RideNow Group Inc (RDNW) 2024 Q2 法說會逐字稿

Greetings, and welcome to RumbleOn Incorporated second-quarter 2024 earnings conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 RumbleOn 公司 2024 年第二季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Tom Zelewski, Vice President, Finance and Treasurer. Thank you. Please go ahead.

現在我很高興向您介紹主持人，財務副總裁兼財務主管 Tom Zelewski。謝謝。請繼續。

Thank you, operator. Good morning, everyone, and thank you for joining us on this conference call to discuss RumbleOn's second-quarter 2024 financial results. Joining me on the call today are Mike Kennedy, RumbleOn's Chief Executive Officer; and Tiffany Kice, RumbleOn's Chief Financial Officer. Our Q2 results are detailed in the press release we issued earlier this morning, and a supplemental information will be available in our second-quarter Form 10-Q once filed.

謝謝你，接線生。大家早安，感謝您參加本次電話會議，討論 RumbleOn 2024 年第二季的財務表現。今天和我一起參加電話會議的是 RumbleOn 執行長 Mike Kennedy；以及 RumbleOn 財務長 Tiffany Kice。我們在今天早上早些時候發布的新聞稿中詳細介紹了我們第二季度的業績，補充資訊將在提交後的第二季度 10-Q 表格中提供。

Before I start, I would like to remind you that the following discussion contains forward-looking statements, including, but not limited to RumbleOn's market opportunities and future financial results and involves risks and uncertainties that may cause actual results to differ materially from those discussed here.

在開始之前，我想提醒您，以下討論包含前瞻性陳述，包括但不限於 RumbleOn 的市場機會和未來財務業績，並涉及可能導致實際結果與此處討論的結果存在重大差異的風險和不確定性。

Additional information that could cause actual results to differ from forward-looking statements can be found in RumbleOn's periodic and other SEC filings. The forward-looking statements and risks in this conference call, including responses to your questions, are based on current expectations as of today, and RumbleOn assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law.

可能導致實際結果與前瞻性陳述不同的其他資訊可以在 RumbleOn 的定期文件和其他 SEC 文件中找到。本次電話會議中的前瞻性陳述和風險，包括對您的問題的答复，均基於截至今天的當前預期，RumbleOn 不承擔更新或修改這些陳述的義務，無論是由於新的發展還是其他原因，除非法律要求。

Also, the following discussion contains non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures, please see our earnings release issued earlier this morning.

此外，以下討論也包含非公認會計準則財務指標。有關這些非公認會計原則財務指標的調節表，請參閱我們今天早上早些時候發布的收益報告。

Now I'll turn the call over to Mike Kennedy, our CEO. Mike?

現在我將把電話轉給我們的執行長麥克甘迺迪。麥克風？

Thank you, Tom. And good morning, everyone. Thank you for your interest in RumbleOn and for joining us on the call this morning. Joining me on today's call is Tiffany Kice, our new Chief Financial Officer, appointed in June.

謝謝你，湯姆。大家早安。感謝您對 RumbleOn 的關注並參加今天早上的電話會議。與我一起參加今天電話會議的是 6 月任命的新任財務長 Tiffany Kice。

Tiffany brings over 25 years of experience in financial leadership roles for public and private companies. Her experience with growth-focused multi-location retail businesses makes her a perfect fit for RumbleOn as we continue to transform our business and drive our performance to our Vision 2026 goals.

Tiffany 擁有超過 25 年在上市公司和私人公司擔任財務領導職務的經驗。她在專注於成長的多地點零售業務方面的經驗使她非常適合 RumbleOn，因為我們將繼續進行業務轉型並推動我們的業績實現 2026 年願景目標。

Tiffany is already finding ways to positively impact the business and to better align our reporting to industry standards, and you'll hear about those elements shortly. And also on the call, you heard from Tom earlier. And also joining us is Elliot Wagner, our Vice President of Finance.

蒂芙尼已經在尋找對業務產生積極影響並使我們的報告更好地符合行業標準的方法，您很快就會聽到這些內容。在電話中，您早些時候也收到了湯姆的來信。加入我們的還有我們的財務副總裁 Elliot Wagner。

Our second-quarter performance reflects the strength of our powersports dealership group as we continue to progress on our turnaround. It is a challenging time for the powersports industry as we navigate a high-interest rate environment, a cautious consumer, and inflated new major unit inventories. Despite these challenges, I'm proud of the way our team has responded, and we continue to focus on our goal to run the best powersports dealerships in America.

我們第二季的業績反映了我們動力運動經銷商集團的實力，因為我們在扭虧為盈方面不斷取得進展。對於動力運動產業來說，這是一個充滿挑戰的時期，因為我們面臨高利率環境、謹慎的消費者以及新的主要單位庫存的膨脹。儘管面臨這些挑戰，我對我們團隊的應對方式感到自豪，我們將繼續專注於經營美國最好的動力運動經銷商的目標。

The team's effort delivered positive free cash flow during the first six months of 2024, and we expect to continue to deliver positive free cash flow in the back half of 2024. We remain laser-focused on achieving our Vision 2026 goals, which we outlined in March of this year.

該團隊的努力在 2024 年前六個月實現了正的自由現金流，我們預計將在 2024 年下半年繼續實現正的自由現金流。我們仍然專注於實現我們在今年 3 月概述的 2026 年願景目標。

When I joined the company in November, I was excited about the opportunity I saw in the business. My excitement has grown as we gain traction on each of the three pillars of our Vision 2026 strategy and align our team. As an example, you've heard me mention our building of a composite culture and continuous improvement mindset to run the best-performing dealerships in America, supported by an aligned and efficient corporate office.

當我 11 月加入公司時，我對在該業務中看到的機會感到興奮。隨著我們在 2026 年願景策略的三大支柱上獲得牽引力並調整我們的團隊，我的興奮感與日俱增。舉個例子，您已經聽過我提到我們建立了複合文化和持續改進的心態，以在一致且高效的公司辦公室的支持下運營美國表現最好的經銷商。

Towards the end of second quarter, we continued to make improvements in optimizing our cost structure. We made the decision to streamline our workforce as we accelerate our actions to drive towards our Vision 2026 goals. These actions resulted in a reduction in force of approximately 10% as well as some corporate and marketing reductions.

到第二季末，我們在優化成本結構方面繼續做出改進。我們決定精簡員工隊伍，加速行動實現 2026 年願景目標。這些行動導致兵力減少約 10%，以及一些公司和行銷人員的削減。

We expect to generate $15 million in savings in the back half of 2024 and $30 million annualized going forward as a result of driving our strategy and aligning our team to Vision 2026. Continuing on with our focus on growth and value creation, I wanted to provide an update on our previously announced intention to open our first pre-owned center this year.

透過推動我們的策略並使我們的團隊與 2026 年願景保持一致，我們預計在 2024 年下半年將節省 1,500 萬美元，未來每年將節省 3,000 萬美元。繼續我們對成長和價值創造的關注，我想提供有關我們之前宣布的今年開設第一個二手中心的計劃的最新資訊。

I'm excited to announce that right now, Powersports of Houston is now open and fully operational after some early setbacks from Hurricane Beryl. Houston is a great new powersports market for us, and the team is excited about the momentum this new store opening builds. We are poised to continue growth via acquisitions and greenfield opportunities as they arise.

