LuxUrban Hotels Inc (LUXH) 2024 Q2 法說會逐字稿

Good day, and welcome to the LuxUrban Hotels 2024 second-quarter conference call. (Operator Instructions)

美好的一天，歡迎參加 LuxUrban Hotels 2024 年第二季電話會議。（操作員說明）

Please note this event is being recorded. I would now like to turn the conference over to Adam Holdsworth, Managing Director of Investor Relations. Please go ahead.

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董事總經理 Adam Holdsworth。請繼續。

Thank you, and good afternoon, everyone. Thanks for joining our conference call to discuss the LuxUrban Hotels second-quarter 2024 financial results and corporate highlights. Leading the call today will be Robert Arigo, Chief Executive Officer; joined by Mike James, Chief Financial Officer.

謝謝大家，大家下午好。感謝您參加我們的電話會議，討論 LuxUrban Hotels 2024 年第二季財務業績和公司亮點。今天的電話會議將由執行長羅伯特·阿里戈 (Robert Arigo) 主持。財務長邁克詹姆斯 (Mike James) 也加入其中。

Before we begin, I'd like to remind everyone that our remarks today may contain forward-looking statements based on the current expectations of management, which involve inherent risks and uncertainties that could cause the actual results to differ materially from those indicated, including the risks and uncertainties described in the company's filings. You are cautioned not to place any undue reliance on any forward-looking statements, which speak only as of the date made and may change at any time in the future.

在開始之前，我想提醒大家，我們今天的言論可能包含基於管理層當前預期的前瞻性陳述，其中涉及固有風險和不確定性，可能導致實際結果與所示結果存在重大差異，包括公司文件中描述的風險和不確定性。請您注意不要過度依賴任何前瞻性陳述，這些陳述僅代表發布之日的情況，並且可能在未來隨時發生變化。

Although we voluntarily do so from time to time, the company undertakes no commitment to update or revise forward-looking statements, whether a result of new information, future events or otherwise, except as required by acceptable law.

儘管我們不時自願這樣做，但公司不承諾更新或修改前瞻性陳述，無論是由於新資訊、未來事件或其他原因，除非可接受的法律要求。

This call also includes references to certain financial measures that are not calculated in accordance with generally accepted accounting principles, or GAAP. We generally refer to these as non-GAAP financial measures. Reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the company's quarterly report filed with the SEC.

這次電話會議也提到了某些未依照公認會計原則（GAAP）計算的財務指標。我們通常將這些稱為非公認會計準則財務指標。這些非公認會計原則財務指標與根據公認會計原則計算和提出的最具可比性的指標的調節表可在該公司向美國證券交易委員會提交的季度報告中找到。

With that, I'm now pleased to turn the call over to Robert Arigo, CEO.

現在，我很高興將電話轉給執行長羅伯特·阿里戈 (Robert Arigo)。

Thank you, Adam, and we appreciate everyone who joined our call today.

謝謝你，亞當，我們感謝今天加入我們電話會議的所有人。

During this call, Mike, our CFO, and I will review the highlights from our second quarter of 2024, outline our strategy for success through the Lux 2.0 brand, and discuss our recent corporate transformation, which includes the addition of new management team composed of hospitality veterans and a refreshed Board of Directors. We look forward to discussing the significant changes we've implemented as well as providing transparency regarding our current business operations in a necessary adjustments following the previous management team.

在本次電話會議中，我們的財務長Mike 和我將回顧2024 年第二季的亮點，概述我們透過Lux 2.0 品牌取得成功的策略，並討論我們最近的企業轉型，其中包括增加由以下人員組成的新管理團隊：飯店業的資深人士和煥然一新的董事會。我們期待討論我們已經實施的重大變革，並在繼前任管理團隊之後進行必要的調整時提供有關我們當前業務運營的透明度。

LuxUrban Hotels leases an entire existing hotels on a long-term basis and rents of hotel rooms with the properties we manage. And in 2024, we launched a comprehensive initiative to enhance our company's management and operations, which we refer to as LuxUrban 2.0. This initiative includes the addition of experienced professionals from the hotel and finance sectors to our management team, Board of Directors, and the strategic elimination of the non-performing hotel properties.

LuxUrban Hotels 長期租賃整個現有飯店以及我們管理的飯店客房的租金。2024 年，我們啟動了一項全面舉措來增強公司的管理和運營，我們將其稱為 LuxUrban 2.0。該舉措包括將來自酒店和金融領域的經驗豐富的專業人士加入我們的管理團隊和董事會，以及策略性地消除不良酒店物業。

In targeted efforts to reduce operating overhead, while significant work remains as we navigate the third quarter and prepare for the fourth quarter of 2024, we believe the Lux 2.0 is starting to yield the intended benefits. We currently manage a portfolio of seven hotels in Manhattan, one in Brooklyn and one in New Orleans, all under long-term lease agreement. As of this date of this report, we have had 1,056 hotel rooms available for rent across our portfolio.

