Carparts.Com Inc (PRTS) 2022 Q4 法說會逐字稿

(Operator Instructions) Please note, this call is being recorded. I would now like to pass the conference over to our host, Tina Mirfarsi, Vice President of Communications and Culture. Please go ahead.

（操作員說明）請注意，此通話正在錄音中。我現在想將會議轉交給我們的東道主，傳播和文化副總裁 Tina Mirfarsi。請繼續。

Hello, everyone, and thank you for joining us for the CarParts.com Fourth Quarter 2022 Conference Call. I'd like to start by welcoming the investors and others who are attending this meeting remotely. Joining me today from the company are David Meniane, Chief Executive Officer; Ryan Lockwood, Chief Financial Officer; and Michael Huffaker, Chief Operating Officer.

大家好，感謝您加入我們的 CarParts.com 2022 年第四季度電話會議。首先，我想歡迎遠程參加這次會議的投資者和其他人。今天和我一起從公司來的是首席執行官 David Meniane；瑞安·洛克伍德，首席財務官；首席運營官 Michael Huffaker。

Before I turn it over to David to start the meeting, I have some important disclosures. Their prepared remarks and responses to your questions could contain certain forward-looking statements related to the business under the federal securities laws. Actual results may differ materially from those contained in or implied by these forward-looking statements due to the risks and uncertainties associated with the business. For a discussion of the material risks and other important factors that could affect results, please refer to the CarParts.com annual report on Form 10-K and 10-Qs as filed with the SEC, both of which can be found on the Investor Relations website.

在我把它交給大衛開始會議之前，我有一些重要的披露。他們準備好的評論和對您問題的回答可能包含與聯邦證券法下的業務相關的某些前瞻性陳述。由於與業務相關的風險和不確定性，實際結果可能與這些前瞻性陳述中包含或暗示的結果存在重大差異。有關可能影響結果的重大風險和其他重要因素的討論，請參閱 CarParts.com 向美國證券交易委員會提交的 10-K 和 10-Q 表格年度報告，兩者均可在投資者關係中找到網站。

On the call, both GAAP and non-GAAP financial measures will be discussed. A reconciliation of GAAP to non-GAAP financial measures is provided in the CarParts.com press release issued today.

在電話會議上，將討論 GAAP 和非 GAAP 財務措施。今天發布的 CarParts.com 新聞稿中提供了 GAAP 與非 GAAP 財務指標的對賬。

And with that, I would now like to turn the call over to David.

有了這個，我現在想把電話轉給大衛。

Thank you, Tina. Good afternoon, everyone, and thank you for joining us. As reported in today's release, for Q4 2022, we marked our 12th consecutive quarter of double-digit year-over-year sales growth of $154.5 million, up 11.8% from the prior year. On a 2-year stack, revenues for the quarter were up 27.2%. Also, for the full fiscal year 2022, we're excited to beat company records for both top line at $661.6 million and $26.1 million for adjusted EBITDA. For those keeping score, this is our third year in a row of posting record revenue.

謝謝你，蒂娜。大家下午好，感謝您加入我們。正如今天發布的報告所述，2022 年第四季度，我們連續第 12 個季度實現兩位數的同比銷售額增長 1.545 億美元，比去年同期增長 11.8%。在 2 年的堆棧中，該季度的收入增長了 27.2%。此外，在整個 2022 財年，我們很高興打破公司最高記錄，分別為 6.616 億美元和 2610 萬美元的調整後 EBITDA。對於那些記分的人來說，這是我們連續第三年創下收入記錄。

A lot happened in 2022. Within the organization, we refreshed our executive team, opened 2 buildings, increased the size of our credit facility while extending it for 5 years and much more. We did all of this while helping our customers navigate a much tougher economic environment. Our team outperformed and delivered record-breaking sales, profitability and free cash flow while optimizing our inventory position. The key to our success lies in our culture and our commitment to shareholders. We've built an incredible business centered around positive unit economics, repeat customers and a laser focus on financial discipline, all with the intention of maximizing long-term shareholder value.

