American Outdoor Brands Inc (AOUT) 2023 Q3 法說會逐字稿

Good day, everyone, and welcome to American Outdoor Brands, Inc. Third Quarter Fiscal 2023 Financial Results Conference Call. This call is being recorded. At this time, I would like to turn the call over to Liz Sharp, Vice President of Investor Relations for some information about today's call. Please go ahead.

大家好，歡迎來到 American Outdoor Brands, Inc. 2023 財年第三季度財務業績電話會議。此通話正在錄音中。此時，我想將電話轉給投資者關係副總裁 Liz Sharp，了解有關今天電話會議的一些信息。請繼續。

Thank you, and good afternoon. Our comments today may contain predictions, estimates and other forward-looking statements. Our use of words like anticipate, project, estimate, expect, intend, should, indicate, suggest, believe and other similar expressions is intended to identify those forward-looking statements.

謝謝，下午好。我們今天的評論可能包含預測、估計和其他前瞻性陳述。我們使用諸如預期、項目、估計、預期、打算、應該、指示、建議、相信和其他類似表達的詞語旨在識別這些前瞻性陳述。

Forward looking statements also include statements regarding our product development, focus, objectives, strategies and vision, our strategic evolution, our market share and market demand for our products, market and inventory conditions related to our products and in our industry in general and growth opportunities and trends.

前瞻性陳述還包括關於我們的產品開發、重點、目標、戰略和願景、我們的戰略演變、我們的產品市場份額和市場需求、與我們的產品相關的市場和庫存狀況以及我們行業的一般情況和增長機會的陳述和趨勢。

Our forward-looking statements represent our current judgment about the future, and they are subject to various risks and uncertainties. Risk factors and other considerations that could cause our actual results to be materially different are described in our securities filings. You can find those documents as well as a replay of this call on our website at aob.com.

我們的前瞻性陳述代表我們目前對未來的判斷，它們受到各種風險和不確定性的影響。我們的證券備案文件中描述了可能導致我們的實際結果出現重大差異的風險因素和其他考慮因素。您可以在我們的網站 aob.com 上找到這些文件以及此次電話會議的重播。

Today's call contains time sensitive information that is accurate only as of this time and we assume no obligation to update any forward-looking statements. Our actual results could differ materially from our statements today.

今天的電話會議包含時間敏感信息，這些信息僅在此時準確，我們不承擔更新任何前瞻性陳述的義務。我們的實際結果可能與我們今天的聲明存在重大差異。

I have a few important items to note about our comments on today's call. First, we reference certain non-GAAP financial measures. Our non-GAAP results exclude amortization of acquired intangible assets, stock compensation, shareholder cooperation agreement costs, technology implementation, acquisition costs, other costs and income tax adjustments. The reconciliations of GAAP financial measures to non-GAAP financial measures, whether they are discussed on today's call, can be found in our filings as well as today's earnings press release, which are posted on our website. Also, when we reference EPS, we are always referencing fully diluted EPS.

關於我們對今天電話會議的評論，我有幾個重要事項需要注意。首先，我們參考了某些非 GAAP 財務指標。我們的非 GAAP 結果不包括已收購無形資產的攤銷、股票補償、股東合作協議成本、技術實施、收購成本、其他成本和所得稅調整。 GAAP 財務措施與非 GAAP 財務措施的對賬，無論是否在今天的電話會議上討論，都可以在我們的文件以及我們網站上發布的今天的收益新聞稿中找到。此外，當我們參考每股收益時，我們總是參考完全稀釋後的每股收益。

Joining us on today's call is Brian Murphy, President and CEO; and Andy Fulmer, CFO.

與我們一起參加今天電話會議的是總裁兼首席執行官 Brian Murphy；和首席財務官 Andy Fulmer。

And with that, I will turn the call over to Brian.

有了這個，我會把電話轉給布賴恩。

Thanks, Liz, and thanks everyone for joining us. In the third quarter, we addressed ongoing uncertainty in the macroeconomic environment while remaining focused on the future, investing in our long-term growth, managing the elements within our control, and delivering several important operational and financial achievements.

謝謝 Liz，也感謝大家加入我們。在第三季度，我們解決了宏觀經濟環境中持續存在的不確定性，同時繼續關注未來，投資於我們的長期增長，管理我們控制範圍內的因素，並取得了幾項重要的運營和財務成就。

For our Company and many others in our space, we continue to encounter choppy waters created by the shifting dynamics of retail supply and consumer demand in a post pandemic environment. POS data we received from our retailers indicates that sales of our products declined in the third quarter in the high single digits. We believe this is a reasonable result given the current environment. A POS data also indicates that consumers continue to choose our brands, which is great news.

對於我們公司和我們所在領域的許多其他公司而言，我們繼續遇到大流行後環境中零售供應和消費者需求動態變化所造成的波濤洶湧。我們從零售商那裡收到的 POS 數據表明，我們產品的銷售額在第三季度以高個位數下降。我們認為，鑑於當前環境，這是一個合理的結果。一個POS數據也表明消費者繼續選擇我們的品牌，這是一個好消息。

In fact, several of our major retailers have told us we are outperforming other brands in our categories. At the same time, however, many retailers continue to focus on destocking initiatives, a legacy from supply chain issues and inventory builds that emerged during the pandemic. This process takes time to work out and as a result, we believe a return to normalized replenishment orders from retailers is unlikely to occur until later in 2023.

事實上，我們的幾家主要零售商告訴我們，我們的表現優於同類產品中的其他品牌。然而，與此同時，許多零售商繼續關注去庫存計劃，這是大流行期間出現的供應鏈問題和庫存增加的遺留問題。這個過程需要時間來解決，因此，我們認為零售商不太可能在 2023 年晚些時候恢復正常的補貨訂單。

While we can't control the choppy waters around us, we can, and we have continued to invest in our business and manage the elements within our control. I believe our third quarter performance reflects solid execution on that front. We demonstrated the strength of our new product pipeline with several innovative new products that excited our retailers and consumers. We expanded our domestic and international sales teams. We have amended our facility lease agreement to optimize recent consolidations and add capacity for future growth. We strengthened our balance sheet, and we returned capital to our shareholders. As a result, I believe we are well positioned for the time when retailers pivot from managing supply chain issues and inventory destocking initiatives to focusing on replenishing their inventories and preparing to deliver the innovative products consumers truly want. With that, let me share some details from the third quarter.

雖然我們無法控制我們周圍的波濤洶湧的水域，但我們可以，而且我們一直在繼續投資我們的業務並管理我們控制範圍內的元素。我相信我們第三季度的表現反映了這方面的穩健執行。我們展示了我們的新產品線的實力，推出了幾款讓我們的零售商和消費者興奮的創新產品。我們擴大了國內和國際銷售團隊。我們修改了我們的設施租賃協議，以優化最近的整合併增加未來增長的能力。我們加強了資產負債表，並將資本返還給股東。因此，我相信當零售商從管理供應鏈問題和庫存去庫存計劃轉向專注於補充庫存和準備提供消費者真正想要的創新產品時，我們已經做好了準備。就此，讓我分享第三季度的一些細節。

While net sales in our third quarter declined year-over-year, they grew 17.4% above pre pandemic levels. Our direct-to-consumer business, which largely consists of our outdoor lifestyle brands, delivered year-over-year growth of over 37% which includes our acquisition of Grilla Grills.

