Karat Packaging Inc (KRT) 2023 Q4 法說會逐字稿

Good afternoon and welcome to the carrot packaging Fourth Quarter and Full Year 2023 earnings conference call. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Roger Pondel, Investor Relations. Please go ahead.

下午好，歡迎參加胡蘿蔔包裝 2023 年第四季和全年財報電話會議。所有參與者將處於僅聽模式。（操作員說明）請注意此事件正在被記錄。我現在想將會議交給投資者關係部門的羅傑·龐德爾 (Roger Pondel)。請繼續。

Thank you, operator. Good afternoon, everyone, and welcome to carry Packaging's 2023 Fourth Quarter and Full Year Conference Call. I'm Roger Pondel with Pondel Wilkinson Kurt Packaging's Investor Relations firm. It will be my pleasure momentarily to introduce the Company's Chief Executive Officer, Alan Yu as Chief Financial Officer. Jan go before I turn the call over to Alan, I want to remind all of our listeners that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such forward-looking statements are subject to numerous conditions, many of which are beyond the company's control, including those set forth in the Risk Factors section of the company's most recent Form 10 K as filed with the Securities and Exchange Commission, copies of which are available on the SEC's website at www.SEC.gov, along with other Company filings made with the SEC from time to time.

謝謝你，接線生。大家下午好，歡迎參加包裝2023年第四季和全年電話會議。我是 Pondel Wilkinson Kurt Packaging 投資者關係公司的 Roger Pondel。我很高興立即介紹公司執行長 Alan Yu 擔任財務長。在我把電話轉給艾倫之前，我想提醒我們所有的聽眾，今天的電話會議可能包含1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，此類前瞻性陳述受到許多因素的影響.其中許多條件超出了公司的控制範圍，包括公司向美國證券交易委員會提交的最新 10 K 表格的風險因素部分中規定的條件，其副本可在 SEC 網站 www.SEC 上獲取.gov 以及公司不時向SEC 提交的其他文件。

Actual results could differ materially from these forward-looking statements, and Kerry packaging undertakes no obligation to update any forward-looking statements except as required by law. Please also note that during the call, we will be discussing adjusted EBITDA, adjusted EBITDA margin and adjusted diluted earnings per share, which are non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of the most directly comparable GAAP measures to the non-GAAP financial measures is included in today's press release, which is now posted on the company's website. And with that, I will turn the call over to CYOL. and you, Alan.

實際結果可能與這些前瞻性聲明有重大差異，除非法律要求，否則凱裡包裝不承擔更新任何前瞻性聲明的義務。另請注意，在電話會議期間，我們將討論調整後的 EBITDA、調整後的 EBITDA 利潤率和調整後的稀釋每股收益，這些是 SEC 法規 G 定義的非 GAAP 財務指標。非公認會計準則財務指標包含在今天的新聞稿中，該新聞稿現已發佈在公司網站上。然後，我會將電話轉給 CYOL。還有你，艾倫。

Thank you, Roger. Good afternoon. Everyone. sales volume for our 2023 fourth quarter grew 7% over the prior-year period. Although revenue was again impacted by unfavorable year-over-year pricing comparison and by startup delays from several new national and regional chain accounts, we estimate that approximately two to $3 million in revenue from new accounts was pushed into 2024. We are starting to work on orders from these new accounts. Now as part of our strategic initiatives, we continued to scale back U.S. manufacturing during the fourth quarter, which further enhanced gross margin to a near record high of 35.7%. Sales from manufacturer products in the fourth quarter were 16% of total net sales compared with approximately 27% last year.

謝謝你，羅傑。午安.每個人。 2023 年第四季的銷量比去年同期成長 7%。儘管收入再次受到不利的同比定價比較以及幾個新的國家和地區連鎖帳戶啟動延遲的影響，但我們估計新帳戶的大約 2 至 300 萬美元的收入被推遲到 2024 年。我們開始處理這些新帳戶的訂單。現在，作為我們戰略舉措的一部分，我們在第四季度繼續縮減美國製造規模，這進一步將毛利率提高至接近歷史新高的 35.7%。第四季製造商產品的銷售額佔總淨銷售額的 16%，而去年約為 27%。

We expect our gross margin to remain at a higher levels because of our initiatives and the continued strong US dollar sales of our ecofriendly product grew 11% in the fourth quarter over the prior-year period. This category represented approximately 33% of total sales which exceeded our expectation versus 31% last year. We are continue to develop new and innovative ecofriendly products to meet increasing customer demand and expand our customer base in 2023. We opened new distribution center in Chicago and Houston and double the size of our Washington State distribution center with the move into a new 100,000 square feet facilities. These new distribution centers are fully operational and contributing nicely to geographic and market penetration as part of our growth plans for 2024.

由於我們的舉措以及我們環保產品的美元銷售額持續強勁，我們預計毛利率將保持在較高水平，第四季度比去年同期增長 11%。該類別約佔總銷售額的 33%，超出了我們的預期，而去年為 31%。我們將持續開發新型創新環保產品，以滿足不斷增長的客戶需求，並在 2023 年擴大我們的客戶群。我們在芝加哥和休士頓開設了新的配送中心，並將華盛頓州配送中心的規模擴大了一倍，並搬入了 10 萬平方英尺的新設施。作為我們 2024 年成長計畫的一部分，這些新的配送中心已全面投入運營，並為地理和市場滲透做出了良好貢獻。

We recently signed a new lease for a distribution center in Arizona. We're taking possession of the warehouse now and are expecting it to be fully operational early in the second quarter. We are planning on opening another distribution center in the south east region this year, together with a sales force expansion, we are further penetrating key U.S. markets in the south Midwest and Pacific Northwest region and expect the growth in these market to more than offset a decline in the California market or weaker conditions in the restaurant sector throughout the state.

我們最近簽署了亞利桑那州配送中心的新租約。我們現在正在接管該倉庫，預計將在第二季初全面投入營運。我們計劃今年在東南地區開設另一個配送中心，並擴大銷售隊伍，進一步滲透美國中西部南部和太平洋西北地區的主要市場，預計這些市場的成長將超過抵消加州市場下滑或全州餐飲業狀況疲軟。

Our operating leverage in Q4 2020 threes was impacted by a write-off vendor prepayment of $1.1 million to purchase certain PPE product in 2020. So in a pure IQstream inventory supply shortage caused by the pandemic. We are focusing on implementing automation and AI technology at all of our facilities in 2024 to further enhance efficiencies and productivity. Additionally, we are actively evaluating strategic acquisition opportunities this year as market valuations are showing signs of reality and normalization with current strong operating cash flow as well as the Company's liquidity, strong balance sheet and positive long-term outlook. Our Board of Directors in February again authorized an increase in the quarterly cash dividend payments, $0.3 per share from $0.2 per share last quarter and from $0.1 per share since the regular quarterly dividend policies was initiated in August 2023. I will now turn the call over to Jian Guo, our Chief Financial Officer, to discuss the company's financial results in greater detail. Jian?