2022 年發生了很多事情。在組織內部，我們更新了執行團隊，開設了 2 座大樓，增加了信貸額度的規模，同時將其延長了 5 年等等。我們做這一切的同時幫助我們的客戶應對更加艱難的經濟環境。我們的團隊表現出色，在優化庫存狀況的同時，實現了創紀錄的銷售額、盈利能力和自由現金流。我們成功的關鍵在於我們的文化和我們對股東的承諾。我們圍繞積極的單位經濟效益、回頭客和對財務紀律的高度關注建立了令人難以置信的業務，所有這些都是為了最大化長期股東價值。

At CarParts.com, we are committed to empowering drivers along their journey and removing the stress from auto repair and maintenance. And to keep delivering on this, our team has continued executing on 4 focus areas: outstanding customer service, operational excellence, financial discipline and innovation.

在 CarParts.com，我們致力於在旅途中為駕駛員提供支持，並消除汽車維修和保養帶來的壓力。為了繼續實現這一目標，我們的團隊繼續在 4 個重點領域開展工作：出色的客戶服務、卓越運營、財務紀律和創新。

Number one, outstanding customer service, delivering an outstanding customer experience is the most critical thing we do. Our customers are already seeing a more streamlined experience on the website as well as faster delivery times. Today, we're closer to our customers, and our click to delivery times are better than ever. These tangible improvements are part of the cultural shift that started in 2022 at CarParts.com, in which every decision starts with the customer. As a reminder, repeat customers account for over 1/3 of our e-commerce revenues. And as we continue to improve our customer experience, over time, we see an opportunity to build a long-term relationship with our customers, one that puts CarParts.com top of mind and makes us the go-to destination for all their automotive needs.

第一，出色的客戶服務，提供出色的客戶體驗是我們所做的最重要的事情。我們的客戶已經在網站上看到了更流暢的體驗以及更快的交貨時間。今天，我們離客戶更近了，我們的點擊交貨時間比以往任何時候都好。這些有形的改進是 CarParts.com 於 2022 年開始的文化轉變的一部分，在這種轉變中，每個決定都始於客戶。提醒一下，回頭客占我們電子商務收入的 1/3 以上。隨著我們不斷改善客戶體驗，隨著時間的推移，我們看到了與客戶建立長期關係的機會，這種關係將 CarParts.com 放在首位，並使我們成為滿足他們所有汽車需求的首選目的地.

Number two, operational excellence. Since the management team transitioned last year, we have doubled down on efficiency and continued our focus on profitable growth. We are very excited to welcome Michael Huffaker as our new Chief Operating Officer. He comes to us with extensive e-commerce and retail experience at some of the largest companies in the world, most recently, 15 years at Amazon. Michael shares both our cultural and business mindset, and we look forward to him bringing his best-in-class processes to our vertically integrated supply chain and beyond. Michael will provide further details on the operational improvements the team has made shortly.

第二，卓越運營。自去年管理團隊換屆以來，我們加倍提高了效率，並繼續關注盈利增長。我們非常高興地歡迎 Michael Huffaker 成為我們的新首席運營官。他來到我們這裡，在世界上一些最大的公司擁有豐富的電子商務和零售經驗，最近在亞馬遜工作了 15 年。 Michael 分享我們的文化和商業理念，我們期待他將他一流的流程帶到我們垂直整合的供應鍊及其他領域。 Michael 將提供有關團隊近期所做的運營改進的更多詳細信息。

Also, we are pleased with the recent promotion of Stephanie Urbach, the Chief Human Resources Officer. Stephanie's 25 years of HR experience and genuine care for employees helped us establish a critical foundation for our business. She has implemented significant changes within the HR function and aligned our practices with our growth objectives. She will now focus on developing the existing talent to drive performance globally.

