Rite Aid Corp (RAD) 2024 Q1 法說會逐字稿

Hello, and welcome to the Rite Aid Corporation Fiscal Year 2024 Q1 Earnings Conference Call. (Operator Instructions)

您好，歡迎參加 Rite Aid Corporation 2024 財年第一季度收益電話會議。 （操作員說明）

I will now turn the conference over to Byron Purcell. Please go ahead.

我現在將會議交給拜倫·珀塞爾。請繼續。

Thank you, Sarah, and good morning, everyone. We welcome you to our fiscal 2024 First Quarter earnings conference call. Elizabeth Busy Burr, our interim Chief Executive Officer; and Matt Schroeder, Executive Vice President and Chief Financial Officer will begin the call with prepared remarks. Chris DuPaul, Chief Operating Officer of Elixir will also join the call during the question-and-answer sessions. As we mentioned in our release, we are providing slides related to the material we'll be discussing today. These slides are provided on our website, investors.riteaid.com.

謝謝莎拉，大家早上好。歡迎您參加我們的 2024 財年第一季度收益電話會議。 Elizabeth Busy Burr，我們的臨時首席執行官；執行副總裁兼首席財務官馬特·施羅德 (Matt Schroeder) 將在電話會議上發表事先準備好的講話。 Elixir 首席運營官 Chris DuPaul 也將在問答環節參加電話會議。正如我們在新聞稿中提到的，我們提供了與我們今天將討論的材料相關的幻燈片。這些幻燈片在我們的網站 Investors.riteaid.com 上提供。

While management will not be speaking directly to the slides, these slides are meant to facilitate your review of the company's results and to be used as a reference document following the call.

雖然管理層不會直接對著幻燈片講話，但這些幻燈片旨在幫助您審查公司的業績，並在電話會議後用作參考文件。

Before we start, I'd like to remind you that today's conference call includes certain forward-looking statements. These forward-looking statements are presented in the context of certain risks and uncertainties that can cause actual results to differ. These risks and uncertainties are described in our press release and Item 1A of our most recent annual report on Form 10-K and in other documents we will file or furnish to the SEC.

在開始之前，我想提醒您，今天的電話會議包含某些前瞻性陳述。這些前瞻性陳述是在某些風險和不確定性的背景下提出的，這些風險和不確定性可能導致實際結果有所不同。這些風險和不確定性在我們的新聞稿和最新 10-K 表格年度報告的第 1A 項以及我們將向 SEC 提交或提供的其他文件中進行了描述。

Also, we will be using certain non-GAAP measures in our release and in the accompanying slides. The definition of the non-GAAP measures, along with the reconciliation to the related GAAP measure are described in our press release and slides. With that, let me turn it over to Busy.

此外，我們將在我們的新聞稿和隨附的幻燈片中使用某些非 GAAP 衡量標準。我們的新聞稿和幻燈片中描述了非公認會計準則衡量標準的定義以及與相關公認會計準則衡量標準的調整。就這樣，讓我把它交給Busy。

Thanks, Byron. Welcome, everyone. Thank you for joining our first quarter earnings call. Today, I'm going to provide a quick overview of our performance, then cover each business area by highlighting the bright spots as well as the challenges and importantly, give insight to what we're doing to drive our results to meet our plan. Matt will then give a more in-depth financial review and guidance update. We'll end as always, as Byron mentioned with Q&A.

謝謝，拜倫。歡迎大家。感謝您參加我們的第一季度財報電話會議。今天，我將快速概述我們的業績，然後通過強調亮點和挑戰來涵蓋每個業務領域，重要的是，深入了解我們正在採取哪些措施來推動我們的成果實現我們的計劃。然後，馬特將提供更深入的財務審查和指導更新。正如拜倫在問答中提到的那樣，我們將一如既往地結束。

We are ahead of our plan for first quarter despite headwinds that include soft front-end sales in the Retail Pharmacy segment and higher-than-expected medical loss ratio at Elixir Insurance. We offset these headwinds with strong script growth, better-than-expected recovery rate and generic drug settlements. We also made good progress on our turnaround, particularly in our initiatives to control SG&A spend, grow scripts and reduce drug purchasing costs. The performance acceleration model we put in place at the end of last year is gaining momentum and traction, and we continue to find opportunities to drive growth, increase efficiency and deliver positive results as we execute. We believe that the work we are doing now will continue to benefit the business and our financial performance, not only in fiscal '24, but also in fiscal '25 and '26 and beyond.

儘管存在零售藥房業務前端銷售疲軟以及 Elixir Insurance 醫療損失率高於預期等不利因素，但我們還是提前完成了第一季度的計劃。我們通過強勁的劇本增長、好於預期的康復率和仿製藥和解來抵消這些不利因素。我們在扭虧為盈方面也取得了良好進展，特別是在控制銷售、一般行政費用、開發藥物和降低藥品採購成本的舉措方面。我們去年年底實施的績效加速模型正在獲得動力和牽引力，我們在執行過程中繼續尋找推動增長、提高效率和取得積極成果的機會。我們相信，我們現在所做的工作將繼續有利於我們的業務和我們的財務業績，不僅在 24 財年，而且在 25 財年和 26 財年及以後。

This is not just a strategy to get quick wins, though we are capitalizing on those too. We are focused on setting the right foundation for long-term success built on the bedrock of our valuable market position, strong relationships with customers and clients and a trusted brand.

這不僅僅是一種快速獲勝的策略，儘管我們也在利用這些策略。我們致力於為長期成功奠定正確的基礎，這些基礎建立在我們寶貴的市場地位、與顧客和客戶的牢固關係以及值得信賴的品牌的基礎上。

Now on to first quarter financial results. Our adjusted EBITDA came in at $92 million versus last year's first quarter of $100 million. The main drivers of year-over-year results were script comps of 4.7% or 7.4%, excluding COVID. We continue to drive script growth through adherence initiatives and getting our fair share of prescriptions from the Kroger ESI dispute.

現在來看第一季度的財務業績。我們調整後的 EBITDA 為 9200 萬美元，而去年第一季度為 1 億美元。同比業績的主要驅動因素是 4.7% 或 7.4% 的劇本比較（不包括新冠疫情）。我們繼續通過遵守計劃來推動劇本增長，並從克羅格 ESI 糾紛中獲得公平份額的處方。

Strong trends in pharmacy margin due to better-than-expected recovery rate. We saw retail SG&A improvements of approximately $5 million from cost control initiatives and store closures. Offsetting those were front-end sales comps of negative 3.8%, excluding cigarettes and tobacco products. We saw a decline in transactions in our stores, driven by a reduction in demand for respiratory-related products. Some inventory challenges with the transition of our perishable food vendors and some inefficient pricing. And Elixir Insurance is experiencing a higher-than-expected medical loss ratio as adverse selection during annual enrollment is driving unfavorable changes in utilization and drug mix.