我們在 2020 年第四季的營運槓桿率受到了為 2020 年購買某些 PPE 產品而沖銷供應商預付款 110 萬美元的影響。因此，純粹是疫情造成的 IQstream 庫存供應短缺。我們的重點是到 2024 年在我們的所有設施中實施自動化和人工智慧技術，以進一步提高效率和生產力。此外，我們正在積極評估今年的策略性收購機會，因為市場估值顯示出現實和正常化的跡象，目前強勁的營運現金流以及公司的流動性、強勁的資產負債表和積極的長期前景。我們的董事會於 2 月再次授權將季度現金股利支付增加至每股 0.3 美元，上一季為每股 0.2 美元，自 2023 年 8 月啟動定期季度股息政策以來為每股 0.1 美元。我現在將把電話轉給我們的財務長郭建，更詳細地討論公司的財務表現。堅？

Thank you, Alan, and good afternoon, everyone. As Alan mentioned, we delivered another quarter of significant margin expansion and business performance. As I go through the key financial metrics here, I will be talking about certain misclassification adjustments made in the fourth quarter of 2023 for the full year amounts within the income statement with no impact on net income. The prior year amounts are not adjusted due to the immaterial impact on the overall financial statements. Net sales for the 2023 fourth quarter were $95.6 million, including an adjustment of $6.5 million of online platform fees for the full year, which resulted in an increase to both net sales and selling expenses, net sales were $92.7 million in the prior-year quarter. Sales volume increased 7.3% over the prior year quarter, which was offset by unfavorable year over year price comparison as we have passed on savings from ocean freight and raw material costs to customers primarily in the last quarter of 2022 and first half of 2023 by channel.

謝謝艾倫，大家下午好。正如艾倫所提到的，我們又一個季度實現了利潤率和業務績效的大幅成長。當我在這裡介紹關鍵財務指標時，我將討論 2023 年第四季對損益表中全年金額進行的某些錯誤分類調整，但對淨利潤沒有影響。由於對整體財務報表影響不大，因此不對上年度金額進行調整。2023年第四季淨銷售額為9,560萬美元，其中包括全年線上平台費用調整650萬美元，導致淨銷售額和銷售費用雙雙增加，去年同期淨銷售額為9,270萬美元。銷量比去年同期增長 7.3%，但被不利的同比價格比較所抵消，因為我們主要在 2022 年最後一個季度和 2023 年上半年通過渠道將海運費和原材料成本節省的費用轉嫁給了客戶。

Compared with a year ago. Sales to distributors, our largest channel was lower by 6.0% for the 2023 fourth quarter. Sales to national and regional chains decreased 3.6%. Sales to the retail channel decreased 5.2% and our online channel sales were up by 68.2% including the impact of 63.7% on the adjustment of online sales from fees. As discussed earlier, we are encouraged by the volume growth in our business as well as the growth of our ecofriendly products online channel and the increased geographic penetration in the East Coast, north east and midwest cost of goods sold for the 2023 fourth quarter was $61.5 million, which included an additional import duty reserve of $2.3 million and an adjustment of $3.9 million of certain production expenses from general and administrative expenses compared with $63.0 million in the prior year quarter, which included an out-of-period inventory write-off of $1.7 million.

與一年前相比。2023 年第四季度，我們最大的通路經銷商的銷售額下降了 6.0%。全國和地區連鎖店的銷售額下降了 3.6%。零售通路銷售額下降 5.2%，線上通路銷售額成長 68.2%，其中 63.7% 受到線上銷售費用調整的影響。如前所述，我們的業務量增長以及環保產品在線渠道的增長以及東海岸、東北和中西部地區滲透率的增加令我們感到鼓舞，2023 年第四季度的銷售成本為 61.5 美元百萬美元，其中包括230 萬美元的額外進口關稅準備金以及一般和管理費用中某些生產費用的390 萬美元調整，而去年同期為6,300 萬美元，其中包括期外庫存沖銷170 萬美元。

Gross profit for the 2023 fourth quarter was $34.1 million, which included the additional duty reserve and the impact from the adjustment discussed earlier versus $29.7 million in the prior year quarter. Gross margin expanded 370 basis points to 35.7% in the 2023 fourth quarter from 32.0% for the prior-year quarter. Gross margin in the 2023 fourth quarter included a negative impact totaling 240 basis points from the additional duty reserve and impacts from the adjustment discussed earlier. Despite the unfavorable year-over-year price comparison, gross margin benefited from our efforts to scale back manufacturing in the US in favor of imports, which carry higher margin and improved operating efficiency.

2023 年第四季的毛利為 3,410 萬美元，其中包括額外的關稅準備金和先前討論的調整的影響，而去年同期的毛利為 2,970 萬美元。2023 年第四季毛利率從去年同期的 32.0% 擴大 370 個基點至 35.7%。2023年第四季的毛利率包括額外關稅儲備帶來的總計240個基點的負面影響以及先前討論的調整的影響。儘管年比價格比較不利，但毛利率受益於我們努力縮減在美國的製造規模，轉而採用進口產品，從而帶來更高的利潤率和更高的營運效率。

Operating expenses in the 2023 fourth quarter were $29.5 million or 30.8% of net sales compared with $24.9 million or 26.8% of net sales in the prior year quarter. Operating expenses in the 2023 fourth quarter included the negative impact of a vendor prepayments write-off and the adjustments discussed earlier, totaling $3.6 million. The increase was primarily driven by higher labor costs, increased rent from additional leased warehouses and workforce expansion. Such increases were partially offset by lower shipping and transportation costs, stock-based compensation and bad debt expense.