此外，我們對首席人力資源官 Stephanie Urbach 最近的晉升感到高興。斯蒂芬妮 25 年的人力資源經驗和對員工的真誠關懷幫助我們為我們的業務奠定了重要基礎。她在人力資源職能部門內實施了重大變革，並使我們的做法與我們的增長目標保持一致。她現在將專注於培養現有人才，以推動全球績效。

Number three, financial discipline. One important highlight is that our business is built on positive unit economics. Our adjusted EBITDA was up over 50% in 2022, and we're currently undrawn on our revolver. The key is focusing on the profitability of every transaction and maximizing gross profit dollars. While revenues and gross margin percentage may fluctuate, our overall goal is to always optimize for dollars. Internally, we like to say, you can't deposit percentages in the bank. In the current environment, we have been very intentional on how we deploy capital with a heightened focus on incremental spend related to headcount, and by reallocating capital from discretionary spend such as upper funnel marketing and branding campaigns into more customer-centric initiatives.

第三，財務紀律。一個重要的亮點是我們的業務建立在積極的單位經濟基礎之上。到 2022 年，我們調整後的 EBITDA 增長了 50% 以上，而且我們目前還沒有動用我們的左輪手槍。關鍵是關注每筆交易的盈利能力並使毛利潤最大化。雖然收入和毛利率可能會波動，但我們的總體目標是始終以美元為目標進行優化。在內部，我們喜歡說，你不能把百分比存入銀行。在當前環境下，我們一直非常注重如何部署資本，重點關注與員工人數相關的增量支出，並將資本從可自由支配的支出（如上層漏斗營銷和品牌推廣活動）重新分配到更多以客戶為中心的計劃中。

Number four, innovation. The path to disrupting our industry is by removing the friction from a notoriously burdensome process. Last year, we launched a new Do-It-For-Me capability, Get It Installed, on our website where customers in select markets can see installation pricing and book an appointment at a certified repair shop. We're excited to announce that we have doubled our bookings since our last call in November, and we are expanding our offering with additional categories.

第四，創新。顛覆我們行業的途徑是消除臭名昭著的繁瑣過程中的摩擦。去年，我們在我們的網站上推出了一項新的 Do-It-For-Me 功能 Get It Installed，特定市場的客戶可以在該網站上查看安裝價格並在經過認證的維修店進行預約。我們很高興地宣布，自去年 11 月的最後一次電話會議以來，我們的預訂量已經翻了一番，而且我們正在擴大我們的服務範圍，增加更多類別。

And with that, I would like to turn it over to Michael. Michael, we're excited to have you, and welcome to the team.

有了這個，我想把它交給邁克爾。邁克爾，我們很高興有你，歡迎加入我們的團隊。

Thank you, David. I joined about 90 days ago and I've had the opportunity to visit our distribution centers, walk the floor and hear from our frontline team members. I've also had the pleasure of visiting our Manila, Philippines corporate office. One thing that has been clear is during my time here so far is that I'm directly aligned with our business objectives and are focused on creating an unparalleled customer experience.

謝謝你，大衛。我大約 90 天前加入，我有機會參觀了我們的配送中心，走在地板上，聽取了我們一線團隊成員的意見。我也有幸參觀了我們位於菲律賓馬尼拉的公司辦公室。有一點很清楚，到目前為止，我在這裡的時間是直接與我們的業務目標保持一致，並專注於創造無與倫比的客戶體驗。

2022 was a year of expansion for us. We now have over 1 million square feet of built-out distribution space strategically positioned close to our customer base, allowing us to cover 98% of the country with a 2-day transit time. In 2023, we will remain laser-focused on execution, process improvements and operational efficiencies to get more out of our existing network. I'm super excited to be here, and I look forward to our team delivering value for our customers and our shareholders.