由於回收率好於預期，藥品利潤率呈現強勁趨勢。我們發現，由於成本控制舉措和商店關閉，零售 SG&A 改善了約 500 萬美元。抵消這些影響的是前端銷售同比下降 3.8%（不包括捲菸和煙草產品）。由於呼吸系統相關產品的需求減少，我們的商店交易量下降。我們的易腐食品供應商的轉型帶來了一些庫存挑戰，而且定價效率低下。 Elixir Insurance 的醫療損失率高於預期，因為年度入組期間的逆向選擇導致利用率和藥物組合發生不利變化。

Matt will provide additional details in his section. Now I'd like to get to some of the specifics on each part of the business. I'll start with pharmacy where our performance improvement efforts are delivering results. We continue to make strides in adherence, driven by a strong 10.3% year-over-year increase in courtesy refills. We also see additional upside as we continue implementing our initiatives to improve adherence. For example, we saw good results from a pilot we conducted to reduce abandoned scripts. We are now rolling that program out to all stores, which we expect to complete by the end of July and are seeing consistent improvement.

馬特將在他的部分中提供更多詳細信息。現在我想了解一下業務各個部分的一些細節。我將從藥房開始，我們的績效改進工作正在取得成果。在免費補充量同比強勁增長 10.3% 的推動下，我們在遵守方面繼續取得長足進步。隨著我們繼續實施提高依從性的舉措，我們還看到了額外的好處。例如，我們在減少廢棄腳本的試點中看到了良好的結果。我們現在正在向所有商店推廣該計劃，預計在 7 月底前完成，並且我們看到了持續的改進。

In addition, our script file acquisition program exceeded our first quarter plan, further underscoring solid execution on pharmacy initiatives. We believe that when taken together, these improvements are indicative of the potential growth prospects for our pharmacy business. While we feel good about pharmacy, the front end was more challenging. In first quarter, our transactions on a comp store basis were down 7.9% with declines in selected health and consumables categories. We believe this was due to 3 key drivers: respiratory from allergy, cough, cold and flu wasn't as strong as last year.

此外，我們的腳本文件獲取計劃超出了我們第一季度的計劃，進一步強調了製藥計劃的紮實執行。我們相信，綜合起來，這些改進表明了我們製藥業務的潛在增長前景。雖然我們對藥房感覺良好，但前端更具挑戰性。第一季度，我們的同店交易量下降了 7.9%，其中特定健康和消費品類別的交易量有所下降。我們認為這是由於三個關鍵驅動因素：過敏、咳嗽、感冒和流感引起的呼吸道疾病沒有去年那麼嚴重。

We faced supply chain challenges related to the supplier transition in many of our perishable consumer goods and shrink continued to be a significant headwind. We're working with urgency to address these drivers to improve front-end performance specifically. We recently completed the transition of vendors for perishable consumable items, which we believe should alleviate the pressures we saw in this category in first quarter. Our owned brands, which we believe represent a compelling opportunity remain a key area of focus earlier this month. We announced the launch of RYSHI, an exclusive collection of high-quality clean beauty and personal care essentials at accessible price points. We plan to accelerate the rollout of owned brands like these with 81 new items launched year-to-date and 208 new items scheduled to launch in the remainder of this year.

我們面臨著與許多易腐消費品供應商轉型相關的供應鏈挑戰，而萎縮仍然是一個重大阻力。我們正在緊急解決這些驅動因素，以專門提高前端性能。我們最近完成了易腐消費品供應商的轉型，我們相信這應該會緩解我們在第一季度在該類別中看到的壓力。我們相信我們的自有品牌代表著一個引人注目的機會，這仍然是本月早些時候關注的關鍵領域。我們宣布推出 RYSHI，這是一個價格實惠的高品質清潔美容和個人護理必需品的獨家系列。我們計劃加快此類自有品牌的推出，今年迄今已推出 81 款新產品，併計劃在今年剩餘時間內推出 208 款新產品。

We're also collaborating with our supplier partners to ensure we are on track to bring innovative and on-trend products to our consumers. Lastly, we have hired new leadership in loss prevention as we continue to look at new ways to address shrink. Addressing the Elixir side of the business, let me start with Elixir Insurance, our Medicare Part D Plan. You might recall that heading into calendar year 2023, we shifted our bid to be above the low income benchmark in 23 of the 34 regions we serve. While we achieved the 275,000 life membership we forecasted for the first quarter of fiscal 2024, we experienced a significant shift in the composition of our member base.

我們還與供應商合作夥伴合作，確保我們能夠為消費者帶來創新和流行的產品。最後，隨著我們繼續尋找解決損失問題的新方法，我們在預防損失方面聘請了新的領導層。談到 Elixir 業務方面，讓我從 Elixir 保險開始，這是我們的 Medicare D 部分計劃。您可能還記得，進入 2023 日曆年，我們將我們服務的 34 個地區中的 23 個地區的出價調整為高於低收入基準。雖然我們在 2024 財年第一季度實現了預期的 275,000 名終身會員，但我們的會員基礎構成發生了重大變化。

The loss of our auto-assignee population in 23 of the regions, coupled with adverse selection among those choosing to remain in the plan during annual enrollment has resulted in an unfavorable shift in both utilization and drug mix and unplanned increase in medical loss ratio. Over the last 3 years, we have been gradually moving away from the individual Part D market.

23個地區的自動受讓人人口流失，加上年度入組期間選擇留在計劃中的逆向選擇，導致利用率和藥物組合發生不利變化，以及醫療損失率的意外增加。在過去的三年裡，我們逐漸遠離了個人 D 部分市場。

Now in light of this recent performance as well as unfavorable regulatory changes on the horizon, we have made the decision to exit the individual Part D market beginning in January 2024. Elixir will remain in the group Medicare Part D market and we'll continue to offer employer group waiver plan, also known as EGWIP solutions in all 50 states, the District of Columbia and Puerto Rico.