2023 年第四季的營運費用為 2,950 萬美元，佔淨銷售額的 30.8%，而去年同期為 2,490 萬美元，佔淨銷售額的 26.8%。2023 年第四季的營運費用包括供應商預付款沖銷和前面討論的調整的負面影響，總計 360 萬美元。這一增長主要是由於勞動力成本上升、額外租賃倉庫租金增加以及勞動力擴張。這種成長被較低的運輸和運輸成本、基於股票的補償和壞帳費用部分抵消。

Net income for the 2023 fourth quarter was $4.2 million compared with $4.5 million in the prior year quarter. Net income for the 2023 fourth quarter included the negative impact from the additional duty reserve vendor prepayment write-off and a tax adjustment of 200,000 totaling $2.9 million. Net income margin was 4.4% in the 2023 fourth quarter compared with 4.9% in the prior year quarter. Net income margin in the 2023 fourth quarter included a negative impact from the duty reserve vendor prepayments, write-off tax adjustment and the adjustments discussed earlier, totaling 350 basis points.

2023 年第四季的淨利為 420 萬美元，而去年同期為 450 萬美元。2023 年第四季的淨利潤包括額外關稅儲備供應商預付款沖銷和 20 萬個總計 290 萬美元的稅收調整帶來的負面影響。2023 年第四季淨利率為 4.4%，而去年同期為 4.9%。2023年第四季的淨利潤率包括關稅準備金供應商預付款、沖銷稅調整和先前討論的調整的負面影響，總計350個基點。

Net income attributable to carriage for the 2023 fourth quarter was $3.9 million or $0.19 per diluted share compared with $4.5 million or $0.23 per diluted share last year. Adjusted EBITDA, a non-GAAP measure in the 2023 fourth quarter was $8.6 million versus $9.9 million in the prior year quarter. Adjusted EBITDA in the 2023 fourth quarter included a negative impact of $2.3 million from the additional duty reserve. As discussed earlier, adjusted EBITDA margin was 9.0% in the 2023 fourth quarter versus 10.7% in the prior year quarter. Adjusted EBITDA margin in the 2023 fourth quarter included a negative impact from the additional duty reserve and the adjustments totaling 230 basis points adjusted diluted earnings per common share was $0.24 per share in the 2023 fourth quarter compared with $0.3 per share in the prior year quarter.

2023 年第四季運輸淨利為 390 萬美元，即稀釋後每股 0.19 美元，去年為 450 萬美元，即稀釋後每股 0.23 美元。2023 年第四季的調整後 EBITDA（非 GAAP 衡量標準）為 860 萬美元，而去年同期為 990 萬美元。2023 年第四季調整後 EBITDA 包括額外關稅準備金帶來的 230 萬美元負面影響。如前所述，2023 年第四季調整後 EBITDA 利潤率為 9.0%，而去年同期為 10.7%。2023 年第四季調整後EBITDA 利潤率包括額外關稅準備金和總計230 個基點的調整帶來的負面影響，2023 年第四季調整後每股普通股攤薄收益為每股0.24 美元，而去年同期為每股0.3 美元。

We believe carat is well positioned to execute on its future growth strategy. We finished 2023 with $110.3 million in working capital compared with $84.5 million at the end of 2022. As of December 31st, 2023, we have financial liquidity of $59.3 million with another $26.3 million in short-term investments. I will now close with our 2024 outlook. Net sales for the 2024 first quarter are expected to increase low to mid-single digits from the prior year quarter. Based on the current competitive environment and the new business outlook, our gross margin goal for the 2024 first quarter is approximately 37% to 39%. For full year 2024, we expect net sales to grow 8% to 15% and gross margin to be in the range of 35% to 38%, assuming no significant increases in ocean freight rates. Alan and I will now be happy to answer your questions and I'll turn the call back to the operator, we will now begin the question and answer session.

我們相信凱絡有能力執行其未來的成長策略。2023 年末，我們的營運資金為 1.103 億美元，而 2022 年底為 8,450 萬美元。截至 2023 年 12 月 31 日，我們的財務流動性為 5,930 萬美元，另外還有 2,630 萬美元的短期投資。最後我將介紹 2024 年的展望。2024 年第一季的淨銷售額預計將比去年同期實現低至中個位數成長。基於目前的競爭環境和新的業務前景，我們2024年第一季的毛利率目標約為37%至39%。假設海運費沒有大幅上漲，我們預期 2024 年全年淨銷售額將成長 8% 至 15%，毛利率將在 35% 至 38% 之間。艾倫和我現在很樂意回答您的問題，我會將電話轉回接線員，我們現在開始問答環節。

(Operator Instructions) Jake Bartlett, Truist Securities.

（操作員指示）Jake Bartlett，Truist 證券公司。

Great. Thank you so much for taking the question on. My first is on the sales in the fourth quarter and backing out or backing out the online sales adjustment, there was a it was lower than the guidance. And even I think, you know, if you add the $2 million to $3 million that they kind of moved forward into the first quarter of 14, it was below guidance. So the question is what is driving that Omnia? What's versus expectations? What really drove the lower than expected results in the fourth quarter for sales?

偉大的。非常感謝您提出這個問題。我的第一個是第四季度的銷售情況，以及取消或取消線上銷售調整，有一個低於指導值。甚至我認為，如果你把他們提前到 14 年第一季的 200 萬到 300 萬美元加上去，那就低於指導值。那麼問題是 Omnia 的驅動力是什麼？與預期有何不同？到底是什麼導致第四季銷售業績低於預期？

Jake, let me answer that question. Well, first of all, we did see a slowdown in the customer's purchasing product for inventory impact in December especially the month of December, we saw a significant slowdown in all of our distributors are taking orders on that part. And one of our reason is that our main chain accounts are saying that they were Overstock and the business was not as good as last year. So that was one of the main reasons that we had a really slow in December Okay.

傑克，讓我來回答這個問題。嗯，首先，我們確實看到 12 月份客戶採購產品的庫存影響有所放緩，尤其是在 12 月份，我們看到所有分銷商在這方面的訂單都顯著放緩。而我們的原因之一就是我們的主鏈帳戶都說庫存積壓，生意沒有去年好。所以這是我們 12 月進展緩慢的主要原因之一。

And I remember on the stocking or maybe destocking from distributors is an issue or a different dynamic in the fourth quarter that maybe had gone away. Is this is this maybe a return to normal kind of behavior from the distributors? Or are we still in kind of abnormal territory with Tom, how they're behaving right now?