2022 年是我們擴張的一年。我們現在擁有超過 100 萬平方英尺的內置配送空間，戰略性地靠近我們的客戶群，使我們能夠以 2 天的運輸時間覆蓋全國 98% 的地區。到 2023 年，我們將繼續專注於執行、流程改進和運營效率，以充分利用我們現有的網絡。我非常高興來到這裡，我期待著我們的團隊為我們的客戶和股東創造價值。

Next, I'd like to turn it over to Ryan.

接下來，我想把它交給瑞安。

Thank you, Michael. In Q4, we generated revenue of $154.5 million, up 11.8% from the prior year period. On a 2-year stack, revenues increased 27.2%. For the full year 2022, revenues were $661.6 million, up 13.6% from 2021, and up 44.8% on a 2-year stack. For the first 8 weeks of fiscal year 2023, we produced high single-digit year-over-year revenue growth combined with sequential gross margin expansion. We remain committed to balancing growth, profitability and free cash flow generation for the full year 2023.

謝謝你，邁克爾。第四季度，我們的收入為 1.545 億美元，比去年同期增長 11.8%。在 2 年的堆棧中，收入增長了 27.2%。 2022 年全年收入為 6.616 億美元，比 2021 年增長 13.6%，兩年累計增長 44.8%。在 2023 財年的前 8 週，我們實現了高個位數的同比收入增長以及連續的毛利率擴張。我們仍然致力於在 2023 年全年平衡增長、盈利能力和自由現金流的產生。

Gross profit for the quarter was $51.6 million, up 8.9% from the prior year period, with gross margin of 33.4% versus 34.3%. For the full year, gross profit was $230.9 million, up 17%, with gross margins improving to 34.9% compared to 33.9% in 2021, both driven by changes in freight charges.

本季度毛利潤為 5160 萬美元，比去年同期增長 8.9%，毛利率為 33.4%，而去年同期為 34.3%。全年毛利潤為 2.309 億美元，增長 17%，毛利率從 2021 年的 33.9% 提高至 34.9%，這兩者均受運費變化的推動。

Net loss for the quarter and full year was $6.2 million and $1 million, respectively. The fourth quarter GAAP loss was predominantly driven by noncash expenses and seasonally higher freight charges.

本季度和全年的淨虧損分別為 620 萬美元和 100 萬美元。第四季度 GAAP 虧損主要是由非現金支出和季節性上漲的運費造成的。

For the fourth quarter, we reported adjusted EBITDA of $2.1 million, down from $2.6 million. The change in adjusted EBITDA in the quarter was predominantly driven by seasonal freight charges, which were higher and started earlier than the prior year.

第四季度，我們報告調整後的 EBITDA 為 210 萬美元，低於 260 萬美元。本季度調整後 EBITDA 的變化主要是由季節性運費推動的，該運費高於上年且開始時間早於去年。

For the full year 2022, we reported adjusted EBITDA of $26.1 million, up 55.5% from 2021, reflecting our commitment to financial discipline, positive unit economics as well as our unyielding focus on balancing profitable growth with free cash flow generation.

2022 年全年，我們報告調整後 EBITDA 為 2610 萬美元，比 2021 年增長 55.5%，這反映了我們對財務紀律、積極的單位經濟效益的承諾，以及我們對平衡盈利增長與自由現金流產生的不懈關注。

Turning to the balance sheet, we ended the quarter with case and equivalents of $18.8 million and no balance on our revolver line. We ended the year with inventory at $136 million compared to $138.9 million in the prior year. We believe we have ample liquidity, and we have no intention or need to raise capital at current valuations. We continue to focus on self-funded growth. And at the end of Q4, we were undrawn on our revolving credit facility with an option to expand to $150 million, depending on our inventory levels and certain terms and conditions.

