賓士域 (BC) 2018 Q1 法說會逐字稿

Good morning, and welcome to Brunswick Company's 2018 First Quarter Earnings Conference Call. (Operator Instructions) Today's meeting will be recorded. If you have any objections, you may disconnect at this time.

早安，歡迎參加Brunswick公司2018年第一季財報電話會議。(接線員指示) 今天的會議將被錄音。如您有任何異議，您可於此時中斷連線。

I will now like to introduce Ryan Gwillim, Vice President, Investor Relations.

現在我想介紹投資人關係副總裁Ryan Gwillim。

Good morning, and thank you for joining us. On the call this morning are Mark Schwabero, Brunswick's Chairman and CEO; and Bill Metzger, CFO.

早安，感謝各位加入我們。今天早上的電話會議出席者包括Brunswick董事長暨執行長Mark Schwabero，以及財務長Bill Metzger。

Before we begin with our prepared remarks, I would like to remind everyone that during this call, our comments will include certain forward-looking statements about future results. Please keep in mind that our actual results could differ materially from these expectations. For the details on the factors to consider, please refer to our recent SEC filings and today's press release. All of these documents are available on our website at brunswick.com.

在開始我們預先準備的發言之前，我想提醒各位，本次電話會議中的評論將包含若干關於未來結果的前瞻性陳述。請注意，我們的實際結果可能與這些預期有重大差異。關於需考量因素的詳細資訊，請參閱我們近期向SEC提交的文件以及今日的新聞稿。上述文件皆可於我們的網站brunswick.com取得。

During our presentation, we will be referring to certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP financial measures are provided in the reconciliation sections of the consolidated financial statements accompanying today's results.

在簡報過程中，我們將引用若干非GAAP財務資訊。GAAP與非GAAP財務衡量指標之調節表，已提供於隨今日結果一併發布之合併財務報表的調節章節中。

As a reminder, on December 5 of last year, we announced our intention to sell our Sea Ray businesses, including the Meridian brand. Starting with the fourth quarter of 2017, we are reporting the historical and future results of these businesses as discontinued operations. Therefore, for all periods presented in this release, all figures and outlook statements incorporate this change and reflect continuing operations only, unless otherwise noted.

提醒各位，去年12月5日，我們宣布有意出售Sea Ray業務，包括Meridian品牌。自2017年第四季起，我們將該等業務的歷史及未來結果列為停業部門。因此，本新聞稿所呈列之所有期間的所有數字與展望陳述，除另有註明外，均已納入此變更並僅反映持續營運。

I would now like to turn the call over to Mark.

現在我想把電話會議交給Mark。

Thank you, Ryan, and good morning, everyone. Our first quarter performance was an excellent start to what we believe will be another year of successful execution of our strategy and the creation of shareholder value. Our Marine businesses continue to benefit from strong demand for outboard boats and engines, successful new products and our strategy to grow the parts and accessories business. As a result, our Marine businesses had revenue growth of 8% in the quarter with a very strong increase in operating earnings versus our first quarter of 2017.

謝謝你，Ryan，各位早安。我們第一季的表現是極佳的開端；我們相信這將是又一年成功執行策略並為股東創造價值的一年。我們的海事業務持續受惠於舷外船與引擎的強勁需求、成功的新產品，以及我們擴大零件與配件業務的策略。因此，本季海事業務營收成長8%，營業利益相較2017年第一季大幅提升。

At this point in the marine season, our current outlook for the global marine market remains in line with our initial expectations. While unfavorable weather conditions in certain markets, including in the Northeast and Midwest regions of the U.S. and Europe, have contributed to a slightly lower start to the boating activity and the marine retail selling season.

在目前海事旺季的這個時間點，我們對全球海事市場的最新展望仍與最初預期一致。不過，包括美國東北部與中西部地區以及歐洲在內的部分市場，因不利天候條件，導致划船活動與海事零售銷售季的起步略為偏低。

Based upon feedback from our boat shows, dealer sentiments, reaction to new product offerings across the industry, the favorable replacement cycle dynamics and positive global macroeconomic conditions, we remain confident in our view of the industry for 2018. We continue to focus on product leadership, as evidenced by Mercury's launch of the 175-225 horsepower V6 outboard engines, the first in a series of major outboard engine launches planned for 2018. These products, which will begin shipping in the second quarter, along with other award winning new products within our other marine categories, respond to the customers' desire to migrate to products with enhanced features, resulting in overall business results that exceed the market.

根據我們從船展獲得的回饋、經銷商情緒、全產業對新產品供應的反應、有利的汰換週期動態，以及正向的全球總體經濟環境，我們仍對2018年的產業觀點充滿信心。我們持續聚焦產品領導地位，具體展現為Mercury推出175至225匹馬力V6舷外引擎，這是2018年規劃的一系列重大舷外引擎上市計畫中的第一款。這些產品將於第二季開始出貨，並與我們其他海事類別中其他屢獲獎項的新產品一同，回應客戶希望升級至具備更強功能產品的需求，使整體業務表現優於市場。

In our Fitness segment, we also continue to execute against our digital strategy as demonstrated by our release at IHRSA of the Halo Fitness Cloud, a dynamic software platform for club operators that both enhances the exerciser experience, while simplifying facility management. In the quarter, the business experienced improving demand in certain European and Asian markets, which drove top line growth, while margins remained under pressure.

在健身事業部方面，我們也持續推進數位策略；例如我們在IHRSA發表Halo Fitness Cloud，這是一個為俱樂部營運者打造的動態軟體平台，既能提升運動者體驗，也能簡化設施管理。本季該業務在部分歐洲與亞洲市場的需求有所改善，帶動營收成長，但利潤率仍承受壓力。

Finally, we continue to make progress on both the Sea Ray sale and the Fitness separation, which I will address further in my closing comments.

最後，我們在Sea Ray出售案與健身事業分拆方面皆持續取得進展，我將在結語中進一步說明。

Turning to the first quarter financial metrics. Revenue increased by 6.8% year-over-year with growth in all 3 segments. Gross margins were 26.6% with gross margins for the combined marine businesses increasing by 60 basis points over the first quarter of 2017. Adjusted operating earnings were up 6%, led by the performance in our marine businesses. Diluted earnings per share, as adjusted, of $1.01 were up 15% year-over-year also due to the strong performance of our marine businesses, along with a lower effective federal tax rate. Overall, a very strong quarter and a great start to 2018.

接著看第一季財務指標。營收年增6.8%，三個事業部皆有成長。毛利率為26.6%，合併海事業務的毛利率較2017年第一季提升60個基點。調整後營業利益成長6%，主要由海事業務表現帶動。調整後稀釋每股盈餘為1.01美元，年增15%，同樣受惠於海事業務的強勁表現，以及較低的聯邦有效稅率。整體而言，這是一個非常強勁的季度，也是2018年的良好開端。

Now I will provide our perspective on the U.S. marine market. Industry unit volumes were flat based upon preliminary SSI data for the first quarter, which when fully reported, on average, comprises about 17% of the year at retail. As noted earlier, this performance reflects the impact of unfavorable weather, which also delayed the delivery in registration of boats and has resulted in a later start to the marine retail selling season in certain regions of the U.S.

現在我將提供我們對美國海事市場的觀點。根據第一季初步SSI數據，產業單位銷量持平；在完整回報後，第一季零售端平均約占全年17%。如先前所述，這樣的表現反映不利天候的影響；天候也延遲了船舶交付與登記註冊，並使美國部分地區的海事零售銷售季延後開始。

As a reminder, SSI repointing for the first quarter remains preliminary as this current report only reflects 63% of the activity in March with several key states not yet reporting. This insignificance because March normally comprises about half of the retail activity in the first quarter.

