interestingly for the quarter, we bought -- it may not be a total surprise. We bought more, what I would call, larger SUVs, pickup trucks, from consumers that may be because of gas prices. But on the flip side, we also sold more of that. There were consumers. I think if you pay the right and you have a price right that, they'll sell and we actually -- we saw that. But I don't have the data in front of me to tell you, okay, household income, what does that look like on a sale. But I will tell you, it's -- the product that we have out there has really appealed across the spectrum.

邁克，就家庭收入而言，我沒有您正在尋找的同類群組。我們的在線和店內評估確實引起了所有消費者的廣泛共鳴。我會告訴你，有趣的是，我們購買了本季度 - 這可能並不完全令人驚訝。我們從消費者那裡購買了更多，我稱之為大型 SUV、皮卡車，這可能是因為汽油價格。但另一方面，我們也賣出了更多。有消費者。我認為，如果您支付正確的價格並且您有正確的價格，他們就會出售，而我們實際上 - 我們看到了這一點。但是我沒有擺在我面前的數據來告訴你，好吧，家庭收入，在銷售中看起來是什麼樣的。但我會告訴你，它是——我們現有的產品確實在整個領域都具有吸引力。

I guess what I would add to that just from the credit perspective, trying to align maybe household income with the credit quality of the customer coming through the door. I think we mentioned it before, I think there is demand out there. You see the lower credit quality customer who is still shopping, still applying for credit. They just seem to be maybe priced out of the market at times because of the price of the vehicle and ultimately, the monthly payment. So I think the demand is there. I think as inventory comes down, they're going to be able to get there. So again, provided there's some correlation between that consumer and the lower income consumer, I think the demand is there.

我想我會從信用的角度補充一點，試圖將家庭收入與進門的客戶的信用質量保持一致。我想我們之前提到過，我認為那裡有需求。您會看到信用質量較低的客戶仍在購物，仍在申請信用。由於車輛的價格以及最終的每月付款，它們似乎有時可能被排除在市場之外。所以我認為需求是存在的。我認為隨著庫存下降，他們將能夠到達那裡。同樣，只要該消費者與低收入消費者之間存在某種相關性，我認為需求就在那裡。

And if I could just follow up on the profit front. Earlier this year, you all had mentioned that gross profit dollars would need to grow kind of high single digits to leverage given some of the investments underway. So just wanted to think about that into the back half of the year. Does ad expense kind of step up here given the multichannel has been initially rolled out? Headcount, it sounds like it could moderate a bit. So just help us to understand kind of how to think about the pace of SG&A dollars for the back half.

如果我能在利潤方面跟進。今年早些時候，你們都提到，鑑於正在進行的一些投資，毛利潤需要增長到高個位數才能發揮槓桿作用。所以只是想在下半年考慮一下。考慮到多渠道最初已經推出，廣告費用是否會有所增加？人數，聽起來可能會有所緩和。因此，請幫助我們了解如何考慮後半部分 SG&A 美元的步伐。

Yes. And so what we said last call was we expect in fiscal year '23, actually we're going to need in excess of that historical range of high single digit, right? So we need more than that to leverage. This coming year because when I talked about earlier, largely that annualization of the success in staffing. And again, Q1 really is the quarter where we see most of that impact. We are committed to ensuring that our expenses are in line with customer demand. And again, I talked to you about that what we've already -- the steps we've already undertaken. So for Q1, really from a year-over-year leverage perspective, it is our toughest quarter.

是的。因此，我們上次電話會議所說的是我們預計在 23 財年，實際上我們需要超過高個位數的歷史範圍，對吧？因此，我們需要更多的槓桿。即將到來的一年，因為當我早些時候談到時，主要是人員配備成功的年度化。再說一次，第一季度確實是我們看到影響最大的季度。我們致力於確保我們的費用符合客戶需求。再一次，我和你談到了我們已經採取的措施——我們已經採取的步驟。因此，對於第一季度，從同比槓桿率的角度來看，這是我們最艱難的一個季度。

Up next, we will take a question from Craig Kennison with Baird.

接下來，我們將回答 Craig Kennison 和 Baird 的問題。

I wanted to dig into your sourcing mode and really understand your MaxOffer tool a little bit better. Can you give us a feel for the economics of that tool? And why do dealers choose to use it, given you're also competitors in that local market? And then are those cars as profitable as cars you source directly from the consumer or from auctions?