我很高興地宣布，在經歷了颶風貝裡爾的一些早期挫折後，休士頓的 Powersports 現已開放並全面運作。休士頓對我們來說是一個巨大的新動力運動市場，我們的團隊對新店開幕所帶來的勢頭感到興奮。我們準備透過收購和綠地機會的出現來繼續成長。

As a reminder, this Houston project is a pilot, and we are focused on analyzing its operating results and our ability to scale this new model across more markets. We're also very close on the previously mentioned first acquisition since my arrival at the company. We remain focused on our acquisition pipeline, activity, and we are encouraged by the number of opportunities. We will be selective and only deploy capital where it makes financial sense and builds per-share value.

提醒一下，這個休士頓計畫是一個試點項目，我們專注於分析其營運結果以及我們在更多市場推廣此新模式的能力。自從我來到公司以來，我們也非常接近前面提到的第一次收購。我們仍然專注於我們的收購管道和活動，我們對大量機會感到鼓舞。我們將有選擇性地只在具有財務意義並創造每股價值的地方部署資本。

And with that, I'd like to turn the call over to Tiffany to walk us through this quarter's financial performance and talk about some of the financial reporting changes we are implementing to better align the industry standards.

說到這裡，我想將電話轉給蒂芙尼，讓我們了解本季的財務業績，並討論我們正在實施的一些財務報告變更，以更好地符合行業標準。

Thank you, Mike, and I'm thrilled to join the RumbleOn team, and I'm fully aligned with the company's goals and objectives. I've spent the last few weeks internally assessing the business and wanted to highlight a few key reporting changes we've made regarding adjusted SG&A and adjusted EBITDA. Going forward, we define adjusted SG&A as SG&A adjusted to deduct charges and expenses that are not considered a part of our core business operations and are not necessarily an indicator of our run-rate SG&A.

謝謝你，Mike，我很高興加入 RumbleOn 團隊，我完全贊同公司的目標。過去幾週我對業務進行了內部評估，並想強調我們在調整後的 SG&A 和調整後的 EBITDA 方面所做的一些關鍵報告更改。展望未來，我們將調整後的 SG&A 定義為調整後的 SG&A，以扣除不被視為我們核心業務運營的一部分且不一定是我們運行率 SG&A 指標的費用和支出。

These adjustments are similar to those we make to adjusted EBITDA. We plan to use adjusted SG&A as one of our measures to evaluate our progress towards our Vision 2026 goal. We have also revised our non-vehicle net debt calculation to exclude restricted cash, which primarily relates to floor plan facilities.

這些調整與我們對調整後 EBITDA 所做的調整類似。我們計劃使用調整後的 SG&A 作為衡量我們 2026 年願景目標進度的衡量標準之一。我們也修改了非車輛淨債務計算，以排除主要與平面圖設施相關的限制性現金。

Additionally, beginning with this quarter and to align with dealership industry practice, adjusted EBITDA is reduced by floor plan interest expense. Our industry typically treats interest expense on floor plan debt as an operating expense and excludes the floor plan debt from the balance sheet leverage calculation as floor plan debt is integral to our operations and is collateralized by our powersports vehicles.

此外，從本季開始，為了與經銷商行業慣例保持一致，調整後的 EBITDA 將減少平面圖利息費用。我們的行業通常將平面圖債務的利息費用視為營運費用，並將平面圖債務排除在資產負債表槓桿計算之外，因為平面圖債務是我們營運的一部分，並由我們的動力運動車輛抵押。

We have included a supplemental schedule in our earnings release to retroactively recalculate prior periods. Now that we've outlined our reporting changes, I would like to provide detail on our second-quarter results. We generated revenue of $336.8 million and adjusted EBITDA of $16.2 million in the second quarter of 2024.

我們在收益發布中納入了補充時間表，以追溯性地重新計算先前的期間。現在我們已經概述了我們的報告變化，我想提供有關我們第二季業績的詳細資訊。2024 年第二季度，我們的營收為 3.368 億美元，調整後 EBITDA 為 1,620 萬美元。

Revenue was down 12% year over year and adjusted EBITDA was down 19.8% year over year. Total company adjusted SG&A expenses totaled $70.8 million or 78.7% of gross profit compared to the same quarter last year of $87.8 million or 82.5% of gross profit. As a reminder, we are targeting adjusted SG&A to be 75% of gross profit within our Vision 2026 timeframe. Adjusted SG&A expenses were 19.4% lower than the same quarter last year.

營收年減 12%，調整後 EBITDA 年減 19.8%。公司調整後的銷售、管理及行政費用總額為 7,080 萬美元，佔毛利的 78.7%，而去年同期為 8,780 萬美元，佔毛利的 82.5%。謹此提醒，我們的目標是在 2026 年願景期限內調整後的銷售、管理及行政費用 (SG&A) 達到毛利的 75%。調整後的銷售、管理及行政費用較去年同期下降 19.4%。

Starting with the powersports dealership group. The team retailed 16,800 total powersports major units during the quarter, which is down 12.8% from the same quarter last year. Total new powersports major unit sales were approximately 12,000, down 8.5% to the same quarter last year, while pre-owned unit sales totaled approximately 4,800, down 21.9%.

從動力運動經銷商集團開始。該車隊在本季共零售了 16,800 輛 Powersports 主要單位，比去年同期下降了 12.8%。新 Powersports 主要銷量約 12,000 輛，比去年同期下降 8.5%，二手車銷量約 4,800 輛，下降 21.9%。

As previously shared on our last call, on a day supply basis, our new inventory levels are heavy, and our pre-owned inventory continues to be light. Our team is working closely with our OEM partners to align new inventory levels to current market realities. We have made progress over the last 90 days and expect to see a significant reduction in our new inventories in the back half of the year.

正如我們之前在上次電話會議上分享的那樣，按日供應量計算，我們的新庫存水平很高，而我們的二手庫存仍然很少。我們的團隊正在與 OEM 合作夥伴密切合作，使新的庫存水準與當前的市場現實保持一致。我們在過去 90 天取得了進展，預計下半年新庫存將大幅減少。

Gross margins for major unit sales continue to be challenged on new and continue to improve on pre-owned in the second quarter, and we expect this trend to remain throughout 2024. New unit gross margins for the quarter were 12.2% compared to 15.4% in the same quarter last year, driven by overstocking in the industry, compounded by our decision to exit non-core product lines and over-assorted brands not aligned with Vision 2026.

第二季度，主要單位銷售的毛利率持續受到新產品的挑戰，而二手產品的毛利率持續改善，我們預計這一趨勢將在 2024 年持續下去。本季新單位毛利率為 12.2%，去年同期為 15.4%，原因是產業庫存過剩，再加上我們決定退出非核心產品線和不符合 2026 年願景的過度分類品牌。

We are pleased to report pre-owned gross margins of 17% for the quarter compared to 14.5% in the same quarter last year. We continue to leverage RideNow's cash offer to improve the pre-owned business. Our parts, services, and accessories or fixed operations business delivered $56.9 million of revenue and $26.2 million of gross profit or GPU of $1,560, down $19 or 1.2%. The decrease comes primarily from accessories and service.

我們很高興地報告本季二手貨毛利率為 17%，而去年同期為 14.5%。我們繼續利用 RideNow 的現金報價來改善二手車業務。我們的零件、服務和配件或固定營運業務實現了 5,690 萬美元的收入和 2,620 萬美元的毛利，或 GPU 為 1,560 美元，下降了 19 美元或 1.2%。下降主要來自配件和服務。

We believe this decrease is also attributable to a couple of developments, including the macro environment and our reduction in pre-owned unit volume, impacting the amount of service department labor used to prepare those units for sale. Our financing and insurance team delivered impressive results with $29.7 million in revenue or GPU of $1,768, up 2.7% year over year despite elevated consumer interest rates in a challenged macro environment.