雖然我們第三季度的淨銷售額同比下降，但比大流行前水平增長了 17.4%。我們的直接面向消費者的業務主要由我們的戶外生活方式品牌組成，同比增長超過 37%，其中包括我們對 Grilla Grills 的收購。

We consider our direct-to-consumer sales to be one gauge of how well our brands are resonating with consumers. Since those sales are not typically impacted by retailer's inventory levels or limited open to buy dollars. Our direct-to-consumer sales also include sales of MEAT! Your Maker, meat processing equipment and Grilla, outdoor cooking products, which are sold exclusively direct-to-consumer. Together, these brands generated over 14% of our total net sales. Our outdoor lifestyle category made up 55.6% of our business and delivered growth of more than 39% over the pre-pandemic third quarter of fiscal 2020.

我們認為直接面向消費者的銷售是衡量我們的品牌與消費者產生共鳴程度的一種衡量標準。由於這些銷售通常不受零售商庫存水平或有限的開放購買美元的影響。我們直接面向消費者的銷售還包括肉類銷售！ Your Maker，肉類加工設備和 Grilla，戶外烹飪產品，專門直接面向消費者銷售。這些品牌加起來占我們淨銷售額的 14% 以上。我們的戶外生活方式類別占我們業務的 55.6%，與大流行前的 2020 財年第三季度相比增長了 39% 以上。

Growth in our outdoor lifestyle category, including international growth, remains an exciting opportunity for us. During the quarter, we expanded our sales resources adding a dedicated manager for fishing sales in the Southeastern United States. We also named a sales rep firm that is well known in the fishing industry to cover the Northeastern U.S. territory. And more recently, we named a firm in Europe to represent our many cutlery brands as well as our Crimson Trace Optics brand.

我們戶外生活方式類別的增長，包括國際增長，對我們來說仍然是一個令人興奮的機會。在本季度，我們擴大了銷售資源，在美國東南部增加了一名專門負責漁業銷售的經理。我們還指定了一家漁業界知名的銷售代表公司來負責美國東北部地區。最近，我們在歐洲指定了一家公司來代表我們的許多餐具品牌以及我們的 Crimson Trace Optics 品牌。

Innovation is our core strength and therefore the key element in our long-term growth strategy. Our innovation machine is robust and new products launched within the past two years generated nearly 24% of our third quarter net sales. Our Dock & Unlock process fueled that innovation, and during the quarter, we unveiled a host of new products, most of which incorporate proprietary features and that taken together advance our strategy to enter new product categories and expand our product lines and distribution channels.

創新是我們的核心力量，因此也是我們長期增長戰略的關鍵要素。我們的創新機器功能強大，過去兩年推出的新產品占我們第三季度淨銷售額的近 24%。我們的 Dock & Unlock 流程推動了這一創新，在本季度，我們推出了一系列新產品，其中大部分包含專有功能，這些產品共同推進了我們進入新產品類別並擴展我們的產品線和分銷渠道的戰略。

Let me share more information on some of those now. First, we recently refreshed our Frankford Arsenal brand. Enhancing its appeal to the younger demographic, now entering the ammunition reloading space, while maintaining the brand's strong reputation among the established mature demographic that historically participates in reloading.

現在讓我分享更多關於其中一些的信息。首先，我們最近更新了我們的 Frankford Arsenal 品牌。增強其對年輕人群的吸引力，現在進入彈藥裝填領域，同時保持品牌在歷史上參與裝填的既定成熟人群中的良好聲譽。

In Q3, we launched new products that appeal to both demographics. First, we introduced a full line of entry level kits that make reloading easy and less intimidating for first timers. We also launched the X-10 Progressive Press which is now shipping. The X-10 is getting rave reviews from avid reloading consumers. We typically have a greater appetite for higher performing higher ASP reloading equipment.

在第三季度，我們推出了對這兩種人群都有吸引力的新產品。首先，我們推出了全系列的入門級套件，使重新加載變得容易，並且對初學者來說不那麼令人生畏。我們還推出了 X-10 Progressive Press，現已發貨。 X-10 得到狂熱重裝消費者的好評如潮。我們通常對更高性能、更高 ASP 重裝設備有更大的胃口。

The X-10 is a state-of-the-art press that incorporates smart technology, developed by the same internal electrical engineering team that designed a smart technology in our Lockdown Puck, our Bubba Smart Fish Scale and our Caldwell chronographs. In fact, based upon its internal technology, the X-10 will serve as a platform for additional reloading products that are now in our pipeline.

X-10 是一款採用智能技術的先進印刷機，由同一內部電氣工程團隊開發，該團隊在我們的 Lockdown Puck、Bubba Smart Fish Scale 和 Caldwell 計時碼表中設計了智能技術。事實上，基於其內部技術，X-10 將作為一個平台，用於我們現在正在開發的其他重載產品。

Next, our Crimson Trace or CT brand built its reputation as the market leader in laser solutions and optics for firearms. But our Dock & Unlock process indicated CT has permission to play in the broader, more stable outdoor market. So, we went to work exploring ways to combine CT's capabilities into advanced laser range finding optics. The result is our newly launched HorizonLine Pro Laser Rangefinding binos which incorporate our laser and instinctive activation technology, allowing the user to rapidly determine the distance of any object to 2000 yards. Suitable for a variety of applications and very competitively priced, the HorizonLine Rangefinding binos will ship this summer.

接下來，我們的 Crimson Trace 或 CT 品牌贏得了激光解決方案和槍支光學器件市場領導者的聲譽。但我們的 Dock & Unlock 流程表明 CT 有權在更廣泛、更穩定的戶外市場開展業務。因此，我們著手探索將 CT 的功能結合到先進的激光測距光學系統中的方法。結果是我們新推出的 HorizonLine Pro 激光測距比諾儀結合了我們的激光和本能激活技術，使用戶能夠快速確定任何物體到 2000 碼的距離。 HorizonLine Rangefinding binos 適用於各種應用且價格極具競爭力，將於今年夏天發貨。

Our Wheeler brand is a line of precision tools that is highly regarded by gunsmithing consumers and professionals who demand performance. We discovered that over time the brand had naturally migrated into new markets, including automotive and industrial applications. So, we refreshed the brand with new aesthetics and packaging and recently launched new screwdriver sets designed for these markets, which represent new distribution opportunities for the Wheeler brand.

我們的 Wheeler 品牌是一系列精密工具，深受槍械消費者和對性能有要求的專業人士的推崇。我們發現，隨著時間的推移，該品牌自然而然地進入了新市場，包括汽車和工業應用。因此，我們用新的美學和包裝更新了品牌，最近推出了專為這些市場設計的新螺絲刀套裝，這代表了 Wheeler 品牌的新分銷機會。

For years, consumers have relied on our Lockdown brand to protect, store and organize their firearms and accessories. Recently, our Dock & Unlock process led us to think beyond the gun vault. The result is our new Lockdown SecureWall, a proprietary panel system that works with our hangers, shelves and baskets as well as standard peg hooks to create a custom storage space for everything from firearms to tools to just about anything. This versatility makes it appealing not only to consumers, but to retailers as well.