我記得分銷商的庫存或去庫存是一個問題，或者是第四季度的一個不同動態，但可能已經消失了。這是否是經銷商回歸正常行為的表現？或者我們和湯姆的關係仍然處於異常狀態，他們現在的表現如何？

We understand that doing every year into it, especially at the end of the years in December on our customer goes on vacations and they tried to destock whatever and return inventory that are excessive. That's kind of a normal seasonality, things on one way to avoid that, we'll be adding additional new account new businesses to have offset that, especially this year now that that it's different and large, though, actually last at the last quarter was different. The prior year from the prior year period, people are concerned, it might be a shortage. So they tend to stock up during the holiday, but last quarter, especially in December, people understand that there's abundant inventory out in the market, so they wouldn't be too concerned about, but bring too much inventory into their warehouse.

我們知道，每年都會這樣做，特別是在年底的 12 月，我們的客戶會去度假，他們會嘗試減少庫存並退回多餘的庫存。這是一種正常的季節性，為了避免這種情況，我們將增加額外的新帳戶新業務來抵消這種情況，特別是今年，因為它不同而且規模很大，但實際上最後一個季度是不同的。從去年同期來看，人們擔心，可能會出現短缺。所以他們傾向於在假期期間備貨，但上個季度，尤其是12月，人們了解到市場上有充足的庫存，所以他們不會太擔心，而是將過多的庫存帶入倉庫。

And I believe that most companies are or most of our customer distributors are overstock in the inventory in the warehouse that they're struggling with the warehouse spaces in the past year when they should have spaces to actually release additional spaces. But now the warehouse space that becomes so expensive, people are trying to reduce their warehouse stores base to reduce their cost of operation.

我相信大多數公司或我們的大多數客戶分銷商的倉庫庫存過剩，他們在過去一年中一直在為倉庫空間而苦苦掙扎，而實際上他們應該有空間來釋放額外的空間。但現在倉庫空間變得如此昂貴，人們正在嘗試減少倉庫面積以降低營運成本。

Okay. And then the last question on sales, Ellen, this is describe the pricing environment. It feels like part of why the sales, particularly those sales were kind of expectations and guidance was March down and in 2023 was because of just pricing in your your desire to pass along price uplifts on lower cost on through price have we stabilized there? Or do you think that you feel more confident that pricing is not going to continue to come down in 24 and that maybe is kind of bottoming and will grow from here?

好的。然後是關於銷售的最後一個問題，艾倫，這是描述定價環境的。這感覺像是 3 月份銷售（尤其是那些預期和指引的銷售）下降的部分原因，而 2023 年的銷售只是因為您希望透過價格降低成本來傳遞價格上漲的願望，我們是否已經穩定在那裡？或者您認為您更有信心認為價格在 24 年內不會繼續下降，並且可能已經觸底並將從此開始增長？

Well, yes. In 2023, I would say that in most industries, especially packaging industry, we're seeing everyone is seeing prices coming down due to overstocking due to the lower cost of ocean freight do it due to lower cost of the raw material. And we're seeing basically not only bottom, we're seeing a kind of a rebound a little bit in terms of pricing in some categories like the glove, like certain categories that are in shortage that from overseas. So that's what we're seeing right now. We're seeing. But I would say that we're pretty much we came to the bottom in the fourth quarter and it started a little rebound in first quarter of 2024.

嗯，是。到 2023 年，我想說，在大多數行業，特別是包裝行業，我們看到每個人都看到價格因庫存過剩而下降，這是由於原材料成本較低而導致海運成本較低。我們基本上不僅看到底部，而且在手套等某些類別的定價方面看到了一點反彈，就像海外短缺的某些類別一樣。這就是我們現在所看到的。我們正在看到。但我想說的是，我們幾乎在第四季觸底，並在 2024 年第一季開始小幅反彈。

Okay. I'll pass it on and jump back in the queue. Thank you so much.

好的。我會把它傳遞出去並跳回到隊列中。太感謝了。

Michael Hoffman, Stifel.

邁克爾·霍夫曼，斯蒂菲爾。

Hi, Alan. Jen, can I have some modeling questions about 2024. So we just get all the details. So could you give us a little of your thoughts about where SG&A lands, interest expense taxes and then lastly, free cash flow answer either a dollar amount or a cash conversion ratio of your EBITDA, just so we can complete the model.

嗨，艾倫。Jen，我可以問一些關於 2024 年的建模問題嗎？所以我們只得到所有的細節。那麼，您能否給我們一些關於 SG&A、利息費用稅以及最後的自由現金流的想法，回答您的 EBITDA 的美元金額或現金轉換率，以便我們完成模型。

So Michael, let me take that but yes, yes. So let me take that question. So we have provided some high-level estimate of which we provide to the revenue and gross margin don't necessarily go down into all the details. But on that, we can definitely share some of our thoughts here. And again, as we mentioned in our guidance, the four years that are on the full year performance a lot of that, especially for the second half because it's just a caveat. The second half of 2024 is going to be assuming we don't have significant changes in the ocean freight rates a high level when we're thinking about, I think, Michael, you're asking operating expense and interest expense and cash flow, right?

邁克爾，讓我接受這一點，但是是的，是的。那麼就讓我來回答這個問題。因此，我們提供了一些對收入和毛利率的高級估計，但不一定涉及所有細節。但對此，我們絕對可以在這裡分享一些我們的想法。再次，正如我們在指導中提到的，全年表現中的四年有很多，特別是下半年，因為這只是一個警告。2024 年下半年，假設我們的海運費沒有顯著的高水準變化，我想，邁克爾，你問的是營運費用、利息費用和現金流，正確的？

So operating expense, I would say high level. This is the area of focus for the management team right now. And our goal is to continue to improve the leverage there. I want to say 2024 high level operating expense on a full year basis, it's probably going to be fairly consistent or a little bit better than 2023 when you take out the some of the discrete items that is that we incurred in 2023. I think overall operating leverage is going to improve and that albeit we do expect to see some improvement, especially related to labor cost, partially offset by our increase in rent expense, somewhat fixed expenses as we continue to expand our warehouse space, the high level that's the operating expense, operating leverage interest expense year over year. I don't see significant changes there.