現在，鑑於近期的表現以及即將出現的不利監管變化，我們決定從 2024 年 1 月開始退出個人 D 部分市場。Elixir 將留在團體 Medicare D 部分市場，我們將繼續在所有 50 個州、哥倫比亞特區和波多黎各提供雇主團體豁免計劃，也稱為 EGWIP 解決方案。

Shifting to our core PBM business. While it is still early in the selling season, we are encouraged by the positive feedback we have received from the market in terms of our competitive position. We're focused on increasing our market presence as we move into the summer selling season. Strong procurement economics have allowed us to bring competitive pricing for our core PBM offering. And we continue to make investments in market-facing functions and capabilities while tightly managing SG&A.

轉向我們的核心 PBM 業務。雖然現在仍處於銷售季節的早期，但我們從市場上收到的關於我們競爭地位的積極反饋令我們感到鼓舞。隨著夏季銷售旺季的到來，我們的重點是提高市場佔有率。強大的採購經濟性使我們能夠為核心 PBM 產品提供具有競爭力的價格。我們繼續對面向市場的職能和能力進行投資，同時嚴格管理 SG&A。

Finally, planning, hard work and execution are critical for us every day at Rite Aid. I'm inspired by our team's ongoing resolve and commitment to making our business successful. We are acting with urgency, rigor and an intense focus on the opportunities that we believe will create meaningful value in the near and long term. We appreciate the support from all of you on our journey to bringing this incredible brand back to where it should be. With that, I'll turn the call over to Matt and talk more -- who will talk more about Q1 and our outlook. Matt?

最後，計劃、努力工作和執行對於我們 Rite Aid 的每一天都至關重要。我們團隊為使我們的業務取得成功而不斷做出的決心和承諾使我深受鼓舞。我們採取緊急、嚴謹的行動，並高度關注我們相信將在短期和長期創造有意義價值的機會。我們感謝大家在我們將這個令人難以置信的品牌帶回其應有地位的過程中給予的支持。接下來，我會將電話轉給馬特並進行更多討論，他將更多地討論第一季度和我們的前景。馬特？

Thank you, Busy, and good morning, everyone. Our first quarter fiscal 2024 adjusted EBITDA was $91.7 million versus $100.1 million for last year's fiscal quarter. We also reported a net loss of $306.7 million or $5.56 per share and adjusted net loss of $40.1 million or $0.73 per share. Included in our net loss for the first quarter was an impairment charge for goodwill at Elixir of $152 million.

謝謝大家，忙碌，大家早上好。 2024 財年第一季度調整後 EBITDA 為 9170 萬美元，而去年財季為 1.001 億美元。我們還報告淨虧損 3.067 億美元，即每股 5.56 美元，調整後淨虧損為 4010 萬美元，即每股 0.73 美元。我們第一季度的淨虧損包括 Elixir 1.52 億美元的商譽減值費用。

Our medical loss ratio at Elixir Insurance is now expected to trend higher than we initially forecast which will lower our expected adjusted EBITDA for Elixir in fiscal 2024. Given the shrinking margins and significant capital investment required to maintain a presence in this market, we have elected to exit the Medicare individual Part D market on January 1, 2024. As a reminder, the calculation performed to determine if an impairment is necessary includes a valuation based on discounted cash flows as well as an assessment of market value. This is a noncash charge.

我們在 Elixir Insurance 的醫療損失率目前預計將高於我們最初的預測，這將降低我們對 Elixir 在 2024 財年的預期調整後 EBITDA。考慮到利潤不斷萎縮以及維持在該市場的地位所需的大量資本投資，我們選擇於 2024 年 1 月 1 日退出醫療保險個人 D 部分市場。提醒一下，確定是否需要減值所進行的計算包括基於貼現現金流的估值以及市場價值評估。這是非現金費用。

Now I'll discuss the key drivers of operating results in our 2 business segments. In the Retail Pharmacy segment, revenues increased 3.4% over the prior year quarter due primarily to increases in acute and maintenance prescriptions that were partially offset by a reduction in COVID-related revenue, front-end sales and store closures. Same-store sales for the first quarter increased 8.4% over the prior year period, consisting of a 13.3% increase in pharmacy sales that were partially offset by a 4.4% decrease in front-end sales. The pharmacy sales increase was driven by an increase in sales of Ozempic and other GLP-1s, which have a high sales amount per script.

現在我將討論我們兩個業務部門經營業績的關鍵驅動因素。在零售藥房部門，收入比上年同期增長 3.4%，主要是由於急性和維持處方的增加，但部分被新冠肺炎相關收入、前端銷售和商店關閉的減少所抵消。第一季度同店銷售額比去年同期增長 8.4%，其中藥房銷售額增長 13.3%，但前端銷售額下降 4.4% 部分抵消了這一增長。藥房銷售額的增長是由 Ozempic 和其他 GLP-1 銷售額的增長推動的，這些藥物的每個處方的銷售額很高。

As the cost of these drugs is also high, the impact of the increase in volume of these drugs on our gross profit dollars is minimal. Front-end same-store sales, excluding cigarettes and tobacco products decreased 3.8%. As Busy described earlier, we are taking steps to address our challenges in retail sales but also expect some continued pressure through the rest of the year. Same-store prescriptions adjusted at 30 days increased 4.7% or 7.4% without taking into account the impact of COVID changes. Ratings for front-end gross profit dollars were negatively impacted by our soft front end sales and higher-than-expected shrink.

由於這些藥物的成本也很高，這些藥物銷量的增加對我們的毛利潤的影響很小。前端同店銷售額（不包括捲菸和煙草製品）下降了 3.8%。正如 Busy 之前所述，我們正在採取措施應對零售銷售方面的挑戰，但預計今年剩餘時間將繼續面臨壓力。在不考慮新冠疫情變化影響的情況下，30 天調整後的同店處方量增加了 4.7% 或 7.4%。前端毛利潤的評級受到我們疲軟的前端銷售和高於預期的收縮的負面影響。

Pharmacy gross profit benefited from strong script growth, a better-than-expected recovery rate in generic drug settlements, which offset the reduction in COVID vaccine and testing volume. Adjusted EBITDA SG&A at retail improved by $4.8 million or 46 basis points versus prior year due to continued cost control from our transformation initiatives and lower occupancy due to store closures.

藥房毛利潤受益於強勁的處方增長、仿製藥結算回收率好於預期，抵消了新冠疫苗和檢測量的減少。由於我們轉型計劃的持續成本控制以及商店關閉導致的入住率下降，調整後的零售業 EBITDA SG&A 較上年提高了 480 萬美元，即 46 個基點。

Moving to our Pharmacy Services segment, Elixir. Revenues were $1.2 billion for the quarter, a decrease of 30% compared to prior year quarter. Revenues decreased as we are cycling through our previously announced membership losses. Adjusted EBITDA was $21.7 million for the first quarter compared to last year's first quarter adjusted EBITDA of $26.4 million.