多年來，消費者一直依賴我們的 Lockdown 品牌來保護、存放和整理他們的槍支和配件。最近，我們的“對接和解鎖”流程讓我們想到了槍庫之外的問題。結果是我們新的 Lockdown SecureWall，這是一個專有的面板系統，可與我們的衣架、架子和籃子以及標準掛鉤配合使用，為從槍支到工具到幾乎任何東西的所有東西創造一個定制的存儲空間。這種多功能性不僅吸引了消費者，也吸引了零售商。

This spring, we'll launch the SecureWall Builder, our proprietary drag and drop software app that lets buyers easily plan and visualize their unique solution. The new Lockdown SecureWall product expand the brands reach beyond the legacy firearm owner into the broader consumer, DIY and retail markets, all new markets for Lockdown.

今年春天，我們將推出 SecureWall Builder，這是我們專有的拖放式軟件應用程序，可讓買家輕鬆規劃和可視化他們獨特的解決方案。新的 Lockdown SecureWall 產品將品牌的影響範圍從傳統槍支所有者擴展到更廣泛的消費者、DIY 和零售市場，這些都是 Lockdown 的新市場。

Lastly, over the past year, we have energized our large and loyal Schrade consumer base with the rebranding and a variety of new cutlery products. And we've even caught the attention of hunters who represent a new market for Schrade. Now we have partnered with Rage, a brand renowned among bow hunters for its award winning, hunting broad head blade technology. Our teams collaborated to create the Schrade and Rage series a trio of razor sharp, replaceable blade knives that allow the consumer to never have to sharpen their knife. The Schrade and Rage series also creates a recurring revenue stream for us by introducing consumables. These features make it a great option for not only hunters in the field, but also for everyday carry consumers, most of whom are unfamiliar with the replaceable blade option.

最後，在過去的一年裡，我們通過品牌重塑和各種新餐具產品為我們龐大而忠誠的 Schrade 消費者群注入了活力。我們甚至引起了代表 Schrade 新市場的獵人的注意。現在我們與 Rage 合作，Rage 是一個以其屢獲殊榮的狩獵寬頭刀片技術而在弓箭獵人中享有盛譽的品牌。我們的團隊合作打造了 Schrade 和 Rage 系列三件鋒利、可更換刀片的刀具，讓消費者永遠不必磨刀。 Schrade 和 Rage 系列還通過引入消耗品為我們創造了經常性收入流。這些功能使它不僅成為野外獵人的絕佳選擇，而且對於日常攜帶的消費者來說也是一個不錯的選擇，他們中的大多數人都不熟悉可更換刀片選項。

This collaboration which is unique in our industry gives each of our companies the opportunity to market our brands to a completely new user audience. The Enrage series will be available at select retailers beginning this month. These and many other products in the pipeline reflect our dedication to leveraging our culture of innovation to deliver solutions for consumers in a moment that matter. Based on feedback from our retailers, we believe they're as excited as we are about bringing these products to their consumers when their shelves are ready.

這種在我們行業中獨一無二的合作讓我們每家公司都有機會向全新的用戶群體推銷我們的品牌。 Enrage 系列將於本月開始在指定零售商處發售。這些產品以及正在開發中的許多其他產品反映了我們致力於利用我們的創新文化在關鍵時刻為消費者提供解決方案。根據我們零售商的反饋，我們相信他們和我們一樣對在他們的貨架上架時將這些產品帶給他們的消費者感到興奮。

While we address the dynamics of the current environment, we continue to invest in our long-term strategy, which includes leveraging our business model. During the third quarter, we expanded the lease agreement at our Missouri headquarters and distribution center, providing us full use of the building, creating opportunities to optimize past business consolidations and providing us with additional capacity, a benefit that aligns with our long-term plan to grow organically and through strategic acquisitions.

在應對當前環境的動態變化的同時，我們繼續投資於我們的長期戰略，其中包括利用我們的商業模式。在第三季度，我們擴大了密蘇里州總部和配送中心的租賃協議，使我們能夠充分利用該建築，為優化過去的業務整合創造機會，並為我們提供額外的產能，這與我們的長期計劃相一致通過戰略收購實現有機增長。

In addition, we've also successfully completed our ERP implementation, a platform we expect will yield enhanced capabilities and improve analytics as we grow. Andy will provide more detail on these investments. For now, I want to express my appreciation to our implementation team and our employees across the organization for bringing our new ERP system successfully across the finish line.

此外，我們還成功完成了 ERP 實施，我們希望該平台能夠隨著我們的發展而增強功能並改進分析。 Andy 將提供有關這些投資的更多詳細信息。現在，我想對我們的實施團隊和整個組織的員工表示感謝，感謝他們將我們的新 ERP 系統成功地帶到了終點線。

Our achievements in Q3 helped strengthen our foundation and prepare us for future growth. Long-term outdoor participation trends remain positive and as a nimble, innovative, emerging growth Company with a portfolio of strong brands that resonate with our core consumers. We are excited about the growth opportunities these trends present for our brands in the long-term.

我們在第三季度取得的成就有助於鞏固我們的基礎並為未來的增長做好準備。作為一家靈活、創新、新興的成長型公司，戶外活動的長期參與趨勢依然積極，擁有一系列與我們的核心消費者產生共鳴的強大品牌。我們對這些趨勢為我們的品牌帶來的長期增長機會感到興奮。

With that, I'll turn it over to Andy to discuss our financial results.

有了這個，我會把它交給安迪來討論我們的財務結果。

Thanks, Brian. In the third quarter, we delivered improved gross margins and maintained a disciplined approach to cost control. At the same time, we continued to fortify our balance sheet demonstrating effective capital deployment while making important strategic investments to support future growth. It was a quarter with several significant achievements and highlights, so let me walk you through the details.

謝謝，布萊恩。在第三季度，我們提高了毛利率，並保持了嚴格的成本控制方法。與此同時，我們繼續強化資產負債表，展示有效的資本配置，同時進行重要的戰略投資以支持未來增長。這是一個有幾項重大成就和亮點的季度，所以讓我向您詳細介紹一下。

Net sales in Q3 were $50.9 million, a decrease of 27.4% compared to the prior year and an increase of 17.4% over the pre-pandemic third quarter of fiscal 2020. Net sales in our ecommerce channel were $24.5 million a decrease of 30.8% from Q3 of last year, but a significant increase of almost 54% over the pre-pandemic third quarter of fiscal 2020.

第三季度淨銷售額為 5090 萬美元，比上年下降 27.4%，比大流行前 2020 財年第三季度增長 17.4%。我們電子商務渠道的淨銷售額為 2450 萬美元，比上年同期下降 30.8%去年第三季度，但比大流行前的 2020 財年第三季度大幅增長近 54%。

The recent year-over-year decrease was driven by reduced orders from our online retailers primarily in our shooting sports category. Our direct-to-consumer net sales increased 37.5% over Q3 of last year, driven by sales of our two DTC only brands, MEAT! and Grilla.