提醒各位，第一季的SSI重新指標（repointing）仍屬初步，因為目前報告僅反映3月活動量的63%，且有數個關鍵州尚未回報。這一點很重要，因為3月通常約占第一季零售活動的一半。

One category enjoying strong growth continues to be fiberglass saltwater boats over 23 feet, which has been an area of significant investment for Boston Whaler and Mercury in recent years. As I noted in my opening remarks, we continue to be confident in our marine market outlook and have not changed our forecasted assumptions of domestic unit market growth of between 3% and 5% for the full year.

持續呈現強勁成長的一個品類是23英尺以上的玻璃纖維鹽水船，這也是Boston Whaler與Mercury近年來大幅投資的領域。如我在開場致詞中所提，我們仍對海事市場展望有信心，並未改變對全年國內單位市場成長3%至5%的預測假設。

Next, I would like to share some perspective on our retail data for boats based upon our pipeline inventory activity. Against the very strong first quarter 2017, our internal U.S. retail boat registrations for the first quarter of 2018 were up 3%. This performance is above the overall industry and better than the results reflected in the SSI retail performance data reported for Brunswick. Global retail unit sales decreased 1% over the first quarter of 2017, also against a very strong comp.

接下來，我想根據我們的管道庫存活動，分享一些以零售數據為基礎的船舶觀點。在2017年第一季基期非常強勁的情況下，我們內部統計的2018年第一季美國零售船舶註冊量仍成長3%。此表現高於整體產業，也優於SSI零售表現數據中對Brunswick所反映的結果。全球零售單位銷售量較2017年第一季下降1%，同樣是在非常強勁的比較基期下。

Next, I would like to review with you our current perspective on the regional Marine markets. On a constant currency basis and excluding acquisitions, marine revenue for the first quarter was down slightly in Europe against a very strong comparable quarter in 2017, where growth was 12%. As dealer sentiment in Europe remains positive and with more than 85% of the annual selling season ahead of us, we continue to believe that the slight decrease will normalize and that the international markets will continue to be a tailwind throughout 2018. In Canada, our retail and wholesale unit demand for the year improved versus the prior year, as the recovery that began in 2017 continues. Our 2018 outlook assumes that the demand environment in Canada will continue to improve. The balance of the international markets continued to show modest growth as we continue to benefit from engine share gains in commercial markets, capitalizing on our expanded range of Sea Pro commercial 4-stroke engines and strengthened distribution channel relationships across the regions.

接下來，我想與各位回顧我們目前對各區域海事市場的看法。以固定匯率基礎並排除併購影響後，第一季歐洲海事營收較2017年非常強勁的可比季度略為下滑；當時成長為12%。由於歐洲經銷商情緒仍然正向，且全年銷售季仍有超過85%在前方，我們仍相信這個小幅下滑將趨於正常化，且國際市場將在2018年持續成為順風。在加拿大，我們今年的零售與批發單位需求較去年改善，2017年開始的復甦仍在延續。我們對2018年的展望假設加拿大的需求環境將持續改善。其他國際市場整體仍呈現溫和成長；我們持續受惠於商用市場的引擎市占提升，並藉由擴充的Sea Pro商用四行程引擎產品線，以及各區域更強化的通路關係來掌握機會。

In summary, we expect full year 2018 global unit market growth to also be in the 3% to 5% range. Our revenue growth will continue to outperform as a result of the market share gains and favorable changes in product mix, each positively affected by our continued new product launches throughout the year.

總結而言，我們預期2018年全年全球單位市場成長也將落在3%至5%的區間。由於市占提升與產品組合的有利變化（兩者皆受我們全年持續推出新產品的正面影響），我們的營收成長將持續優於市場。

Moving to our Fitness segment. Revenue increased by 4% in the first quarter with 1% growth on a constant currency basis. Fitness segment sales in the U.S. were down 5% in the quarter, primarily the result of lower Cybex sales in advance of its new product launches, along with weakness in several vertical markets, partially offset by gains in sales to the domestic health clubs, which showed a strong increase in the quarter. Domestic sales would have increased slightly for the quarter had Cybex revenue just remained consistent from Q1 of 2017.

接著談我們的健身（Fitness）事業部門。第一季營收成長4%，以固定匯率計算成長1%。本季健身部門在美國的銷售下滑5%，主要是因新產品上市前Cybex銷售較低，以及若干垂直市場走弱；但對國內健康俱樂部的銷售成長部分抵銷了上述影響，該通路本季呈現強勁增長。若Cybex營收僅維持與2017年第一季一致，則本季國內銷售原本將小幅成長。

European sales experienced strong growth in the quarter with higher sales to both direct markets and distributors. The Asia Pacific also continued to see strong growth with China and Japan leading the way. We anticipate that these positive trends will continue in 2018, resulting in sustained growth in these regions. Our global growth in cardio offerings has been influenced by certain delays in new product launches that we have referenced in the past several quarters. Moving forward, the new Life Fitness Integrity and Cybex cardio products are now fully available with 2 remaining updated console options to be released in the second quarter. We expect that these products, along with the Halo Suite of digital solutions that were launched in March, will continue to accelerate global demand.

歐洲銷售本季強勁成長，對直營市場與經銷商的銷售皆增加。亞太地區亦持續強勁成長，由中國與日本領先帶動。我們預期這些正向趨勢將在2018年延續，使這些地區維持成長動能。我們在心肺（cardio）產品的全球成長，受到過去幾季提及的新產品上市延遲所影響。展望未來，新的 Life Fitness Integrity 與 Cybex 心肺產品現已全面供應，另有2項更新的主控台（console）選項將於第二季推出。我們預期這些產品，加上3月推出的 Halo Suite 數位解決方案，將持續加速全球需求。

And now, I'll turn the call over to Bill for additional comments on our financial performance.

接下來我把電話交給 Bill，請他就我們的財務表現補充說明。

Thanks, Mark. For the first quarter, sales in our combined marine segments and Fitness segments increased by 8% and 4%, respectively. From a geographic perspective, consolidated U.S. sales increased by 4% and sales outside the U.S. on a constant currency basis increased by 6%. First quarter adjusted operating earnings were $118.3 million, and our adjusted operating margin was 10.2%, which was slightly lower than Q1 of 2017.

謝謝你，Mark。第一季，我們合併的海事（Marine）事業群與健身（Fitness）事業群銷售分別成長8%與4%。從地理區域來看，合併後美國銷售成長4%，美國以外地區以固定匯率計算成長6%。第一季調整後營業利益為1.183億美元，調整後營業利益率為10.2%，較2017年第一季略低。

The company adopted the new revenue recognition standard on July 1 of this year, using the modified retrospective approach. The adoption of this standard does not have a material effect on the comparability of our results with prior periods. As anticipated, the adoption of this standard had a net positive impact to earnings comparisons of approximately $2 million, mostly in the Boat segment. The full year impact of the new revenue recognition standard on earnings comparisons is expected to be minimal. Please refer to the schedules included in today's press release, along with our Form 10-K, for more information.

公司於今年7月1日採用新的收入認列準則，並採修正追溯法（modified retrospective approach）。採用該準則對我們與前期結果的可比性並無重大影響。如預期，採用該準則對盈餘比較帶來約200萬美元的淨正面影響，主要來自船艇（Boat）部門。新的收入認列準則對全年盈餘比較的影響預期將很小。更多資訊請參閱今日新聞稿所附的附表，以及我們的 Form 10-K。

Turning to our Marine Engine segment. Sales in the first quarter increased by 9%. Propulsion revenue, led by strong gains in outboard engine sales, increased by 11% year-over-year. Sales growth in outboards continues to benefit from our strengthening market position, particularly in the 300-horsepower -- 300-plus horsepower range. P&A sales continue to report solid consistent growth, including gains in our controls and rigging products as well as in our distribution businesses. I would like to note that P&A activity has also been unfavorably influenced by the delayed start of boating activity due to weather conditions.