談到資產負債表，我們在本季度結束時有 1880 萬美元的箱子和等價物，我們的左輪手槍生產線沒有餘額。我們年底的庫存為 1.36 億美元，而上一年為 1.389 億美元。我們相信我們有充足的流動性，我們無意也不需要以當前估值籌集資金。我們繼續專注於自籌資金增長。在第四季度末，我們沒有使用我們的循環信貸額度，可以選擇擴大到 1.5 億美元，具體取決於我們的庫存水平和某些條款和條件。

And now I'd like to turn it back to David for some closing remarks.

現在我想把它轉回給大衛，聽取一些結束語。

Thank you, Ryan, and everyone who made the time to join today's call. 2022 was our best year ever, and we are proud of the company we continue to build each and every day. It's amazing to watch a 25-year-old company go through a full transformation, continue to reinvent itself and deliver incredible results. 2022 marked our third consecutive year of double-digit growth. And since 2019, we have more than doubled our revenues and returned the company to profitability, all while building a robust balance sheet.

感謝 Ryan，感謝所有抽出時間參加今天電話會議的人。 2022 年是我們有史以來最好的一年，我們為我們每天都在繼續建設的公司感到自豪。看到一家擁有 25 年曆史的公司經歷全面轉型、不斷重塑自我並取得令人難以置信的成果，真是太棒了。 2022 年是我們連續第三年實現兩位數增長。自 2019 年以來，我們的收入增加了一倍多，並使公司恢復盈利，同時建立了穩健的資產負債表。

For 2023 and beyond, we continue to put our customers and team members at the center of our strategy and feel prepared to tackle the future with intention, focus and discipline as we gain market share. We're in a strong position to thrive and continue delivering profitable growth amid whatever changes the market brings us by leveraging our vertically integrated supply chain, proprietary catalog and other advanced capabilities like data science.

到 2023 年及以後，我們將繼續把我們的客戶和團隊成員置於我們戰略的中心，並準備好在我們獲得市場份額的同時，以意圖、專注和紀律來應對未來。通過利用我們的垂直整合供應鏈、專有目錄和數據科學等其他高級功能，我們處於有利地位，可以在市場給我們帶來的任何變化中蓬勃發展並繼續實現盈利增長。

Our goal is to continue balancing our investments to be more streamlined without compromising on building an extraordinary business regardless of what is happening in the economy. We believe that by doing this, will benefit our shareholders in the years to come and grow the intrinsic value of our company. We will remain focused on positive unit economics, free cash flow generation, operational efficiencies and delivering an outstanding customer experience.

我們的目標是繼續平衡我們的投資，使其更加精簡，而不管經濟中發生什麼，都不會影響建立非凡的業務。我們相信，通過這樣做，我們的股東將在未來幾年受益並增加公司的內在價值。我們將繼續專注於積極的單位經濟效益、自由現金流的產生、運營效率和提供卓越的客戶體驗。

Now none of this would be possible without the incredible work and commitment from everyone on our global team. You come to work each day to seize each new opportunity that comes your way. We're grateful and honored to lead such an amazing organization. And as we say at CarParts.com, get after it.

現在，如果沒有我們全球團隊中每個人的出色工作和承諾，這一切都不可能實現。你每天來上班是為了抓住每一個出現在你面前的新機會。我們很感激也很榮幸能夠領導這樣一個了不起的組織。正如我們在 CarParts.com 上所說的那樣，抓住它。

I'll now turn it over to the operator to open it up for questions.

我現在將其轉交給接線員，讓其公開提問。

(Operator Instructions) Our first question comes from the line of Thomas Forte from D.A. Davidson.

（操作員說明）我們的第一個問題來自 D.A. 的 Thomas Forte。戴維森。

Great. So 2 questions, 1 question, 1 follow-up. And then David and Ryan, great job on the quarter and on the year. So first question, I recognize your visibility may be limited given the challenging macro environment, but I want to know if you could provide at least high-level thoughts on revenue growth for 2023.