最近的同比下降是由於我們在線零售商的訂單減少，主要是我們的射擊運動類別。我們直接面向消費者的淨銷售額比去年第三季度增長了 37.5%，這主要得益於我們兩個僅 DTC 品牌 MEAT! 的銷售。和烤架。

Net sales in our traditional channel, which consists of brick-and-mortar retailers, decreased 23.9% in the third quarter compared to last year, which we believe is due to retailers' continued efforts to reduce their overall inventories combined with lower consumer discretionary spending. Gross margins came in strong for the quarter at 47.1%, a 130 basis point improvement over Q3 of fiscal 2022. We benefited mainly from reduced tariff and inbound freight costs as we continue to make progress on our initiative to reduce internal inventory levels.

我們傳統渠道（包括實體零售商）的淨銷售額在第三季度與去年同期相比下降了 23.9%，我們認為這是由於零售商繼續努力減少整體庫存以及消費者可自由支配支出減少所致.本季度毛利率強勁，達到 47.1%，比 2022 財年第三季度提高 130 個基點。我們主要受益於關稅和入境運費的降低，因為我們在降低內部庫存水平的舉措上繼續取得進展。

It's also important to note that when tariffs were first implemented, our strategy was to maintain a steady flow of new products with strong gross margins to help achieve our long-term margin targets. We believe this strategy has helped us offset tariffs and higher inbound freight costs over time.

同樣重要的是要注意，當關稅首次實施時，我們的策略是保持穩定的新產品流和高毛利率，以幫助實現我們的長期利潤率目標。我們相信，隨著時間的推移，這一戰略幫助我們抵消了關稅和更高的入境貨運成本。

GAAP operating expenses for the quarter were $27 million down roughly $400,000 from Q3 of last year mainly due to lower variable selling and distribution costs driven by the reduction in net sales. Non-GAAP operating expenses in Q3 were $22 million compared to $22.5 million in Q3 of last year. Non-GAAP operating expenses exclude intangible amortization, stock compensation and certain non-recurring expenses as they occur.

本季度的 GAAP 運營費用為 2700 萬美元，比去年第三季度減少約 400,000 美元，這主要是由於淨銷售額減少導致可變銷售和分銷成本降低。第三季度的非美國通用會計準則運營費用為 2200 萬美元，而去年第三季度為 2250 萬美元。非 GAAP 運營費用不包括無形攤銷、股票補償和某些非經常性費用。

As Brian noted, we announced that we have amended our lease agreement and will occupy 100% of the building space in our Columbia, Missouri headquarters beginning January 1, 2024. We estimate that the additional annual lease expense will be roughly $1.3 million and should be completely offset by the savings from the Crimson Trace and Grilla consolidations that were completed in November 2022. We believe this expansion will support our long-term organic and inorganic growth plan. We look forward to providing more details closer to the January 1 effective date.

正如 Brian 指出的那樣，我們宣布我們已經修改了我們的租賃協議，並將從 2024 年 1 月 1 日開始佔用密蘇里州哥倫比亞總部 100% 的建築空間。我們估計額外的年度租賃費用約為 130 萬美元，應該是完全被 2022 年 11 月完成的 Crimson Trace 和 Grilla 整合所節省的資金所抵消。我們相信這種擴張將支持我們的長期有機和無機增長計劃。我們期待在臨近 1 月 1 日生效日期時提供更多詳細信息。

GAAP EPS for Q3 was a loss of $0.21 as compared with earnings of $0.27 last year. And non-GAAP EPS for Q3 was $0.13 compared to $0.52 last year. Our Q3 figures are based on our fully diluted share count of approximately 13.3 million shares. For the full year, we expect our fully diluted share count to be roughly 13.4 million shares.

第三季度的 GAAP 每股收益虧損 0.21 美元，而去年同期的盈利為 0.27 美元。第三季度的非美國通用會計準則每股收益為 0.13 美元，而去年為 0.52 美元。我們第三季度的數據是基於我們完全攤薄後的約 1330 萬股股票。對於全年，我們預計完全攤薄後的股票數量約為 1340 萬股。

Adjusted EBITDAS for the quarter was $3.3 million compared to $10.5 million last year. The reduction was mainly due to the loss contribution that resulted from lower net sales.

本季度調整後的 EBITDAS 為 330 萬美元，而去年為 1050 萬美元。減少主要是由於淨銷售額減少導致的虧損貢獻。

Turning to the balance sheet and cash flow. In Q3, we strengthened our balance sheet, generated significant cash from operations and continue to return capital to our shareholders through our share repurchase program. We ended the quarter with $21.7 million of cash, an increase of $5.4 million sequentially from the second quarter, a result that included a $10 million pay down on our line of credit.

轉向資產負債表和現金流量。在第三季度，我們加強了資產負債表，從運營中獲得了大量現金，並繼續通過股票回購計劃向股東返還資本。本季度結束時，我們擁有 2170 萬美元的現金，比第二季度增加了 540 萬美元，其中包括 1000 萬美元的信用額度首付。

Positive operating cash flow for the third quarter was $18.1 million compared to operating cash outflow of almost $1 million last year. Accounts receivable in Q3 this year decreased sequentially by $7.4 million from Q2 due to the decrease in net sales combined with a higher concentration of direct-to-consumer sales.

與去年近 100 萬美元的經營現金流出相比，第三季度的正經營現金流為 1810 萬美元。今年第三季度的應收賬款比第二季度減少了 740 萬美元，原因是淨銷售額下降以及直接面向消費者的銷售更加集中。

Lastly, CapEx in Q3 was $920,000. By the end of the quarter, we generated free cash flow of roughly $17.2 million. This is a great result and compares to free cash outflow of $2.8 million in Q3 of fiscal 2022.

最後，第三季度的資本支出為 920,000 美元。到本季度末，我們產生了大約 1720 萬美元的自由現金流。與 2022 財年第三季度 280 萬美元的自由現金流出相比，這是一個很好的結果。

Turning now to inventory. Last fiscal year, you'll recall that we built up our inventory levels to mitigate risks in our supply chain and to keep fill rates high with our customers. However, as consumer demand started to decline in the current fiscal year, we shifted our approach and developed specific inventory initiatives to lower our inventory and improve our working capital metrics. Those efforts have been successful and we have taken our inventory from $120.6 million at the end of our first quarter to $105.5 million at the end of our third quarter, a reduction of over $15 million. In Q3 alone, we reduced inventory by nearly $6 million. Going forward, we plan to further reduce our inventory and enhance our cash conversion cycle.