我們認為，這種減少也歸因於一些發展，包括宏觀環境和我們二手單位數量的減少，影響了用於準備這些單位出售的服務部門勞動力的數量。儘管在充滿挑戰的宏觀環境下消費者利率上升，但我們的融資和保險團隊取得了令人印象深刻的業績，收入為 2,970 萬美元，GPU 為 1,768 美元，同比增長 2.7%。

We believe this trend will continue based on our team's strength in this area, our internal processes and capabilities, as well as a strong set of OEM-supported finance offerings. So all in, revenue from our powersports dealership group was $321.6 million, down 12.7% for the same quarter last year.

我們相信，基於我們團隊在該領域的實力、我們的內部流程和能力，以及一套強大的 OEM 支援的金融產品，這一趨勢將持續下去。總而言之，我們的 Powersports 經銷商集團的營收為 3.216 億美元，比去年同期下降 12.7%。

The decrease in revenue was attributed to lower major unit volume, a decrease in volume coming from our fixed operations and essentially a flat ASP. Total GPU for the group was $5,168 down $182 or 3.4% for the same quarter last year and in line with our expectations as we continue to manage the industry headwinds of inflated inventories and high interest rates.

收入下降的原因是主要單位銷售下降、固定業務銷售下降以及平均售價基本持平。該集團的 GPU 總額為 5,168 美元，比去年同期下降了 182 美元或 3.4%，符合我們的預期，因為我們繼續應對庫存膨脹和高利率等行業逆風。

Turning now to our asset-light vehicle transportation services operating group, for the second quarter, wholesale express revenue was up 5.6%, while gross profit dropped nearly 8.8% to $3.1 million, driven by industry pricing pressures. Lastly, turning to our balance sheet, we ended the quarter with $71.1 million in total cash and restricted cash. and non-vehicle debt was $209.1 million.

現在轉向我們的輕資產車輛運輸服務營運集團，在行業定價壓力的推動下，第二季批發快遞收入成長了 5.6%，而毛利下降了近 8.8% 至 310 萬美元。最後，看看我們的資產負債表，本季末我們的現金和限制性現金總額為 7,110 萬美元。非車輛債務為 2.091 億美元。

Availability under our short-term revolving floor plan credit facilities totaled approximately $143.1 million as of June 30. Total available liquidity, defined as unrestricted cash plus availability under floor plan credit facilities on June 30 totaled $201.2 million. Cash flow provided by operating activities was $29.2 million for the six months ended June 30.

截至 6 月 30 日，我們的短期循環樓層計畫信貸額度下的可用金額總計約為 1.431 億美元。可用流動性總額（定義為不受限制的現金加上 6 月 30 日平面圖信貸安排下的可用資金）總計 2.012 億美元。截至 6 月 30 日的六個月，經營活動提供的現金流量為 2,920 萬美元。

I'm also happy to report that we signed a credit agreement amendment with our existing term loan lenders, which relaxes certain covenants for this quarter through the remainder of the year, providing further flexibility within our capital structure.

我還很高興地報告，我們與現有定期貸款機構簽署了一項信貸協議修正案，放寬了本季度到今年剩餘時間的某些契約，從而為我們的資本結構提供了進一步的靈活性。

This agreement with our lenders provides relief for certain financial leverage covenants from June 30 until December 31. As part of the agreement, our minimum unrestricted cash covenants have increased from $25 million to $30 million. As of June 30, we had unrestricted cash payable of approximately $58.1 million.

與我們的貸方達成的這項協議為 6 月 30 日至 12 月 31 日期間的某些財務槓桿契約提供了救濟。作為協議的一部分，我們的最低無限制現金契約已從 2,500 萬美元增加到 3,000 萬美元。截至 6 月 30 日，我們的無限制應付現金約為 5,810 萬美元。

With that, we'd like to begin the question-and-answer session. I'll turn the call back over to the operator now to open the line.

至此，我們開始問答環節。我現在將把電話轉回接線生以接通線路。

(Operator Instructions) Mike Baker, D.A. Davidson.

（操作員說明）Mike Baker，D.A.戴維森。

Okay, thank you. Two questions. One, just in terms of the overall environment, sales down and decelerated. It just feels like macro-wise, things are getting a little bit worse and even worse through the quarter. I guess, could you comment on that and how are these top-line results relative to your internal expectations?

好的，謝謝。兩個問題。一、僅從大環境來看，銷售下滑、減速。感覺從宏觀角度來看，整個季度情況變得更糟，甚至更糟。我想，您能否對此發表評論？

And then my second question, on the inventory, as you said, still heavy in new as you talked about last quarter, but just wondering how much progress are you making on that? How much -- how heavy are you versus last quarter? And I guess you said you expect to have that resolved by year-end. But if you could just give us some order of magnitude of where you are in that process? Thank you.

然後是我的第二個問題，關於庫存，正如您所說，正如您上季度談到的那樣，庫存仍然很重，但只是想知道您在這方面取得了多少進展？與上個季度相比，您的體重是多少？我猜你說過你希望在年底前解決這個問題。但是您是否可以告訴我們您在這個過程中所處的某個數量級？謝謝。

You bet. Thanks, Mike. This is Mike Kennedy. You've asked a couple of different questions there. First, I think on the volume and the macro issues, I think from a volume perspective, we're experiencing pretty much what we expected. Our new volume is down. When we started the year, we said, hey, it's a tough macroenvironment. We weren't expecting much help from interest rates.

你打賭。謝謝，麥克。這是麥克肯尼迪。您在那裡問了幾個不同的問題。首先，我認為在數量和宏觀問題上，我認為從數量的角度來看，我們正在經歷我們所預期的情況。我們的新銷量下降了。當我們年初時，我們說，嘿，這是一個艱難的宏觀環境。我們並沒有期待利率能帶來多大幫助。

We haven't seen that. We know customers are coming off of COVID times. And industry inventories are inflated, and I think OEMs have been a little bit delayed in reacting to that, which probably leads me to the second part of the question, which is the gross margin performance, and that's probably a bit of a surprise for us that our new gross margins are more challenged throughout the year than we had expected. And so we're dealing with that within our operations.

我們還沒有看到這一點。我們知道客戶正在擺脫新冠疫情時期。行業庫存膨脹，我認為原始設備製造商對此的反應有點延遲，這可能讓我想到問題的第二部分，即毛利率表現，這可能讓我們有點驚訝我們的新毛利率全年面臨的挑戰比我們預期的要大。所以我們正在我們的營運中處理這個問題。

The second piece of your question was around inventory, I think, and how we're doing in terms of that. I would say that we're probably a little bit behind my expectations of where I'd like to be at this point. However, we are making -- at the same time, we're making really, really good headway in terms of keeping our inventory in line with day supply.

我認為，你的第二個問題是關於庫存，以及我們在這方面的表現。我想說的是，我們目前可能有點落後於我的期望。然而，同時，我們在保持庫存與日供應量保持一致方面取得了非常非常好的進展。

You heard me mention in previous calls that that's our goal. It's to get our inventory healthy relative to a day supply perspective. And as you might imagine, some stores and some OEMs are making great progress, and we're really in great shape. Other stores and other OEMs, not so much, and we're working through that.