接著談我們的船用引擎（Marine Engine）部門。第一季銷售成長9%。推進系統（Propulsion）營收在舷外機銷售強勁成長帶動下，年增11%。舷外機銷售成長持續受惠於我們市場地位的提升，特別是在300匹馬力—300匹以上馬力區間。零配件與附件（P&A）銷售持續呈現穩健且一致的成長，包括我們的控制與配套安裝（rigging）產品，以及我們的經銷業務皆有增長。我也要指出，P&A活動亦受到天候導致划船活動延後開季的不利影響。

Mercury's operating earnings in the quarter grew by 9% and operating margins were 13.9%, which was in line with the prior year. The increase in operating earnings in the quarter was primarily due to benefits from higher net sales and favorable movements in foreign exchange rates, which were partially offset by planned spending increases stemming from new product introductions, capacity expansion and product development.

Mercury 本季營業利益成長9%，營業利益率為13.9%，與去年同期一致。本季營業利益增加主要來自淨銷售提高與匯率變動的有利影響；但部分被計畫性支出增加所抵銷，該支出增加源於新產品導入、產能擴充與產品開發。

In our Boat segment, first quarter revenues increased by 7% with strong growth in the fiberglass freshwater boat businesses, which is comprised of our Bayliner brand, along with our European brands, Quicksilver and Uttern. Aluminum freshwater posted solid growth, including gains in pontoons resulting from successful efforts to increase production levels. Sales of aluminum fishing boats were flat, reflecting the impact of Bass Pro's acquisition of Cabela's, which was a meaningful channel for our Lowe boat brand.

在我們的船艇（Boat）部門，第一季營收成長7%，其中玻璃纖維淡水船業務強勁成長；該業務包含我們的 Bayliner 品牌，以及我們的歐洲品牌 Quicksilver 與 Uttern。鋁製淡水船亦呈現穩健成長，包括在成功提升產量的帶動下，浮筒船（pontoons）銷售增加。鋁製釣魚船銷售持平，反映 Bass Pro 併購 Cabela's 的影響；Cabela's 曾是我們 Lowe 船品牌的重要通路。

Finally, revenue in the fiberglass saltwater business was comparable to a very strong first quarter of 2017. This category is poised for growth over the remaining of the year as production of the new Realm models ramps up and capacity expansion efforts continue.

最後，玻璃纖維海水船業務的營收與2017年第一季非常強勁的表現相當。隨著新 Realm 機型產量逐步拉升，以及產能擴充工作持續推進，該類別在今年剩餘期間具備成長動能。

Global wholesale shipments for the first quarter declined 2% and were down 5% in the U.S., both against very strong comps in the first quarter of 2017. Changes in average selling prices increased by 8% in the quarter on a constant currency basis. These increases resulted from changes in the mix across the portfolio as customers migrate to boats with more content and higher horsepower engines, which is adding to top line benefits. In addition, we have raised prices in response to inflation, particularly in pontoons. Our 2018 plan anticipates continued growth in average selling prices, but at a slightly lower rate than 2017.

第一季全球批發出貨量下滑2%，美國下滑5%，兩者皆是在2017年第一季基期非常強勁的情況下所致。以固定匯率計算，本季平均售價變動帶來8%的提升。這些提升來自產品組合在整體產品線中的變化，因客戶轉向配置更豐富、引擎馬力更高的船型，進而帶來營收端的助益。此外，我們亦因應通膨而調漲價格，特別是在浮筒船（pontoons）。我們的2018年計畫預期平均售價將持續成長，但增速將略低於2017年。

Dealer pipeline inventories ended the quarter at 39 weeks of boat-on-hand measured on a trailing 12-month retail basis. This was 1 week higher than prior-year levels, which is to be expected given the current, given the early-season retail market dynamics that Mark described earlier. We believe that our pipeline levels are appropriate given our growth expectations in various boat categories and markets as well as dealer sentiment and outlook for the market in 2018. For the full year, we are planning for weeks-on-hand at year-end to be comparable with year-end levels at the end of '17. Consistent with this assumption, we were also assuming wholesale growth rates will slightly trail retail unit growth rates.

以過去12個月零售為基礎衡量，經銷商管道庫存（dealer pipeline inventories）於季末為39週的現有船艇庫存（weeks of boat-on-hand）。這比去年同期高出1週，考量到目前的情況——以及Mark先前所描述的早季零售市場動態——這是可預期的。我們認為，鑑於我們對各船型類別與市場的成長預期，以及經銷商情緒與對2018年市場的展望，我們的管道水位是適當的。就全年而言，我們規劃年末的在手週數將與2017年年末水準相當。與此假設一致，我們也假設批發成長率將略低於零售單位成長率。

The Boat segment's adjusted operating earnings for the quarter grew by $5 million, resulting mostly from higher sales and the positive timing benefits from the adoption and implementation of the new revenue recognition standard. For the first quarter, adjusted operating earnings were -- margins were 8.1%, which is 120 basis points higher than Q1 of 2017.

船艇（Boat）部門本季調整後營業利益增加500萬美元，主要來自銷售增加，以及採用並導入新的收入認列準則所帶來的正向時點效益。第一季調整後營業利益率為8.1%，較2017年第一季提高120個基點。

Shifting to the Fitness segment. Sales for the first quarter increased by 4%. Sales of commercial cardio decreased slightly in the quarter as strong sales to health clubs were more than offset by declines in sales of Cybex product in advance of new product introductions and sales to certain vertical markets. Commercial strength sales continued to grow globally as demand for these products increases due to our well-positioned product offering and changing exerciser preferences.

接著談健身（Fitness）部門。第一季銷售成長4%。本季商用心肺（commercial cardio）銷售小幅下滑，因對健康俱樂部的強勁銷售，仍不足以完全抵銷新產品導入前Cybex產品銷售下滑，以及對部分垂直市場的銷售下降。商用肌力（commercial strength）銷售在全球持續成長，因我們具競爭力的產品組合定位良好，加上運動者偏好改變，使這些產品需求增加。

Adjusted operating earnings for the quarter were at 5%, which was 380 basis points lower than a year ago. This reduction was caused by margin declines, reflecting several factors, including higher freight costs, challenging pricing dynamics in certain international markets, unfavorable changes in product and customer mix and cost inflation. These factors were partially offset by benefits from higher sales. On freight costs, Fitness business continues to experience a number of challenges, including higher national transportation rates, along with additional complexities around the shipment and installation of new products. The business is focused on resolving the issues under its control and adjusting price where appropriate.

本季調整後營業利益率為5%，較去年同期低380個基點。此下降係由毛利率下滑所致，反映多項因素，包括運輸費用上升、部分國際市場具挑戰性的定價動態、產品與客戶組合的不利變化，以及成本通膨。上述因素部分被銷售增加所帶來的效益抵銷。就運輸費用而言，健身業務仍面臨多項挑戰，包括全國性運輸費率上升，以及新產品出貨與安裝所增加的額外複雜度。該業務正專注於解決其可控範圍內的問題，並在適當情況下調整價格。

Next, I will discuss the impact of foreign currency is having on our performance. In the first quarter, sales comparisons were positively affected by approximately 2% and operating earnings comparisons were positively affected by $3 million, which was relatively consistent with our plan. Our estimates for the full year period remain consistent with our previous expectations as we are expecting a positive impact on consolidated sales comparisons of approximately 1%, and a favorable impact on the operating earnings comparisons of $10 million to $15 million. These estimates for 2018 assume that foreign exchange rates will remain consistent with average rates for the last 3 months. Our first quarter book tax rate as adjusted was 20.9%. This includes net tax benefits resulting from share-based compensation activity of $1.3 million. This rate is lower than previous year due mostly to the impact of tax reform and came in lower-than-anticipated due principally to further clarification of the new tax laws.