在有針對性地努力減少營運費用的過程中，儘管我們在第三季和為 2024 年第四季做準備的過程中仍有大量工作要做，但我們相信 Lux 2.0 已開始產生預期的效益。目前，我們管理曼哈頓的七家酒店、布魯克林的一家酒店和新奧爾良的一家酒店，所有酒店均簽訂長期租賃協議。截至本報告發布之日，我們的投資組合中有 1,056 間飯店客房可供出租。

Over the past nine months, we are strategically reducing our domestic operations and US-based portfolio, focusing solely on the properties that have the potential to generate positive cash flow. As part of our recent 2.0 transition, we are committed to enhancing our management and operations team by recruiting talented directors and officers with significant experience in the hospitality and financial sectors.

在過去的九個月裡，我們策略性地減少了國內業務和美國投資組合，只專注於有潛力產生正現金流的房產。作為我們最近 2.0 轉型的一部分，我們致力於透過招募在酒店和金融領域擁有豐富經驗的優秀董事和管理人員來增強我們的管理和營運團隊。

I was appointed in June of 2024, bringing over a number of years -- I'm sorry, 36 years of experience in the hotel industry; while Michael James joined as Chief Financial Officer in the same month, bringing extensive financial expertise. We were also pleased to welcome Elan Blutinger and Kim Schaefer, veterans in the hotel and travel technology, to our Board of Directors.

我於 2024 年 6 月被任命，帶來了多年的酒店業經驗——對不起，我有 36 年的經驗；邁克爾詹姆斯 (Michael James) 同月加入擔任首席財務官，帶來了豐富的財務專業知識。我們也很高興地歡迎酒店和旅遊技術領域的資深人士 Elan Blutinger 和 Kim Schaefer 加入我們的董事會。

Our ongoing efforts to strengthen management and operational expertise across all areas of our company include actively recruiting new personnel and reallocating existing management to areas where the skills can be mostly affected and utilized. With my extensive experience in hotel management and successfully operating a variety of properties, I am confident in the tremendous opportunities that lie ahead for LuxUrban Hotels. Our strategic approach to Lux 2.0 positions us to generate sustainable positive cash flow moving forward.

我們不斷努力加強公司所有領域的管理和營運專業知識，包括積極招募新人員，並將現有管理人員重新分配到最能影響和利用技能的領域。憑藉我在酒店管理方面的豐富經驗以及成功經營各種酒店的經驗，我對LuxUrban Hotels 未來的巨大機會充滿信心。我們的 Lux 2.0 策略方針使我們能夠在未來產生可持續的正現金流。

This quarter presented challenges, including write-offs from the previous management team, but I believe we are at a pivotal inflection point. One significant hurdle we encountered was the decision to pre-sell 40% of our room inventory, which resulted in funds being collected at an average room rate in Q2 of $220.96. However, I am pleased to report that these advanced sales will expire at the end of 2024.

本季帶來了挑戰，包括前管理團隊的註銷，但我相信我們正處於一個關鍵的轉折點。我們遇到的一個重大障礙是決定預售 40% 的客房庫存，這導致第二季的平均房價為 220.96 美元。不過，我很高興地報告，這些預售將於 2024 年底到期。

I want to repeat that. These advanced sales will expire at the end of 2024, allowing us to enter 2025 with average room rates projected in the same period, same quarter of $252.11, which is a $31 increase just within that quarter.

我想重複一遍。這些預售將於 2024 年底到期，使我們能夠進入 2025 年，同期、同季度的平均房價預計為 252.11 美元，僅在該季度內就增加了 31 美元。

We are implementing transformative changes with LuxUrban that will enhance our financial stability and provide a solid foundation for future growth. I am excited about the potential that these initiatives hold for positioning our company as a leader in the market.

我們正在與 LuxUrban 一起實施變革，這將增強我們的財務穩定性，並為未來的成長奠定堅實的基礎。我對這些舉措將我們公司定位為市場領導者的潛力感到興奮。

Now I will turn the call over to Mike to provide detailed review of the financial results. Mike, please take it from here.

現在我將把電話轉給麥克，以提供對財務業績的詳細審查。麥克，請把它從這裡拿走。

Thanks, Rob. As highlighted, the financials for the second quarter reflect write-offs and necessary accounting adjustments to properly reflect the financial position of the company. It's important to note that the figures we're presenting today pertain to our core properties and operations, which form the foundation of the portfolio.

謝謝，羅布。正如所強調的，第二季的財務數據反映了沖銷和必要的會計調整，以正確反映公司的財務狀況。值得注意的是，我們今天提供的數據涉及我們的核心資產和業務，它們構成了投資組合的基礎。

Despite these challenges, we are focused on leveraging our existing assets and driving operational improvements to strengthen our financial outlook moving forward. I look forward to discussing the specific results in detail and sharing how our strategic initiatives are positioning us for success.