你聽到我在之前的電話中提到這是我們的目標。這是為了讓我們的庫存相對於每日供應保持健康。正如您可能想像的那樣，一些商店和一些原始設備製造商正在取得巨大進步，我們的狀況確實很好。其他商店和其他原始設備製造商則沒有那麼多，我們正在解決這個問題。

Maybe one piece of color around that, the PWC market has been more challenged this year than we expected. Relative to the other categories we performed in like UTVs, on-road motorcycles, off-road motorcycles, and whatnot. And so we're dealing with that. But we feel good and confident still in terms of delivering our target for this year to reduce new inventories by $60 million by the end of the year.

也許與此相關的一點是，今年普華永道市場面臨的挑戰比我們預期的更大。相對於我們表現的其他類別，如 UTV、公路摩托車、越野摩托車等。所以我們正在處理這個問題。但我們對實現今年的目標（即年底前減少新庫存 6000 萬美元）仍然感到良好和有信心。

Okay. Two follow ups, if I could. PWC, that's a pretty small part of your business, right? If you could remind us what percent that is and then one other just a clarification. The cost savings program, it's an annualized number of $30 million. Is that right? It's not $15 million this year and then another $30 million next year. It's annualized at $30 million. Is that the right interpretation?

好的。如果可以的話，有兩次後續行動。普華永道，這只是您業務的一小部分，對吧？如果您能提醒我們這是多少百分比，然後再澄清一下。成本節約計劃的年化金額為 3000 萬美元。是這樣嗎？不是今年 1500 萬美元，明年又是 3,000 萬美元。年化收益為 3000 萬美元。這是正確的解釋嗎？

That's correct.

這是正確的。

Okay. Great. PWC as a percent of sales?

好的。偉大的。普華永道佔銷售額的百分比？

I don't think we've shared in the past category-specific stuff in terms of volume, but you're directionally correct. PWC is not one of our top categories that we sell. But it's still some meaningful piece of our business.

我認為我們過去沒有在數量上分享特定類別的內容，但你的方向是正確的。普華永道不是我們銷售的頂級類別之一。但這仍然是我們業務中有意義的一部分。

Understood. Thank you.

明白了。謝謝。

Thank you.

謝謝。

Eric Wold, B. Riley Securities.

沃爾德 (Eric Wold)，B. 萊利證券。

Thank you. Good morning. A couple of questions and really kind of follow-ups to the prior questions. I guess, one, on the expense reduction plan, correct me if I am wrong. The $15 million/$30 million that you talked today, that's incremental to what you would -- incremental to anything else that you talked about before. And if that's the case, can you kind of give the total amount that you've taken out or I guess plan to take out this year on a kind of an open rate basis starting next year?

謝謝。早安.有幾個問題以及對之前問題的真正後續。我想，一，關於費用削減計劃，如果我錯了，請指正。您今天談到的 1500 萬美元/3000 萬美元，是您之前談到的任何其他內容的增量。如果是這樣的話，您能否給出您已取出的總金額，或者我想計劃從明年開始以開放利率的方式取出今年的金額？

Okay. Eric, this is Mike again. Let me first address the first piece of your question, which is easy to address. So we made a number of moves aligned with our strategy around running the best stores in America. And what I'm most proud of is the way the team is embracing the strategy and aligning around it. And I think the strategy is giving the team clarity around what we really need to focus on and what we can let go of.

好的。埃里克，這又是麥克。我先回答你的第一個問題，這個問題很容易回答。因此，我們採取了一系列與我們經營美國最好商店的策略一致的舉措。最令我自豪的是團隊接受該策略並圍繞該策略進行調整的方式。我認為該策略讓團隊清楚地了解我們真正需要關注的內容以及我們可以放棄的內容。

I think the other piece of that in optimizing our cost structure is we're starting to really learn how to leverage our scale, whether that's in marketing tools or leading contact management platforms, aligning better with our OEMs in terms of driving demand, whatever you want to talk about, also developing standards within our stores and just creating efficiencies in terms of managing those standards as opposed to doing things 50 different ways.

我認為優化成本結構的另一件事是，我們開始真正學習如何利用我們的規模，無論是在行銷工具還是領先的聯絡人管理平台上，在推動需求方面與我們的原始設備製造商更好地保持一致，無論您做什麼我想談談，也在我們的商店內制定標準，並在管理這些標準方面提高效率，而不是用 50 種不同的方式做事。

All of that has given us a confident view that we took -- we're going to take $15 million of cost out of the back half of this year to confirm what you asked for, and then that annualizes to $30 million. How that relates to the other cost cuts we've done, this is incremental. So I want to -- I think that was a piece of your question, and this is definitely incremental and new optimization work that we've delivered. So does that answer your question?

所有這些都讓我們對自己的觀點充滿信心——我們將從今年下半年拿出 1500 萬美元的成本來確認您的要求，然後每年將達到 3000 萬美元。這與我們所做的其他成本削減有何關係，這是增量的。所以我想——我認為這是你的問題的一部分，這絕對是我們交付的增量和新的優化工作。那麼這回答了你的問題嗎？

It does. I guess combining that the new $30 million run rate, I guess, starting next year -- since you've come on board, as you kind of started this cost actions, what is the total annualized run rate cost you've taken out, including the new $30 million?

確實如此。我想結合新的 3000 萬美元運行率，我想，從明年開始——自從你加入以來，當你開始這項成本行動時，你所拿出的年化運行率總成本是多少，包括新的3000萬美元嗎？

Great question, and I don't have the answer for you. That's something we'd have to follow up with you, I guess. Yes, we'd have to do some math on that. I walked in -- I think it's a difficult question to answer with great clarity because I walked in, in November, and there were already some discontinued operations that were moving. There were some cost cutting that was going on.

很好的問題，但我沒有答案給你。我想這是我們必須跟進你的事情。是的，我們必須對此做一些數學計算。我走進去——我認為這是一個很難清楚回答的問題，因為我是在 11 月走進去的，當時已經有一些已經停產的業務正在搬遷。正在進行一些成本削減。

I know there were some numbers that -- there were some targets that I walked into midstream then, and then we kind of went to work through my eyes. So listen, I feel really good about our ability to optimize the cost structure, and I feel really good about how the team is embracing the strategy. And again, I think the strategy has given us clarity around what we need to focus on and what we can let go of and look good in returns going forward.

我知道有一些數字——當時我走進了一些目標，然後我們透過我的眼睛開始工作。所以聽著，我對我們優化成本結構的能力感到非常滿意，而且我對團隊如何擁抱該策略感到非常滿意。再說一次，我認為該策略讓我們清楚地了解了我們需要專注於什麼以及我們可以放棄什麼並在未來獲得良好的回報。

Okay. That's fair. I appreciate that. And then on -- kind of going back to the comments around the new vehicle inventory remaining too heavy, OEMs kind of reacting late, but you expect kind of to get more success on that or progress on that in the back half of the year. Has the higher new vehicle inventory -- has that pressured or impacted your ability to bring in more used vehicles right now just because of you don't want to have overall inventory too high, cash flow, et cetera.

好的。這很公平。我很欣賞這一點。然後，回到關於新車庫存仍然太重的評論，原始設備製造商的反應有點晚，但你預計下半年會在這方面取得更多成功或取得進展。擁有較高的新車庫存——這是否會對您現在引進更多二手車的能力造成壓力或影響，因為您不希望總體庫存、現金流等過高。

Has that pressured your ability to bring in to used vehicles that might be more attractive to the customer base? And then as you think you want to reduce that new vehicle inventory in the back half of the year, how much of that is going to be incremental help from the OEMs versus more on your margins in the back half to get that done?