接下來，我將討論外幣對我們業績所產生的影響。第一季，銷售比較約受到2%的正面影響，營業利益比較則約受到300萬美元的正面影響，與我們的計畫大致一致。我們對全年期間的估計仍與先前預期一致；我們預期合併銷售比較約有1%的正面影響，且營業利益比較將有1,000萬至1,500萬美元的有利影響。這些2018年的估計假設外匯匯率將維持與過去3個月平均匯率一致。我們第一季經調整後的帳面稅率為20.9%。其中包含因股份基礎補償活動所產生的淨稅務利益130萬美元。此稅率較前一年低，主要是因稅改影響；且由於對新稅法進一步釐清，稅率也低於原先預期。

Our updated estimated effective book tax rate for the full year, as adjusted, is approximately 22% to 23%, which is based on tax guidance to date and is also subject to change as additional interpretations of the new tax law become known. Our estimated cash tax rate for 2018 is as expected to be in the high single digit percent range, reflecting the favorable impact of a tax refund, along with deductions from capital expenditures and pension contributions.

我們更新後的全年經調整有效帳面稅率估計約為22%至23%，此係基於目前為止的稅務指引，且隨著對新稅法的更多解釋逐步明朗，仍可能有所變動。我們對2018年的現金稅率估計如預期將落在高個位數百分比區間，反映退稅的有利影響，以及資本支出與退休金提撥的扣除項目。

Turning to review of our cash flow statement. Cash used for operating activities was $43 million, which improved by $23 million versus the prior year. This improvement includes of the absence of a pension contribution in the quarter, the previously mentioned tax refund and improved operating performance, which more than offset seasonal working capital growth. Capital spending was $35 million for the quarter, which included investments in new products as well as capacity expansion initiatives, mostly in our marine segments. Free cash flow for the quarter was an outflow of $73 million, down $30 million versus 2017.

接著回顧我們的現金流量表。營運活動使用的現金為4,300萬美元，較前一年改善2,300萬美元。此改善包含本季未進行退休金提撥、前述退稅以及營運表現改善，這些因素足以抵銷季節性營運資金增加。本季資本支出為3,500萬美元，包含新產品投資以及產能擴張計畫，主要在我們的海事事業部門。本季自由現金流為流出7,300萬美元，較2017年減少3,000萬美元。

Let me conclude with comments on certain items that will impact our P&L and cash flow for 2018. Aside from the changes in tax rate, which I discussed earlier, the 2018 estimates on these items are not materially different from our estimates from the last earnings call. Our current plan reflects diluted shares outstanding of between 88 million and 88.5 million shares for the full year, which includes the planned share repurchase activity in 2018, which I will discuss further on the next slide.

最後，我針對將影響我們2018年損益表與現金流的若干項目做結語。除了我先前討論的稅率變動之外，這些項目的2018年估計與我們上次財報電話會議的估計並無重大差異。我們目前的計畫反映全年稀釋後流通在外股數介於8,800萬至8,850萬股，包含2018年規劃的庫藏股回購活動，我將在下一張投影片進一步說明。

We continue to project free cash flow in 2018 to be greater than $275 million, which excludes costs related to the planned Fitness separation as we will be treating that spending as [ex] items consistent with our earnings metrics. Our business units continue to remain focused on generating strong free cash flow, which will allow us to continue to fund future investments in growth, including acquisitions, and successfully implement our capital strategy. Our guidance includes pension contributions of between $70 million and $75 million, consistent with our de-risking plan. However, we may accelerate contributions into 2018 as we can lower our after-tax cost of funding the plan by making contributions before the middle of September. Under this scenario, our contributions could reach $130 million to $150 million in 2018.

我們仍預估2018年自由現金流將高於2.75億美元，此數字不包含與規劃中的Fitness分拆相關成本，因為我們將把該支出視為[ex]項目，並與我們的盈餘衡量指標一致。我們各事業單位仍專注於創造強勁的自由現金流，使我們能持續投入未來成長投資（包括併購），並成功執行我們的資本策略。我們的指引包含退休金提撥介於7,000萬至7,500萬美元，與我們的去風險化計畫一致。然而，我們可能將提撥加速至2018年，因為在9月中旬之前提撥可降低我們為該計畫提供資金的稅後成本。在此情境下，我們2018年的提撥可能達到1.3億至1.5億美元。

We continue to execute against our share repurchase program with repurchases of $35 million completed in the first quarter. With $100 million of planned share repurchases in 2018, we continue to view our share repurchases as an attractive use of capital and will balance additional repurchases against other investment opportunities.

我們持續執行庫藏股回購計畫，第一季已完成3,500萬美元的回購。2018年規劃回購1億美元，我們仍認為回購是具吸引力的資本運用方式，並將在其他投資機會之間權衡額外回購。

I will now turn the call back to Mark to continue our outlook comments.

我現在把電話交回給Mark，繼續我們對前景的評論。

Thanks, Bill. Our outlook for 2018 remains generally consistent with our recently provided 3-year strategic plan and reflects another year of outstanding revenue and earnings growth with excellent cash flow generation. We expect our marine businesses' top line performance, to benefit from the continuation of solid global market growth, along with the success of new products. In the Fitness segment, we expect to our benefit from recently introduced new products, particularly in the second half of the year, although we have lowered our expectations slightly, which I will address in a moment. We are raising the lower end of our revenue guidance for 2018. We now expect revenue growth of 6% to 7%, absent any significant changes in the global macroeconomic conditions.

謝謝，Bill。我們對2018年的展望整體上仍與近期提供的三年策略計畫一致，並反映又一年卓越的營收與獲利成長，以及優異的現金流創造能力。我們預期海事業務的營收表現將受惠於全球市場持續穩健成長，以及新產品的成功。在Fitness事業部門，我們預期將受惠於近期推出的新產品，特別是在下半年，儘管我們已略微下調預期，我稍後會說明。我們上調2018年營收指引區間的下緣。在全球總體經濟條件未出現重大變化的情況下，我們目前預期營收成長為6%至7%。

For the full year, we anticipate improvement in both growth and operating margins in our marine business as we plan to continue to benefit from our new products, volume leverage, cost reductions that related to efficiency program and changes in the foreign exchange rates, while continuing to invest in our growth-related initiatives.

就全年而言，我們預期海事業務在成長與營業利潤率兩方面都將改善，因為我們計畫持續受惠於新產品、規模帶來的槓桿效益、與效率計畫相關的成本降低，以及外匯匯率變動，同時也會持續投資於與成長相關的各項計畫。

In the Fitness business, we are projecting margins to decline, but year-over-year comparisons to stabilize as we move toward the end of the year as the margin pressure discussed earlier moderate, including assistance from the positive effects of recent new product launches and cost management actions. Our plan assumes the inflationary factors are mostly offset by price. However, the impact of trade policy changes could possibly create some additional pressures moving forward, which our business would address accordingly.

在Fitness業務方面，我們預估利潤率將下滑，但隨著我們接近年底，年對年比較將趨於穩定，因為先前討論的利潤率壓力將有所緩和，包括近期新產品上市帶來的正面效果，以及成本管理措施的助益。我們的計畫假設通膨因素大多可由價格調整抵銷。然而，貿易政策變動的影響未來可能帶來額外壓力，我們的業務將據此加以因應。

Operating expenses are estimated to increase in 2018 as we continue to fund the incremental investments to support growth. However, on a percentage of sales basis, we expect them to be consistent with 2017 levels. We're also narrowing the range of our full year expectations of diluted EPS, as adjusted, to $4.50 to $4.65, which takes into account the benefits of a lower tax rate, continued success for marine business performance, potential inflationary pressures and an additional revenue and margin risk in the Fitness business for the remainder of the year.

我們估計2018年營業費用將增加，因為我們持續投入增量投資以支持成長。然而，以銷售額百分比來看，我們預期將與2017年水準一致。我們也將全年經調整稀釋後每股盈餘（EPS）的預期區間收斂至4.50至4.65美元，該預期已納入較低稅率的效益、海事業務表現持續成功、潛在通膨壓力，以及Fitness業務在今年剩餘期間額外的營收與利潤率風險。

Looking at the second quarter, we anticipate revenue growth to be at the top of our annual guidance range. We're also planning for higher spending levels on the new product introductions and product development in the quarter and for adjusted EPS to increase by a mid-teens percentage over the second quarter of 2017 EPS.