所以我想說的是營運費用很高。這是管理團隊目前關注的重點領域。我們的目標是繼續提高那裡的槓桿作用。我想說的是，2024 年全年的高水準營運費用，當你去掉 2023 年我們發生的一些離散項目時，它可能會比 2023 年相當一致或好一點。我認為整體營運槓桿將會改善，儘管我們確實期望看到一些改善，特別是與勞動力成本相關的改善，但部分被我們的租金費用增加所抵消，隨著我們繼續擴大倉庫空間，一些固定費用，高水準這是營業費用、營業槓桿利息費用。我沒有看到那裡有重大變化。

The term loans and again, these are the term loan that we have global wealth, which is our consolidated variable interest entity these are there, Tom, those are global wealth books, so not our operating entity, but again, they are both term loans of that in fixed rate, we don't expect significant changes year over year in interest expense, free cash flow, we do believe our free cash flow is going to be continued is going to continue to be really, really strong in 2024. We talked previously about that pivoting to me more asset-light model, focusing on the import as opposed to I'm making heavy investment on a CapEx investment here domestically. So we do expect to continue with that model into 2024 and continue to expect strong free cash flow in 24.

定期貸款，這些是我們擁有全球財富的定期貸款，這是我們的綜合可變利益實體，湯姆，這些是全球財富簿，所以不是我們的運營實體，但同樣，它們都是定期貸款其中固定利率，我們預計利息支出和自由現金流不會逐年發生重大變化，我們確實相信我們的自由現金流將在2024 年繼續非常非常強勁。我們之前談到轉向更輕資產的模式，專注於進口，而不是在國內資本支出投資上進行大量投資。因此，我們確實預計該模式將持續到 2024 年，並繼續預計 24 年將出現強勁的自由現金流。

So when you could just give us a sense of some cash conversion of your of your your EBITDA, I mean, you had just to put it in perspective, I mean, you during the 70s percent of your EBITDA converted into cash, should we assume that that carries into 2024 as well, but the cash flow from ops less all capital spending.

因此，當您可以讓我們了解您的 EBITDA 的現金轉換情況時，我的意思是，您只需正確看待它，我的意思是，您的 70% 的 EBITDA 轉換為現金，我們是否應該假設這也會延續到2024 年，但營運現金流減去所有資本支出。

Understood and understood. I would think it will be it will be it will be in that range. It would be ideal range. Okay. And then Tom and John, can you help us a little bit about Thank you for the details on sales year over year change in the segments. When I when you look at the ones that were negative, what's the balance between price and volume? Like is there positive volume, but really negative pricing. So the whole thing is negative. And so I'm trying to get at is that there was a decent underlying volume number, but I'm overshadowed by the resetting of price for raw materials, lower freight, all that stuff.

明白了也明白了。我認為會在這個範圍內。這將是理想的範圍。好的。湯姆和約翰，您能幫我們介紹一下嗎？謝謝您提供各細分市場銷售額逐年變化的詳細資訊。當我看到那些負數時，價格和數量之間的平衡是什麼？例如銷售量為正，但定價卻為負。所以整件事情都是消極的。因此，我試圖了解的是，有一個不錯的基礎銷售數字，但我被原材料價格的重置、較低的運費等所有因素所掩蓋。

How do I think about that across those segments? You saw in the fourth quarter of 2023, the volume did increase I believe, Jan with it, um, what is the percentage volume increase overall, but and how was that distributed across the four segments, the operating line, when you think about that directionally no positive negative from distributors, national retail versus online.

我如何看待這些細分市場？你在2023 年第四季度看到，銷量確實有所增加，我相信，一月，嗯，整體銷量增長的百分比是多少，但是當你想到這一點時，銷量在四個部門、運營線中的分佈是怎樣的經銷商、全國零售與線上零售相比，在方向上沒有正面的負面影響。

I would say that the on mainly online sales volume was more of a positive and into the, I would say, the retail segment, it was positive in the distribution segment. I would say it kind of evened out a little bit, but mainly our growth in the volume is more on the online as well as the national chain account.

我想說，主要是在線銷售量更加積極，而在零售領域，分銷領域也是積極的。我想說，這有點平衡，但主要是我們的銷售成長更多來自線上和全國連鎖帳戶。

Okay. And then you alluded to this a little bit, John, about cadence, but can we talk because you're going to start the year at a much stronger gross margin and finished the year lighter to get to the average of the guidance. Talk to us a little bit about how to think about that cadence? Is there anything lumpy about it? Or do I just sort of gradually bring it down all year long to work out to get to the midpoint of the range? Well, there's nothing I think if you're referring to 2023 or if we have 2020, 24 or 2023?

好的。然後，約翰，你提到了一點關於節奏的問題，但我們可以談談，因為你將以更高的毛利率開始今年，並以更輕的價格結束這一年，以達到指導的平均水平。和我們談談如何思考這種節奏？有沒有什麼疙瘩的東西？或者我只是全年逐漸降低它以達到該範圍的中點？好吧，如果你指的是 2023 年，或者我們有 2020 年、24 日或 2023 年，我認為沒有什麼？

Yes, for the guidance, you start the year at a 37 to 38 or 39% gross margin in the first quarter, but the full year is below that. So is that a gradual decline every quarter? Or is there how do. I think I'm just trying to our modeling thinking about the cadence so very steady online each quarter. So I get to a blended average for the full year outlook.

是的，根據指導，年初第一季的毛利率為 37% 至 38% 或 39%，但全年低於該水準。那麼是每季都在逐漸下降嗎？或是有沒有怎麼辦。我想我只是在嘗試對我們的建模進行思考，每個季度的在線節奏非常穩定。因此，我得出了全年展望的混合平均值。

Well, this is how I met Jim had mentioned earlier that there's a very big uncertainties of contract renewal for the Ocean Freight in May of 2024. So we kind of know exactly what's client, but it might what might occur in the first quarter and second quarter. But we big uncertainty is what is the USD is going to weaken or maintain strong as we are today. And the OS. was ocean freight is going to maintain. The current level is going to increase if it increased how much it increases. So kind of put a cushion in terms of the last two quarter of the end of the year. But we know that our volume is going to be strong.

嗯，這就是我認識吉姆的原因，吉姆之前提到過，2024年5月的海運合約續約存在著很大的不確定性。因此，我們確切地知道客戶是什麼，但可能會在第一季和第二季發生什麼。但我們最大的不確定性是美元會像今天一樣走弱還是保持強勢。還有作業系統。海運將維持。如果增加多少，目前的水平就會增加。因此，這為今年年底的最後兩個季度提供了緩衝。但我們知道我們的銷量將會強勁。

Our expected volume this year, we're hoping we're looking for a goal of a 15% growth margin, not gross margin, 50% growth in volume wise. That is our goal that we're looking to shoot for and in terms of, of course, the gross margin we're also adding in on that there's some change in terms of a calculation classification. We used to have the CapEx and they are doing at the operating level, but now starting 2023 or 2024 will bring the CapEx into the the on the on the top of the levels so basically that will affect the gross margin also. That will be one of the big aspects that will affect the margin.