這是否對您引進可能對客戶群更具吸引力的二手車的能力造成壓力？然後，當您認為您希望在下半年減少新車庫存時，其中有多少將來自原始設備製造商的增量幫助，而不是下半年實現這一目標的更多利潤？

Okay. So a couple of different questions in there. So first off, we are making some good headway. And again, we're a little bit behind my expectations around our initiative to reduce our new inventory. We are getting great help from all the OEMs. And when we talk to the OEMs, I think I mentioned this previously, we sit down with them, we've talked with them multiple times on this issue. And principally, we're entirely aligned, right?

好的。這裡有幾個不同的問題。首先，我們正在取得一些良好進展。再說一遍，我們在減少新庫存方面的舉措有點落後於我的預期。我們得到了所有原始設備製造商的大力幫助。當我們與原始設備製造商交談時，我想我之前提到過這一點，我們與他們坐下來，並就這個問題與他們進行了多次交談。原則上，我們完全一致，對吧？

The OEMs don't want us to have -- on a healthy balance of inventory at retail. And certainly, we don't, and we can't afford to carry it. I just think some manufacturers can respond at different speeds than others. And so we're working through that. You can see in our gross margin, we're paying the price, right? OEMs are paying the price. They've all talked about all the domestics. They talked about their increase in promotional activity. That's costing them dollars.

原始設備製造商不希望我們的零售庫存保持健康的平衡。當然，我們沒有，而且我們也承擔不起。我只是認為一些製造商的反應速度可能與其他製造商不同。所以我們正在解決這個問題。你可以從我們的毛利率中看到，我們正在付出代價，對吧？OEM 廠商正為此付出代價。他們都談論了所有的家務事。他們談到了促銷活動的增加。這讓他們損失了美元。

You can see our gross margins are compressed on new. Tiffany mentioned that. That's obviously costing our business a lot. I think if there's a silver line in this whole thing is the customer wins. I think the rider wins in this environment because there's really attractive finance rates, there's attractive pricing in the marketplace. I do think that that impacts the pre-owned business in a couple of different ways, not so much on our buy side.

你可以看到我們的毛利率在新產品上被壓縮。蒂芙尼提到這一點。這顯然讓我們的業務損失慘重。我認為，如果整個事情有一線希望的話，那就是客戶獲勝。我認為騎士在這種環境下獲勝，因為融資利率確實很有吸引力，市場上的定價也很有吸引力。我確實認為這會以幾種不同的方式影響二手業務，但對我們的買方來說影響不大。

But I think in the showroom, when a customer walks in, and they can see what they can get a new vehicle for and maybe that customer was previously thinking they would buy a pre-owned unit. And now they have an incredibly attractive finance rate or the pricing is really aggressive and that might influence them into a new unit versus pre-owned. And I think we're experiencing some of that in our stores, but not so much on the acquisition piece.

但我認為在陳列室中，當客戶走進來時，他們可以看到他們可以買一輛新車，也許該客戶之前認為他們會購買二手車。現在他們的融資利率非常有吸引力，或者定價非常激進，這可能會影響他們購買新單位而不是二手單位。我認為我們在商店中經歷了一些這種情況，但在收購方面卻沒有那麼多。

So I think, overall, I feel confident that we're going to get our new inventory in line by the end of the year, probably during that same timeframe. If we're successful, we'll bring our pre-owned inventory up in anticipation for the '25 season.

因此，我認為，總體而言，我有信心我們將在年底前（可能在同一時間段內）使新庫存保持一致。如果我們成功了，我們將增加我們的二手庫存，以迎接 25 賽季的到來。

Got it. And then just last question for me, you talked about -- you're still confident in kind of reaching the 2026 strategic plan announced earlier this year. It seems that the starting baseline of this year is weaker on a number of fronts, whether it's units or margin. I know you've taken more cost out on an annualized basis, so that helps.

知道了。然後是我的最後一個問題，您談到，您仍然對實現今年早些時候宣布的 2026 年戰略計劃充滿信心。似乎今年的起始基線在許多方面都較弱，無論是單位數量還是利潤率。我知道您已經按年計算了更多成本，所以這會有所幫助。

But just flexing the confidence is still reaching that and explaining that given -- probably going to be a lower baseline this year? Does that assume kind of a snap back to meaning to more normalized trends next year? Or kind of -- help understand the confidence that we'll get there.

但僅僅展現信心仍然可以達到這一目標並解釋這一點——今年可能會降低基線？這是否意味著明年趨勢將恢復到更正常化的狀態？或者說，幫助理解我們將實現這一目標的信心。

Yes. No, I appreciate that question. It's a great question. And listen, I'm not an economic forecast guru at all. I just -- I just spent 30-plus years in the powersports industry. And I know that we go through cycles, and we get great OEM partners who are working hard at bringing innovation and new product plans and evolution to product categories like BRP and Polaris and Harley and so on and so forth.

是的。不，我很欣賞這個問題。這是一個很好的問題。聽著，我根本不是經濟預測大師。我剛剛在動力運動產業度過了 30 多年。我知道我們會經歷週期，我們擁有優秀的 OEM 合作夥伴，他們正在努力為 BRP、北極星和哈雷等產品類別帶來創新和新產品計劃和演變。

So we know we're going to get some help in that regard. We know we're going to get through the economic challenges that we're in today. It's an election year. So we knew this year was going to be a challenge and dynamic, and we're seeing that -- we saw that in Q1, month to month. We saw that in Q2, month to month. And so it's probably going to play like that through the rest of the year.

所以我們知道我們將在這方面獲得一些幫助。我們知道我們將克服今天面臨的經濟挑戰。今年是選舉年。因此，我們知道今年將是充滿挑戰和充滿活力的一年，我們在第一季每個月都看到了這一點。我們在第二季度逐月看到了這一點。因此，今年餘下的時間裡，情況可能會如此。

But when I think about this business and I think about the opportunities we have to continue to optimize the cost structure, continue to get the team excited about running the best dealerships in the country, the pre-owned opportunity is really exciting.

但是，當我想到這項業務並想到我們必須繼續優化成本結構、繼續讓團隊對經營全國最好的經銷商感到興奮時，二手車機會確實令人興奮。

Happy to announce that we opened up Houston here just recently, and we got to get through some start-up issues, mostly relative to the storm down there, but that's really exciting. We're going to watch that. That's a scalable opportunity on the horizon for us.

很高興地宣布，我們最近剛在休士頓開業，我們必須解決一些啟動問題，主要與那裡的風暴有關，但這確實令人興奮。我們會關注這一點。這對我們來說是一個可擴展的機會。

And I still think acquisitions are going to -- they're certainly going to play a big piece of the future for this company. So all in all, I'm very excited about it. The team's excitement is building. We're building a team out here with Tiffany on board, and so my optimism just grows.

我仍然認為收購將會——它們肯定會在這家公司的未來中發揮重要作用。總而言之，我對此感到非常興奮。團隊的興奮感正在增強。我們正在組建一支由蒂芬妮加入的團隊，因此我的樂觀情緒與日俱增。

Got it. Thank you, guys.

知道了。謝謝你們，夥計們。

Thank you.

謝謝。

Craig Kennison, Baird.

克雷格·肯尼森，貝爾德。

Hey, good morning. And thank you for taking my questions. Mike, you were talking about Houston just a moment ago. I'm curious what the start-up costs are for a project like that and how you finance the inventory, whether that's something you can use for financing for as well?