轉向我們的藥房服務部門 Elixir。該季度收入為 12 億美元，比去年同期下降 30%。由於我們正在經歷之前宣布的會員流失，收入有所下降。第一季度調整後 EBITDA 為 2170 萬美元，而去年第一季度調整後 EBITDA 為 2640 萬美元。

The decrease in adjusted EBITDA was due to the lower membership I just mentioned, plus an increase in the Elixir Insurance medical loss ratio. Elixir's EBITDA margins are higher by 28 basis points, reflective of a more favorable mix of business, procurement economic improvements and SG&A reductions.

調整後 EBITDA 的下降是由於我剛才提到的會員人數減少以及 Elixir Insurance 醫療損失率的增加。 Elixir 的 EBITDA 利潤率提高了 28 個基點，反映出更有利的業務組合、採購經濟改善和 SG&A 削減。

Turning to our cash flows and balance sheet. Our cash flow statement for the quarter shows operating cash use of $372.5 million, due to a build in the CMS receivable to Elixir and the timing of certain accounts receivable and monthly rent payments. Cash used in investing activities was $39.3 million for the quarter. We generated proceeds of $8.2 million from the sale of prescription files from closed stores and the sale of certain assets.

轉向我們的現金流和資產負債表。我們本季度的現金流量表顯示，由於 Elixir 的 CMS 應收賬款增加以及某些應收賬款和每月租金支付的時間安排，運營現金使用量為 3.725 億美元。本季度投資活動使用的現金為 3930 萬美元。我們通過出售已關閉商店的處方文件和出售某些資產獲得了 820 萬美元的收益。

We ended the fiscal quarter with approximately $1.15 billion in liquidity. The decrease in liquidity from year-end and the corresponding increase in leverage ratio was as expected. Now before I give an update on guidance, I'd like to say the following regarding our capital structure. We have always had an open dialogue with our lenders and are continuing to evaluate several options for addressing our 2025 debt maturities. We do not have a specific update to provide today on those discussions.

本財季結束時，我們的流動資金約為 11.5 億美元。流動性較年末減少以及槓桿率相應上升符合預期。現在，在提供最新指導意見之前，我想就我們的資本結構說一下以下內容。我們始終與貸方進行公開對話，並繼續評估解決 2025 年債務到期問題的多種方案。我們今天沒有提供有關這些討論的具體更新。

Now let's turn to guidance. As outlined in our last call, we are investing in a proven turnaround model to drive growth and value for our stakeholders. Since our last call, we have seen some changes in our business. On the retail side, we believe our front-end sales trends will improve in subsequent quarters as we implement our initiatives but do expect front-end sales for the year to be less than what we initially planned. At Elixir, we have made the necessary decision to leave the individual Medicare Part D market at the end of calendar year 2023 due to the multiple factors previously outlined.

現在讓我們轉向指導。正如我們在上次電話會議中所述，我們正在投資一個經過驗證的周轉模型，以推動利益相關者的增長和價值。自上次通話以來，我們的業務發生了一些變化。在零售方面，我們相信，隨著我們實施我們的舉措，我們的前端銷售趨勢將在接下來的幾個季度有所改善，但預計今年的前端銷售將低於我們最初的計劃。在 Elixir，由於前面概述的多種因素，我們已做出必要的決定，在 2023 日曆年年底退出個人 Medicare D 部分市場。

Due to the anticipated impact of these headwinds, we will also be taking steps to reduce SG&A. Because of this, we have made the following changes to our guidance. Adjusted EBITDA at Elixir is now expected to be between $90 million and $100 million. Retail EBITDA guidance remains at $240 million to $260 million as we expect the impact of incremental SG&A reductions to offset softness in our front-end sales and gross profit. Total revenues are now expected to be between $22.6 billion and $23 billion. We have increased our revenue guidance due to the increase in sales volume in Ozempic and other high-dollar GLP-1s and the increased utilization at Elixir Insurance. Note that both of these items are margin neutral as these factors also increased our cost of sales.

由於這些不利因素的預期影響，我們還將採取措施減少銷售管理費用。因此，我們對指南進行了以下更改。 Elixir 調整後的 EBITDA 目前預計在 9000 萬美元至 1 億美元之間。零售 EBITDA 指引仍為 2.4 億至 2.6 億美元，因為我們預計 SG&A 削減的影響將抵消我們前端銷售和毛利潤的疲軟。目前總收入預計在 226 億美元至 230 億美元之間。由於 Ozempic 和其他高價 GLP-1 的銷量增加以及 Elixir Insurance 利用率的增加，我們提高了收入指引。請注意，這兩個項目的利潤都是中性的，因為這些因素也增加了我們的銷售成本。

These factors were slightly offset by a decrease in expected front-end sales. We expect to generate a working capital benefit in fiscal 2024 from reductions in prescription brand inventory, SKU rationalization and reductions in seasonal merchandise. But we expect these benefits to be less than initially anticipated. As a result, we are lowering our capital expenditure spend guidance to $175 million. We are forecasting a use of approximately $100 million to $150 million in cash in fiscal 2024 and expect to have sufficient liquidity throughout the year. As we said on our last call, the initiatives that are intended to drive significant value in our turnaround process will take some time to gain traction, but we've seen progress in the first quarter.

這些因素被預期前端銷售額的下降略微抵消。我們預計將在 2024 財年通過處方品牌庫存的減少、SKU 合理化和季節性商品的減少產生營運資金效益。但我們預計這些收益將低於最初的預期。因此，我們將資本支出指導下調至 1.75 億美元。我們預計 2024 財年將使用約 1 億至 1.5 億美元的現金，並預計全年流動性充足。正如我們在上次電話會議中所說，旨在為我們的周轉過程帶來巨大價值的舉措需要一段時間才能獲得關注，但我們在第一季度已經看到了進展。

As a result, we now expect to generate approximately 60% of our adjusted EBITDA for the year in the second half of the fiscal year. This completes our prepared remarks. Sarah, please open the phone lines for questions.

因此，我們現在預計本財年下半年將產生約 60% 的調整後 EBITDA。我們準備好的發言到此結束。莎拉，請撥打電話提問。

(Operator Instructions) Your first question comes from the line of Elizabeth Anderson with Evercore ISI.