就第二季而言，我們預期營收成長將位於全年指引區間的上緣。我們也規劃本季在新產品導入與產品開發方面提高支出水準，並預期經調整EPS較2017年第二季EPS以中十位數百分比成長。

So turning to our segments. Our 2018 forecast includes ongoing revenue and operating earnings growth in our Marine Engine segment. Specifically, supported by continued strong demand, we are increasing our revenue growth target for the year to the high single-digit percent range, with solid improvement in operating margins. Our engine segment is expected to continue to deliver growth that exceeds the market. We have the freshest lineup of outboard engines in the industry with 2018 adding to that momentum. And by the end of 2018, on a run-rate basis, more than 80% of our outboard revenue will come from products introduced since 2012.

接著談我們的事業部門。我們對2018年的預測包含Marine Engine事業部門營收與營業利益持續成長。具體而言，在持續強勁需求的支撐下，我們將今年的營收成長目標上調至高個位數百分比區間，且營業利潤率將有穩健改善。我們預期引擎事業部門將持續交出超越市場的成長。我們擁有業界最新的舷外機產品陣容，而2018年將進一步延續這股動能。到2018年底，以運行率（run-rate）計算，我們超過80%的舷外機營收將來自2012年以來推出的產品。

Also in the quarter, we launched Nauticon, which provides a connected boat system that enables you to stay connected to your boat from anywhere in the world, while also allowing your boat to easily relay boat system diagnostic information to your service provider and [promptly] get the help you need -- fast. Importantly, we are also enhancing and expanding our manufacturing and distribution capability to drive future growth, while continuing to invest in research and development, and capacity expansions and modernizations where necessary to support the achievement of our growth aspirations. This achievement will also require an energized and talented workforce. Accordingly, in the first quarter, Mercury extended the agreement with its labor union in Fond du Lac, Wisconsin, through 2023, enabling Mercury to be the employer of choice in the area.

此外，本季我們推出Nauticon，提供一套連網船舶系統，讓您無論身在世界何處都能與您的船保持連線，同時也能讓您的船輕鬆將船舶系統診斷資訊回傳給您的服務供應商，並[迅速]獲得所需協助——快速。重要的是，我們也正在強化並擴大製造與配送能力，以推動未來成長，同時持續投資研發，以及在必要時進行產能擴充與現代化，以支持我們達成成長願景。這項成果也需要一支充滿活力且具才華的員工隊伍。因此，在第一季，Mercury將其在威斯康辛州Fond du Lac與工會的協議延長至2023年，使Mercury能成為該地區首選雇主。

Our Marine Engine segment continues to strengthen its competitive position in many facets led by product leadership with 2018 shaping up to just be 1 momentous year for this business.

我們的船用引擎事業部持續在多個面向強化其競爭地位，並以產品領先為核心帶動；2018 年對這項業務而言，正逐步成為極具里程碑意義的一年。

Moving to the Boat segment. We're targeting annual revenue growth for 2018 in the high single-digit percent range led by continued strength in the fiberglass and aluminum freshwater markets, including strong demand in the pontoon business. We anticipate that operating margins will improve modestly for the full year. Our Boat group remains a market leader in recreational boating with many of the industry's most recognizable brands, led by Boston Whaler and Lund. Our portfolio of companies continue to compete and be market leaders in the widest number of boating segments. They're sold through the strongest distribution channel, and we win with product leadership, resulting from continued -- continuous investment in growth. Our Boat business provides an excellent return on invested capital, and we continue to invest in these businesses. For example, we're currently increasing capacity at Boston Whaler to expand our ability to produce larger boats, which also complements the strong and expanding Mercury outboard engine platform I just discussed.

接著談到船艇事業部。我們鎖定 2018 年年度營收成長目標為高個位數百分比區間，主要由玻璃纖維與鋁製淡水市場的持續強勁表現所帶動，其中也包括浮筒船（pontoon）業務的強勁需求。我們預期全年營業利益率將小幅改善。我們的船艇事業群在休閒船艇市場仍為領導者，旗下擁有多個業界最具辨識度的品牌，以 Boston Whaler 與 Lund 為首。我們的公司組合持續在最多元的船艇細分市場中競爭並保持市場領先。我們透過最強的通路體系銷售，並以產品領先取勝，而這源自於持續——不斷地投入成長。我們的船艇業務提供優異的投入資本報酬率（ROIC），因此我們持續投資這些業務。例如，我們目前正在提升 Boston Whaler 的產能，以擴大生產更大型船艇的能力，這也與我剛才提到、強勁且持續擴張的 Mercury 舷外機平台相互補強。

In our Fitness business, our plan projects revenue to grow in the low single digit percent range over 2017 levels, and we expect the operating margins to remain under pressure, while stabilizing toward the end of 2018, as I just discussed. There is an element of uncertainty as it relates to our relationship with Planet Fitness. We've provided an aggressive response to the Planet Fitness RFP, and we believe we are the leading partner to support Planet Fitness' goals for growth technology and development and improve club operator and user experience. However, we've incorporated a more conservative view the second half into our plan based upon an expectation that Planet Fitness will offer a broader equipment choice to its franchisees. We continued to have a very strong relationship with Planet Fitness and feel we're best positioned to satisfy their equipment needs on a go-forward basis.

在健身器材業務方面，我們的計畫預估營收將較 2017 年成長低個位數百分比區間；同時，如我剛才所述，我們預期營業利益率仍將承受壓力，但在 2018 年底前趨於穩定。就我們與 Planet Fitness 的合作關係而言，仍存在一定程度的不確定性。我們已對 Planet Fitness 的 RFP（徵求提案）提出積極回應，並相信我們是最具領先地位的合作夥伴，可支持 Planet Fitness 在成長、科技與開發方面的目標，並改善俱樂部經營者與使用者體驗。然而，我們在計畫中對下半年採取較保守的觀點，因為預期 Planet Fitness 將為其加盟主提供更廣泛的設備選擇。我們與 Planet Fitness 仍維持非常良好的合作關係，並認為在未來我們最有條件滿足其設備需求。

As discussed earlier, the second quarter marks the completion of the rollout of the updated Life Fitness and Cybex cardio products, complete with a wide variety of console options, including the launch of the high-end SE 3 HD console that is compatible with the new Life Fitness Integrity cardio lineup. We believe that these new products, which also will enable the continued uptake of our digital solution offerings will benefit sales and margins in the back half of 2018.

如先前所述，第二季標誌著更新版 Life Fitness 與 Cybex 有氧產品的全面導入完成，並提供多樣化的主控台選項，其中包括推出高階 SE 3 HD 主控台，且可與新的 Life Fitness Integrity 有氧產品線相容。我們相信這些新產品也將帶動我們數位解決方案的持續採用，並在 2018 年下半年有助於提升銷售與利潤率。

We remain encouraged by the overall trend in the global Fitness marketplace and the progress we are making to take advantage of the growth opportunities in newer segments such as boutiques and group fitness. Evidencing this progress is a recently completed 3-year agreement with Orangetheory to equip their international, locations with specialized equipment and a unique user interface to motivate and connect members. We believe that we are well positioned to leverage these trends and will position our equipment and digital solutions to help fuel this growth. Overall, the Fitness business continues to position itself to succeed in the changing commercial fitness market.