偉大的。所以 2 個問題，1 個問題，1 個跟進。然後是 David 和 Ryan，他們在本季度和年度表現出色。所以第一個問題，我知道鑑於充滿挑戰的宏觀環境，您的知名度可能有限，但我想知道您是否可以至少提供有關 2023 年收入增長的高層次想法。

Sure. I think let me start by saying that the company it really is in better shape than it's ever been. I think we have a lot of conviction in our ability to execute (inaudible) balance transparency with reliability. But right now, there's just a lot of uncertainty with the macro environment. We feel good about our ability to grow mid-single digits to high single digits. And I think if the economy turns more positive, we can grow double digits. So really, the takeaway is that we feel good about being able to leverage all the improvements we've made over the last few years. We plan to continue growing even if the environment is challenging.

當然。我想首先要說的是，這家公司的狀況確實比以往任何時候都好。我認為我們對執行（聽不清）平衡透明度和可靠性的能力充滿信心。但目前，宏觀環境存在很多不確定性。我們對自己將中個位數增長到高個位數的能力感到滿意。而且我認為，如果經濟變得更加積極，我們可以實現兩位數的增長。所以真的，要點是我們對能夠利用我們在過去幾年中所做的所有改進感到很好。即使環境充滿挑戰，我們仍計劃繼續發展。

Great. And then for my second question, can you talk about how improving supply chain may have positively affected your fourth quarter sales and profitability, and how it might impact you in 2023?

偉大的。然後關於我的第二個問題，你能談談改善供應鏈如何對你第四季度的銷售額和盈利能力產生積極影響，以及它可能如何影響你在 2023 年嗎？

Sure. So one thing to keep in mind is we're FIFO, not LIFO. So when the supply chain improves, that improvement goes into landed cost. So unfortunately, unlike some of the LIFO people, you're not going to see the benefit until probably the back half of this year.

當然。所以要記住的一件事是我們是先進先出，而不是後進先出。因此，當供應鏈得到改善時，這種改善就會轉化為到岸成本。所以不幸的是，與一些後進先出法的人不同，你可能要到今年下半年才能看到好處。

Our next question comes from the line of Ryan Meyers from Lake Street Capital Markets.

我們的下一個問題來自 Lake Street Capital Markets 的 Ryan Meyers。

First one for me, just kind of taking a step backwards. You guys talked about the double-digit growth in the month of October. It looks like that obviously flowed through for the rest of the quarter. I'm just curious what you guys saw in those last 2 months maybe from a demand perspective and kind of how demand is looking for your core customers?

第一個對我來說，只是有點倒退。你們談到了 10 月份的兩位數增長。看起來在本季度的剩餘時間裡，這種情況顯然已經發生了。我只是好奇你們在過去兩個月裡看到了什麼，也許是從需求的角度來看，以及需求是如何尋找你的核心客戶的？

Yes. So back half of last year, we obviously did capitalize on that demand. I think the way to categorize consumers right now is that they're being, I think, very discerning about how they spend money, they're being cautious. And as I kind of mentioned to Tom, we have a great ability to execute. We've done a lot of things right. And I think no matter what happens, we're in a good position to capitalize. We're significantly cheaper than the competition. So as people look to save money versus a traditional brick-and-mortar, I think we'll be able to capture customers there. And then the obvious offset is that here and there, some consumers may choose to defer some spend. And then that's what's going to lead to the actual on-balance revenue growth.

是的。所以去年下半年，我們顯然確實利用了這種需求。我認為現在對消費者進行分類的方法是，我認為他們對花錢的方式非常挑剔，他們很謹慎。正如我對湯姆提到的那樣，我們有很強的執行能力。我們做對了很多事情。而且我認為無論發生什麼，我們都處於有利的地位來利用。我們比競爭對手便宜得多。因此，當人們希望比傳統的實體店更省錢時，我認為我們將能夠在那裡吸引客戶。然後明顯的抵消是，一些消費者可能會選擇推遲一些支出。然後這將導致實際的平衡收入增長。

Got it. And then just kind of looking at the Do-It-For-Me offering, it sounds like you doubled the number of bookings from, I think, it was 1,500 last quarter. Now that you have a couple of quarters under your belt with that, what sort of feedback have you guys gotten from customers and mechanics? And what gets you excited about that for the future?