儘管面臨這些挑戰，我們仍致力於利用現有資產並推動營運改進，以增強我們未來的財務前景。我期待著詳細討論具體結果，並分享我們的策略舉措如何幫助我們取得成功。

Net rental revenue for the three months ended June 30, 2024 was $18.2 million as compared to $31.9 million for the three months ended June 30, 2023, a decrease of 43%. The decrease predominantly resulted from the decrease in average units available to rent from 1,625 for the three months ended June 30, 2023 to 1,056 for the three months ended June 30, 2024. This decrease in net rental revenues was exacerbated by booking of guaranteed reservations at relatively low rates for the three months ended June 30 of 2024 as compared to the same period during the prior year.

截至2024年6月30日止三個月的淨租金收入為1,820萬美元，較截至2023年6月30日止三個月的3,190萬美元減少43%。此減少主要是由於平均可供出租單位從截至2023年6月30日止三個月的1,625個減少至截至2024年6月30日止三個月的1,056個。截至 2024 年 6 月 30 日的三個月，與去年同期相比，保證預訂的預訂率相對較低，加劇了淨租金收入的下降。

The TRevPAR, or revenue per available room, was $257 for the three months ended June 30, 2023 versus $188 for the three months ended June 30, 2024. The lower key RevPAR in the current quarter is attributable to the impact of the pre-selling of the rooms at lower rates versus the same period last year, which we are forecasting to increase after the pre-booked guest have stayed at the property.

截至 2023 年 6 月 30 日止三個月的 TRevPAR（每間可用客房收入）為 257 美元，截至 2024 年 6 月 30 日止三個月為 188 美元。本季每間可用客房收入較低是由於與去年同期相比以較低價格預售客房的影響，我們預計在預訂的客人入住酒店後，預售價格將會增加。

Cost of revenue increased from$ 21.7 million in the three months ended June 30, 2023 to $40.4 million for the three months ended June 30, 2024, an increase of 86%, primarily as a result of the company expensing the unamortized lease acquisition costs and security deposits surrendered for the properties that were exited during the period, as well as the increase in costs related to utilities, labor, cable, WiFi, credit card processing fees, commissions, and costs related to the relocation of guests from our terminated properties to alternative properties.

收入成本從截至2023年6月30日止三個月的2,170萬美元增加至截至2024年6月30日止三個月的4,040萬美元，增長86%，主要是由於公司支出了未攤銷租賃收購成本和在此期間退出的房產的保證金退還，以及與公用事業、勞動力、電纜、WiFi、信用卡處理費、佣金以及將客人從我們終止的房產搬遷到其他房產相關的成本增加替代屬性。

Gross profit decreased $22.2 million in the three months ended June 30, 2024 from $10.2 million in the three months ended June 30, 2023, a decrease of $32.6 million, or 318%. The decrease is primarily as a result of the company expensing the unauthorized lease acquisition cost and security deposits surrendered for the properties that were exited during the period as well as deposit surrenders and commission cost to relocate guests from the terminated properties to alternative properties.

截至2024年6月30日止三個月的毛利從截至2023年6月30日止三個月的1,020萬美元減少了2,220萬美元，減少了3,260萬美元，即318%。減少的主要原因是公司支出了未經授權的租賃收購成本和在此期間退出的物業所退還的保證金，以及將客人從已終止的物業轉移到替代物業所需的押金和佣金費用。

Total operating expenses incurred for the three months ended June 30, 2024 decreased approximately $1.2 million from the three months ended June 30, 2023. Of the decrease, general and administrative expenses were reduced, offset by $600,000 for costs related to the exit of our partnership with Wyndham.

截至2024年6月30日止三個月的總營運費用較截至2023年6月30日止三個月減少約120萬美元。其中，一般和管理費用減少，抵消了 600,000 美元與退出與溫德姆合作夥伴關係相關的費用。

Total other expense for the three months ended June 30, 2024 was $185,000 as compared to $29.7 million for the three months ended June 30, 2023. The decrease was primarily due to the lower cash interest and financing costs during the three months ended June 30, 2024 as compared with the three months ended June 30, 2023. As a result of the Greenle revenue share transaction.

截至2024年6月30日止三個月的其他費用總額為185,000美元，而截至2023年6月30日止三個月的其他費用總額為2,970萬美元。減少的主要原因是截至2024年6月30日止三個月的現金利息和融資成本較截至2023年6月30日止三個月較低。這是 Greenle 收入分成交易的結果。

As of June 30, 2024, our cash and cash equivalents were $61 as compared to $752,848 at December 31, 2023, and the total current assets were $3,315,844 at June 30 of 2024 as compared to $19,721,057 at December 31, 2023. The working capital deficit was $62.6 million at June 30, 2024 versus a deficit of $13.4 million at December 31, 2023.

截至2024年6月30日，我們的現金及現金等價物為61美元，而2023年12月31日為752,848美元，2024年6月30日的流動資產總額為3,315,844美元，而2023年12月31日為19,721,057美元。截至2024年6月30日，營運資本赤字為6,260萬美元，2023年12月31日的赤字為1,340萬美元。

We continue to explore capital raising transactions as well as strategic initiatives to improve the company's cash position. Through Lux 2.0 and the recent changes from the previous management team, we are optimistic that our knowledge and strong work ethic alongside our investors and bankers will change the business for the positive as we enter the fourth quarter and into 2025.

