Tandy Leather Factory Inc (TLF) 2022 Q4 法說會逐字稿

Good morning, everyone. Thanks for joining.

大家，早安。感謝您的加入。

Shall we go ahead?

我們繼續吧？

Let's get going.

我們走吧。

Thank you for joining us for a discussion of Tandy's Q4 and full-year 2022 financial results. I'm Dan Ross, General Counsel and Corporate Secretary for Tandy. And I will be co-moderating the discussion today. Our CEO, Janet Carr, will give just a very brief overview of the quarter, and then we will devote the conference to investors' questions and discussion. (Operator Instructions)

感謝您加入我們討論 Tandy 第四季和 2022 年全年財務表現。我是丹‧羅斯 (Dan Ross)，Tandy 的總法律顧問兼公司秘書。我將共同主持今天的討論。我們的執行長珍妮特卡爾 (Janet Carr) 將簡要介紹本季情況，然後我們將在會議上專門討論投資者的問題和討論。 （操作員說明）

With that, let's get started.

就這樣，我們開始吧。

Thanks, Dan.

謝謝，丹。

Today's presentation will include statements other than historical results that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, each as amended. These statements reflect our expectations or estimates based on the information we have today, but are not guarantees or predictions of future performance. They involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from the statements contained in this presentation. You are cautioned not to put undue reliance on these forward-looking statements. The company assumes no obligation to update or otherwise revise these forward-looking statements except as required by law.

今天的簡報將包括除歷史結果之外的其他陳述，這些陳述構成 1933 年《證券法》和 1934 年《證券交易法》（各修訂版）含義內的前瞻性陳述。這些陳述反映了我們基於今天掌握的資訊的預期或估計，但不是對未來業績的保證或預測。它們涉及已知和未知的風險、不確定性和其他因素，其中許多因素超出了我們的控制範圍，並可能導致實際結果與本簡報中包含的陳述有重大差異。請您注意不要過度依賴這些前瞻性陳述。除法律要求外，本公司不承擔更新或以其他方式修改這些前瞻性聲明的義務。

And now, here's Janet Carr.

現在，珍妮特卡爾請來。

Thanks, Dan.

謝謝，丹。

So we're not going to be doing a PowerPoint presentation getting through a whole year, post restatement. We feel like you have the big picture now. And if you don't, we are happy to discuss. But we're just going to really answer questions and have a discussion today. So just a quick overview of our 2022 results.

因此，重述後，我們不會用 PowerPoint 示範一整年的內容。我們覺得您現在已經掌握了大局。如果您不這樣做，我們很樂意討論。但我們今天只是要真正回答問題並進行討論。簡單概述一下我們 2022 年的業績。

Revenues came in at $80.3 million, down 2.8% from 2021. Our operating income was $1.4 million and net income, $1.2 million. Gross margin -- gross profit came in about -- sorry, gross profit declined 1.1%, but gross margin rate was up 100 basis points. Adjusted EBITDA, which we've been discussing, was $4 million. We repurchased about 360,000 shares of stock for a total of $1.8 million in 2022.

收入為 8,030 萬美元，比 2021 年下降 2.8%。我們的營業收入為 140 萬美元，淨利為 120 萬美元。毛利率——毛利約為——抱歉，毛利下降了1.1%，但毛利率上升了100個基點。我們一直在討論的調整後 EBITDA 為 400 萬美元。 2022 年，我們回購了約 36 萬股股票，總金額為 180 萬美元。

We are expecting the current macro-economic challenges that we saw throughout 2022 to likely continue. And as we discussed in our last call -- in the last couple of calls, we're really looking at rebuilding our sustainable profitability, building a business foundation for future growth, but really focusing on growing profits and cash over the next couple of years -- especially in the face of potential economic headwinds.

我們預計 2022 年當前的宏觀經濟挑戰可能會持續下去。正如我們在上次電話會議中討論的那樣，在最後幾次電話會議中，我們確實在考慮重建我們的可持續盈利能力，為未來增長奠定業務基礎，但真正關注的是未來幾年利潤和現金的成長－尤其是面對潛在的經濟逆風。

So that's all I have. Questions -- let me just remind you, you can click on that reactions down at the bottom and raise your hand, if you want to ask a question or make a comment -- or you can just unmute yourself and bust in.