現在轉向庫存。上一財年，您會記得我們建立了庫存水平以降低供應鏈中的風險並保持客戶的高供貨率。然而，隨著本財年消費者需求開始下降，我們改變了方法並製定了具體的庫存計劃，以降低我們的庫存並改善我們的營運資本指標。這些努力取得了成功，我們已將庫存從第一季度末的 1.206 億美元減少到第三季度末的 1.055 億美元，減少了超過 1500 萬美元。僅在第三季度，我們就減少了近 600 萬美元的庫存。展望未來，我們計劃進一步減少庫存並提高現金周轉週期。

Turning to capital expenditures. We expect CapEx for fiscal 2023 to be $1 million lower than the range we provided last quarter, driven by lower costs related to our ERP project and lower tooling costs. We now expect total CapEx for fiscal 2023 to be between 6 and $6.5 million. Within that total, we expect product tooling and maintenance CapEx of between 3.8 and $4.3 million and ERP project spending of $2.2 million which came in below budget.

轉向資本支出。我們預計 2023 財年的資本支出將比我們上個季度提供的範圍低 100 萬美元，這是由於與我們的 ERP 項目相關的成本降低和工具成本降低所致。我們現在預計 2023 財年的總資本支出將在 6 到 650 萬美元之間。在這一總額中，我們預計產品工具和維護資本支出在 3.8 到 430 萬美元之間，ERP 項目支出為 220 萬美元，低於預算。

As Brian shared and I am equally pleased to report, we are now fully live on our new ERP system, Microsoft D365. As we worked through the implementation, you've heard me talk about our two phased approach to the project. Specifically, we went live with a small portion of our business on October 1, 2022. We scheduled the second phase of the project to go live in February of 2023. This yielded an excellent end result. The first go live helped us identify system enhancements that would improve our logistics function. So, we made those changes and executed the go live in February without a hitch. Kudos to the entire implementation team whose dedication and commitment drove the overall success of this project.

正如 Brian 分享的那樣，我同樣高興地報告，我們現在完全使用我們的新 ERP 系統 Microsoft D365。在我們完成實施工作時，您已經聽我談到了我們對項目的兩個階段方法。具體來說，我們在2022年10月1日上線了一小部分業務。我們計劃在2023年2月進行二期項目上線，取得了很好的效果。第一次上線幫助我們確定了可以改善我們物流功能的系統增強功能。因此，我們進行了這些更改並在 2 月順利上線。感謝整個實施團隊的奉獻和承諾推動了該項目的全面成功。

In fiscal 2023, we expect to incur a total of $1.7 million in one-time ERP costs as well as $500,000 in duplicative costs to operate both D365 and our previous ERP in parallel. As an aside, the duplicative costs are now complete as we no longer need to run both systems in parallel. Both amounts will be treated as non-recurring implementation costs when calculating non-GAAP operating expense and adjusted EBITDAS.

在 2023 財年，我們預計將產生總計 170 萬美元的一次性 ERP 成本以及 500,000 美元的重複成本，以同時運行 D365 和我們之前的 ERP。順便說一句，由於我們不再需要並行運行兩個系統，因此重複成本現在已經完成。在計算非 GAAP 運營費用和調整後的 EBITDAS 時，這兩項金額都將被視為非經常性實施成本。

As I mentioned earlier, we paid down $10 million on our line of credit, leaving us with just $10 million outstanding. This places us in a negative net debt position with up to $87 million in available capacity. We remain focused on maintaining a very strong balance sheet so that we are well positioned to address our three capital allocation priorities which are organic growth, M&A and returning capital to shareholders. As we seek out M&A opportunities, we will remain disciplined in our approach. In the meantime, we continue to return capital to shareholders through our $10 million repurchase program. During Q3, we repurchased 192,000 shares at an average price of $9.43 a share. And since September, we have repurchased roughly 2% of our outstanding shares under the program.

正如我之前提到的，我們還清了 1000 萬美元的信用額度，只剩下 1000 萬美元未償付。這使我們處於負淨債務狀態，可用產能高達 8700 萬美元。我們仍然專注於維持非常強勁的資產負債表，以便我們能夠很好地解決我們的三個資本配置優先事項，即有機增長、併購和向股東返還資本。在我們尋找併購機會時，我們將在我們的方法中保持紀律。與此同時，我們繼續通過 1000 萬美元的回購計劃向股東返還資本。在第三季度，我們以每股 9.43 美元的平均價格回購了 192,000 股。自 9 月以來，我們已根據該計劃回購了大約 2% 的已發行股票。

Turning now to our outlook. In Q3, we continue to see reduced ordering from our retailers and distributors as they work down their overall elevated inventory levels, while navigating through uncertain consumer demand patterns. We believe that consumers are spending less on discretionary products in this uncertain macroeconomic environment, driven by elevated inflation and interest rates. We continue to believe our brands are well positioned to capitalize on long-term outdoor participation trends. However, we also believe the current dynamic is affecting us in the short-term and will likely take a couple of fiscal quarters to sort out. As a result, we now believe that net sales for fiscal 2023 could exceed pre-pandemic fiscal 2020 levels by as much as 13%.

現在轉向我們的展望。在第三季度，我們繼續看到我們的零售商和分銷商的訂單減少，因為他們降低了整體高庫存水平，同時應對不確定的消費者需求模式。我們認為，在這種不確定的宏觀經濟環境下，受通脹和利率上升的推動，消費者在可自由支配的產品上的支出正在減少。我們仍然相信我們的品牌能夠很好地利用長期的戶外參與趨勢。然而，我們也認為當前的動態正在短期內影響我們，可能需要幾個財政季度才能解決。因此，我們現在認為 2023 財年的淨銷售額可能比大流行前的 2020 財年水平高出 13%。

In Q4, we expect some gross margin improvement over the prior year due to reduced freight costs since we have now sold off some of our higher cost inventory. We're expecting a promotional environment in Q4 that is similar to the environment we saw in Q4 last year with normal seasonal promotional programs primarily in the shooting sports category.

在第四季度，我們預計由於運費降低，毛利率較上年有所改善，因為我們現在已經賣掉了一些成本較高的庫存。我們預計第四季度的促銷環境與我們在去年第四季度看到的環境相似，正常的季節性促銷計劃主要針對射擊運動類別。

With regard to OpEx, we expect Q4 OpEx spending to decline sequentially from Q3, both from reductions in variable selling and distribution costs driven by lower sales volume and a reduction in marketing costs from having no major trade shows. We will continue to identify areas for cost containment where it makes sense in the short term, while being mindful of long-term investments needed to grow the business and execute on our strategic objectives.

關於運營支出，我們預計第四季度運營支出將從第三季度開始連續下降，這既是由於銷量下降導致可變銷售和分銷成本下降，也是因為沒有大型貿易展覽會導致營銷成本下降。我們將繼續確定在短期內有意義的成本控制領域，同時注意發展業務和執行我們的戰略目標所需的長期投資。

As we move through the fourth and final quarter of our current fiscal year, we are excited about the way we've positioned our Company for the future. Since our spin off in 2020, we have completed several major investments that have strengthened our platform for growth. They include setting up our Company as a fully independent standalone business, the formation of our brand name structure, the creation of our differentiating Dock & Unlock process, the establishment of a robust ecommerce platform, the launch of websites for each of our key brands and the successful implementation of our new ERP infrastructure. Those investments have helped us win customers as well as expand in a new markets and categories, including our entry into shotgun sports with the Caldwell Claymore, our entry into outdoor cooking with the acquisition of Grilla Grills and the creation, launch and growth of our MEAT! Your Maker brand.