我們繼續探索融資交易以及改善公司現金狀況的策略性舉措。透過Lux 2.0 以及前任管理團隊最近的變動，我們樂觀地認為，隨著我們進入第四季度和2025 年，我們的知識和強大的職業道德以及我們的投資者和銀行家將為我們的業務帶來積極的改變。

I will now pass the call back over to Rob.

我現在將把電話轉回給羅布。

Thank you, Mike. I'm optimistic about the future of our company, especially in the light of the significant changes we've made to our personnel and the strategic direction. We anticipate that the fourth quarter will yield a positive impact on our overall operating results, particularly as the New York hotel market typically performs at its strongest during this period.

謝謝你，麥克。我對我們公司的未來感到樂觀，特別是考慮到我們對人員和策略方向所做的重大變化。我們預計第四季度將對我們的整體經營業績產生積極影響，特別是因為紐約酒店市場通常在此期間表現最強勁。

With our focus on optimizing operations, we expect to generate revenues at higher daily average rate room rates. As we implement our strategy, we are committed to maintaining transparency with our shareholders. We will keep you informed of our progress through regular communications, including press releases and media updates. This is a transformative moment in our company's history, and we are excited about the opportunities that lie ahead.

由於我們專注於優化運營，我們預計將以更高的每日平均房價產生收入。在實施我們的策略時，我們致力於保持對股東的透明度。我們將透過定期溝通（包括新聞稿和媒體更新）讓您了解我們的進展。這是我們公司歷史上的一個變革時刻，我們對未來的機會感到興奮。

With that, I will turn it over to the operator to facilitate questions from the audience.

接下來我將轉交給接線生，方便觀眾提問。

(Operator Instructions) Jon Old, Long Meadow Investors.

（操作員說明）Jon Old，Long Meadow 投資者。

Thank you, Rob and Mike. First, thanks for battling through all the tough issues you've had to deal with. Appreciate all your hard work and feels like we're close to coming out the other side.

謝謝你們，羅布和麥克。首先，感謝您克服了必須處理的所有棘手問題。感謝您的辛勤工作，感覺我們已經接近走出困境了。

So putting all the tough stuff aside, let's look forward to the next year when all the pre-sold rooms are gone and we're sort of starting fresh. What is -- I know you wouldn't want to give detailed projections, but RevPAR with a clean slate feels like it could be in the $300 range maybe and EBITDA margins still 25%-ish, 30%-ish. Just give us some guidance as to what a clean, fresh year might look like to the extent that you can. Thank you very much.

因此，把所有困難放在一邊，讓我們期待明年，屆時所有預售房間都將售罄，我們將重新開始。我知道你不想給出詳細的預測，但從頭開始看，RevPAR 可能會在 300 美元的範圍內，而 EBITDA 利潤率仍然在 25% 左右、30% 左右。請盡可能給我們一些指導，讓我們知道乾淨、新鮮的一年會是什麼樣子。非常感謝。

Jon -- Mike, if I could take this, Jon, I want to thank you for your support. Without the investors' support, we wouldn't be Lux 2.0.

喬恩——麥克，如果我可以接受的話，喬恩，我要感謝你的支持。沒有投資者的支持，我們就不會成為Lux 2.0。

So at this point, I'm going to say this, is we all know that the pre-sale had a substantial impact on our overall ability to sell. And there were times where the rates were being sold at $50 or $100 to $150 below market. So we know that same store next year, there's going to be substantial RevPAR growth naturally, just in the fact that our inventory will be released.

那麼在這一點上，我要說的是，我們都知道預售對我們整體的銷售能力有很大的影響。有時，價格會低於市場價 50 美元或 100 至 150 美元。因此，我們知道明年同一家商店的每間可用收入自然會大幅成長，因為我們的庫存將會釋放。

So this is the time I can say this. Our VP of Revenue Management, who is one of the most talented people, he's been in the market 38 years. They're very excited about what's going to happen in Q4, as well as 2025. They have control of the entire inventory, and everyone that sees our portfolio knows we have great hotels and strategic locations.

所以現在是我可以這麼說的時候了。我們的收益管理副總裁是最有才華的人之一，他已經在市場工作了 38 年。他們對第四季以及 2025 年將發生的事情感到非常興奮。他們控制著整個庫存，每個看到我們產品組合的人都知道我們擁有一流的酒店和戰略位置。

The increase in ADR will be significant. We're also going to realize the year that we're not going to have all these extraordinary changes. We've gone through a complete repricing, resegmentation of the hotel. We're also going to be looking at all new segmentations for our properties. We've been an OTA provider since the beginning of the operations of the company.

ADR 的增加將是顯著的。我們也將意識到這一年我們不會發生所有這些非凡的變化。我們對酒店進行了徹底的重新定價和重新劃分。我們還將研究我們酒店的所有新細分。自從公司營運之初我們就一直是 OTA 提供者。

We are going to be going after the highest segments with the quality of the hotels that we have within New York. And that's the reason why we changed our approach. We wanted to narrow the field, focus on what we're good at, and deliver better results. And we've gone through some heavy lifting to do that.