我們仍對全球健身市場的整體趨勢感到鼓舞，也對我們在把握新興細分領域（如精品健身房與團體課程健身）的成長機會方面所取得的進展感到正面。這些進展的例證之一，是我們近期完成與 Orangetheory 的一項為期 3 年的協議，將為其國際據點配置專用設備與獨特的使用者介面，以激勵並連結會員。我們相信我們已具備良好定位以運用這些趨勢，並將透過設備與數位解決方案來協助推動此一成長。整體而言，健身器材業務持續調整定位，以在變動中的商用健身市場中取得成功。

In closing, we believe that 2018 will result in another year of strong revenue and earnings performance, along with excellent cash flow generation. Led by our strategic pillars of product innovation, being the best partner and operating excellence, we remain well positioned to execute against our plans and to take advantage of market opportunities in the marine and fitness businesses. We are also making progress on our 2 portfolio actions. The sales process for Sea Ray is advancing as planned and our goal remains to complete the divestiture in the first half of this year. In March, we announced our intention to separate the Fitness business into a separate publicly-traded entity. The work on this planned separation is underway, but still early in the process. We now expect to file the initial Form 10 registration statement in the third quarter of this year and remain on track for completion by the end of the first quarter of 2019. We'll obviously have more information on the separation process on the second quarter call.

最後，我們相信 2018 年將再度帶來強勁的營收與獲利表現，並同時創造優異的現金流。在我們的策略支柱——產品創新、成為最佳合作夥伴與卓越營運——的帶領下，我們仍具備良好定位以落實計畫，並把握船舶與健身業務的市場機會。我們也在兩項投資組合行動上取得進展。Sea Ray 的出售流程正按計畫推進，我們的目標仍是在今年上半年完成該項剝離。3 月，我們宣布有意將健身器材業務分拆為一家獨立上市公司。這項規劃分拆的相關工作已展開，但仍處於流程初期。我們目前預期將於今年第三季提交初始的 Form 10 註冊聲明，並仍按計畫在 2019 年第一季末前完成。我們顯然會在第二季電話會議上提供更多關於分拆流程的資訊。

I'm excited about this business moving forward. I am confident in our management team and the over 15,000 dedicated Brunswick colleagues are also committed to delivering and executing our growth strategy for 2018 and beyond in a continued effort to deliver value to our shareholders.

我對這項業務未來的發展感到振奮。我對我們的管理團隊充滿信心，而超過 15,000 名敬業的 Brunswick 同仁也同樣致力於在 2018 年及未來執行我們的成長策略，持續為股東創造價值。

And with that, Bill and I will be happy to take your questions.

接下來，Bill 和我很樂意回答各位的提問。

(Operator Instructions) And our first question comes from Gerrick Johnson from BMO.

（接線員指示）我們的第一個問題來自 BMO 的 Gerrick Johnson。

Last year, I believe you were capacity constrained on aluminum fish and pontoons, were you able to deliver all you needed in the quarter and do you expect to do so going forward?

去年我記得你們在鋁製釣魚船與浮筒船（pontoon）方面受到產能限制；本季你們是否已能交付所需的全部數量？未來是否也預期能做到？

Yes, we were able to do so in the quarter. If you go back to, Gerrick, to the specific issue on pontoon, it was more of a supplier issue than internal capacity capabilities. But we've been able to make productivity and efficiency changes within our operations and fundamentally have been meeting the demands, the pontoon market is very strong and I think the whole industry's kind of been sold out, okay? And I don't -- so I don't want to mislead on that. But fundamentally, we are building and meeting their expectations there.

是的，本季我們做到了。Gerrick，如果回到浮筒船的具體問題，那更多是供應商問題，而非我們內部產能能力的問題。不過，我們已在營運中進行生產力與效率的改善，基本上一直能滿足需求；浮筒船市場非常強勁，我認為整個產業幾乎都處於售罄狀態，好嗎？我不——所以我不想在這點上造成誤導。但就根本而言，我們正在生產並滿足他們的期望。

Okay. And in that market, what has the retail reaction been to an increase in selling prices? Pontoons, I would think, would be a little bit more price-sensitive consumer.

了解。那在該市場中，零售端對於售價上調的反應如何？我會認為浮筒船的消費者可能對價格更敏感一些。

Well, there's a wide range of -- across the pontoons, whether it's length and features and horse powers and the list goes on there. But again, fundamentally, the industry is sold out for the year, year being the model year, and therefore, those pricing actions have been implemented and fundamentally are achieving the desired results.

嗯，浮筒船的範圍很廣——不論是船長、配備、馬力等，還有很多面向。但再說一次，基本上整個產業在今年（以車型年/型號年計）都已售罄，因此這些定價措施已經落實，且基本上正達成預期效果。

Gerrick, I think the one thing I'd point out there is that pontoons is not necessarily a market where there's a healthy level of used product out in the marketplace to satisfy demand. So I'd say what we're seeing now is, is in a market that's been strong, we continue to see really nice strength in that market moving forward. In spite of prices going up.

Gerrick，我想在這裡要指出的一點是：浮筒船不一定是那種二手供給在市場上很充足、足以滿足需求的市場。所以我會說，我們現在看到的是——在一個一直很強勁的市場中，往前看我們仍持續看到非常好的強勢動能。即使價格上漲也是如此。

And our next question comes from Michael Swartz from SunTrust.

下一個問題來自 SunTrust 的 Michael Swartz。

Just wanted to touch on the new engine platform you rolled out in Miami. Could do -- I know you haven't started shipping that yet, but can you give us maybe a sense of customer reception to that lineup? And then, remind us again what your market share is in the 175-225 horsepower range, and maybe where you see that going over the next 12 or 24 months.

我想談談你們在邁阿密推出的新引擎平台。我知道你們尚未開始出貨，但能否請你們分享一下客戶對該產品線的接受度？另外，也請再提醒我們一次：你們在 175–225 匹馬力區間的市占率是多少？以及你們認為未來 12 或 24 個月會如何變化？

Yes, there are 2 things. I mean, as I said in the comments, we'll begin shipping the new V6, 175-225. That'll happen in the second quarter. Customer reception to that has been just phenomenal. I mean, we started previewing that product with our customer base, a lot of the OEMs, last fall already, and had them on the water, and we've just had nothing but great feedback. I do not worry at all about being able to sell all the ones we are building. In terms of the other part, our horsepower in that -- our market share in that 175 to 225 is about half of our share, Michael. So put that in the low-20s is where we're at on that. So we have a lot of upside to grow in that area.

是的，有兩點。如我在評論中所說，我們將開始出貨新的 V6（175–225 匹）。這會在第二季發生。客戶對此的反應非常熱烈。我的意思是，我們從去年秋天就開始向客戶群、許多 OEM 預覽這項產品，並讓他們實際下水測試，而我們收到的回饋只有好評。我完全不擔心我們會賣不掉我們正在生產的所有數量。至於另一部分，在那個馬力區間——我們在 175 到 225 的市占率大約是我們整體市占的一半，Michael。所以換算一下，大概是在 20% 出頭。因此我們在那個領域仍有很大的成長上行空間。

Okay, that's great. And then...

好的，那太好了。然後……

Keep in mind, Michael, that in that space, we've also been making manufacturing investments over the last 2 or 3 years in anticipation of this product launch. So there is -- through the vertical integration process, everything from casting, all the way through to coding and assembly, the capacity has all been planned to handle increased demand from this launch. So we feel like we are very well situated going into 2018 to meet demand that's going to be there for the product.

Michael，請記住，在那個領域，我們在過去2到3年也一直在進行製造投資，以因應這次產品上市。因此，透過垂直整合流程，從鑄造一路到塗層處理與組裝，產能都已規劃好，以應付這次上市帶來的需求增加。所以我們覺得，在進入2018年時，我們已處於非常有利的位置，能夠滿足該產品將出現的需求。

Okay, that's helpful. And just to...

好的，這很有幫助。然後只是想……

So Michael, just a real quick add to Bill's, even. As we've done the new 150 and the new 75, 90, 115 and even the top end of the Verado edition, all that was basically being put on existing assembly capacity, but we were adding casting and machining and coating stuff to go with it. This series of product launches we're doing in 2018, of which the V6 is the first one, it has a significant assembly capacity going in with it. So this is great news for us in the current market.