在我們度過當前財政年度的第四季度和最後一個季度時，我們對我們為未來定位公司的方式感到興奮。自 2020 年分拆以來，我們已經完成了幾項重大投資，加強了我們的增長平台。它們包括將我們的公司設置為一個完全獨立的獨立企業，形成我們的品牌名稱結構，創建我們差異化的停靠和解鎖流程，建立一個強大的電子商務平台，為我們的每個主要品牌推出網站和我們新的 ERP 基礎架構的成功實施。這些投資幫助我們贏得了客戶，並拓展了新的市場和類別，包括我們通過 Caldwell Claymore 進入獵槍運動領域，通過收購 Grilla Grills 進入戶外烹飪領域，以及我們 MEAT 的創建、推出和發展！你的創客品牌。

These achievements combined with our demonstrated approach to disciplined capital management represent our ability to look beyond the choppy waters of the current environment that Brian referenced. To build a strong platform for growth and remain focused on the long-term opportunities that we see ahead.

這些成就與我們經過證明的嚴格資本管理方法相結合，代表了我們有能力超越 Brian 提到的當前環境的波濤洶湧的水域。建立一個強大的增長平台，並繼續關注我們看到的長期機遇。

With that, operator, let's open the call for questions from our analysts.

有了這個，運營商，讓我們打開分析師的問題電話。

Thank you. We will now begin the question-and-answer session. (Operator Instructions). And the first question will be from Ryan Meyers from Lake Street. Please go ahead.

謝謝。我們現在開始問答環節。 （操作員說明）。第一個問題將來自 Lake Street 的 Ryan Meyers。請繼續。

Yes. Hi, guys. Thanks for taking my questions. First one for me, I wonder if you can just kind of unpack the inventory level at retailers a little bit better. Have we seen any improvements since last quarter, and it sounds like it might be a little bit more kind of back half 2023 weighted. Just kind of what your level of confidence is that you guys are going to see that here in kind of the second half of the year?

是的。嗨，大家好。感謝您回答我的問題。第一個對我來說，我想知道你是否可以更好地解開零售商的庫存水平。自上個季度以來，我們有沒有看到任何改進，聽起來它可能更像 2023 年的後半部分加權。你們對你們將在今年下半年在這裡看到這種情況的信心程度如何？

Sure. Hey Ryan, it's Brian. I'll take a swing at it and then Andy, feel free to jump in. So, as it relates to what we're seeing inventory wise, at our retailers. We saw a pretty strong showing over this last quarter. So, POS inventory was down over 30% within the channel. And it was actually -- it was down about 26% sequentially from Q2 to Q3. So, we think that's a great result. And very strong POS, we set down high single digits within that, there was some mix, outdoor lifestyle performed actually pretty well. And then shooting sports was a little bit softer.

當然。嗨，瑞安，我是布萊恩。我會嘗試一下，然後安迪，隨時加入。因此，這與我們在零售商處看到的庫存明智相關。我們在上個季度看到了非常強勁的表現。因此，渠道內的 POS 庫存下降了 30% 以上。實際上——從第二季度到第三季度連續下降了約 26%。所以，我們認為這是一個很好的結果。和非常強大的 POS，我們在其中設定了高個位數，有一些混合，戶外生活方式實際上表現得很好。然後射擊運動稍微柔和一些。

But based on what we're seeing, based on that continuation, the decline in inventory within the channel, and what we're hearing from our retailers, it does look like based on those facts that kind of things will pick back up in the second half of this calendar year.

但基於我們所看到的，基於這種持續性，渠道內庫存的下降，以及我們從零售商那裡聽到的消息，基於這些事實，這些事情看起來確實會在本日曆年下半年。

Got it. And then just kind of looking at the new products, you said it represented 24% of the mix, but I'm curious what the growth rate looks like on some of these new products. Are they outperforming the other part of the business?

知道了。然後看看新產品，你說它佔組合的 24%，但我很好奇其中一些新產品的增長率如何。他們的表現優於業務的其他部分嗎？

This is Brian again. Without the data in front of me, I'll give you sort of anecdotal or directional, which is we haven't seen as much new product adoption in the last call it six or nine months because it was a period of time where retailers just wanted as much inventory as possible. And obviously over purchased and now we see the dynamic playing out in front of us winding down destocking that inventory.

這又是布賴恩。在沒有我面前的數據的情況下，我會給你一些軼事或方向性的信息，即我們在上一次稱之為六九個月的時間裡沒有看到那麼多的新產品採用，因為那段時間零售商只是想要盡可能多的庫存。顯然過度購買，現在我們看到動態在我們面前發揮作用，逐漸減少庫存。

So, like the whether we say 24% or so on a trailing basis, I would actually expect that number to be a little bit higher in a more normalized environment because we've held up as you know on some of our new product placement. And so, I think overall the new products are performing incredibly well and some more recently like the Caldwell Claymore and the Frankford Arsenal X-10 are selling extremely well and everything that's coming in the door right now is going right out.

因此，就像我們是否在尾隨的基礎上說 24% 左右一樣，我實際上希望在更規範化的環境中這個數字會高一點，因為正如您所知，我們已經堅持了一些新產品的植入。因此，我認為總體而言，新產品的表現非常好，最近的一些產品，如 Caldwell Claymore 和 Frankford Arsenal X-10 的銷量非常好，現在推出的所有產品都在銷售。

So, we're seeing some great traction with the new products, but I think overall as a percentage of our total business, because we held back to let some of that other inventory flow through, you'll begin to see more of that acceleration come through in the next 12 months.

所以，我們看到新產品有很大的吸引力，但我認為總體來說占我們總業務的百分比，因為我們阻止讓其他一些庫存流過，你會開始看到更多的加速在接下來的 12 個月內完成。

Yes. And Ryan, this is Andy. I would just add to that. We were -- last quarter was 30% of total sales, so we've been as high as 30% in previous quarters.

是的。瑞安，這是安迪。我只想補充一點。我們 - 上個季度佔總銷售額的 30%，所以我們在前幾個季度高達 30%。

Got it. That's helpful. Thanks for taking my questions.

知道了。這很有幫助。感謝您回答我的問題。

Yes. Thanks, Ryan.

是的。謝謝，瑞安。

And the next question is from Eric Wold from B. Riley Securities. Please go ahead.

下一個問題來自 B. Riley Securities 的 Eric Wold。請繼續。

Thanks for taking the question. A couple of questions. I guess one, just a follow-up on the prior one. Think about POS, the channel, the down high single digits in the quarter, that's just pure year-over-year sales. That's not adjusting for any headwinds you may have from a lack of inventory. Just trying to get a sense of how much you think the lack of inventory in the channel, maybe some products is impacting that POS. If you can maybe talk about what you're seeing in terms of pockets of strength across the weakness based on the POS data?