我們將憑藉紐約境內的酒店品質來追求最高的細分市場。這就是我們改變方法的原因。我們希望縮小領域，專注於我們擅長的領域，並取得更好的結果。為了做到這一點，我們經歷了一些繁重的工作。

But with the ADR lift, the demand that we see in New York, the demand in New York is not going to wane based on what we see. With the migrant housing of over 16,000 keys, the elimination of Airbnb of 44,000 keys, keys in New York are extremely valuable, and we have a great portfolio to start to build from.

但隨著 ADR 的提升，我們在紐約看到的需求，根據我們所看到的情況，紐約的需求不會減弱。移民住宅擁有超過 16,000 個鑰匙，Airbnb 的 44,000 個鑰匙被淘汰，鑰匙在紐約非常有價值，我們有一個很好的投資組合可以開始建造。

What's going to be fantastic for us in 2025 for our audience is we're not going to be riddled by a lot of the legacy challenges we've had in the operations. We have made substantial reductions in labor. We've made tremendous headway with all of our vendors. We are in great standing with the key vendors that are closest to us.

對於我們的觀眾來說，到 2025 年，我們將不會再被營運中遺留的許多挑戰所困擾。我們大幅減少了勞動力。我們與所有供應商都取得了巨大進展。我們與距離我們最近的主要供應商保持著良好的信譽。

So what we see in 2025 is an opportunity to show tremendous growth, but naturally, it's not a promise. It's going to happen because we've already done the heavy lifting. Now we just need to see the results. Hopefully I answered your question.

因此，我們在 2025 年看到的是一個展現巨大成長的機會，但當然，這並不是一個承諾。這將會發生，因為我們已經完成了繁重的工作。現在我們只需要看看結果。希望我回答了你的問題。

Okay, thanks. So ADRs should be -- what would be sort of a market number right now based on comparable hotels and et cetera, et cetera, like [3,350], something like that?

好的，謝謝。因此，ADR 應該是－現在基於可比較飯店等的市場數字是多少，例如 [3,350] 之類的？

I feel confident to say we'll be in the low-3s. It's safe to say that if the market doesn't change dramatically, which -- just to say this, we're seeing Q1 numbers that we've never seen before. I've mentioned this to a few other investor reviews where Q1 historically in New York has always been incredibly soft.

我有信心地說我們將進入低三線。可以肯定地說，如果市場沒有發生巨大變化，那麼，我們將看到以前從未見過的第一季數據。我在其他一些投資者評論中提到過這一點，歷史上紐約的第一季一直非常疲軟。

What we're seeing now because of the moderate weather, that's a key factor in Q1, moderate weather in New York has allowed people to start booking conferences and meetings in Q1 that typically happened out throughout the year. The ADRs have grown financially. So we see a tremendous opportunity in Q1 that we've never seen before.

我們現在所看到的情況是由於溫和的天氣，這是第一季的關鍵因素，紐約的溫和天氣使人們開始預訂第一季通常在全年舉行的會議和會議。ADR 的財務成長。因此，我們在第一季看到了前所未有的巨大機會。

The other opportunity that we've seen in the market, hotels have shoulder nights traditionally. They were Thursdays and Sundays. Because of now the new office where many people do not travel the home office Monday or Friday, those Thursdays and those Sundays are becoming great selling nights in the hotel industry because people are already getting to their location Thursday night and working from that location, same thing on Sunday. So they're missing those traditional travel days.

我們在市場上看到的另一個機會是，酒店傳統上有平夜住宿。那是星期四和星期日。由於現在的新辦公室，許多人周一或週五不再前往家庭辦公室，週四和周日正成為酒店業的最佳銷售時段，因為人們已經在周四晚上到達他們的位置並在該位置工作，同樣週日的事。所以他們懷念那些傳統的旅行日子。

So we're seeing a flattening out of occupancy, which is great, which allows us to compress and to charge. So Q1, I'm bold on, and I think that we're going to perform well. Q4, I see strong ADR growth in Q4. And I'll say this. Many of you, the New Yorkers, they know that shopping week about 10 years ago became very weak. And over the last three years, it's become, again, what it used to be.

因此，我們看到入住率趨於平緩，這很好，這使我們能夠壓縮和充電。所以第一季度，我很大膽，我認為我們會表現得很好。第四季度，我看到第四季度的 ADR 成長強勁。我會這麼說。你們中的許多人，紐約人，他們知道大約十年前的購物週變得非常疲軟。在過去的三年裡，它又變成了原來的樣子。

New York is vibrant. There's a tremendous amount of activity going on entertainment wise, as well as other opportunities in New York. So 2024 will see, I'm confident saying at least 15% growth in ADR, maybe even 18%, and we'll see that continue all the way through 2025.

