Toughbuilt Industries Inc (TBLT) 2023 Q1 法說會逐字稿

Good day and welcome to the ToughBuilt Industries first-quarter 2023 earnings call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎來到 ToughBuilt Industries 2023 年第一季度財報電話會議。 （操作員說明）請注意正在記錄此事件。

I would now like to turn the conference over to Mr. Martin Galstyan, Chief Financial Officer. Please go ahead, sir.

我現在想將會議轉交給首席財務官 Martin Galstyan 先生。請繼續，先生。

Good morning and thank you, all, for joining us today to discuss ToughBuilt's first-quarter 2023 financial and operating results. Again, my name is Martin Galstyan, and I am the Chief Financial Officer of ToughBuilt. Joining me on today's call is Michael Panosian, President and Chief Executive Officer of ToughBuilt.

早上好，感謝大家今天加入我們討論 ToughBuilt 2023 年第一季度的財務和經營業績。再說一遍，我叫 Martin Galstyan，是 ToughBuilt 的首席財務官。和我一起參加今天電話會議的是 ToughBuilt 總裁兼首席執行官 Michael Panosian。

Michael will begin today's discussion by providing operational and financial highlights from the first quarter. I will then review our financial performance. Michael will conclude the discussion with our growth plan for the upcoming fiscal year and beyond.

邁克爾將通過提供第一季度的運營和財務亮點來開始今天的討論。然後我將審查我們的財務表現。邁克爾將以我們對即將到來的財政年度及以後的增長計劃結束討論。

Before turning the call over to Michael, I would like to remind you that any forward-looking statements made by management are covered under the US Private Securities Litigation Reform Act of 1995 and are subject to the changes, risks, and uncertainties described in the press release and in our US security filings.

在將電話轉給邁克爾之前，我想提醒您，管理層所做的任何前瞻性陳述均受 1995 年美國私人證券訴訟改革法案的約束，並受到媒體描述的變化、風險和不確定性的影響發布並在我們的美國安全文件中。

In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States and that may be different from non-GAAP financial measures used by other companies. Investors are encouraged to review ToughBuilt's current report on Form 8-K furnished with the SEC for ToughBuilt reasons for including those non-GAAP financial measures in its earnings release and presentation. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings press release issued earlier today, unless otherwise noted therein.

此外，在通話過程中，我們可能會參考非 GAAP 財務指標，這些指標並非根據美國普遍接受的會計原則編制，並且可能與其他公司使用的非 GAAP 財務指標不同。由於 ToughBuilt 將這些非 GAAP 財務指標納入其收益發布和演示文稿的原因，我們鼓勵投資者查看 ToughBuilt 向美國證券交易委員會提供的 8-K 表格的當前報告。非 GAAP 財務指標與最直接可比的 GAAP 財務指標的對賬包含在我們今天早些時候發布的收益新聞稿中，除非其中另有說明。

I will now turn the call to Michael.

我現在將電話轉給邁克爾。

Thank you, Martin, and thank you, all, for joining us today. The first quarter of 2023 was very strong for ToughBuilt, resulting in revenues of $20 million, an approximately 17% year-over-year increase compared to the same quarter for 2022.

謝謝 Martin，也謝謝大家今天加入我們。 2023 年第一季度 ToughBuilt 表現非常強勁，收入為 2000 萬美元，與 2022 年同期相比增長約 17%。

Gross profit for the first quarter was $3.6 million, an 18% improvement over the first quarter of 2022. The increase in gross profit was primarily driven by the increased demand for our products around the world, enabling us to take advantage of economies of scale with our increased product offerings and corresponding revenue growth.

第一季度的毛利潤為 360 萬美元，比 2022 年第一季度增長 18%。毛利潤的增長主要是由於全球對我們產品的需求增加，使我們能夠利用規模經濟與我們增加的產品供應和相應的收入增長。

In the first quarter of this year, we introduced innovative new lines of pliers, wrenches, and screwdriver, which, combined, represents more than 100 new SKUs. Additionally, we expanded our South American distribution agreement with Sodimac, the largest home improvement and construction supplier in South America, with the initial launch of 15 SKUs in store and 23 SKUs on Sodimac online marketplace. Online sales through Amazon were also strong in the first quarter, with $3.8 million in gross sales, representing a 10% improvement from the same period in 2022.

今年第一季度，我們推出了創新的鉗子、扳手和螺絲刀新系列，它們加起來代表了 100 多個新 SKU。此外，我們擴大了與南美最大的家居裝修和建築供應商 Sodimac 的南美分銷協議，最初在商店推出 15 個 SKU，在 Sodimac 在線市場上推出 23 個 SKU。第一季度亞馬遜的在線銷售也很強勁，總銷售額為 380 萬美元，比 2022 年同期增長 10%。

In the first quarter, we continued our expansion goals and both increased product offerings and increased distribution. We are enthusiastic to currently be servicing over 18,500 large- and mid-sized storefronts and online portals worldwide, with a total catalog of over 550 SKUs.

在第一季度，我們繼續我們的擴張目標，增加了產品供應和分銷。目前，我們熱衷於為全球 18,500 多家大中型店面和在線門戶網站提供服務，總目錄超過 550 個 SKU。

As a result of strong global market demand for our brand and products, we expect to experience continued year-over-year growth in retail and online revenue in 2023.

由於全球市場對我們品牌和產品的強勁需求，我們預計 2023 年零售和在線收入將繼續同比增長。

I will now turn the call back to Martin to cover our financial results in greater details. Martin?