我們今年的預期銷售目標是 15% 的成長率，而不是毛利率，而是銷量成長 50%。這就是我們想要追求的目標，當然，我們也在毛利率方面添加了計算分類的一些變化。我們過去有資本支出，他們是在營運層面進行的，但現在從 2023 年或 2024 年開始，資本支出將進入最高水平，所以基本上這也會影響毛利率。這將是影響利潤率的重要方面之一。

Okay. So just so I think I understand you are being conservative about the direction of ocean freight in your guidance. But it's a point of opportunity if in fact, to go if the ocean freight proves to be consistent at current levels. Is that what I'm hearing that I hear that correctly, I may be misunderstanding what you're trying to tell.

好的。因此，我認為我理解您在指導中對海運方向持保守態度。但事實上，如果海運費證明與當前水準保持一致，那麼這就是一個機會。這就是我所聽到的，我沒聽錯，我可能誤解了你想表達的內容。

Yes, that is correct. If the ocean freight maintained stable, then basically I would say that this is definitely beneficial for us during Q4.

對，那是正確的。如果海運費保持穩定，那麼基本上我會說這對我們第四季肯定是有利的。

Got it. Okay. That's what I thought you meant. Right. Thanks.

知道了。好的。我以為你就是這個意思。正確的。謝謝。

Thank you, Michael.

謝謝你，麥可。

Ryan Meyers, Lake Street Capital Markets.

瑞安·邁耶斯（Ryan Meyers），湖街資本市場。

Hey, guys, thanks for taking my questions on first one for me. So if we think about the revenue guidance range of 8% to 15% growth. What would you need to see to come in at the high end of that range? Is that more of a stabilization in pricing or even a little bit of improvement in pricing. Just wanted to get a good understanding of how we potentially could see that 15% top-line growth for 2024.

嘿，夥計們，謝謝你們為我解答第一個問題。因此，如果我們考慮 8% 至 15% 成長的收入指導範圍。您需要看到什麼才能進入該範圍的高端？這更多的是定價的穩定性還是定價的一點改善？只是想很好地了解我們如何在 2024 年實現 15% 的收入成長。

Sure, Wally, Mike, but Ryan, in the past year due in part to pandemic, our Company has been growing double digit every year year over year. And last year was a much different environment because in 2022. There's a major spike in ocean freight and that we add to at the price of cost of goods sold and the reselling prices based on that. And there was a deflationary factor during the last year, 2023. But in 2024, as everything stabilize, our selling volume is going to increase with adding new sales rep that's going out has been gone going out there in the street selling to more new video chain accounts.

當然，沃利、麥克，但瑞安，在過去的一年裡，部分由於疫情，我們公司每年都以兩位數的速度成長。去年的環境截然不同，因為 2022 年。海運費大幅上漲，我們根據已售商品成本和基於此的轉售價格增加了運費。去年，即2023年，有通貨緊縮因素。但到 2024 年，隨著一切穩定下來，隨著新銷售代表的增加，我們的銷售量將會增加，而這些銷售代表已經不再在街上向更多新的視訊連鎖帳戶銷售。

And we're already seeing that we're adding on several dozens of new accounts in the past few months basically. So we're adding about 2030, 40 accounts are, I would say, 40 accounts, every quarter's distribution and chain accounts. And with that said, that's going to add a lot to our top line as well as our existing customers. We're adding additional new items such as napkins and other new category that we're selling in that we're looking to bring in this year, additional 3 to 400 SKU that will also add to our top line. On top of that, we're looking at our acquisitions this year, as we mentioned during our IPO, that one of the things that for our growth strategy has started looking at acquisition target in the past years on we've been looking at it, but the price was not that reasonable.

我們已經看到，在過去的幾個月裡，我們基本上增加了幾十個新帳戶。所以我們要增加大約 2030 年的 40 個帳戶，我想說，40 個帳戶，每季的分銷和連鎖帳戶。話雖如此，這將大大增加我們的收入以及我們現有的客戶。我們正在添加額外的新商品，例如餐巾紙和我們正在銷售的其他新類別，我們希望今年引入這些新商品，另外 3 到 400 個 SKU 也將增加我們的營收。最重要的是，我們正在考慮今年的收購，正如我們在首次公開募股期間提到的那樣，我們的成長策略的其中一件事已經開始考慮過去幾年的收購目標，因為我們一直在考慮它，但價格不太合理。

And we're seeing that people who are looking to sell the business that we're potentially looking to acquire are becoming more realistic numbers that we can see that we can look into now. So if we were to hit the 15% range, I would say that would have a small acquisition. I'm not going to we're going to talk about large acquisition, but we're looking at this small site acquisition.

我們看到，那些想要出售我們可能希望收購的業務的人正在變得更加現實，我們現在可以看到這個數字。因此，如果我們要達到 15% 的範圍，我想說這將是一次小型收購。我不打算討論大型收購，但我們正在研究這個小型網站收購。

Got it. That makes sense. And then if we think about the softness that you commented on in the distributor and national channels in the fourth quarter. I just wanted to get a good understanding of how much of that was driven by just the California market versus how much of it was the overall system as a whole California market.

知道了。這就說得通了。然後，如果我們考慮您所評論的第四季度分銷商和全國管道的疲軟情況。我只是想很好地了解其中有多少是由加州市場驅動的，有多少是由整個加州市場的整體系統驅動的。

In the fourth quarter, we saw a decline of almost like a double digit decline in terms of California year over year on the restaurant environment, California, it's it's really bad in this industry and also as well as competitiveness does a lot more importers and California restaurants are not doing well, especially the mom-and-pops that are serviced by distributors through the chain account, however, is doing but much better than the distributor, this mom-and-pop shops, which we're seeing a lot of restaurant closing and going out of bankruptcy, and that's we're seeing fourth quarters in California.

在第四季度，我們看到加州的餐飲環境比去年同期下降了幾乎兩位數，加州這個行業真的很糟糕，而且還有更多的進口商和加州的競爭力餐廳做得不好，特別是那些由經銷商透過連鎖帳戶提供服務的夫妻店，但做得比經銷商要好得多，我們看到很多這樣的夫妻店。餐廳關閉並走出破產困境，這就是我們在加州第四季看到的情況。

Got it. Thank you for taking my questions.