我想深入了解您的採購模式，並更好地了解您的 MaxOffer 工具。您能給我們介紹一下該工具的經濟性嗎？鑑於您也是當地市場的競爭對手，為什麼經銷商選擇使用它？那麼這些汽車是否與您直接從消費者或拍賣中採購的汽車一樣有利可圖？

Yes, Craig. Yes, we're -- like I said earlier, we're excited about MaxOffer. It's been a product that we've been working on. It took a little bit of a backseat to the IO, but we're leveraging similar algorithms. When I think about the profitability, obviously, the -- well, first of all, the MaxOffer buys are absolutely more profitable than buying off-site. As I rank them, I think the most profitable are certainly the IOs, their consumers are bringing us to cars for obvious reasons, we're not playing logistics, that kind of thing.

是的，克雷格。是的，我們 - 就像我之前說的，我們對 MaxOffer 感到興奮。這是我們一直在努力的產品。 IO 有點退居二線，但我們正在利用類似的算法。當我考慮盈利能力時，顯然，首先，MaxOffer 購買絕對比場外購買更有利可圖。當我對他們進行排名時，我認為最賺錢的當然是 IO，他們的消費者出於顯而易見的原因將我們帶到汽車上，我們不玩物流之類的事情。

But for the MaxOffer, they're not as profitable as a consumer, but they're still more profitable than buying off-site, which again makes sense because we're not having to pay (inaudible). As far as why dealers would choose to use it. Look, there's lots of deals out there that have inventory that they're not interested in or they have appraisals that they're looking at that they really don't know how to value it. And so this is a service that can be provided at no cost with a backing on it.

但是對於 MaxOffer，它們的利潤不如消費者，但它們仍然比在場外購買更有利可圖，這又是有道理的，因為我們不必付費（聽不清）。至於為什麼經銷商會選擇使用它。看，那裡有很多交易有他們不感興趣的庫存，或者他們有他們正在查看的評估，他們真的不知道如何評估它。因此，這是一項可以免費提供並有支持的服務。

And it's proven to resonate. Like I said in the call, we're a little over 30 -- in 30 markets. We have plenty of opportunity to continue to expand it. Edmunds has thousands of dealers that they work with. Our auctions, we have thousands of dealers. So we think there's a lot of potential here.

事實證明，它會引起共鳴。就像我在電話中所說的那樣，我們在 30 個市場中超過 30 個。我們有很多機會繼續擴大它。 Edmunds 有數以千計的經銷商與之合作。我們的拍賣，我們有成千上萬的經銷商。所以我們認為這裡有很大的潛力。

Can you shed any light on the fee structure? Are you getting a fee? Or are they getting a fee?

你能解釋一下收費結構嗎？你收手續費嗎？還是他們收取費用？

Yes. So we do -- they actually -- we make it a little bit -- we make it worth their time. So they actually do make some money on these. And that's kind of how we work it.

是的。所以我們做了——他們實際上——我們做了一點點——我們讓它值得他們花時間。所以他們實際上確實在這些上賺了一些錢。這就是我們的工作方式。

Our next question will come from Evan Silverberg with Morgan Stanley.

我們的下一個問題將來自摩根士丹利的 Evan Silverberg。

Evan Silverberg on for Adam Jonas. Recognizing there was some color in the prepared remarks on comps per month year-over-year, curious if you could give any additional color on an absolute basis, how sales trended throughout the quarter and what you're thinking in terms of exit rate into 2Q?

埃文·西爾弗伯格（Evan Silverberg）為亞當·喬納斯（Adam Jonas）效力。認識到準備好的關於每月補償的評論中有一些顏色，好奇你是否可以在絕對基礎上提供任何額外的顏色，整個季度的銷售趨勢以及你在退出率方面的想法2Q？

Yes. Like I said in my opening remarks, they got better progressively throughout the quarter from double digits to low single-digit negative comp for the end of the quarter. So we've been pleased with that trend. And obviously, we'll talk about June and second quarter at that time. But again, we feel pleased as we exited the quarter.