感謝您提出問題。幾個問題。我猜是一個，只是前一個的跟進。想想 POS、渠道、本季度的高個位數下降，這只是純同比銷售額。這並沒有針對您可能因庫存不足而遇到的任何不利因素進行調整。只是想了解您認為渠道中庫存不足的程度，也許某些產品正在影響該 POS。您是否可以根據 POS 數據談談您在弱點方面看到的優勢？

Yes. Hey, Eric, it's Brian. And Andy, feel free to jump in. So, I would say it's -- that number really is not limited by lack of inventory per se. It's across the board. And then like I mentioned outdoor lifestyle, better than that, high single digits and shooting sports was a little bit weaker than that. So, we are seeing -- shooting sports dealers in particular because they do in some cases have different customer base. Those dealers are really being very cautious based on what's happened previously in some of the previous cycles.

是的。嘿，埃里克，我是布萊恩。安迪，請隨時加入。所以，我想說的是——這個數字本身並不受庫存不足的限制。這是全面的。然後就像我提到的戶外生活方式，比那更好，高個位數和射擊運動比那弱一點。因此，我們看到 - 特別是拍攝體育經銷商，因為他們在某些情況下確實有不同的客戶群。根據之前一些週期中發生的事情，這些經銷商確實非常謹慎。

And then you've got the outdoor lifestyle side, which I think you've got some different dynamics in the environment versus say 18 months ago. That have maintained that demand. But overall, no, there's no new products or not or lack of products are not inhibiting that number.

然後是戶外生活方式方面，我認為與 18 個月前相比，您在環境中有一些不同的動態。這維持了這種需求。但總的來說，不，沒有新產品或沒有新產品或缺乏產品不會抑制這個數字。

Got it. And then on the shooting sports side, I know in the past the OEM partners kind of pre bought a little bit kind of get ahead of products and supply chain issues and that was a headwind. I guess what are you seeing from that side of the business in terms of the OEMs, in terms of their production plans and their outlook in terms of what's driving your sales into them?

知道了。然後在射擊運動方面，我知道過去 OEM 合作夥伴有點預先購買了一些產品和供應鏈問題，這是一個逆風。我猜你從原始設備製造商的業務方面看到了什麼，就他們的生產計劃和他們的前景而言，是什麼推動了你的銷售？

Yes, great question. This is Brian again. So traditionally, when firearm sales slows down, they do look for bundling opportunities and that continues today. So, we are seeing opportunities with our OEM partners. One of the benefits of spinning out from our former parent Company is we now have the ability to work with more OEMs. So certainly, those opportunities are coming through and we're jumping on those. So...

是的，很好的問題。這又是布賴恩。因此，傳統上，當槍支銷售放緩時，他們會尋找捆綁銷售的機會，這種情況一直持續到今天。因此，我們看到了與 OEM 合作夥伴的機會。從我們以前的母公司分拆出來的好處之一是我們現在有能力與更多的原始設備製造商合作。所以當然，這些機會正在到來，我們正在抓住這些機會。所以...

Got it. And then just final question from me. Thinking about your updated sales outlook for this year along with your continued efforts to mitigate internal inventory. What's a reasonable assumption for you can get inventory levels down to by the end of the fiscal year?

知道了。然後是我的最後一個問題。考慮一下您今年更新的銷售前景以及您為減少內部庫存所做的持續努力。您可以在財政年度末將庫存水平降低到什麼合理假設？

Hey, Eric. This is Andy. Haven't been public with a number, but if you kind of look back at fiscal 2021, we ended fiscal 2021 at $74 million of inventory. We said at that time that was too low because our backlog was pretty high at that point. But Q1 of 2021, it was definitely too high. So, our team has done an excellent job of getting that number down, $15 million since Q1. And we're not going to stop the reduction. So, I would look forward to Q4 reduction and then into fiscal 2024 as well.

嘿，埃里克。這是安迪。尚未公開具體數字，但如果你回顧一下 2021 財年，我們在 2021 財年結束時的庫存為 7400 萬美元。我們當時說這太低了，因為那時我們的積壓量非常高。但是 2021 年第一季度，它肯定太高了。因此，我們的團隊在降低這一數字方面做得非常出色，自第一季度以來達到了 1500 萬美元。我們不會停止減少。因此，我期待第 4 季度的削減，然後到 2024 財年。

Perfect. Thank you, guys.

完美的。感謝你們。

Yes, thanks, Eric.

是的，謝謝，埃里克。

(Operator Instructions). The next question is from Matt Koranda from ROTH MKM. Please go ahead.

（操作員說明）。下一個問題來自 ROTH MKM 的 Matt Koranda。請繼續。

Hey, guys. Good afternoon. Maybe just a follow-up on the traditional channel here. What do you think retailers need to see before they pull the trigger on restock orders? I guess why are we assuming the second half of 2023 other than just high inventories maybe just went down enough. Are there other things that your customers say they need to see before they start to pull the trigger in a more robust way on restocks?

大家好。下午好。也許這裡只是對傳統頻道的跟進。您認為零售商在觸發補貨訂單之前需要看到什麼？我想為什麼我們假設 2023 年下半年除了高庫存之外可能已經足夠下降了。在開始以更穩健的方式補貨之前，您的客戶是否表示他們還需要了解其他事項？

Yes, it's a great question. This is Brian. I think the overarching theme we hear from all of our retailers is again this broader reduction where they have too much of one product and they would like to see overall inventories come down. We are seeing certainly some pockets of more velocity depending on the overall inventory position of certain retailers. But terms of what they need to see, I think it's just a stabilization with the end consumer because as they look at, this is going to sound a little bit finance, but they're looking at what the expected POS is going to be. They're running their own models and then they're looking back and saying how many weeks of inventory do we want on hand.

是的，這是一個很好的問題。這是布萊恩。我認為我們從所有零售商那裡聽到的首要主題再次是更廣泛的減少，他們有太多的一種產品，他們希望看到整體庫存下降。根據某些零售商的整體庫存狀況，我們肯定會看到一些更快的速度。但就他們需要看到的而言，我認為這只是最終消費者的穩定，因為在他們看來，這聽起來有點金融，但他們正在研究預期的 POS 將是什麼。他們正在運行他們自己的模型，然後他們回顧並說我們手頭需要多少週的庫存。

And for certain products that are more seasonal in nature, there is a little bit more cautiousness because that season may not be here just yet, but they still have product from last year. And so, I think it's just a little -- one little extra bit of complexity for some of those categories. So, we wanted to see going into the holidays and so did our retailer's robust consumer activity and certainly there was sustained demand. But it probably wasn't up as much as people would have liked to see. So that just led to little bit higher inventories than expected heading into the first calendar quarter for retail and really just as we get into the new season, we get into fishing, we get into camping, some of those types of things, turkey hunting, really want to see what the consumer does there. So, I think that's a big part of it.