知道了。感謝您回答我的問題。

Jake Bartlett, Truist Securities.

傑克·巴特利特，Truist 證券公司。

Hey, thanks, and thanks for the follow-ups here. My first was just on that discussion on guidance, Alan, and you had mentioned volume expectations of 15%, but the guidance is 8% to 15%. So is that is that just a follow on of the lower pricing that we had by the end of the year? And just helping us understand the dynamics I know there's this mix that goes on as well and it impacts sales growth. So maybe just help us match the 15% on volume growth in the 8% to 15% revenue guidance?

嘿，謝謝，謝謝你的跟進。我的第一個問題只是關於指導的討論，艾倫，你提到了 15% 的銷售預期，但指導是 8% 到 15%。那麼這是否只是我們年底降價的延續？只是幫助我們了解動態，我知道這種混合也在持續，它會影響銷售成長。那麼，也許只是幫助我們匹配 8% 至 15% 收入指引中 15% 的銷售成長？

Yes, we're volume wise is per case count. The case counts could be something that's worth $3, $4 bottles or something that is $80 a case so that's where we're seeing the volume growth is our we're calculating by the numbers of bottles, a number of cases that we're selling the year-over-year comparisons, and we're already seeing we're still seeing the growth starting in Q4, especially that on November and December of last quarter last year. And we're seeing already seeing some strong growth this year already in the first two months with the first three months of this 2024, ready with the new a customer that we're just acquire regionally and also the potential customer that are in our pipeline.

是的，我們的數量是按箱數計算的。箱數可能是價值 3 美元、4 美元一瓶的東西，或者是每箱 80 美元的東西，因此我們看到銷量增長是我們通過瓶子數量、我們銷售的箱數來計算的。同比比較，我們已經看到第四季開始的成長，特別是去年最後一個季度的11 月和12 月。我們已經看到，今年的前兩個月和 2024 年的前三個月已經出現了一些強勁的增長，我們已經準備好迎接我們剛剛在區域範圍內獲得的新客戶以及我們管道中的潛在客戶。

We're seeing this number to continue to grow. So 15% is I would say that is more of a conservative number that we're going to. I'm going to say in terms of volume growth and based on the number of customer that we have in pipeline. But this can be average because, of course, we're looking at the second quarter and third quarter is always our strongest quarter versus our first quarter and fourth quarters in terms of volume growth wise. So we're going to be looking at our 50% is our target in terms of apps growth on quarterly wise and in terms of revenue on revenue, we have a kind of a strong base already in the 2023.

我們看到這個數字持續成長。所以我想說 15% 這個數字比較保守。我要說的是銷量成長以及我們正在開發的客戶數量。但這可能是平均水平，因為當然，我們關注的是第二季度和第三季度，就銷量成長而言，與第一季度和第四季度相比，第二季度和第三季度始終是我們最強勁的季度。因此，我們將著眼於季度應用程式成長和收入收入方面，50% 是我們的目標，到 2023 年，我們已經奠定了堅實的基礎。

And we're seeing that with these volume growth in new account adds, and that's where we see the revenue growth at 8% to 15%. Of course, that is a revenue guidance that we want to be conservative because in 2023, we have a very we kind of have a decline in our revenue growth from 2023 compared to 2022 so we're trying to catch back in terms of 2024 to grow beyond the the revenue we had in 2022.

我們看到，隨著新帳戶數量的增長，我們看到收入增加了 8% 到 15%。當然，這是我們希望保守的收入指引，因為到 2023 年，與 2022 年相比，我們的收入增長從 2023 年開始有所下降，因此我們正試圖在 2024 年恢復到增長超過我們2022 年的收入。

But just to understand the offset to volume growth is negative, is negative mix or negative prices are up some revenue would be higher than the volume I assume. So why is revenue growth slower than volume growth pricing, you are right where they already have.

但只要了解銷售成長的抵銷是負的，是負混合還是負價格上漲，有些收入就會高於我假設的銷售量。那麼，為什麼營收成長慢於銷售成長定價，你就在他們已經有的地方。

So we are having to compete with our other other vendors for pricing. So we're doing both competing with other vendors as well as selling more higher price volume-wise in online.

因此，我們必須與其他供應商競爭價格。因此，我們既要與其他供應商競爭，又要在網路上以更高的價格銷售更多產品。

Okay. And then the question on operating expense or G&A of growth, I just want to make sure your comment. You said it was you want to improve versus 23. That's on a percentage of sales basis. You don't expect the absolute G&A or operating expenses to be lower year over year, except that I just want to make sure that that's the right message.

好的。然後是關於營運費用或成長的一般管理費用的問題，我只是想確認一下你的評論。你說你想比 23 進步。這是按銷售額的百分比計算的。你不會期望絕對的一般管理費用或營運費用會逐年下降，但我只是想確保這是正確的資訊。

That's correct, Jake, it's the leverage, the percentage in percentage of sales.

沒錯，傑克，這就是槓桿，也就是佔銷售額的百分比。

Okay. And then just on the adjustments for the new online sales platform, fees kind of moving from, I guess going into selling increasing selling expenses and retail sales, also the production expenses on moving out of G&A to cost of goods, how should we think that just for modeling, you're not telling us how much they were per quarter in 23, but it should we just divide those adjustments by four and assume that that's the right kind of impact on a quarterly basis as we look to model 24 and beyond.

好的。然後，就新的線上銷售平台的調整而言，費用有點從，我想進入銷售增加的銷售費用和零售額，以及從一般管理費用轉移到商品成本的生產費用，我們應該如何看待僅用於建模，您並沒有告訴我們23 中每季的影響是多少，但我們應該將這些調整除以四，並假設這是對24 及以後模型的季度影響的正確類型。

And that should be that should be pretty close with the only caveat I will add is a couple of caveats. There is the online platform fee along with a significant growth of our overall online sales. I would expect that amount to increase. But in 2024 compared to 2023. On the production expense, I would expect 24 amount to be slightly below the 23 amount because of their continued skill batch of the overall domestic production activities here.

這應該是非常接近的，我要添加的唯一警告是一些警告。隨著我們整體線上銷售額的顯著成長，還有線上平台費用。我預計這個金額會增加。但與 2023 年相比，2024 年。在生產費用方面，我預計 24 的金額將略低於 23 的金額，因為他們繼續在此處進行整體國內生產活動。

Okay. And then lastly, on the import duty reserve, is it the same kind of way to think about it there that maybe should have been higher earlier was taken all at once here or is that not how that works? So just how would it how would by taking this reserve now, how would it impacts on the next three quarter COGS, it would be higher because it because you would have if that was a reserve as if you reserve more appropriately on on an ongoing basis you'd have higher cost of goods sold. Is that how we should think about?