這就是我所擁有的一切。問題 - 讓我提醒你，如果你想提問或發表評論，你可以點擊底部的反應並舉手 - 或者你可以取消靜音並闖入。

Hey. This is Joe Koster, Sorfis Investments. Just wanted to know if you could talk a little bit more about kind of the store base now? And if you feel you've sort of got it to the size and the number of profitable stores that you're comfortable with?

嘿。我是索菲斯投資公司的喬·科斯特。只是想知道您現在是否可以多談談商店基地的情況？如果您覺得自己已經達到了您滿意的獲利商店的規模和數量？

Yes, great question. Ultimately, we would love to see our store base grow. But with our focus on profitability and four-wall cash as the key metric of store profitability, we've been really disciplined about closing stores when they don't appear to have a trend toward four-wall-cash positive. And we would very much like to have a greater number of profitable stores -- four-wall-cash-positive stores and that's because we consider the retail store to be our competitive advantage. There are lots of geographies that we are not really accessing with a retail store, and we think those represent opportunity. But again, in a period of time, when we're trying to be focused on profit, we really can't afford to have these continuing to be negative.

是的，很好的問題。最終，我們希望看到我們的商店基礎不斷擴大。但由於我們關注盈利能力和四牆現金作為商店盈利能力的關鍵指標，因此當商店似乎沒有四牆現金的積極趨勢時，我們在關閉商店方面非常嚴格。我們非常希望擁有更多的獲利商店——四牆現金正向商店，這是因為我們認為零售商店是我們的競爭優勢。有很多地區我們並沒有透過零售店真正進入，我們認為這些代表著機會。但同樣，在一段時間內，當我們試圖專注於利潤時，我們真的無法承受這些繼續為負數。

So especially right now when wages have been increasing and rents have been increasing, we've been very focused on this. But to answer your question, I think there can be more, but there will be no more unless we can do it profitably.

因此，特別是現在，當薪資不斷上漲、租金不斷上漲時，我們一直非常關注這一點。但回答你的問題，我認為可以有更多，但除非我們能夠獲利，否則不會有更多。

Thanks. And I'll just ask one more if nobody else is jumping in. Sort of the historical margins that you've set on your eventual goal to get back to has -- obviously, we -- or sort of in a let's just try to manage the environment, we'll get there eventually, or do you have sort of some timeframe on when you think those could potentially be achievable?

謝謝。如果沒有其他人加入的話，我會再問一個。你為最終目標設定的某種歷史邊緣——顯然，我們——或者讓我們嘗試一下管理環境，我們最終會實現這一目標，或者你認為這些目標可能實現時是否有某種時間表？

Are you talking about operating margins?

你說的是營業利益率嗎？

Yes.

是的。

Yeah. We are working our way toward that. There's a lot of sort of environmental factors that have been challenging, as you know. I don't need to reiterate all those things. So we're not setting a date for this, but we plan to make significant progress in 2023. And you know, I would prefer to say, you can be the judge of what that progress looks like as the quarters unfold this year. We have some rough internal timelines. But again, are a bit bound by the overall economic environment as well, as we've seen in 2022. And the goal here is to get to strive to profitability, strive to positive cash flow, even if our sales are to decline.

是的。我們正在朝著這個方向努力。如您所知，有許多環境因素具有挑戰性。我不需要重申所有這些事情。因此，我們沒有為此設定日期，但我們計劃在 2023 年取得重大進展。我想說，隨著今年各季度的進展，您可以對進展做出判斷。我們有一些粗略的內部時間表。但同樣，正如我們在 2022 年所看到的那樣，這也受到整體經濟環境的影響。這裡的目標是努力實現盈利，努力實現正現金流，即使我們的銷售額會下降。

Thank you. And I have one final one, if no one else is jumping in. I think in the call last summer, last year -- I can't remember if it was you or maybe Jeff had jumped in and mention sort of the after-tax value of the real estate was probably somewhere in the $15-million range. Has anything changed on that front or is that sort of still a ballpark estimate for what you guys think?