我現在將電話轉回馬丁，以更詳細地介紹我們的財務業績。馬丁？

Thank you, Michael. Revenues for the three months ended March 31, 2023 and 2022, were $20.2 million and $17.2 million, respectively, which consisted of metal goods, soft goods, and electronic goods sold to customers.

謝謝你，邁克爾。截至 2023 年 3 月 31 日和 2022 年 3 月 31 日止三個月的收入分別為 2020 萬美元和 1720 萬美元，其中包括銷售給客戶的金屬商品、軟商品和電子商品。

Revenues increased in the first quarter of 2023 over the same period in 2022 by approximately $3 million or 17%, primarily due to a wide acceptance of our products in the tool industry and receipt of our reoccurring sales orders for metal goods and soft goods from our existing and new customers, and introduction and sale of new soft good products to our customers. Increase in sale through Amazon also contributed to the increase.

2023 年第一季度的收入比 2022 年同期增加了約 300 萬美元或 17%，這主要是由於我們的產品在工具行業得到廣泛接受，以及我們從我們的公司收到金屬商品和軟商品的重複銷售訂單現有和新客戶，並向我們的客戶介紹和銷售新的軟商品。通過亞馬遜銷售的增加也促進了增長。

Cost of goods sold for the three months ended March 31, 2023 and 2022, was $16.7 million and $14.2 million, respectively. Cost of goods sold increased in 2023 over 2022 by $2.4 million or 17%, primarily due to increased sales. Cost of goods sold as a percentage of revenues for the first quarter of 2023 was 82%, in line with 83% from the same period in the prior year.

截至 2023 年 3 月 31 日和 2022 年 3 月 31 日止的三個月的銷貨成本分別為 1670 萬美元和 1420 萬美元。 2023 年的銷售成本比 2022 年增加了 240 萬美元或 17%，這主要是由於銷售額增加。 2023 年第一季度，銷貨成本佔收入的百分比為 82%，與去年同期的 83% 持平。

Selling, general, and administrative expenses for three months ended March 31, 2023 and 2022, were $15.1 million and $15.9 million, respectively. SG&A expenses as a percentage of revenues for the first quarter of 2023 was 78% compared to 93% for the same period in the prior year. We expect our SG&A expenses to decrease.

截至 2023 年 3 月 31 日和 2022 年 3 月 31 日止三個月的銷售、一般和管理費用分別為 1510 萬美元和 1590 萬美元。 2023 年第一季度，SG&A 費用佔收入的百分比為 78%，而去年同期為 93%。我們預計我們的 SG&A 費用會減少。

Research and development cost for the three months ended March 31, 2023 and 2022, were $3.5 million and $2.5 million, respectively. The increase was primarily due to the development of new tools for the construction industry.

截至 2023 年 3 月 31 日和 2022 年 3 月 31 日止三個月的研發成本分別為 350 萬美元和 250 萬美元。增加的主要原因是為建築業開發了新工具。

For the first quarter of 2023, we recorded a net loss of $8.3 million as compared to a net loss of $12.1 million for the three months ended March 31, 2022. This improvement was primarily due to sales increase, cost reductions in many areas, and slowdown in hiring.

2023 年第一季度，我們錄得淨虧損 830 萬美元，而截至 2022 年 3 月 31 日的三個月淨虧損為 1210 萬美元。這一改善主要是由於銷售額增加、許多領域的成本降低以及招聘放緩。

As of March 31, 2023, ToughBuilt's cash position was $2.4 million. Accounts receivable and inventory for the period totaled $12.5 million and $33 million, respectively. Management anticipates that our capital resources will improve as our products gain even wider market recognition and acceptance.

截至 2023 年 3 月 31 日，ToughBuilt 的現金頭寸為 240 萬美元。該期間的應收賬款和存貨總額分別為 1250 萬美元和 3300 萬美元。管理層預計，隨著我們的產品獲得更廣泛的市場認可和接受，我們的資本資源將會得到改善。

I will now turn the call back for Michael for his final remarks. Michael?

我現在將轉回邁克爾的最後發言。邁克爾？

Thank you, Martin. I would like to reiterate the tremendous market opportunities that exist at ToughBuilt and the infrastructure we have in place to capitalize on those opportunities. We are satisfied with our R&D structure and will not be adding significant headcount in 2023.

謝謝你，馬丁。我想重申 ToughBuilt 存在的巨大市場機會以及我們為利用這些機會而建立的基礎設施。我們對我們的研發結構感到滿意，並且不會在 2023 年增加大量員工。

Moving forward, we plan to continue expanding our product portfolio prudently, raise some prices, and cut cost globally. We anticipate that through all the efforts, we will increase our global reach, launch some more lines, and push towards profitability.

展望未來，我們計劃繼續謹慎地擴大我們的產品組合，提高一些價格，並在全球範圍內削減成本。我們預計，通過所有努力，我們將擴大我們的全球影響力，推出更多產品線，並推動盈利。

In closing, I want to thank our shareholders and our team for helping grow ToughBuilt into a high-quality brand that customers can rely on. I'm looking forward to the upcoming year and remain highly confident in our ability to execute on our prudent growth, cost savings, and profitability plans.

最後，我要感謝我們的股東和我們的團隊幫助 ToughBuilt 成長為客戶可以信賴的優質品牌。我期待著即將到來的一年，並對我們執行審慎增長、成本節約和盈利計劃的能力充滿信心。

With that, I would like to turn it over to our operator.

有了這個，我想把它交給我們的運營商。

(Operator Instructions) This concludes our question-and-answer session as well as our conference call for today. Thank you for attending today's presentation. You may now disconnect.

（操作員說明）我們的問答環節和今天的電話會議到此結束。感謝您參加今天的演講。您現在可以斷開連接。