對於某些更具季節性的產品，人們會更加謹慎，因為那個季節可能還沒有到，但他們仍然有去年的產品。因此，我認為其中一些類別的複雜性只是一點點。因此，我們希望看到進入假期，我們零售商的強勁消費者活動也是如此，當然還有持續的需求。但它可能沒有人們希望看到的那麼多。因此，這導致進入第一個日曆季度零售業的庫存略高於預期，實際上就像我們進入新季節一樣，我們開始捕魚，我們開始露營，其中一些類型的事情，火雞狩獵，真的很想看看消費者在那裡做什麼。所以，我認為這是其中很大一部分。

Okay. That's helpful. And then just any disaggregation of the e-comm channel that you guys can provide within the quarter. How much did Grilla contribute? Anything going on in the Amazon channel that we should be thinking about that influenced sales there? Just trying to get a sense for how to unpack that because it did seem to have an organic decline. Its little bit more than we had expected.

好的。這很有幫助。然後就是你們可以在本季度內提供的電子商務渠道的任何分解。 Grilla 貢獻了多少？我們應該考慮亞馬遜渠道中發生的任何影響銷售的事情？只是想了解如何打開它，因為它似乎確實出現了有機下降。它比我們預期的要多一點。

Yes. Hey, Matt, it's Brian again. So, within e-commerce, for others that might be listening, e-comm includes sales to online retailers. You mentioned Amazon, certainly they're one of our customers and then also direct-to-consumer sales. So, we mentioned direct-to-consumer was up, I think it was like 37% or so. Obviously, part of that number includes the acquisition of Grilla.

是的。嘿，馬特，又是布賴恩。因此，在電子商務中，對於可能正在收聽的其他人來說，電子商務包括對在線零售商的銷售。你提到亞馬遜，當然他們是我們的客戶之一，然後也是直接面向消費者的銷售。所以，我們提到直接面向消費者的增長，我認為大約是 37%。顯然，該數字的一部分包括對 Grilla 的收購。

So, what I would tell you within that direct-to-consumer number, I don't want to break it out, but our two direct-to-consumer only brands were up organically over last year. So that's a very positive trend for us and continues to speak to that direct connection with the consumer and that pull through that isn't subject to some of the retailer ups and downs with supply chain.

所以，我想在直接面向消費者的數字中告訴你，我不想打破它，但我們的兩個直接面向消費者的品牌在去年有機增長。因此，這對我們來說是一個非常積極的趨勢，並繼續說明與消費者的直接聯繫，並且不受零售商與供應鏈的一些起伏影響。

And did you have a question about -- you mentioned Amazon, sorry, Matt, you mentioned Amazon.

你有什麼問題嗎——你提到了亞馬遜，對不起，馬特，你提到了亞馬遜。

Yes, it was just wanted to see if there's anything unique going on in the channel there, just in terms of your inventory availability, anything that kind of constrains sales or was it just kind of softer end consumer demand in that channel?

是的，只是想看看那裡的渠道是否有任何獨特之處，就您的庫存可用性而言，是否有任何限制銷售的因素，或者只是該渠道中終端消費者需求的疲軟？

It's the continuation really of the theme for all of our online retailers reducing overall inventories.

這是我們所有在線零售商減少整體庫存的主題的延續。

Got it. Yes. So, it's a destocking issue, not necessarily just an end-to-end issue in that channel.

知道了。是的。因此，這是一個去庫存問題，不一定只是該渠道中的端到端問題。

Exactly. And just to point to that are the POS inventory that we're seeing with that we said is down over 30%. (technical difficulty)

確切地。只是為了指出這一點，我們看到的 POS 庫存下降了 30% 以上。 （技術難度）

Is there -- should we think about any material difference in POS in the e-comm channels that you have versus the traditional channel that you mentioned?

有沒有 - 我們是否應該考慮您擁有的電子通信渠道中的 POS 與您提到的傳統渠道中的任何實質性差異？

No.

不。

Or is that the same in terms of down high single digit? No difference. Okay.

或者就下高個位數而言是一樣的嗎？沒有不同。好的。

No difference.

沒有不同。

Got it. And then just last one, I mean strong balance sheet, loss of dry powder. Could you just give us an update, Brian, on how you're thinking about M&A? What you are seeing in the pipeline, any new opportunities that are shaking those just given the more difficult environment to sort of macro wise?

知道了。然後是最後一個，我的意思是強勁的資產負債表，幹火藥的損失。布賴恩，您能否向我們介紹一下您對併購的看法？你在管道中看到了什麼，任何新的機會正在動搖那些剛剛考慮到更困難的宏觀環境的機會？

Yes. So, we have seen far fewer number of deals coming to market, so investment banker led deals has declined. As you'd expect I think you've got sellers that previously were trying to take advantage of the market six, nine months ago. And now are having to kind of reset expectations and make sure that they can show run rate improvement. That has not occurred yet. So, we're not seeing a whole lot coming to market.

是的。因此，我們看到進入市場的交易數量要少得多，因此投資銀行家主導的交易有所減少。正如您所期望的那樣，我認為您的賣家在六九個月前曾試圖利用市場。現在不得不重新設定預期，並確保他們能夠顯示出運行率的提高。那還沒有發生。因此，我們沒有看到大量產品進入市場。

With that said, we have done a ton of work to try to cultivate a proprietary pipeline, which is how Grilla came about. And so we are seeing some of those deals where maybe a founder would like to exit that business. It's just not the right time. They need more help, let's say, with supply chain or in some cases, as I've alluded to in the past, there may be a distress situation where we could come in and help out.

話雖如此，我們已經做了大量工作來嘗試培養專有管道，這就是 Grilla 的誕生方式。因此，我們看到其中一些交易的創始人可能希望退出該業務。現在還不是時候。他們需要更多幫助，比方說，在供應鏈方面，或者在某些情況下，正如我過去提到的那樣，可能會出現我們可以介入並提供幫助的困境。

So, certainly, there are opportunities, but it's more on the smaller side and with founders and it depends on their circumstance. But overall activity is down.

所以，當然，有機會，但更多的是在較小的一方和創始人身上，這取決於他們的情況。但整體活動下降了。

Okay. Makes sense. I'll leave it there guys. Thanks.

好的。說得通。我會把它留在那裡伙計們。謝謝。

Thanks, Matt.

謝謝，馬特。

Ladies and gentlemen, this does conclude our question-and-answer session. I would like to turn the conference back over to Brian Murphy for any closing remarks.

女士們，先生們，我們的問答環節到此結束。我想將會議轉回 Brian Murphy 以聽取任何閉幕詞。

Great. Thank you, operator. Before we close, I want to let everyone know, we'll be participating in the ROTH Conference in California next week and hope to see some of you there.

偉大的。謝謝你，運營商。在我們結束之前，我想讓大家知道，我們將參加下週在加利福尼亞舉行的 ROTH 會議，希望能在那裡見到你們中的一些人。

I want to thank our employees whose loyalty, hard work and dedication continues to move American Outdoor Brands forward on the path toward an exciting future.

我要感謝我們的員工，他們的忠誠、辛勤工作和奉獻精神繼續推動 American Outdoor Brands 朝著激動人心的未來前進。

Thank you for joining us today. We look forward to speaking with you again next quarter.

感謝您今天加入我們。我們期待下個季度再次與您交談。

And thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝你。會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。