Michael，我再很快補充一下Bill的說法。我們推出新的150以及新的75、90、115，甚至Verado版本的高階機型時，基本上都是放在既有的組裝產能上生產，但我們同時增加了鑄造、加工與塗層等配套能力。我們在2018年進行的這一系列產品上市，其中V6是第一個，它本身就配套了相當可觀的組裝產能。所以在目前的市場環境下，這對我們來說是個好消息。

Okay, that's helpful. And then just on the Fitness side, margins for the quarter, a little compressed and several reasons. But going back longer term, we've seen a more, maybe more structural compression there and then the business seems to be shifting a little bit now more towards a technology services play. So is there a way to think about it maybe how the margin structure of that business looks longer term as it continues to evolve?

好的，這很有幫助。接著談到Fitness業務，這一季的毛利率有些被壓縮，原因有好幾個。但拉長時間來看，我們看到那裡可能有更結構性的壓縮，而且該業務現在似乎也正稍微轉向以科技服務為主的模式。所以，隨著它持續演進，是否有一個方式可以思考該業務長期的毛利結構會是什麼樣子？

Well, yes, I think if you look at other models that are out there as -- the digital solutions tend to carry higher margins on them than the product margins. So I think one of the things that as we have larger and longer term, as the digital solutions becomes a bigger piece, that will be part of mixing up on margins versus the pure equipment play.

嗯，是的，我想如果你看看市場上其他的模式——數位解決方案的毛利率通常會高於產品毛利率。所以我認為，從更長期來看，隨著數位解決方案占比變大，這會在毛利率上帶來組合上的改善，相較於純設備銷售的模式。

And our next question comes from Craig Kennison from Baird.

下一個問題來自Baird的Craig Kennison。

I wanted to follow up on the engine question Mike had. But I think your largest competitor has struggled with capacity issues at the same time that you've made some really good bets on product and capacity. I'm just wondering if you think some of the share gains you will have earned because of that bet will translate into more sustainable wins? In other words, have you seen the winds with OEMs that might prove more durable than maybe just the temporary fill-in?

我想跟進Mike剛才問的引擎問題。我認為你們最大的競爭對手在你們做出一些在產品與產能上的很好的押注之際，同時也一直在產能方面遇到困難。我想知道，你是否認為因為這個押注而取得的一些市占提升，會轉化為更可持續的勝利？換句話說，你是否看到與OEM的合作勝利，可能比只是暫時性的補位更為持久？

Yes, I don't -- Craig, I don't view that we've really had temporary wins with anyone. We've been growing our share of the product that's coming out. My comment that 80% of the revenue was going to come from product introduced in the last 6 years, and the other one, I would -- the reason I don't see this as temporary is if you really go back from 2011 to 2017, between R&D and capital into Mercury, it's about $1.1 billion, and I would challenge you that no one else is making those kind of sustained investments in a business. And I think we're clearly differentiating ourselves in that space.

是的，我不——Craig，我不認為我們真的有跟任何人出現所謂的暫時性勝利。我們一直在提升新推出產品的市占。我提到有80%的營收將來自過去6年推出的產品；另外，我之所以不把這視為暫時性的，是因為如果你回頭看2011到2017年，我們在Mercury的研發與資本投入合計約11億美元，我想請你想想，沒有其他人會在一個業務上做出這種持續性的投資。而且我認為我們在那個領域顯然正在拉開差異化。

But just to follow-up, do you see OEMs and other partners kind of realizing that maybe Mercury is a better long-term partner that would enhance your view on growth in that space?

但再追問一下，你是否看到OEM與其他合作夥伴開始意識到，Mercury可能是更好的長期合作夥伴，從而強化你對該領域成長的看法？

Well, you've got -- with some of our competition, they may have longer term supply and multi-year supply range, and so those will convert as time -- or could convert as time. But I would tell you where there's a mixing of the business with an OEM, and we're continuing to grow our share with that mix and/or picking up our own exclusive customers as well. Bill mentioned, for instance, in his comments about the Bass Pro acquisition of Cabela's having some impact on our Lowe boat business, but then fundamentally, we picked up all the engines. So we have people very willing to align themselves with Mercury and the engine business.

嗯，你看——我們的一些競爭對手可能有較長期的供應合約與多年期的供應安排，因此隨著時間推進，這些可能會轉換——或有可能會轉換。但我會告訴你，在與OEM的業務組合中，我們正持續提升我們在該組合中的占比，並且/或者也在爭取到我們自己的獨家客戶。例如，Bill在談到Bass Pro收購Cabela's對我們Lowe船業務可能造成一些影響時也提到，但從根本上說，我們拿下了所有引擎。所以有很多人非常願意在引擎業務上與Mercury結盟。

And our next question comes from Tim Conder from Wells Fargo.

下一個問題來自Wells Fargo的Tim Conder。

A couple of things. On the Planet Fitness part, I just wanted to clarify here. Basically, your expectations, if I'm understanding them right, are unchanged, and you continue to expect to win a majority of that business, but not the same level as the prior contract. Is that the proper way to interpret that?

有幾點。關於Planet Fitness那一塊，我只是想在這裡釐清一下。基本上，如果我理解正確，你們的預期沒有改變，你們仍然預期會拿下該業務的大部分，但不會像先前合約那樣的水準。這樣解讀對嗎？

Tim, what we've really said in the -- Planet hasn't announced anything yet. And so our belief in those conversations is that they're not going to do an exclusive arrangement. And as a result of that, we've adjusted the mix down until we actually know what and how they're positioning, that's a little difficult. But we are the incumbent, we've got a great product, we think we've got great technical solutions, but it's clear that I think they're not going to have an exclusive agreement and therefore, we adjusted our second half down a bit for that.

Tim，我們真正說的是——Planet目前還沒有宣布任何事情。因此，我們從那些對話中的判斷是，他們不會採取獨家安排。也因此，在我們實際知道他們要怎麼做、以及如何定位之前，我們把組合占比下修了；在資訊未明的情況下，這確實有點難。但我們是既有供應商，我們有很好的產品，也有很好的技術解決方案；不過很明顯，我認為他們不會有獨家協議，因此我們把下半年預期稍微下調了一些。

Okay, okay. But I mean your -- I think you'd stated here before that your expectations were, you wouldn't be at the same level, so has that level, the new level, I should say, has that changed at all?

好的，好的。但我的意思是——我想你們之前在這裡說過，你們的預期是，不會維持在同樣的水準；所以那個水準——我應該說新的水準——有任何改變嗎？

Yes, Tim. The new level is a lower participation than previous, and that's what's [going to] incorporate in the second half. Yes.

是的，Tim。新的水準會比以前的參與度更低，而這就是[將會]納入下半年的部分。是的。

And that was incorporated in your guidance 90 days also?

而這也在你們90天前的指引中就已經納入了嗎？

Correct. Well, no. Incorporated into the guidance 90 days ago was more of a continue in current state. This incorporates a little bit of a reduction from that.

沒錯。嗯，不是。90天前納入指引的，較偏向於延續當前狀態。這次則是在那個基礎上再納入一點下修。

Okay, okay. Okay, that helps. And then just wanted to revisit the margins on the engines. Bill, I think you alluded to that given the -- some of the impacts of weather, that hurts the P&A. But Bill, Mark, whoever wants to take this, are you -- should we start to see here more in Q2 and beyond, likely share gains from your larger competitor given their delivery issues that they've been having and continue to have? And then also, as the V6 product starts to get into the market? And then therefore, margins -- we should see better margin performance over the balance of the year in the engine segment?