嘿，早安。感謝您回答我的問題。麥克，你剛才在談論休士頓。我很好奇這樣的專案的啟動成本是多少，以及如何為庫存融資，這是否也可以用於融資？

Yes, so thanks, Craig. I appreciate the question. So the cost for the Houston project is pretty minimal in terms of the capital outlay. It really is. We were lucky to find a facility that met our needs. Keep in mind, this is a pilot, right? So we want to try and be smart about the investment, be smart about the commitments that we're signing up for in terms of property, but we were able to find something that we like and fit all the criteria we're looking for.

是的，謝謝，克雷格。我很欣賞這個問題。因此，就資本支出而言，休士頓項目的成本相當低。確實如此。我們很幸運地找到了滿足我們需求的設施。請記住，這是飛行員，對嗎？因此，我們希望嘗試明智地進行投資，明智地對待我們在房地產方面簽署的承諾，但我們能夠找到我們喜歡的東西並符合我們正在尋找的所有標準。

In terms of the inventory, we're bringing that inventory through normal channels, and we can floor plan that inventory and whether we're acquiring that through cash offer or transferring in from other stores, we could floor plan that inventory, and that's what we're doing right now. We also have a nice accessory lineup in that store with a partner. And so we're excited about all that brings.

就庫存而言，我們透過正常管道帶來庫存，我們可以對庫存進行平面規劃，無論我們是透過現金收購還是從其他商店轉移，我們都可以對庫存進行平面規劃，這就是我們現在正在做。我們還與合作夥伴在那家商店裡提供了一系列不錯的配件。因此，我們對所帶來的一切感到興奮。

How quickly can it generate cash flow to be used to pay off debt, for example?

例如，它能多快產生用於償還債務的現金流？

That particular story, your question is around --

那個特定的故事，你的問題是圍繞--

Yes, or any use of cash like this. Look, I think there are investors who find the vision you have promising, but the level of debt this organization has just to be almost un-investable. And you've got a capital investment of some kind in Houston, but if it generates cash quickly, it's great. If it's a use of cash, it deviates from debt reduction. I just feel like it makes it hard on those investors who are just unwilling to look at this kind of leverage.

是的，或者像這樣使用現金。聽著，我認為有些投資者發現您的願景很有希望，但該組織的債務水平幾乎無法投資。你在休士頓進行了某種資本投資，但如果它能快速產生現金，那就太好了。如果是使用現金，那就偏離了債務削減。我只是覺得這讓那些不願意考慮這種槓桿的投資人感到困難。

Yes. No, Craig, I absolutely appreciate that question, and I appreciate the added aspect of it. So the cash return on that particular project is pretty good. I mean, we're not going to share specifics around it, but it's pretty good. And I want to make sure I also address the other piece of your question, which is our debt level, and give investors confidence on it.

是的。不，克雷格，我非常欣賞這個問題，而且我很欣賞它的附加方面。所以這個特定項目的現金回報是相當不錯的。我的意思是，我們不會分享它的細節，但它非常好。我想確保我也解決了你的另一個問題，即我們的債務水平，並讓投資者對此充滿信心。

So our expectation is that we pay off our converts in early '25 with the cash on our balance sheet that we're going to generate throughout this year. As you saw in the release -- where you'll see in the release, we were cash positive in the front part of the year, and we expect to be cash positive in the back part of the year.

因此，我們的期望是，我們將在 25 年初用我們今年將產生的資產負債表上的現金償還我們的皈依者。正如您在新聞稿中看到的那樣，我們在今年上半年的現金為正，預計今年下半年的現金為正。

And we fully expect to grow into a leverage that makes everybody more comfortable. We're comfortable where we are today. We're comfortable with the debt we have today. And we think there's huge opportunity to grow the top line but more importantly grow the bottom line and generate more free cash flow as we go forward.

我們完全期望能夠成長為一個讓每個人都更舒適的槓桿。我們今天所處的位置很舒服。我們對今天的債務感到滿意。我們認為，隨著我們的前進，有巨大的機會來增加收入，但更重要的是增加利潤並產生更多的自由現金流。

This pilot could be a scalable item for us going forward in the future, and we'll determine that as we go forward, right? But it isn't -- if it doesn't do a great job in terms of generating cash, then we'll walk away from it. And we won't get burned with cash down in Houston. And by the way, my team is extremely optimistic about the opportunities of growing the pre-owned business and doing that through a dedicated pre-owned store.

這個試點對於我們未來的發展來說可能是一個可擴展的項目，我們將在前進時確定這一點，對吧？但事實並非如此——如果它在創造現金方面做得不好，那麼我們就會放棄它。我們不會因為休斯頓的現金而被燒毀。順便說一句，我的團隊對發展二手業務並透過專門的二手商店實現這一目標的機會非常樂觀。

Thanks, Mike. And I guess the other side of that is we could be in front of a reduction in interest rates. We all know. Just curious, either you or Tiffany, how you see meaningful cut in rates flowing through your business model?

謝謝，麥克。我想另一方面是我們可能面臨利率下降。我們都知道。只是好奇，無論是您還是蒂芙尼，您如何看待透過您的商業模式進行的有意義的利率削減？

Well, let me start by kind of talking on the retail end of interest rate cuts. I'll let Tiffany talk about the impact to our debt, interest cash expense, and stuff like that. I think an interest rate cut will help our showrooms, I think, pretty immediately. While an interest rate, if you do the math on our ASP and what a normal term is and what the rate is today, when interest rate will bring to a change on a payment, some people might say that's not overly significant.

好吧，讓我先談談零售端的降息。我會讓蒂芙尼談談對我們的債務、利息現金支出等的影響。我認為降息將立即對我們的陳列室有所幫助。至於利率，如果你計算我們的平均售價以及正常期限和今天的利率，利率何時會對付款產生變化，有些人可能會說這並不太重要。

But I just think the atmosphere, our customers are changed in other areas. And so I think any kind of interest rate relief will have a fairly soon impact on our riders' mindset in terms of maybe trading or buying a new unit or whatnot. So I think interest rates will do good for us in terms of what customers are thinking about in our showroom. I'll let Tiffany kind of talk about how the other side of the business will get impacted.

但我只是認為氣氛、我們的客戶在其他方面發生了變化。因此，我認為任何形式的利率減免都會很快對我們的騎手的心態產生影響，可能是交易或購買新單位或諸如此類。因此，我認為就客戶在我們陳列室中的想法而言，利率將對我們有利。我會讓蒂芙尼談談業務的另一方將如何受到影響。

Hi, Craig. This is Tiffany. Yes, our converts are fixed rates, so they won't be impacted, plus they're coming due very shortly. It's our term debt and our floor plan debt that does have a variable rate to it. If you had about a 25-bp change, it'd be about $1 million on an annualized basis of savings. But keep in mind that those impacts don't change immediately, that there would be a little bit of a time lag as far as that affecting the P&L and the cash outflow.

嗨，克雷格。這是蒂芙尼。是的，我們的轉換者是固定利率的，所以他們不會受到影響，而且他們很快就會到期。我們的定期債務和平面圖債務確實具有可變利率。如果變化約 25 個基點，則每年可節省約 100 萬美元。但請記住，這些影響不會立即改變，影響損益表和現金流出的影響會有一點時間延遲。

Great. Okay. Thank you.

偉大的。好的。謝謝。

Thanks, Craig.

謝謝，克雷格。

Fred Wightman, Wolfe Research.