紐約充滿活力。紐約有大量的娛樂活動以及其他機會。因此，我有信心說，到 2024 年，ADR 至少會成長 15%，甚至可能成長 18%，我們將看到這種情況持續到 2025 年。

Great, thanks. And then a quick one for Mike. Mike, thanks for -- I know it's been tough getting all the cues up to date, given all the issues, but I assume we can expect a cleaner third quarter without as much noise and on time going forward.

太好了，謝謝。然後是麥克的快速發言。麥克，謝謝你——我知道考慮到所有問題，讓所有線索保持最新狀態是很困難的，但我認為我們可以期待一個更乾淨的第三季度，沒有那麼多噪音，並且按時向前推進。

That's my number one goal, to be on time and to put out a great product. So going forward, that's what we're looking for.

這是我的首要目標，準時推出出色的產品。因此，展望未來，這就是我們正在尋找的。

Okay. Thanks very much, guys. Appreciate all your hard work.

好的。非常感謝，夥計們。感謝您的辛勤工作。

Thank you.

謝謝。

Thanks, Jon.

謝謝，喬恩。

(Operator Instructions) Allen Klee, Maxim Group, LLC.

（操作員說明）Allen Klee，Maxim Group, LLC。

Yes, good afternoon. Could you just review for the quarter what -- how much was what you would characterize as one-time operating expenses?

是的，下午好。您能否回顧一下本季的一次性營運費用是多少？

I don't have that right now available, but I could work that up and get you what that number is.

我現在沒有這個數據，但我可以計算一下並告訴你這個數字是多少。

Okay. Thank you.

好的。謝謝。

We also restated Q1, so a bunch of the expenses were in Q1 when you look at the date numbers. So there were a bunch of one-time expenses in Q1 as well as in Q2.

我們還重述了第一季度，因此當您查看日期數字時，第一季的大量費用都在其中。因此，第一季和第二季都有大量一次性支出。

Right. I was just curious for 2Q at this point, but both of them would be helpful. I mean, do you feel like besides the one-time cost, there's other things you'll be doing on the expense side going forward? Or do you think that the run rate that you are -- excluding the one-time cost, is you're comfortable with?

正確的。此時我只是對 2Q 感到好奇，但這兩者都會有幫助。我的意思是，您是否覺得除了一次性成本之外，您未來還會在費用方面做其他事情嗎？或者您認為您目前的運行率（不包括一次性成本）是否令您滿意？

We've reduced overhead by a few million dollars by cutting back on the labor. Part of it was due to getting rid of the properties, and the other part, which rolled into COGS, and then the other part were just other individuals that we lightened up on. So we're running thin, lean business, so the cost should stay relatively low for quite some time. And then as we scale into the future, we would add people going forward.

透過削減勞動力，我們減少了幾百萬美元的管理費用。一部分是因為擺脫了這些財產，另一部分則轉入銷貨成本，另一部分只是我們忽略的其他個人。因此，我們正在經營精簡的業務，因此成本應該在相當長的一段時間內保持相對較低的水平。然後，當我們擴展到未來時，我們會增加人員。

Thank you. Do you think that -- you said you're at nine properties now? Do you think that there's more that you'll have to sell or that you feel good about that number?

謝謝。你說你現在有九處房產嗎？您是否認為您還需要出售更多產品，或者您對這個數字感到滿意嗎？

No, we feel good about that number.

不，我們對這個數字感覺很好。

If I could expand on that, I recently spent a lot of time in the hotel industry. And our product, the hotel leasing product, we're kind of redesigning who we are to be able to deliver a product that's interesting. I sat in front of a bunch of hotel owners and I said to them, third-party management companies, their success historically is the ability to bill the owner for everything, in charge of gross revenue fee of 2% to 3%.

如果我可以擴展一下，我最近在酒店業花了很多時間。我們的產品，飯店租賃產品，我們正在重新設計我們是誰，以便能夠提供有趣的產品。我坐在一群飯店業主面前，我對他們說，第三方管理公司，他們歷史上的成功是能夠向業主收取一切費用，收取總收入的2%到3%的費用。

We want to design a program that is -- going forward, that is very transparent to the owner as well to us to make sure that we're designing leases that are successful for both parties. And with today's economy, there's a lot of hotel owners seeking relief, seeking a new management option. So there is a lot of people very interested in our formula.

我們希望設計一個對業主和我們都非常透明的計劃，以確保我們設計的租賃對雙方來說都是成功的。在當今的經濟形勢下，許多酒店業主尋求緩解，尋求新的管理選擇。所以有很多人對我們的配方非常感興趣。

And so we want to make sure the formula is right going forward. That's why we're focusing our efforts in New York. The demand is there, the opportunities are there, but we want to make sure the formula works well there before we look at other bigger markets.

因此，我們希望確保公式在未來是正確的。這就是我們將重點放在紐約的原因。需求就在那裡，機會就在那裡，但在我們考慮其他更大的市場之前，我們希望確保這個公式在那裡運作良好。

But the reality is New York has so many opportunities for us, and the timing couldn't -- and we believe the perfect storm is right now to look for the future owners. So we're excited about the future. We really are.