是的。就像我在開場白中所說的那樣，他們在整個季度中逐漸好轉，從兩位數到季度末的低個位數負補償。所以我們對這種趨勢感到滿意。顯然，屆時我們將討論六月和第二季度。但是，當我們退出本季度時，我們再次感到高興。

And even within the quarter, are you seeing any trends within the tiers of the consumer? Or you think it's pretty steady throughout the different classes?

甚至在本季度內，您是否看到消費者層級內的任何趨勢？或者你認為它在不同的課程中都很穩定？

No, I think it's pretty steady through the different ones. As Jon pointed out earlier, I think that lower FICO customer is probably being impacted the most by vehicle affordability. But again, that -- that's the way it started out at the beginning of the quarter, and that's the way it ended the quarter. So I think it's fairly consistent throughout the quarter.

不，我認為通過不同的方法很穩定。正如 Jon 之前指出的那樣，我認為 FICO 較低的客戶可能受到車輛負擔能力的影響最大。但同樣，這就是它在本季度開始時的方式，也是它在本季度結束時的方式。因此，我認為整個季度都相當一致。

Our next question will come from David Whiston with Morningstar.

我們的下一個問題將來自晨星的大衛惠斯頓。

It's great to see free cash flow generation along with buybacks and the debt paydown. I was just curious on the -- roughly now, I think, about $1 billion and due 2 years from now. Is your goal to just get rid of that revolver through internal free cash flow generation before that time? Or are you willing to do a 5-year or 10-year bond offering at some point?

很高興看到自由現金流的產生以及回購和債務償還。我只是好奇——大約現在，我想，大約 10 億美元，從現在起 2 年後到期。您的目標是在那之前通過內部自由現金流產生來擺脫左輪手槍嗎？或者您是否願意在某個時候進行 5 年或 10 年的債券發行？

Well, we -- as you said, I mean, we were very pleased with our cash flow performance in the quarter. Despite a challenging sales quarter, certainly where our business model is able to generate cash that we're really pleased. It allowed us to pay down a fair chance on our revolver, almost $600 million and accelerate our share repurchase program.

好吧，我們 - 正如你所說，我的意思是，我們對本季度的現金流表現非常滿意。儘管銷售季度充滿挑戰，但我們的商業模式肯定能夠產生我們非常高興的現金。它使我們能夠為我們的左輪手槍支付近 6 億美元的公平機會，並加快我們的股票回購計劃。

So in terms of what we're going to do moving forward, I think the way to think about it is we'll be nimble to the environment. We're going to do what's right for our shareholders and while taking a look at how we're performing and kind of what the options are for us. I think the way to think about it is, we intend on managing within our capital structure at 35% to 45% of adjusted debt to cap. And that's how we kind of manage the business. We do that by taking on debt, pulling down debt and also by our share repurchase program. So those are the levers that we use. So moving forward, we'll end up managing to that rate.

因此，就我們未來將要做什麼而言，我認為思考它的方式是我們將對環境保持靈活。我們將為我們的股東做正確的事情，同時看看我們的表現如何以及我們的選擇是什麼。我認為考慮的方式是，我們打算在我們的資本結構內管理調整後債務的 35% 至 45% 以達到上限。這就是我們管理業務的方式。我們通過承擔債務、減少債務以及我們的股票回購計劃來做到這一點。所以這些是我們使用的槓桿。所以繼續前進，我們最終會達到這個速度。

Okay. And on the free cash flow generation, it looks like you got a lot of help from inventory reductions, which you hadn't gotten that help in working capital in the past several quarters. Just curious, was your inventory decline here intentional to get some free cash flow generation? Or is it perhaps a function of buying more older vehicles?

好的。在自由現金流的產生方面，您似乎從減少庫存中獲得了很多幫助，而在過去的幾個季度中，您在營運資金方面沒有得到這種幫助。只是好奇，你這裡的庫存下降是為了獲得一些自由現金流嗎？或者這可能是購買更多舊車的功能？

Yes. It was a little bit more seasonal this time of the year in the first quarter and leading into the first half of the year, we ramped down our inventory as we work through tax season. It's a little bit of that. We also saw quarter-to-quarter just the average cost of our inventory went down a little bit, too. So we did see that, and that helped us a little bit as well.