（操作員說明）您的第一個問題來自 Evercore ISI 的 Elizabeth Anderson。

A couple of things. Maybe one, just to kick it off on the numerical thing. Can you just remind us about the impact of COVID vaccines test and OTC tested in the quarter? Because it just seems like you had a nice step-up in core profitability, and I just want to make sure I understand that correctly.

有幾件事。也許有一個，只是為了從數字上開始。您能否提醒我們本季度新冠疫苗測試和非處方藥測試的影響？因為看起來你們的核心盈利能力有了很大的提高，我只是想確保我理解正確。

Elizabeth, thanks. This is Matt. What I would tell you is last quarter we did about 1.7 million COVID vaccines. This year, we did less than $500,000. So a pretty significant drop off in COVID vaccines. From a testing standpoint, we dispensed about $2.5 million antigen kits this quarter, lower than last year's first quarter as well.

伊麗莎白，謝謝。這是馬特。我想說的是，上個季度我們接種了大約 170 萬劑新冠疫苗。今年，我們做了不到 50 萬美元。因此，新冠疫苗數量大幅下降。從測試的角度來看，本季度我們分發了約 250 萬美元的抗原試劑盒，也低於去年第一季度。

Okay. Got it. So maybe talking about some of the improvements on the core. Can you talk about some of the benefits of -- some of the financial benefits of the impact programs in terms of the adherence and how you expect that to trend. Is that something we should sort of like run rate ratably from what we saw in the first quarter? Or is there like an increasing ramp to that as we think about how those programs roll out across the year?

好的。知道了。所以也許可以談談核心上的一些改進。您能否談談影響力計劃在堅持方面的一些好處以及您期望其趨勢如何的一些經濟利益。從我們在第一季度看到的情況來看，我們是否應該按比例調整運行率？或者當我們考慮這些計劃如何在一年中推出時，這種情況是否會越來越嚴重？

Yes. I think there's a couple of things to consider Elizabeth. On the pharmacy side, we had a strong quarter in script growth, the 7.4% without COVID. And some of that is driven by the work we're doing on adherence, the work we're doing to reduce abandoned scripts, the work we're doing to really maximize pull-through opportunities to the extent that there's changes in networks or network disruption. I would expect that to continue through the rest of the year.

是的。我認為伊麗莎白有幾件事需要考慮。在製藥方面，我們的處方增長強勁，在沒有新冠疫情的情況下增長了 7.4%。其中一些是由我們在遵守方面所做的工作、我們為減少廢棄腳本所做的工作、我們為在網絡或網絡發生變化的情況下真正最大化拉通機會所做的工作所驅動的擾亂。我預計這種情況將持續到今年剩餘時間。

And there's other initiatives that we're using to drive to maximize our vaccine penetration in the second half of the year once we get the flu season and we get the kind of the next COVID vaccine. On the front end, it's a challenging front-end environment. We do have initiatives around improving our assortment around doing planogram changes quicker around getting sharper on our price changes that we really expect to have more of a back-end impact in fiscal 2024. And so again, while expect some front-end pressure, also expect those to really gain some traction here in the back half of the year.

一旦我們進入流感季節並獲得下一種新冠疫苗，我們還會採取其他舉措來推動下半年最大限度地提高疫苗普及率。在前端，這是一個充滿挑戰的前端環境。我們確實採取了一些舉措來改善我們的品種，更快地進行貨架圖變更，以及更大幅度地調整我們的價格變化，我們確實預計這將在 2024 財年產生更多的後端影響。同樣，雖然預計會出現一些前端壓力，但預計這些將在今年下半年真正獲得一些關注。

And one last one for me. Can you remind us, given your decision to exit the individual Part D market, can you just remind us kind of the impact in terms of number of lives or scripts and sort of how we think about those scripts versus the profitability of the group Part D and EGWP lives.

最後一張是給我的。您能否提醒我們，考慮到您決定退出單獨的 D 部分市場，您能否提醒我們一下對生命或腳本數量的影響，以及我們如何看待這些腳本與 D 部分組的盈利能力和 EGWP 生命。

So the number of lives we're currently serving in the Med D plan is about 300,000 lives and those are going to go away as of January 1, 2024. Those lives from a pure underwriting perspective are not profitable. I mean, they're practically breakeven from a cost ratio standpoint.

因此，我們目前在 Med D 計劃中服務的生命數量約為 300,000 人，這些生命將於 2024 年 1 月 1 日消失。從純粹承保的角度來看，這些生命是無利可圖的。我的意思是，從成本比率的角度來看，它們實際上是收支平衡的。

There is an impact that we're going to have on the volume in our specialty and mail order pharmacy. There's also an impact that we're going to have from rationalizing our cost structure, and that's where we're still working through to fully build out our plans on.

我們將對我們的專業藥房和郵購藥房的數量產生影響。合理化我們的成本結構也會產生影響，這也是我們仍在努力全面製定計劃的地方。

Your next question comes from the line of George Hill with Deutsche Bank.

你的下一個問題來自喬治·希爾與德意志銀行的電話。

Liz hit a lot of my operational questions, Matt. So I guess I'd hop in on the dialogue with the debt securities and thinking about the 2025 maturities. I guess is there any way to frame for us kind of the range of options that are on the table or kind of characterize the discussions?

莉茲問了我很多操作問題，馬特。所以我想我會加入與債務證券的對話並思考 2025 年的到期日。我想有什麼方法可以為我們制定擺在桌面上的選項範圍或描述討論的特徵嗎？

Yes, George, as we talked about in the prepared remarks, we've always had an open dialogue for our lenders. We're continuing -- we're evaluating several pathways to address the capital structure, but we don't have a more specific update to drive, to provide today. We're also very much focused on driving our turnaround performance and positioning this business for long-term growth.

是的，喬治，正如我們在準備好的發言中談到的那樣，我們一直與貸方進行公開對話。我們正在繼續——我們正在評估解決資本結構問題的幾種途徑，但我們今天沒有提供更具體的更新。我們還非常注重推動我們的扭虧為盈，並使這項業務實現長期增長。

Okay. That's very helpful. And then I guess a quick follow-up for me would be, as we think about the exit of the PDP business, are you able to quantify for us kind of like what is the overlap between the pharmacy business and the PDP business? So like kind of how much script exposure do you guys have to your own PDP business when you guys exit that kind of like what's the script value at the risk?