謝謝。如果沒有其他人插話的話，我還有最後一個。我想在去年夏天的電話會議中，去年——我不記得是你還是傑夫插話了，並提到了稅後的問題。該房地產的價值可能在1500 萬美元左右。這方面有什麼改變嗎？還是你們認為這仍然是一個大概的估計？

That's a reasonable ballpark estimate of what the real estate here or what were this worth.

這是對這裡的房地產或價值的合理估計。

Thank you.

謝謝。

Are there questions? Comments? It's going to be the world's shortest call.

有疑問嗎？評論？這將是世界上最短的通話。

Maybe one question here. I'm [Nir], I'm a private investor. Can you walk us through the thought process of buying your own stock? Why do you stage -- clearly, if you're buying, I imagine it's the same value which personally, I'm not seeing it reflected in the margin and in the operation. So could you maybe tie that a little bit and just walk us through the thought process of buying equity as opposed to maybe increasing stores or other uses.

也許這裡有一個問題。我是 [Nir]，我是一名私人投資者。能向我們介紹一下購買自己股票的思考過程嗎？為什麼你要上台——顯然，如果你要購買，我想這與我個人的價值相同，我沒有看到它反映在利潤和營運中。那麼，您能否稍微結合一下，引導我們完成購買股權而不是增加商店或其他用途的思考過程。

Good question. We do think that our shares are good value and we've been buying them opportunistically as they are offered to us generally in a large block. We believe that's great value because while we have been making a lot of change in building the new foundation for profitable growth in the future there has been -- it's been a transformation to use kind of a worn-out cliche for the last four years.

好問題。我們確實認為我們的股票具有良好的價值，並且我們一直在機會主義地購買它們，因為它們通常是大量提供給我們的。我們相信這是巨大的價值，因為雖然我們在為未來獲利成長奠定新基礎方面做出了許多改變，但在過去四年裡，使用一種陳腔濫調已經是一種轉變。

But in terms of systems and accounting and leadership and processes and sort of running the business like a professional retail operation, it's been a long slog and we've been building to that. So you're not seeing the returns in terms of operating margin today. But as I said, we are building towards that and have a lot of confidence in that. And feel frankly, that our shares are undervalued at the prices at which we've been buying them, which is why we've been spending our cash to do that.

但就係統、會計、領導力和流程以及像專業零售業務一樣經營業務而言，這是一個漫長的過程，我們一直在為此努力。所以你今天看不到營業利益率的回報。但正如我所說，我們正在朝著這個目標努力，對此充滿信心。坦白說，我們的股票按照我們購買它們的價格被低估了，這就是我們一直花費現金來做到這一點的原因。

I also think that if you look at what you don't necessarily see on our balance sheet, we do, as Joe Koster mentioned, have a $15 million real estate value of our property here, and we have a very strong balance sheet with no debt and a strong asset base. So I feel like -- I think we all feel like at under $5 a share, Tandy's great value.

我還認為，如果你看一下我們的資產負債表上不一定看到的內容，正如Joe Koster 提到的，我們確實在這裡擁有價值1500 萬美元的房產，而且我們擁有非常強大的資產負債表，沒有任何風險。債務和強大的資產基礎。所以我覺得——我想我們都覺得每股低於 5 美元，Tandy 很有價值。

Thank you.

謝謝。

You're welcome. Thanks for asking the question. Others?

不客氣。感謝您提出問題。其他的？

I guess I'll ask another one, if no one is asking. So to what extent do you feel -- how shall I say this, that your destiny is in your own hands, like the environment, and/or how much competition, if you have, and from where? So where -- I mean, clearly, you're a retail and you can innovate here and there, but it's extremely competitive. So how do you see it? How do you think about that -- that environment that you're operating in?