弗雷德‧懷特曼，沃爾夫研究公司。

Hey, guys. Good morning. I just wanted to come back to the inventory levels. Didn't really move a ton sequentially from 1Q into 2Q. But if we look back last quarter, Mike, you talked about some positive signs of improvement to start 2Q. So I'm wondering what changed if it was that retail softened, if it was that you saw an increase in shipments from OEMs? What sort of drove the disconnect versus the prior commentary?

嘿，夥計們。早安.我只是想回到庫存水準。從第一季到第二季並沒有真正按順序移動很多。但如果我們回顧上個季度，麥克，您談到了第二季度開始的一些積極的改善跡象。所以我想知道如果零售疲軟，如果你看到原始設備製造商的出貨量增加，會發生什麼變化？是什麼導致了與先前評論的脫節？

Yes, thanks. I don't know if it's a disconnect from what I said earlier. I think the Q2 typically absorbs a pretty heavy inflow of seasonal product, in particular, with watercraft. And so that's probably -- when I look at the inventory puts and takes, and that's why I feel comfortable with where we are today, although I'd like to be lower, but I feel comfortable in terms of our ability to hit the target, which improved as you mentioned for the year.

是的，謝謝。我不知道這是否與我之前所說的脫節。我認為第二季通常會吸收大量季節性產品的流入，特別是船舶。因此，當我查看庫存的賣出和賣出時，這可能是為什麼我對我們今天的處境感到滿意，儘管我希望更低，但我對我們實現目標的能力感到滿意，正如您所提到的那樣，這一年有所改善。

And so that's probably what you're seeing in the overall numbers. And also remember that in the inventory numbers, we don't dissect pre-owned and new and PNA. And so it's just all one number. So yes, but you're right, listen, lower would be better at this point in time, less cost and less clutter in the showrooms, and that's the goal going forward.

這可能就是您在總體數字中看到的情況。請同時記住，在庫存數字中，我們不會剖析二手車、新車和 PNA。所以這只是一個數字。所以是的，但你是對的，聽著，在這個時間點上越低越好，成本越低，展廳裡的混亂就越少，這就是未來的目標。

And if you think about just the elevated new inventories that you've talked about, I mean, it seems like that's pretty emblematic of what other dealers are experiencing. And so I'm wondering if you think that's a fair characterization if you guys feel like you're better positioned in terms of either total inventory levels or current versus noncurrent when you look at across the market at your peers and maybe what that means for front-end GPUs on the new side going forward?

如果你考慮一下你所談論的新庫存增加，我的意思是，這似乎是其他經銷商正在經歷的事情的象徵。因此，我想知道，當您縱觀整個市場的同行時，如果您覺得自己在總庫存水平或當前與非當前庫存水平方面處於更好的位置，這是否是一個公平的描述，也許這對您意味著什麼新的前端GPU未來會如何發展？

Yes. No, I think the entire industry is dealing with inflated major unit inventories. I don't know how other dealers are taking that on, and we're focused on our game and our strategy, and we want to do it right. Clearly, the gross margin compression on new that you're seeing in our numbers is real and that -- that is a cause of -- as Tiffany said in her remarks, that's a cause of the industry being overinflated, and everybody is trying to get their inventories down.

是的。不，我認為整個行業都在應對主要單位庫存膨脹的問題。我不知道其他荷官如何看待這一點，我們專注於我們的遊戲和我們的策略，我們希望做得正確。顯然，您在我們的數據中看到的新產品毛利率壓縮是真實存在的，這就是蒂芙尼在她的演講中所說的原因，這是該行業過度膨脹的原因，每個人都在努力降低他們的庫存。

I think maybe our numbers are a little bit influenced negatively because of the decisions we made to exit some brands. And so when you make a decision to exit a brand, we exit a bunch of marine products, a bunch of niche products, even some major brands in stores where we just didn't think it was a good fit. And that also puts pressure on those gross margins because we're anxious to get that product out and move on. But that's clearly an industry issue, and that's why you're seeing that compression on the gross margin.

我認為，由於我們做出退出某些品牌的決定，我們的數字可能會受到一些負面影響。因此，當你決定退出一個品牌時，我們會退出一堆海鮮、一堆小眾產品，甚至是一些我們認為不合適的商店裡的主要品牌。這也給毛利率帶來了壓力，因為我們急於推出該產品並繼續前進。但這顯然是一個行業問題，這就是為什麼你會看到毛利率壓縮。

Great. And then just lastly, was there any impact from the CDK outage in the quarter in your reported results, either from a CRM perspective or ability to close deals?

偉大的。最後，無論是從 CRM 角度還是從完成交易的能力來看，本季 CDK 中斷對您報告的業績有任何影響嗎？

Yes, great question. We did have some impact throughout the quarter because of the CDK. To be clear, our DMS, dealer management system, is not connected to CDK, so it was not impacted. So our impacts were minimal compared to the auto industry.

是的，很好的問題。由於 CDK，我們整個季度確實產生了一些影響。需要明確的是，我們的 DMS（經銷商管理系統）未連接到 CDK，因此沒有受到影響。因此，與汽車產業相比，我們的影響微乎其微。

Our CRM platform as well as a titling administrative platform and the State of Florida was impacted. There were manual workarounds around both of those. There certainly was some impact, but we concluded it wasn't a meaningful impact on the quarter.

我們的 CRM 平台以及產權管理平台和佛羅裡達州都受到了影響。對於這兩個問題都有手動解決方法。當然有一些影響，但我們得出的結論是，這對本季不會產生有意義的影響。

Okay, perfect. Thank you.

好的，完美。謝謝。

Thank you.

謝謝。

Seth Basham, Wedbush Securities.

塞思‧巴沙姆 (Seth Basham)，韋德布希證券公司。

Thanks a lot, and good morning. My first question is just on the top-line outlook. Given the weakened demand environment and the results you posted this quarter, how should we be thinking about top-line trends for the balance of the year?

非常感謝，早安。我的第一個問題是關於營收前景。鑑於需求環境疲軟以及您本季發布的業績，我們應該如何考慮今年剩餘時間的營收趨勢？

Yes, Seth, this is Mike Kennedy. We made the prior decision not to guide going forward. And so probably going to refrain from forecasting what we think the top line is going to be. But I think, generally speaking, in my same remarks from past, it's a challenging environment, we've got inflated inventories. We're getting closer to an election, and obviously, the macro issues. So I think until any of those things pass or change, probably going to experience the same what we experienced in the previous two quarters.

是的，塞斯，這是麥克肯尼迪。我們事先決定不繼續指導。因此，我們可能不會預測我們認為的營收情況。但我認為，總的來說，正如我過去所說的那樣，這是一個充滿挑戰的環境，我們的庫存膨脹了。我們越來越接近選舉，顯然，宏觀問題也越來越近。因此，我認為，在這些事情過去或改變之前，我們可能會經歷與前兩個季度相同的情況。

Okay. And then remind us, seasonally, usually, the back half is weaker from a top line perspective than the first half, and that's the appropriate way to think about it this year as well?

好的。然後提醒我們，從季節角度來看，通常，從營收角度來看，後半段比上半年更弱，這也是今年考慮這一問題的適當方式嗎？

Yes, I don't have the seasonality numbers in front of me, but I recall, Q3 top line is still pretty strong. And then Q4 obviously drops off, especially towards the back half of that. But it I mean, it's a traditional kind of bell curve as you go through the year. So Q3 is an important quarter for us.