是的。一年中的這個時候，第一季度的季節性稍強一些，進入上半年，我們在稅收季節工作時減少了庫存。這是一點點。我們還看到季度與季度的庫存平均成本也略有下降。所以我們確實看到了這一點，這也對我們有所幫助。

And moving on, we'll hear from Chris Bottiglieri with BNP Paribas.

繼續前進，我們將聽取法國巴黎銀行的 Chris Bottiglieri 的來信。

I just wanted to ask a follow-up question on kind of CAF funding costs. So I just want to -- I guess a few things. Like the interest rate hedge question, are you saying that interest rates stay at these levels, that the $9 million hedging benefit would unwind? I'm trying to understand like how long these hedges last for. And then separately, for the warehouse facility, kind of fund in the K, like what's the benchmark rate for the warehouse facility?

我只是想問一個關於 CAF 資金成本的後續問題。所以我只想-- 我猜一些事情。就像利率對沖問題一樣，您是說利率保持在這些水平，900 萬美元的對沖收益會消失嗎？我試圖了解這些對沖能持續多久。然後分開，對於倉儲設施，K 中的一種基金，比如倉儲設施的基準利率是多少？

Is that like LIBOR or whatever replace LIBOR sit over, that's called? And then sorry, one last follow-on to this. Bigger picture, I could tell you probably passed on about 50 bps of rates on to the customer. How much of that 300 basis point increase in benchmark rates do you ultimately think you'll pass through? And that's it for me.

那是像 LIBOR 還是其他替代 LIBOR 的東西，這就是所謂的嗎？然後對不起，最後一個後續。從更大的角度來看，我可以告訴你可能會將大約 50 個基點的費率轉嫁給客戶。您最終認為基準利率增加 300 個基點中有多少會通過？對我來說就是這樣。

I'll take the last one first. Actually, yes, as you mentioned, we certainly have passed along rates to consumers. As I said previously, it's going to constantly be a test and assess, right? You recognize what we're trying to manage, penetration, margin, customer experience, all of those things. So we're going to watch it very carefully. What I was very pleased with this quarter was it wasn't just a single move and then forget it and then absorb it. It was identify pockets of populations that we think are less elastic, more elastic, test, adjust, look at what our competition is doing, and that's generally how we operate.

我先拿最後一個。實際上，是的，正如您所提到的，我們當然已經將費率轉嫁給了消費者。正如我之前所說，它將不斷進行測試和評估，對嗎？您會認識到我們正在嘗試管理的內容、滲透率、利潤、客戶體驗，所有這些。所以我們會非常仔細地觀察它。我對這個季度非常滿意的是，它不僅僅是一個動作，然後忘記它然後吸收它。這是確定我們認為彈性較小、彈性較大的人群，測試、調整、看看我們的競爭對手在做什麼，這就是我們通常的運作方式。

So again, we are not looking to absolutely lead the market in passing that rate along. We want to make sure we remain highly competitive. Again, fortunately, we have that 3-day payoff option the customers may take advantage of to make sure we still sell the car. So I can't speculate exactly how much we'll pass along, but you understand how we're managing it.

再說一次，我們並不希望絕對領先市場以傳遞該比率。我們希望確保我們保持高度競爭力。同樣，幸運的是，我們擁有客戶可以利用的 3 天付款選項，以確保我們仍然可以銷售汽車。所以我無法準確推測我們會傳遞多少，但你明白我們是如何管理它的。

Yes. And for the other 2 questions. In terms of the cost basis in our warehouses, it really is LIBOR and more and more SOFR as that tool kind of matures somewhat. In terms of the hedging question, very specifically, the $9 million where we do not have an accounting hedge, we have a cash flow hedge, again, that really is going to change.

是的。對於其他 2 個問題。就我們倉庫的成本基礎而言，它確實是 LIBOR 和越來越多的 SOFR，因為這種工具有點成熟。就套期保值問題而言，非常具體地說，我們沒有會計套期保值的 900 萬美元，我們有現金流量套期保值，這確實會發生變化。

That would be a benefit like it was this quarter, it could be a detriment. Only when interest rates are going to change sharply and materially, that's when they're going to change because we have that hedged. The hedges over the life of the loan that we have, right? But again, it's only really going to change from quarter-to-quarter when there's a sharp and material change in those interest rates. And that's where we see a benefit or [hit].