但現實是紐約為我們提供瞭如此多的機會，但時機卻無法實現——我們相信現在正是尋找未來所有者的完美風暴。所以我們對未來感到興奮。我們確實是。

Thank you. So for the property leases that you've gotten out of, what's left in terms of if there is any of the liability or potential litigation related to them?

謝謝。那麼，對於您已經退出的房產租賃，如果存在與之相關的任何責任或潛在訴訟，還剩下什麼？

I mean, we've exited Florida. The reason why the hotels we've exited recently was Florida, LA, and these assets were less than -- many of them were less than 75 keys. They were not strategic. They were not high performers.

我的意思是，我們已經離開佛羅裡達了。我們最近退出的酒店位於佛羅裡達州、洛杉磯，這些酒店的資產不足——其中許多酒店的鑰匙數量少於 75 間。它們沒有戰略意義。他們的表現並不出色。

So the reality is Florida, most of that has been resolved. There'll be some legal costs and some settlement costs, but we don't believe it's going to be that substantial. So those are things we're working through, but I don't foresee those to be substantially going to change the future financial results of this company. And I think many of the owners realize, too, that the solution that we were giving them was not designed the right way for them as well. So I don't see it to be a hindrance substantially in the future.

所以現實是佛羅裡達州，大部分問題已經解決。會有一些法律費用和一些和解費用，但我們認為不會那麼大。這些是我們正在解決的問題，但我預計這些不會實質地改變該公司未來的財務表現。我認為許多業主也意識到，我們為他們提供的解決方案也沒有以正確的方式設計。因此，我認為這不會對未來造成很大的障礙。

Okay, thanks. My last question is I'm looking at the subsequent events section of your 10-Q, and it looks like related -- tell me if I got this wrong, [I did it back at the] envelope. You've raised around $10 million net subsequent to quarter end, and then I guess, how do we think about it? So that number's right, let me know, or in the ballpark. And then you said that the net working capital deficit is a little over $60 million. So how do you feel about kind of those factors?

好的，謝謝。我的最後一個問題是，我正在查看您的 10-Q 的後續事件部分，它看起來像是相關的——請告訴我，如果我弄錯了，[我是在信封上做的]。季度末後您淨籌集了約 1000 萬美元，然後我想，我們對此有何看法？所以這個數字是正確的，請告訴我，或是在大概範圍內。然後你說淨營運資本赤字略高於 6000 萬美元。那麼您對這些因素有何看法？

So, yeah, the $10 million is a realistic number for Q3. And we're fighting an uphill battle just burning off the pre-sold rooms. As of the June quarter, I believe we had about $11.2 million unrealized -- unearned revenue on the balance sheet. That will burn off or burn off about $2 million a month. So as we get towards the year end, that will be about $400,000.

所以，是的，1000 萬美元對於第三季來說是一個現實的數字。我們正在進行一場艱苦的戰鬥，燒毀預售房間。截至 6 月季度，我相信我們的資產負債表上大約有 1,120 萬美元的未實現收入——未實現的收入。這將每月消耗或燒掉約 200 萬美元。因此，當我們接近年底時，這將約為 40 萬美元。

So right there, we'll take in, let's say, $10.8 million. We'll reduce that liability. And we're going to continue focusing on getting the company cash flow positive and looking to work that number down quite a bit.

就在那裡，我們將投入 1,080 萬美元。我們將減少這種責任。我們將繼續專注於讓公司現金流為正，並尋求大幅降低該數字。

So the unearned revenue, that'll be cash coming in over the second --?

因此，不勞而獲的收入將是第二個收入的現金——？

No, no, no. So we've already collected that cash. So that cash has actually been collected and spent. Yeah, so the number is $11.264 million. So it's been collected and spent as the guests come and stay, that's when we earn it. So when the guest shows up, that's when we earn that revenue.

不，不，不。所以我們已經收集到這筆現金了。所以現金實際上已經被收取和花費了。是的，這個數字是 1126.4 萬美元。因此，當客人到來併入住時，它就會被收集和花費，這就是我們賺取它的時候。因此，當客人出現時，我們就獲得了收入。

So from a GAAP accounting standpoint, each month, we're burning off, let's say, roughly $2 million. And then next year, if everything remains the same, then that $2 million, let's say, we still rent those rooms out to the exact same rate if you're doing same-store sales, then we would be collecting that cash. But since we're not pre-selling like they were before at the discounts that they were doing, we would expect it to be higher, assuming that the marketplace doesn't change drastically.

因此，從 GAAP 會計的角度來看，我們每個月都會消耗約 200 萬美元。然後明年，如果一切保持不變，那麼這 200 萬美元，比如說，如果您進行同店銷售，我們仍然以完全相同的價格出租這些房間，那麼我們將收取這筆現金。但由於我們不像以前那樣以折扣價進行預售，假設市場沒有發生巨大變化，我們預期價格會更高。

Got it. Okay. Thank you so much. Appreciate it. Good luck.

知道了。好的。太感謝了。欣賞它。祝你好運。

You're welcome.

