Earnings Transcript for WE - Q2 Fiscal Year 2023

Operator: Ladies and gentlemen, thank you for standing by, and welcome to the WeWork Q2 2023 Earnings Call. I would now like to turn the call over to Kevin Berry. Please go ahead.

Kevin Berry: Thank you, Mandy. Welcome, everyone, to WeWork's Second Quarter 2023 Earnings Conference Call. During this call, we will refer to our earnings press release and Form 10-Q filed yesterday with the SEC and is available in the Investors section of our website. This discussion may include forward-looking statements that are subject to various risks and uncertainties that may materially impact our future financial results. Additional information concerning factors that may impact our future financial results are explained in our quarterly annual and periodic filings with the SEC. We will mention non-GAAP financial measures that we believe are meaningful to investors when reviewing our financial results. Disclosures regarding these non-GAAP metrics, including a reconciliation to its GAAP comparable measures are also available in our SEC filings. Participating in this quarter's call from the Company's executive team, are David Tolley, Chief Executive Officer and Kurt Wehner, Chief Financial Officer. This quarter, we requested any questions from the investment community to be sent to us in advance of this morning's call. Following David's prepared remarks, we will provide answers to selected questions. Please note that we are also available to answer additional questions after the call. It's now my pleasure to introduce David Tolley, our Chief Executive Officer.

David Tolley: Thank you, Kevin. Good morning, everyone. Since taking this position about two months ago, I've invested my time in three primary areas

A - Kevin Berry: Thank you, David. For our Q&A session, we have received a number of questions from the investment community and we'll provide responses to selected questions now.

Kevin Berry: First, David, can you please provide us with an update for the reverse stock split that was proposed at the last Annual Shareholders Meeting.

David Tolley: Sure. The reverse stock split proposal approved by our shareholders at the last Annual Shareholder Meeting is on the agenda for our next board meeting. Once the Board makes a decision, we'll provide an update to the market. Just as a reminder, we have until mid-October to effectuate the reverse stock split.

Kevin Berry: Is SoftBank going to push back the maturity of the added credit facilities that expire in 2025 to 2027.

David Tolley: Sure. So SoftBank did, in fact, extend their credit support for each of these facilities to 2027 already as a part of our debt restructuring in May. We expect the extension process for the underlying credit facilities to get underway later this year or early next year.

Kevin Berry: Finally, what's the occupancy trend by major region?

David Tolley: Year-over-year occupancy was up slightly, sequentially flat to down slightly. USC or the U.S. and Canada, as we say, remains sluggish at about 67%, down from 69%. EMEA is at around 78%, and the Pacific region is flat at around 83%.

Kevin Berry: This does conclude our second quarter earnings conference call. Thank you all for joining, and please feel free to contact us with any additional questions. Have a good day. Goodbye.

Operator: Thank you, ladies and gentlemen. This does conclude today's call. Thank you for your participation. You may now disconnect.