是的，我面前沒有季節性數據，但我記得，第三季的營收仍然相當強勁。然後第四季明顯下降，尤其是到後半部。但我的意思是，這是一年中傳統的鐘形曲線。所以第三季對我們來說是一個重要的季度。

Got it. Okay. And my next question is around the change in gross margin year over year this quarter. You attributed the decline to a few different factors over-stocking, I presume being the predominant one. But if you could help us understand the degree of magnitude from that relative to the exiting non-core product lines and brands, that would be helpful.

知道了。好的。我的下一個問題是關於本季毛利率的年比變化。您將這種下降歸因於庫存過剩的幾個不同因素，我認為這是最主要的因素。但如果你能幫助我們了解相對於現有非核心產品線和品牌的影響程度，那將會很有幫助。

Yes. For sure, the vast majority of the gross margin compression is from the inflated inventories in the industry as well as us. No question about it. I think just an adder to that is the fact it doesn't help when you exit a bunch of brands in a bunch of stores and the team's trying to clean up that inventory. But the vast majority of the new gross margin pressure is coming from inflated inventories.

是的。可以肯定的是，毛利率壓縮的絕大部分來自產業和我們的庫存膨脹。毫無疑問。我認為，更重要的是，當你退出一堆商店中的一堆品牌並且團隊試圖清理庫存時，它並沒有幫助。但新的毛利率壓力絕大多數來自庫存膨脹。

And we can see that when we study the brands, the gross margin at the brand level, gross margin at the category level. Again, when I say category, I mean on-road motorcycles off-road, PWC, ATV, UTV. So we can definitely see that. And we see some relief in some of those areas as well, which gives us the confidence once we get through this inflated inventory levels, better days ahead in terms of that new gross margin.

我們可以看到，當我們研究品牌時，品牌層面的毛利率，品類層面的毛利率。再說一遍，當我說類別時，我指的是公路摩托車、越野摩托車、PWC、ATV、UTV。所以我們絕對可以看到這一點。我們在其中一些領域也看到了一些緩解，這給了我們信心，一旦我們度過了這種膨脹的庫存水平，就新的毛利率而言，未來的日子會更好。

Relative to your expectations entering the quarter, did you get less support to clear that inventory from the OEMs or if the competitive environment get more aggressive, you need to take additional price cuts to try to clear the inventory and win on your margins?

相對於您進入本季度的預期，您從原始設備製造商那裡獲得的清理庫存的支持是否較少，或者如果競爭環境變得更加激烈，您需要採取額外的降價來嘗試清理庫存並贏得利潤？

I think what we probably saw in this past quarter, especially towards the ends, and we've seen it in all the domestic public manufacturer announcements in terms of their production levels and volumes planned for the back half of the year. And I think that's probably the biggest lever that they're doing.

我認為我們在上個季度可能看到的情況，特別是在年底，我們在所有國內公開製造商的公告中都看到了下半年的生產水平和產量計劃。我認為這可能是他們正在做的最大的槓桿。

Some exciting news out of the Polaris meeting in terms of their off-road vehicle and some of the redesign and new pricing -- aggressive pricing on those products. So more features at less price. So I mean that's a good sign for days. And again, I think the rider in this whole environment really wins because when the rider walks in the showroom, there's great product and pricing is very aggressive.

北極星會議上發布了一些令人興奮的消息，涉及越野車以及一些重新設計和新定價——這些產品的激進定價。因此，以更低的價格提供更多功能。所以我的意思是說這幾天來都是一個好兆頭。再說一遍，我認為在整個環境中騎手確實獲勝，因為當騎手走進陳列室時，那裡有很棒的產品，而且定價非常激進。

Got it. And last one for me for now. Just can you remind us what product lines you're exiting and what brands you're exiting?

知道了。現在對我來說是最後一個。您能提醒我們您正在退出哪些產品線以及您正在退出哪些品牌嗎？

Yes, I don't think we shared the actual brands that we exited. But we -- I think we shared earlier that during COVID, we -- the company picked up pretty much anything they could in powersports, in any kind of wheel product. Also, they expanded quite a bit in the marine sector. And so we have almost entirely exited the marine business other than PWC and some Yamaha jet boat product.

是的，我認為我們並沒有分享我們退出的實際品牌。但我們——我想我們之前分享過，在新冠疫情期間，我們——公司在動力運動領域、任何類型的輪轂產品中都獲得了幾乎所有的東西。此外，他們在海洋領域也進行了相當大的擴張。因此，除了普華永道和一些雅馬哈噴射艇產品之外，我們幾乎完全退出了船舶業務。

So we were in the pontoon products. We were in the big saltwater boats and we've -- we exited pretty much all of that. And then we've exited a number of brands that were kind of niche products. And then on top of that, we've also exited -- Seth, we've exited some brands in stores. I call them micro decisions, where it just didn't make sense in terms of the brand assortment in that store.

所以我們從事的是浮橋產品。我們在大型鹹水船上，我們幾乎擺脫了所有這些。然後我們退出了一些屬於小眾產品的品牌。除此之外，我們還退出了——Seth，我們退出了商店中的一些品牌。我稱它們為微觀決策，就該商店的品牌分類而言，這些決策沒有意義。

Got it. Thank you so much.

知道了。太感謝了。

Thank you.

謝謝。

(Operator Instructions) There are no further questions at this time. I'd now like to turn the call back over to Michael Kennedy, CEO, for closing comments.

（操作員說明） 目前沒有其他問題。現在我想將電話轉回給執行長邁克爾·肯尼迪 (Michael Kennedy)，請其發表最後評論。

Thank you, everyone. I'd like to close out and just mention just two important things. First, I want to take a moment to express my appreciation and gratitude to the entire team throughout the company who continue to impress me by keeping our riders as our top priority and take on the current environment with conviction and determination. So thank you very much, team.

謝謝大家。最後我想提兩件重要的事情。首先，我想花點時間向整個公司的整個團隊表示讚賞和感謝，他們將騎手作為我們的首要任務，並以信念和決心應對當前的環境，繼續給我留下深刻的印象。非常感謝你們，團隊。

Lastly, I'd like to close by emphasizing that we are committed to Vision 2026 and maximizing on our long-term per share value while confidence builds on delivering our key targets of annual revenue in excess of $1.7 billion, annual adjusted EBITDA of greater than $150 million, and annual adjusted free cash flows of $90 million or more.

最後，我想強調，我們致力於實現2026 年願景，並最大限度地實現我們的長期每股價值，同時信心建立在實現年收入超過17 億美元、年度調整後EBITDA 超過17 億美元的關鍵目標的基礎上。

And as I mentioned earlier, and I said from the moment we talked about Vision 2026, we are operating in a dynamic environment that might get us to our targets sooner; or alternatively, it may take us a bit longer. Regardless of the timing, we as a management team and company are laser-focused on achieving Vision 2026, and we'll make decisions in the best interest of long-term per-share value creation at every turn.

正如我之前提到的，從我們談論 2026 年願景那一刻起，我們就在一個動態環境中運營，這可能會讓我們更快實現目標；或者，我們可能需要更長的時間。無論何時，我們作為管理團隊和公司都將專注於實現 2026 年願景，並且我們將在每一次決策中都以創造長期每股價值的最佳利益為出發點。

Thank you very much for your time today and your continued interest in RumbleOn. That concludes our call.

非常感謝您今天抽出時間以及對 RumbleOn 的持續關注。我們的通話到此結束。

Ladies and gentlemen, this concludes today's conference. We thank you for participating and ask that you please disconnect your lines.

女士們、先生們，今天的會議到此結束。我們感謝您的參與，並請您斷開線路。