好的。這非常有幫助。然後我想我的一個快速後續行動是，當我們考慮 PDP 業務的退出時，您是否能夠為我們量化，就像製藥業務和 PDP 業務之間的重疊是什麼一樣？那麼，當你們退出時，你們自己的 PDP 業務有多少劇本曝光率，比如面臨風險的劇本價值是多少？

I would say the script value. There's a script value number to, I would say, vis-a-vis the total scripts that we fill for the company is relatively minor.

我會說腳本值。我想說的是，相對於我們為公司填寫的總腳本而言，腳本價值相對較小。

Okay. And then kind of the last one as we think about the driving of the MLR, I guess I call the MLR, heightened [MLRs] and Elixir, I would assume that it's a lot of the GLP-1s and -- or is there any other product categories that you guys would call out as it relates to the higher medical cost there?

好的。然後是最後一個，當我們考慮 MLR 的驅動時，我想我稱之為 MLR、增強型 [MLR] 和 Elixir，我會假設它是很多 GLP-1，或者是否有任何你們會提到其他與那裡較高的醫療費用相關的產品類別嗎？

George, this is Chris. I think for this case, while we certainly have those drug trends that you see in other parts of the industry, the key driving factor with this is the shift in the membership base as we cycled out the auto assignees in those regions where we were -- where we've been above the benchmark. And then you have the members who chose to stay through annual enrollment despite significant increases in premiums in those regions. The mix that we were left with and the utilization that we were left with among those members is more the driving factor here than any particular drug category or class.

喬治，這是克里斯。我認為對於這種情況，雖然我們確實有您在行業其他部分看到的藥物趨勢，但關鍵的驅動因素是會員基礎的轉變，因為我們在我們所在的那些地區淘汰了汽車外派人員 - - 我們一直高於基準。儘管這些地區的保費大幅增加，但仍有一些會員選擇在年度註冊期間留下來。與任何特定的藥物類別或類別相比，我們在這些成員中留下的組合和利用率更多是驅動因素。

And sorry. And Matt, just one last housekeeping one. Given you've called out the vacs number, could you remind us what is the vacs assumption in the guidance for the year in the pharmacy business?

對不起。而馬特，只是最後一位家務人員。鑑於您已經調出了 vacs 號碼，您能否提醒我們今年製藥業務指南中的 vacs 假設是什麼？

Yes, the vacs assumption for COVID is about $3 million.

是的，針對新冠肺炎的疫苗接種假設約為 300 萬美元。

Your next question comes from the line of Lisa Gill with JPMorgan.

你的下一個問題來自摩根大通的麗莎·吉爾。

Matt, I want to start just with the pharmacy trend. You talked about the Kroger dispute. Can you quantify what the impact has been? And then if we think back to former disputes, can you talk about this script, not just the capture, but what you were able to maintain if they do come to some kind of agreement between Kroger and [ESI]?

馬特，我想從藥房趨勢開始。你談到了克羅格糾紛。您能量化一下影響有多大嗎？然後，如果我們回想一下以前的爭議，您能否談談這個腳本，不僅僅是捕獲，而是如果克羅格和 [ESI] 之間確實達成某種協議，您能夠維護什麼？

Lisa, thanks. We haven't quantified a specific impact from the Kroger dispute. I would say what we are doing is getting our fair share of the volume that would come -- what you expect to get from that from the standpoint of market location and network participation and as far as that goes.

麗莎，謝謝。我們尚未量化克羅格糾紛的具體影響。我想說，我們正在做的是獲得我們應得的份額——從市場定位和網絡參與的角度來看，你期望從中得到什麼。

The last thing that really wind back that I can think of to wind back where we had a dispute, this significance was the Walgreens Express dispute from over a decade ago at this point. And we had a pretty solid retention of scripts, and we're able to keep a lot of those scripts. I don't remember the exact amount. It was definitely north of 50% of the scripts were we were able to keep as what comes to mind.

我能想到的最後一件事真正回溯到我們發生糾紛的地方，其意義在於十多年前的沃爾格林快遞糾紛。我們對腳本的保留相當牢固，並且我們能夠保留很多這樣的腳本。我不記得確切的金額了。這絕對超出了我們能保留的 50% 的劇本。

And then on the front end, you talked about some company-specific issues, perishables, new vendor, the shift towards private label, et cetera. One of your larger competitors talked about more of a macro issue and real changes in consumer behavior. Can you maybe just bifurcate that for us as to how much do you think is Rite Aid and Rite Aid can fix versus more of a macro issue from a consumer perspective?

然後在前端，您談到了一些公司特定的問題，易腐爛的商品，新供應商，向自有品牌的轉變等等。您的一位較大的競爭對手更多地談論了宏觀問題和消費者行為的實際變化。您能否為我們分一下您認為 Rite Aid 和 Rite Aid 可以解決多少問題，以及從消費者角度來看更多的宏觀問題？

Yes, Lisa, I think it's hard to, honestly, to parse out the 2 and as far as x number of [bps] is on an X number of bps is the other. Certainly, as we looked out through the categories, the issues in consumables and some of the private label work that we're doing is more of the company-specific issue. I think for -- in the drugstore space, obviously, just the fact that we're cycling a pretty strong flu and allergy season from last year at the same time has a pretty significant impact on OTC. That's more industry.

是的，麗莎，老實說，我認為很難解析出 2，並且只要 x 個 [bps] 位於 X 個 bps 上，另一個就是另一個。當然，當我們仔細觀察這些類別時，我們正在做的消耗品問題和一些自有品牌工作更多的是公司特定的問題。我認為，在藥店領域，顯然，我們從去年開始就進入了一個相當強勁的流感和過敏季節，這一事實對非處方藥產生了相當大的影響。那是更多的工業。

I think we are seeing a cautious consumer, but what we're trying to focus on is really what are the things that we know that are in our control, to improve our results and drive better sales. And that gets back to assortment, it gets back to pricing, it gets back to better targeted marketing.

我認為我們看到的是謹慎的消費者，但我們真正想要關注的是我們知道哪些事情是在我們的控制範圍內的，以改善我們的業績並推動更好的銷售。這又回到了品種、定價、更有針對性的營銷。

And then also shrink, right? So that's been an issue. And I think, Matt, you made a comment that you'll have new leadership when we think about that area. Can you maybe talk about what shrink was in the quarter? And what are the potential opportunities there?

然後也縮小了，對吧？所以這是一個問題。我認為，馬特，您曾評論說，當我們考慮該領域時，您將擁有新的領導層。您能談談本季度的收縮情況嗎？那裡有哪些潛在的機會？

Our shrink headwind compared to last year is about $9 million over last year in the quarter. So it was a sizable number. As you know, Lisa, this is just such an industry problem. We have -- certainly, we've made decisions to close stores in high-shrink areas. We've made investment in -- in security, we made investment in ways to secure product.