不客氣。

Mike Wells, private investor.

麥克威爾斯，私人投資者。

Good evening. I was curious how you're going to handle the Nasdaq compliance.

晚安.我很好奇你們將如何處理納斯達克合規問題。

So I'll take that, Rob. So right now, what we're looking to do is we'll probably do reverse stock split that will get the price of stock above the $0.10 level, above the $1 level. And then it's kind of up to us to properly project how we're turning the business around. We'll be answering questions to the Nasdaq on that. And hopefully, the stock will cooperate and we get the market cap above $35 million, at which point we'd be in compliance with the Nasdaq at that point.

所以我會接受的，羅布。所以現在，我們想做的是我們可能會進行反向股票分割，這將使股票價格高於 0.10 美元的水平，高於 1 美元的水平。然後，我們就需要正確地規劃如何扭轉業務。我們將就此向納斯達克回答問題。希望股票能夠配合，我們的市值達到 3,500 萬美元以上，屆時我們將符合納斯達克指數。

Timing?

定時？

I'm sorry, say it again.

對不起，你再說一次。

What's your timing?

你的時間安排是什麼？

The timing on that, if we were to file a proxy, that's probably going to be 30 to 45 days out. We have a hearing set with Nasdaq in October and we'll know a lot after that meeting.

如果我們要提交委託書，時間可能需要 30 到 45 天。我們將於 10 月與納斯達克舉行聽證會，在那次會議後我們會了解很多資訊。

Okay, good luck.

好的，祝你好運。

Thank you.

謝謝。

Thank you.

謝謝。

That concludes our question-and-answer session. I would like to turn the conference back over to Robert Arigo for any closing remarks.

我們的問答環節到此結束。我想將會議轉回羅伯特·阿里戈（Robert Arigo）發表閉幕詞。

I would like to say this, during the call, I'm getting so many texts, positive support. I do want to say this, the ownership groups that we've been working with have been exceptional. They see the value of Lux 2.0. They see that in five months we've taken a company to positive cash flow, rebuilt vendor relationships, changed an entire leadership team at the property level as well as the top level. And we brought some of the most talented people in a company that was challenged.

我想說的是，在通話過程中，我收到了很多短信，積極的支持。我確實想說，與我們合作的所有權團體非常出色。他們看到了 Lux 2.0 的價值。他們看到，在五個月的時間裡，我們讓一家公司實現了正現金流，重建了供應商關係，並更換了整個物業層面和高層的領導團隊。我們在面臨挑戰的公司中引進了一些最有才華的人才。

And everyone on the team, I can say this with absolute confidence and support, everyone within LuxUrban is excited about the future. They're excited about turning around a company that they know that the formula that we have behind us is really what the economy needs.

團隊中的每個人，我都可以帶著絕對的信心和支持這樣說，LuxUrban 的每個人都對未來感到興奮。他們對扭轉一家公司感到興奮，因為他們知道我們背後的模式確實是經濟所需要的。

Hotel owners today are just embattled with cost between third-party management companies, franchise companies, and asset managers. They can no longer afford that level. So this opportunity for us to do it right. We scaled ourselves down for a reason. We want to make sure that we are focused, we are forward, and we are strong when we present ourselves to owners.

如今，酒店業主面臨第三方管理公司、特許經營公司和資產管理公司之間的成本問題。他們再也負擔不起這個水準了。所以這個機會讓我們能夠正確地做這件事。我們縮小自己的規模是有原因的。我們希望確保當我們向業主展示自己時，我們是專注的，我們是前進的，我們是強大的。

The strength of Mike and I in the last six months working together, he's been an exceptional partner, is being honest and being transparent. And that's the formula that we're going to use with owners. And that's what owners have not had historically.

在麥克和我在過去六個月的合作中，他的優勢在於誠實和透明，他是一位出色的合作夥伴。這就是我們將與業主一起使用的公式。這是業主歷史上從未有過的。

They've had third-party management companies hide themselves within their P&L statements. We're opening the book, and we're going to make a difference in this real estate market. And we are going to be -- when we finish what we do, the formula that we run is how everyone should operate or own their hotels in the future.

他們讓第三方管理公司將自己隱藏在損益表中。我們正在打開這本書，我們將為這個房地產市場帶來改變。當我們完成我們所做的事情時，我們將採用的公式是每個人未來應該如何經營或擁有自己的酒店。

So it's been a heavy lift for six months, but as they say, it's the hard that makes you great. Lux 2.0 will be great. Q4 will start to show the real results. And I'm excited that the team gets to see it as much as the owners. And of course, never mind the guests of our hotel.

所以這六個月是一個沉重的負擔，但正如他們所說，正是困難讓你變得偉大。Lux 2.0 會很棒。第四季將開始顯示真實結果。我很高興團隊能夠像業主一樣看到它。當然，別介意我們飯店的客人。

So we look forward for the future. And we thank everybody for their support. Thank you.

所以我們對未來充滿期待。我們感謝大家的支持。謝謝。

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。