我想如果沒有人問的話我會問另一位。那麼，你在多大程度上感覺到──我該怎麼說，你的命運掌握在你自己的手中，例如環境，和/或有多少競爭，如果有的話，來自哪裡？所以，我的意思是，很明顯，你是一家零售公司，你可以到處創新，但競爭非常激烈。那你怎麼看呢？您如何看待您所處的營運環境？

It's a great question. I think a lot of it is honestly in our hands in the long run. I think that the environment is a lot about short run up and down as it is. You kind of -- you're on the ocean and you're going up again with the waves. But I do think that the long-term prospects for Tandy are in our hands. We do see a lot of opportunities to drive growth. We do see secular trends that are favorable, that we've talked about in some of our prior presentations around crafting and leather crafting. We do see interest from a huge younger customer who's really coming in with the new way of thinking about leather crafting than sort of our core customer of the last 100 years or so.

這是一個很好的問題。我認為從長遠來看，很多事情實際上都掌握在我們手中。我認為環境很大程度取決於短期的上下波動。你有點——你在大海上，你又隨著海浪上升。但我確實認為坦迪的長期前景掌握在我們手中。我們確實看到了很多推動成長的機會。我們確實看到了有利的長期趨勢，我們在之前關於工藝和皮革工藝的一些演示中已經討論過這一點。我們確實看到了一個巨大的年輕客戶的興趣，他們真正以新的方式思考皮革工藝，而不是過去 100 年左右的核心客戶。

And in that regard, our ability to target those customers, meet their needs, be -- create the distribution model so we are where they are and we're selling to them in the way they want to buy. I think all of those things are in our control, and it's really a question of how we balance like every company. How we balance the short term with the long term, how we balance developing a model that delivers acceptable short-term profit and cash, honestly; and how we can still invest to drive that long-term growth.

在這方面，我們有能力瞄準這些客戶，滿足他們的需求，創造分銷模式，這樣我們就在他們所在的地方，並以他們想要購買的方式向他們銷售。我認為所有這些事情都在我們的控制之中，這實際上是我們如何像每家公司一樣平衡的問題。我們如何平衡短期與長期，我們如何平衡開發一個能夠誠實地提供可接受的短期利潤和現金的模型；以及我們如何仍然可以投資來推動長期成長。

So I don't know if that's a satisfactory answer, but I'm not going to say we're entirely at the whim of -- we're not a commodity. We're not entirely at the whim of the economic environment. Though in the short run, I'd say that does happen, impact.

所以我不知道這是否是一個令人滿意的答案，但我不會說我們完全是一時興起——我們不是商品。我們並非完全受經濟環境的影響。儘管從短期來看，我想說這確實會發生，會產生影響。

Thank you.

謝謝。

Other questions? Other comments? Other complaints? Anyone else? No? Going once, going twice.

還有其他問題嗎？其他的建議？其他投訴？還有誰？不？去一次，去兩次。

All right, guys. I think we get the record for the world's shortest call. But we -- unless you'd like to reach out to me or Dan individually, we're happy to chat, as always. We also are open to suggestions about the format of this discussion. I think that we all would like it to be more of a discussion and continuing to try to evolve the format so that it feels that way. I think the whole script of blah-blah-blah is not that appealing to any of us. So give us some feedback if you'd like to see this to unfold in a different way. But as always, we're here and happy to chat. And looking forward to talking to you again in about six weeks of our Q1.

好吧，夥計們。我認為我們創造了世界上最短通話的記錄。但我們——除非您想單獨聯繫我或丹，否則我們很樂意與往常聊天。我們也願意接受有關本次討論形式的建議。我認為我們都希望更多地進行討論，並繼續嘗試發展這種形式，以達到這種感覺。我認為巴拉巴拉巴拉的整個劇本對我們任何人來說都沒有那麼有吸引力。因此，如果您希望看到這件事以不同的方式展開，請給我們一些回饋。但一如既往，我們在這裡很高興聊天。期待在第一季的大約六週內再次與您交談。

Thanks, everyone.

感謝大家。

Thank you, everyone.

謝謝大家。

Bye.

再見。