就像本季度一樣，這將是一個好處，也可能是一個不利因素。只有當利率將發生急劇和實質性的變化時，它們才會發生變化，因為我們已經對沖了這一點。我們擁有的貸款期限的對沖，對吧？但同樣，只有當這些利率發生急劇和實質性的變化時，它才會真正逐季發生變化。這就是我們看到好處或[打擊]的地方。

And again, that's on, as I mentioned earlier, the vast majority of our receivables are through the securitization market will not be impacted on a quarter-to-quarter basis with that. It's really this very small -- much smaller pool of receivables that we have through our banking partners, through alternative funding, where we'll see that. But again, if we don't -- if those interest rates don't change sharply or materially, you're really not going to see anything impactful quarter-to-quarter.

再說一次，正如我之前提到的，我們絕大多數通過證券化市場的應收賬款不會受到季度對季度的影響。我們通過我們的銀行合作夥伴，通過替代資金獲得的應收賬款確實非常小 - 小得多，我們將在其中看到這一點。但同樣，如果我們不這樣做 - 如果這些利率沒有急劇或實質性變化，你真的不會看到任何有影響的季度。

Got you. Okay. And then bigger picture question, the GPUs. I mean, this feels like a 2-, 3-standard deviation move in the GPU, like usually, you're pretty methodical about kind of passing on to the consumer, taking market share, just kind of your packing that GPU and kind of letting your ASPs in output. So I guess it kind of sounds like I tell you're comfortable running at this higher GP level. like what's philosophically changing that's causing to kind of shift towards GPU and maybe less market share? Or how maybe I'm wrong understanding it correctly, how would you frame it?

得到你。好的。然後是更大的問題，GPU。我的意思是，這感覺就像 GPU 中的 2 或 3 標準差移動，就像通常一樣，你非常有條不紊地傳遞給消費者，佔據市場份額，只是你包裝 GPU 的那種讓您的 ASP 輸出。所以我想這聽起來像是我告訴你在這個更高的 GP 級別上跑步很舒服。比如什麼是哲學上的改變導致轉向 GPU 並可能減少市場份額？或者我如何正確理解它是錯誤的，你會如何構建它？

No. I think you're right. It is a lot. In any given quarter, you can be $50 to $80 difference. This is a lot. This needs to be a little bit more than that. And it was a conscious decision. But again, the way we approach this is we really look for efficiencies first and foremost, and we find the efficiencies, then you have the decision to make. You take a little bit more to margin. You have to look at a lot of factors in order to determine that and how much do you put towards the price.

不，我認為你是對的。這是很多。在任何給定的季度，您可能會有 50 到 80 美元的差異。這是很多。這需要比這多一點。這是一個有意識的決定。但同樣，我們處理這個問題的方式是我們首先真正地尋找效率，我們找到效率，然後你才能做出決定。你需要多一點保證金。您必須查看很多因素才能確定這一點以及您在價格上投入了多少。

And just based on all the factors, we took some of these efficiencies. So it's really not on the backs of the consumer what they're paying before. We're actually passing some of the efficiencies, some of these additional ones from the older vehicles and the self-sufficiency, we continue to pass them, and then we took a little bit more this quarter.

僅基於所有因素，我們就提高了其中的一些效率。因此，消費者之前支付的費用實際上並不取決於他們。我們實際上正在通過一些效率，其中一些來自舊車輛和自給自足的額外效率，我們繼續通過它們，然後我們在本季度採取了更多。

So it was a conscious decision. As far as going forward, we'll continue to monitor things and what competitors are doing and the elasticity and make decisions as we always do during the quarter.

所以這是一個有意識的決定。就未來而言，我們將繼續監控事情以及競爭對手在做什麼以及彈性，並像我們在本季度所做的那樣做出決策。

And we've been able to do that while growing our market share within the quarter, right?

我們已經能夠做到這一點，同時在本季度增加我們的市場份額，對吧？

No, no. Absolutely.

不，不。絕對地。

In our market share.

在我們的市場份額中。

And we'll take a follow-up from Chris Pierce with Needham.