與去年相比，本季度我們的收縮逆風約為 900 萬美元。所以這是一個相當大的數字。正如你所知，麗莎，這就是一個行業問題。當然，我們已經決定關閉高收縮地區的商店。我們在安全方面進行了投資，我們在確保產品安全的方法上進行了投資。

I think really, with the leadership change we're making, we're really trying to think of what are some innovative ideas to put to a problem that's a problem that's always played the industry, the retail industry. But it's manifested itself, I think, in a different way than it has historically over the last couple of years. So I don't think there's a silver bullet to solving this, but we're excited about the new leader we've brought in. We think he's going to bring some innovative ideas to help us tackle this problem.

我認為，隨著我們正在進行的領導層變動，我們確實在嘗試思考哪些創新想法可以解決零售業一直存在的問題。但我認為，它的表現方式與過去幾年的歷史不同。因此，我認為沒有解決這個問題的靈丹妙藥，但我們對我們引入的新領導者感到興奮。我們認為他將帶來一些創新想法來幫助我們解決這個問題。

And just one last one for me, and that would be just around procurement and generic pricing right now. So we're hearing stabilization on the generic pricing side. Are you also seeing that? I know there's always pressure on reimbursement rates when you think about drug retail, but we are hearing stabilization there and some better opportunities around generic pricing. Are you seeing that as well?

對我來說，這只是最後一項，目前就圍繞採購和通用定價。因此，我們聽到通用定價方面趨於穩定。你也看到了嗎？我知道當你考慮藥品零售時，報銷率總是面臨壓力，但我們聽到那裡的穩定以及圍繞仿製藥定價的一些更好的機會。你也看到了嗎？

We are, Lisa. We are. And we're also doing some things just around maximizing flexibility in our own purchasing arrangements to try to grab as much savings as we can. But yes, it's -- we're seeing some stabilization in generic pricing. And overall, I would say our drug purchasing numbers ended up being a little better in the first quarter than what we thought it would be.

我們是，麗莎。我們是。我們還在做一些事情，以最大限度地提高我們自己的採購安排的靈活性，以盡可能節省開支。但是，是的，我們看到仿製藥定價有所穩定。總的來說，我想說我們第一季度的藥品採購數字比我們想像的要好一些。

Your next question comes from the line of Carla Casella with JPMorgan.

您的下一個問題來自卡拉·卡塞拉 (Carla Casella) 與摩根大通 (JPMorgan) 的對話。

Quick on the revolver draw. It's about $200 million higher than we expected, and it looks like it's driven by kind of inventory and receivables. And I'm wondering, is there unusual build in either inventory and receivables because some of the vendor changes you were talking about upfront or anything on the CMS receivable side?

快速拔出左輪手槍。這比我們的預期高出約 2 億美元，而且看起來是由庫存和應收賬款推動的。我想知道，庫存和應收賬款是否存在異常構建，因為您預先討論的一些供應商變更或 CMS 應收賬款方面的任何內容？

Carla, it's Matt. Thanks. I'll start with the inventory. It's really focused in pharmacy inventory, and it's just -- it's been driven by some AWP inflation in our generic drugs. As we move throughout the year and we implement some initiatives to really to get more efficient in the amount of inventory we carry for -- in the pharmacy for both brands and generics. I expect that number to come down.

卡拉，這是馬特。謝謝。我將從庫存開始。它確實專注於藥品庫存，而且它是由我們的仿製藥中的一些 AWP 通脹推動的。隨著我們全年的發展，我們實施了一些舉措，以真正提高我們在藥房的品牌藥和仿製藥的庫存量。我預計這個數字會下降。

The receivables is really all timing. It's a combination of the build of the CMS receivable which we will look to securitize later in the year. And it's also built around just timing of some payments of receivables both on the retail side from PBMs and on the pharmacy side from payments from a rebate aggregator. Those are all just kind of calendar timing issues.

應收賬款確實都是計時的。這是 CMS 應收款構建的組合，我們將在今年晚些時候將其證券化。它還建立在零售方面來自 PBM 和製藥方面來自回扣聚合商的部分應收賬款支付的時間安排之上。這些都只是日曆時間問題。

And then just can you update us where you are today in terms of total script count on an annual basis?

那麼您能否向我們介紹一下您目前的年度腳本總數情況？

Yes, I don't have that number off the top of my head. So why don't -- at the risk of giving a bad number, we'll push it over to you.

是的，我腦子裡沒有這個數字。那麼為什麼不冒著提供錯誤數字的風險，我們會將其推給您呢。

And let me just ask one other than on the store closures. It looks like you closed 25 stores. Was there a concentration in any one market and I have been forecasting that you were done with your store closure program after the 145 from last year. Is there a new effort to kind of reevaluate and close stores?

讓我問另一個問題，而不是關於商店關閉的問題。您似乎關閉了 25 家商店。是否集中在任何一個市場？我一直預測，去年 145 年後你們將完成關閉商店計劃。是否有新的努力來重新評估和關閉商店？

Carla, we're always looking at store performance, this is something we do on an ongoing basis. So I would characterize this less as a wholesale program and more as we are constantly looking at the store base. We're constantly looking at performance of stores, particularly ones that don't have much lease life left on the lease and determining whether we've got an opportunity to continue to maximize the profitability and the efficiency of the fleet.

卡拉，我們一直在關注商店的業績，這是我們持續做的事情。因此，我認為這不是一個批發計劃，而是因為我們不斷關注商店基礎。我們不斷關注商店的業績，特別是那些租期已不多的商店，並確定我們是否有機會繼續最大限度地提高車隊的盈利能力和效率。

I would expect us to continue to do that. I don't have a number of store closures to give you, but it's certainly something we're going to continue to look at as we think about just how do we drive as much profitability as we can while still maintaining the presence in communities and providing access to our customers and communities.

我希望我們能夠繼續這樣做。我沒有具體的商店關閉數量，但這肯定是我們會繼續關注的問題，因為我們會考慮如何在保持社區存在的同時，盡可能提高盈利能力，提供與我們的客戶和社區的聯繫。

Your next question comes from the line of William Reuter with Bank of America.

您的下一個問題來自美國銀行的 William Reuter。

My first question is, with the exit of the individual Medicare Part D, I think you mentioned it's kind of breakeven. How much SG&A is associated with this? And I guess, what are the challenges or costs going to be to eliminate these parts of your P&L?