好的。最後，關於進口關稅儲備金，是否有同樣的思考方式，也許早些時候應該更高，但在這裡一次全部採取，或者不是這樣運作的？那麼，現在採取這項儲備會如何，它將如何影響未來三個季度的銷貨成本，它會更高，因為如果這是儲備，你就會擁有，就好像你持續儲備更合適一樣你的銷售成本會更高。我們該這樣思考嗎？

Can I just make sure I understand your question correctly. You're talking about the breakdown for the duty import duty?

我可以確保我正確理解你的問題嗎？您是在談論進口關稅的細目嗎？

Yes, yes.

是的是的。

Okay. So this what I we actually don't expect a significant change in 2020 for currency based on the best information that we currently have. The reason why we had an increase in the reserve in this charge, which you are right, if it impacted Q4 cost of goods sold, the reason why we had a impact was there was a change of estimate. It was a contingency. It was a loss contingency we previously reserved and took a charge reserve and eight of our based on our best, I'd estimate at that point in time that in the second quarter of 2023, we had a investor investigation going on. So we took a reserve back in Q2 2020, but Q2 2023. As forward to Q4 2023, we had some updates in our estimate updates in events and circumstances that helped us better. We estimate this reserve and this loss contingency.

好的。因此，根據我們目前掌握的最佳信息，我們實際上預計 2020 年貨幣不會發生重大變化。我們之所以增加這項費用的準備金，你是對的，如果它影響了第四季度的銷售成本，那麼我們產生影響的原因是估計發生了變化。這是一個偶然事件。這是我們先前預留的損失應急準備金，並根據我們最好的情況提取了八項費用準備金，我當時估計，在 2023 年第二季度，我們正在進行一項投資者調查。因此，我們在 2020 年第二季和 2023 年第二季收回了儲備金。到 2023 年第四季度，我們對事件和情況的估計更新進行了一些更新，這有助於我們做得更好。我們估計該準備金和損失意外事件。

That's the reason why we recorded an adjustment to this charge. We are as of right now, based on the inflammation and ASSISTANT provider from the console, we do not expect significant changes and in 2024. That being said, as we as we as we think about this reserve amount as of 1231, 2023, this is based based on the best estimate that we currently have, there might be future options that we would look into on. But as of right now, we don't expect significant changes in 2024 related to this in to this to this discharge.

這就是我們對此費用進行調整的原因。截至目前，根據控制台的發炎和 ASSISTANT 提供程序，我們預計 2024 年不會發生重大變化。話雖這麼說，當我們考慮截至 2023 年 1231 年的儲備金額時，這是基於我們目前的最佳估計，我們可能會考慮未來的選擇。但截至目前，我們預計 2024 年不會出現與此相關的重大變化。

Jake, let me add to what Jim has mentioned. This reserve is a special duty reserve space on an item that we have imported from overseas and on this basically that everything all the investigation has confirmed finalized. So in 2024 and onwards, we will have to deal with this any type of an important issue on this particular product. But and for the moment, we reserve on, are we going to see a cash payout anytime soon?

傑克，讓我補充一下吉姆提到的內容。該儲備是我們從海外進口的物品的特殊關稅儲備空間，基本上所有調查都已確認最終確定。因此，從 2024 年起，我們將不得不處理該特定產品的任何類型的重要問題。但就目前而言，我們是否很快就會看到現金支付？

No, it might be and a couple of years down the road since we are going to appeal. And this is this high throughput, $2.3 million or $3.5 million is the highest reserve or putting that work very likely this reserve would change on to a different amount, which is we're looking at a lower amount. The amount of dollar amount that will change, but this is the highest the most we will see in terms of the duty that we're liable for basically raise.

不，可能要過幾年我們才會上訴。這就是高吞吐量，230 萬美元或 350 萬美元是最高儲備金，或者說，這項工作很可能會改變該儲備金，即我們正在尋找較低的金額。美元金額將會發生變化，但就我們基本上要承擔的關稅而言，這是我們看到的最高金額。

That makes sense. I appreciate it. Thank you.

這就說得通了。我很感激。謝謝。

Michael Hoffman, Stifel.

邁克爾·霍夫曼，斯蒂菲爾。

Thanks. From the M&A, just to be clear, given the quality of the cash flow, I presume you would be able to fund the small M&A that you're thinking about all from sources that you generate. So it's self-funded, correct, yes. Or unless.

謝謝。從併購中，需要明確的是，考慮到現金流的質量，我認為您將能夠從您產生的來源中為您正在考慮的小型併購提供資金。所以它是自籌資金，正確的，是的。或除非。

Yes, I mean, we're basically we have over on us, $100 million has that like I like Jan mentioned in our report over $100 million in cash flows in terms that we can use that utilize which we're not going to utilize all of it on. But for sure, that's something that we have we can do self-funded.

是的，我的意思是，我們基本上已經擁有了1 億美元，就像我喜歡Jan 在我們的報告中提到的那樣，超過1 億美元的現金流量是我們可以使用的，但我們不會全部使用的。但可以肯定的是，這是我們可以自籌資金做的事情。

Okay. But the big statement being is that there's nothing on the radar that you're going to drive the leverage on this can be self funded off of cash and the leverage stays relatively stable?

好的。但最重要的聲明是，沒有任何跡象表明您將透過現金自籌資金來提高槓桿率，並且槓桿率保持相對穩定？

Yes, yes, we and also we are we are going to generate even more cash this year. Right, right.

是的，是的，我們今年將產生更多現金。是的是的。

That's what I'm trying to get out.

這就是我想要擺脫的。

Okay, thanks.

好的謝謝。

This concludes our question-and-answer session. I would like to turn the conference back over to Alan you for any closing remarks.

我們的問答環節到此結束。我想將會議轉回艾倫·尤（Alan you）發表閉幕詞。

Thank you, everyone, for joining our of our 2023 fourth quarter earnings calls. And I would like to say, thank you all, and have a nice day. Thank you very much, Maria.

感謝大家參加我們的 2023 年第四季財報電話會議。我想說，謝謝大家，祝你有美好的一天。非常感謝你，瑪麗亞。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。