我們將跟進 Chris Pierce 和 Needham。

You guys have talked about better aligning expenses but you've also talked about growing market share. And then just that last question, the GPU comfort you have at this higher level. Just curious how to think about advertising going forward. Because you've kind of got a hobbled competitor out there, but I know the end market isn't really on fire either. So I'm kind of curious how you're thinking about advertising and advertising per vehicle going forward.

你們已經談到了更好地調整費用，但你們也談到了不斷增長的市場份額。然後就是最後一個問題，你在這個更高級別上的 GPU 舒適度。只是好奇如何看待未來的廣告。因為你有一個步履蹣跚的競爭對手，但我知道終端市場也沒有真正火起來。所以我有點好奇你是如何考慮廣告和未來每輛車的廣告的。

Yes. Thank you for the question, Chris. Look, I think our stance on advertising is still what's been, as we've said, for this upcoming year, we expect it to have a step-up. I mean, keep in mind, if you go back pre-COVID, I think, Enrique, we're 70% up in...

是的。謝謝你的問題，克里斯。看，我認為我們對廣告的立場仍然是，正如我們所說，對於即將到來的一年，我們預計它會有所提升。我的意思是，請記住，如果你回到 COVID 之前，我想，Enrique，我們在......

In total dollars. And on a per unit basis, most up, 60%.

以美元計。以每單位計算，最多可達 60%。

Yes. So when I think about advertising, we had a lot of good things to say. It's -- even though -- obviously, the consumer's soft. There's a lot of advertising dollars being put in by everybody. And I think the way that we will continue to go forward is with the guidance that we originally gave, which was really more in the ballpark of, let's call it, the [350] per unit, a little bit higher this quarter. But I think that's a good kind of a good thing to -- a good way to think about it as we go forward.

是的。所以當我想到廣告時，我們有很多好話要說。這是 - 即使 - 顯然，消費者是軟的。每個人都投入了大量的廣告費用。而且我認為我們將繼續前進的方式是我們最初提供的指導，這實際上更多的是，我們稱之為每單位 [350]，本季度略高一點。但我認為這是一件好事——在我們前進的過程中思考它的好方法。

And then we've got lots of new capabilities. When you think about online self-progression, we do anticipate at some point later in the year that we'll start to advertise that. And when we do that, we'll shift some dollars around. We're always moving things between acquisition and awareness and whether it's appraisal awareness, whether it's consumer, retail consumer awareness. We're always moving things around on any given quarter. So I would look for some new messaging later on this year.

然後我們有了很多新功能。當您考慮在線自我進步時，我們確實預計在今年晚些時候的某個時候我們將開始宣傳這一點。當我們這樣做時，我們將轉移一些美元。我們總是在獲取和意識之間移動，無論是評估意識，還是消費者，零售消費者意識。我們總是在任何給定的季度移動東西。所以我會在今年晚些時候尋找一些新的信息。

And we have no further questions at this time. I'll turn the conference back over to Bill for any closing remarks.

目前我們沒有進一步的問題。我將把會議轉回給比爾，讓其發表任何結束語。

All right. Well, great. Well, thank you all for joining the call today and as always, for your questions and your support. As I always do, I want to thank our associates for everything they do and their commitment to making a positive impact on the customers and each other in our communities, and even particularly the environment. We just recently published our 2022 responsibility report. If you haven't had a chance to look at it, I would highly encourage you to take a look at it. We're really proud of the values that we live every day and our ongoing commitment to all of our stakeholders to drive long-term sustainable value creation. So again, thank you for your time today, and we'll talk again next quarter.

好的。嗯，太好了。好吧，感謝大家今天加入電話會議，並一如既往地感謝您提出問題和支持。和往常一樣，我要感謝我們的員工所做的一切，感謝他們致力於對我們社區的客戶和彼此產生積極影響，尤其是對環境產生積極影響。我們最近剛剛發布了 2022 年責任報告。如果您還沒有機會看它，我強烈建議您看一看。我們為我們每天所踐行的價值觀以及我們對所有利益相關者的持續承諾感到自豪，以推動長期可持續的價值創造。再次感謝您今天的寶貴時間，我們將在下個季度再次討論。

And ladies and gentlemen, this concludes today's call. We thank you again for your participation, and you may now disconnect.

女士們，先生們，今天的電話會議到此結束。我們再次感謝您的參與，您現在可以斷開連接。