我的第一個問題是，隨著個人醫療保險 D 部分的退出，我想你提到過這是一種收支平衡。與此相關的 SG&A 金額是多少？我想，消除損益表中的這些部分會面臨哪些挑戰或成本？

William, thanks for the question. I think there certainly are costs relative to administering the plan, taking calls from members, compliance with regulations that we're going to have to work on how do we unwind those costs out of the system. And some of those will be -- we'll start to think about this year. A lot of them will have to keep in place until December, so we can support our members.

威廉，謝謝你的提問。我認為，與管理該計劃、接聽成員的電話、遵守法規相關的成本肯定是存在的，我們必須努力研究如何將這些成本從系統中消除。其中一些將是——我們今年將開始考慮。其中許多必須保留到 12 月，這樣我們才能支持我們的會員。

Too early to give you a number. It's something that we're still taking a really hard look at from the standpoint of just driving as much cost as we can out of the system, without having those members while still obviously being able to support the members that we have, both in the Med D plan and then in our business going forward.

給你一個數字還為時過早。我們仍在認真考慮這一問題，即從系統中盡可能多地降低成本的角度出發，在沒有這些成員的情況下，同時顯然仍然能夠支持我們擁有的成員，無論是在Med D 計劃以及我們未來的業務。

And then with the assumption that you'll still administer 3 million COVID vaccines, it's still somewhat meaningful. What are the expectations on how profitability of these is going to be for the remainder of the year?

然後假設你仍然要注射 300 萬劑新冠疫苗，這仍然有一定意義。對今年剩餘時間內這些業務的盈利能力有何預期？

I would expect the profitability of the COVID vaccines to mirror the profitability that we see on a flu vaccine. So you're talking about probably something that's $25 per script on a gross profit dollars basis then less whatever SG&A, it costs to administer those vaccination. And that's very similar to what we see on flu and other vaccinations that we do.

我預計新冠疫苗的盈利能力將與流感疫苗的盈利能力相媲美。所以你說的可能是每個腳本的毛利潤為 25 美元，然後減去 SG&A，管理這些疫苗的成本。這與我們在流感和其他疫苗接種中看到的情況非常相似。

And then just lastly for me. In terms of -- you mentioned it's early in the bidding season. I guess, your level of optimism that Elixir may gain additional lives or I guess, any concerns about potential losses of lives for next year?

最後對我來說。就您提到的而言，現在正處於投標季節的早期。我想，您對 Elixir 可能會獲得更多生命的樂觀程度，或者我想，您對明年潛在的生命損失有任何擔憂嗎？

Bill, we're showing well in the marketplace. We're getting good feedback from consultants. We're getting good feedback from -- in the bids we're doing, but it's too early to give a projection on what the selling season is going to be like and what the lives are going to be at the end of the year.

比爾，我們在市場上表現良好。我們從顧問那裡得到了很好的反饋。我們從正在進行的投標中得到了良好的反饋，但現在預測銷售季節的情況以及年底的生活狀況還為時過早。

We have time for one last question, and that will come from the line of Karru Martinson with Jefferies.

我們還有時間回答最後一個問題，該問題將由卡魯·馬丁森 (Karru Martinson) 和杰弗里斯 (Jefferies) 提出。

Just following up on Bill's question regarding the selling season. Have you seen kind of an unlock of the companies coming to market given the past 3 years of lower-than-expected selling seasons?

只是跟進比爾關於銷售季節的問題。鑑於過去三年的銷售季節低於預期，您是否看到了進入市場的公司有所釋放？

This is Chris. I'll take that one. Look, as we go into this part of the season, this is when we are heading into our -- the hardest part for our core market. We are, as Matt said, encouraged by both the number of RFPs that we're seeing as well as the lives associated with those. And as we work through our renewals so far as we move through the season, we're real happy with where we sit there. But as Matt said, it's still very early in the season, and we'll provide an update as we get more towards year-end.

這是克里斯。我會接受那個。看，當我們進入本賽季的這一部分時，這就是我們進入核心市場最困難的部分的時候。正如馬特所說，我們看到的 RFP 數量以及與之相關的生活都讓我們感到鼓舞。當我們完成整個賽季的續約工作時，我們對我們所處的位置感到非常滿意。但正如馬特所說，現在還處於賽季初期，我們將在臨近年底時提供更新。

And then when you look at the vendor transition, especially on the perishable food side, now that, that is complete, have you seen a shift in kind of your front-end sales trends here in the second quarter?

然後，當您觀察供應商轉型時，尤其是在易腐食品方面，現在已經完成，您是否看到第二季度前端銷售趨勢發生了變化？

Yes, Karru, still probably a little early to comment on front-end sales trends in the quarter. We're still seeing some pressures in June so far, but very, very early.

是的，卡魯，評論本季度前端銷售趨勢可能還為時過早。到目前為止，我們在 6 月份仍然面臨一些壓力，但時間非常非常早。

And I know you don't want to talk about your capital structure and the options that are there. But when you look at it, is this more of a holistic view of put the company into a position where you can invest in your core businesses? Or is this more just -- let's take care of the 25 majority and move forward from there?

我知道您不想談論您的資本結構和現有的選擇。但當你審視它時，這是否更像是一種將公司置於可以投資核心業務的位置的整體觀點？或者這更公正——讓我們照顧 25 個多數並從那裡繼續前進？

Yes. As we said, Karru, we're looking at several pathways to address the capital structure. All the more we're ready to talk about that publicly yet. Whatever we do, we're going to be focused on driving our turnaround performance and positioning our business for long-term growth.

是的。正如我們所說，卡魯，我們正在尋找解決資本結構問題的幾種途徑。我們已經準備好公開討論這個問題了。無論我們做什麼，我們都將專注於推動我們的扭虧為盈，並使我們的業務實現長期增長。

I will now turn the call over to Matt Schroeder, Chief Financial Officer, for any closing remarks.

我現在將把電話轉給首席財務官馬特·施羅德 (Matt Schroeder)，讓其發表結束語。

Thanks, Sarah, and thanks, everybody, for joining the call today. We look forward to speaking with you again when we announce our second quarter earnings in September. Take care.

謝謝莎拉，也謝謝大家今天加入電話會議。我們期待在 9 月份宣布第二季度收益時再次與您交談。小心。

This concludes today's conference call. Thank you for joining today's conference call. You may now disconnect your line.

今天的電話會議到此結束。感謝您參加今天的電話會議。您現在可以斷開線路。