知道了。然後看看 Do-It-For-Me 產品，聽起來你的預訂數量翻了一番，我認為，上個季度是 1,500。現在你們已經有了幾個季度的經驗，你們從客戶和機械師那裡得到了什麼樣的反饋？是什麼讓你對未來感到興奮？

So the feedback is really good. I actually go through and read all the comments individually. Predominantly every comment is something along the lines of, "I'm amazed this exists. This is helping me out. I made my life so much easier." The part, I mean, that gives me confidence in the offering that makes it compelling is that someone can in many cases, go buy a part and get it installed and solve their problem for cheaper than just buying the part alone from a brick-and-mortar store. So especially in a recession, I think that, that's a great way we're helping consumers through a difficult economic period.

所以反饋真的很好。我實際上逐一閱讀了所有評論。主要是每條評論都是這樣的，“我很驚訝它的存在。這幫助了我。我讓我的生活變得如此輕鬆。”我的意思是，讓我對產品充滿信心的部分是，在很多情況下，有人可以去購買一個零件並安裝它，然後以比只從實體店單獨購買零件更便宜的方式解決他們的問題-砂漿店。因此，特別是在經濟衰退期間，我認為這是我們幫助消費者度過困難經濟時期的好方法。

Our next question comes from the line of Darren Aftahi from ROTH MKM.

我們的下一個問題來自 ROTH MKM 的 Darren Aftahi。

Nice job on the quarter. Two, if I may. First, can you talk about just sort of the strange weather going on across the country, if that's had any impact on your business year-to-date, good, better and different.

本季度幹得好。兩個，如果可以的話。首先，你能談談全國各地發生的奇怪天氣嗎，如果這對你今年迄今為止的業務有任何影響，好，更好和不同。

And then second one, it looks like your inventory fell sequentially again. I'm just kind of curious, given kind of the size of your business and Ryan, the comments you made about growth, whether in softer times or better times, what's the right inventory level that you think you guys should have?

然後是第二個，看起來你們的存貨又連續下降了。我只是有點好奇，考慮到你們的業務規模和瑞安，你們對增長的評論，無論是在經濟疲軟時期還是經濟繁榮時期，你們認為你們應該擁有的正確庫存水平是多少？

Darren, it's David. I guess I'll take the first part of the question, and then I'll hand it off to Ryan. I think the weather, when there's significant disruption kind of slows down the demand in certain regions, but then usually we see a pickup the following week. So we usually see some ups and downs during changes in temperature, but over the long term and at least over the course of the year, at least historically, we haven't seen a huge impact on sales. If anything, it's the wild swings in temperature that creates potential demand in the future.

達倫，是大衛。我想我會回答問題的第一部分，然後我會把它交給 Ryan。我認為天氣，當出現嚴重中斷時，會減緩某些地區的需求，但通常我們會在接下來的一周看到回升。所以我們通常會在溫度變化期間看到一些起伏，但從長期來看，至少在一年中，至少從歷史上看，我們沒有看到對銷售產生巨大影響。如果有的話，那就是溫度的劇烈波動會在未來產生潛在需求。

I'll take the inventory level. So where we ended the year for inventory is probably where you're going to see us end inventory levels at the end of fiscal year 2023. Obviously, quarter-by-quarter, you'll see some fluctuations up and down, but we feel pretty good about our inventory position as it sits.

我會採取庫存水平。因此，我們年底的庫存可能是您將在 2023 財年末看到我們結束庫存水平的地方。顯然，每個季度，您會看到一些上下波動，但我們覺得我們的庫存狀況非常好。

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。