好的，好的。好的，這有幫助。然後我想再回到引擎的毛利率。Bill，我想你提到，因為——一些天氣的影響，這會傷到P&A。但Bill、Mark，或任何想回答的人，你們是否預期我們在第二季以及之後，會開始看到因你們較大競爭對手一直存在且持續的交付問題，而帶來的市占提升？另外，隨著V6產品開始進入市場？因此，引擎部門在今年剩餘期間的毛利率表現應該會更好嗎？

Yes, we -- I think the direction we gave said we were going to have margin improvement in the engine business for the year. That's making the assumption, obviously, that as we move through the year, we are going to have some of the benefits from the V6 and other launches that will follow. And obviously, we've never been bashful about saying that new products we're bringing out are generally at a lower cost than the product they're replacing. So we'd expect to see some margin expansion as we go across the year. Based upon the new product, but also the elimination of some of the launch and start-up, and investments in that regard.

是的，我們——我想我們給出的方向是，引擎業務今年的毛利率會改善。這當然是基於一個假設：隨著年度推進，我們將會獲得V6以及後續其他上市產品帶來的一些效益。而且很明顯，我們從不避諱地說，我們推出的新產品通常成本會低於它所取代的產品。因此，我們預期隨著年度推進，毛利率會有一些擴張。這來自新產品，也來自於消除部分上市與啟動階段，以及相關的投資。

Tim, I think the long-term view here is that we got, in the second quarter, starting to see some of the benefits of the new engines that Mark referenced. But there's still quite a bit of investment going on: a, making sure that we're doing the right amount of promoting in advance of the products coming out into the marketplace, especially in customers' hands. And then 2, we're not turning the spigot off on product investment and new programs continue, they all have, I think very good long-term prospects and the second quarter is a period of time where we see maybe a little bit more investment, which, if you start to think about timing of margins, the back half of Marine segment, margins ought to be improved versus kind of more flattish in the first half.

Tim，我認為這裡的長期觀點是，我們在第二季開始看到 Mark 所提到的新引擎帶來的一些效益。但仍有相當多的投資正在進行：一是確保在產品進入市場、尤其是在客戶手上之前，我們做了適當程度的前置推廣。第二，我們並沒有把產品投資的水龍頭關掉，新專案仍在持續推進；我認為它們都有非常好的長期前景，而第二季是我們可能看到投資稍微多一些的期間；如果你開始思考毛利率的時點，海事（Marine）事業部下半年毛利率應該會較上半年那種較為持平的狀況有所改善。

Okay, okay. And then last question, gentlemen, on Boats. Ongoing, I think you were doing expansion in Whaler last year. You mentioned you're doing some further expansion in the high-end. Was that planned or ending late last year and into now, are you just continuing to see greater than expected demand requiring further expansion?

好的，好的。那最後一個問題，各位先生，關於船艇（Boats）。持續來看，我記得你們去年在 Whaler 做了擴產。你們提到正在高階產品再做一些擴產。那是原本就規劃好的，還是說從去年底到現在，你們只是持續看到超出預期的需求，因此需要進一步擴產？

No, I mean, Tim, I guess, the clarification, it's a multi-year expansion. We -- relative to Whaler, all the way from purchasing the land next door and parking lots, and then putting buildings where the parking and increasing lamination or increasing assembly or increasing. So it's a multi-year capacity expansion that we are doing on the Whaler facility.

不是，我的意思是，Tim，我想澄清一下，這是一個多年期的擴產計畫。我們——就 Whaler 而言，從購買隔壁的土地與停車場開始，接著在原本停車的地方蓋建物，並提升層壓（lamination）產能或提升組裝（assembly）產能，或是提升其他產能。所以這是我們在 Whaler 廠區進行的多年期產能擴張。

But it is in response to strong demand and probably a bit earlier than we would have anticipated when we did the first expansion a couple of years ago. Demand for the product has far outpaced what our expectations were at the time.

但這確實是因應強勁需求，而且可能比我們在幾年前做第一次擴產時所預期的還要更早。產品需求遠遠超過我們當時的預期。

And the next question comes from James Hardiman from Wedbush.

下一個問題來自 Wedbush 的 James Hardiman。

So a lot to like about the quarter and the guide, of course, I'm going to focus on Fitness, which is where maybe there's a little bit of dislocation versus how we, and you, were thinking about it. So I guess my first question, to follow up on Tim's question about Planet Fitness. So it was my understanding that with exclusivity came better pricing. So if you're no longer going to be exclusive, I would think that, that would be a negative to sales and a positive to margins. The guidance change would seem to suggest the opposite of that, that the top line guidance for Fitness, as an entire category, is unchanged whereas the margin guidance is down. I don't know if those 2 are connected in any way, but help me understand that.

這一季的表現和指引有很多值得肯定的地方，當然我會把焦點放在 Fitness，因為那裡可能和我們、以及你們原先的想法相比，有一些落差。所以我第一個問題是，延續 Tim 關於 Planet Fitness 的提問。我的理解是，獨家（exclusivity）會帶來更好的定價。所以如果你們不再是獨家，我會認為這對銷售是不利、但對毛利率是有利的。但你們的指引調整似乎暗示相反：Fitness 作為整個類別的營收指引不變，但毛利率指引下調。我不確定這兩者是否有任何關聯，但請幫我理解一下。

Well, I mean, all of those matters, the easiest way to answer is, it's all part of the negotiation and discussions that are still going on. There's been no finalization or announcements at this point by Planet Fitness.

嗯，我的意思是，這些都相關；最簡單的回答是，這一切都是仍在進行中的談判與討論的一部分。Planet Fitness 目前尚未做出任何定案或公告。

But in terms of how you're factoring that into your guidance, you said that you're no longer assuming that you're going to have...

但就你們如何把這件事納入指引而言，你們說你們不再假設你們會有……

So we factored down some volume declines, but based upon the fact that we don't think it's exclusive, but there is puts and takes, and we're in -- still in negotiations, James. So that's the best place to leave that.

所以我們把部分出貨量下滑納入考量，因為我們認為不會是獨家；但同時也有一些正負因素互相抵銷，而我們——仍在談判中，James。所以這部分就先說到這裡。

Okay. Let me ask you this then. The first quarter, it seemed -- versus how you were thinking about it previously -- better-than-expected revenues, dramatically worse than expected margin. You're bringing down the margin for the year. When we talk about the various issues afflicting that -- the Fitness business, it's a similar list to what you've talked about out in the past. So I guess, what's incremental on Fitness? What sort of took you by surprise that's leading you to give the revenues the same, but bring down the margin assumption?

好的。那我再問這個。第一季看起來——相較於你們先前的預期——營收好於預期，但毛利率卻大幅差於預期。你們把全年毛利率下修。當我們談到影響 Fitness 業務的各種問題時，清單和你們過去談過的很類似。所以我想問，Fitness 有哪些新增的因素？有哪些讓你們意外的事情，導致你們維持營收不變、但下調毛利率假設？

Well, I mean, there's -- freight, we saw it first in the fourth quarter, so I would clearly keep the elements of freight as something that we haven't been able to totally turn that spigot off. And part of that, James, is really rate related nationally. So that's from a new development. The other I'd say is, although we buy very little foreign steel -- it's a small, small, small percent. We are seeing the impact of some of that coming through for domestically purchased steel. And so there's some new factors like that around some continuations from the freight, which is a bit of new news. But also the impacts of the duties and tariffs that are likely and starting to happen a bit coming through us as well as we look at the business and the balance of the year. And Bill, I don't know if you want to...

嗯，我的意思是——運費，我們在第四季就先看到了，所以我會很明確地把運費因素列為我們還沒能完全把那個水龍頭關掉的項目。而其中一部分原因，James，確實是全國性的費率相關。所以那是新的發展。另外我會說，雖然我們採購的外國鋼材非常少——占比非常非常非常小。但我們看到一些影響也反映在國內採購鋼材的成本上。因此有一些像這樣的新因素，再加上運費的延續影響（這算是比較新的消息）。同時，隨著我們檢視業務與今年剩餘期間，關稅與稅負（duties and tariffs）可能發生、且已開始有些發生的影響，也正透過我們反映出來。Bill，我不知道你是否想要……

No. It's...

不。這……

I mean, it's some of those things that are play. It's difficult when somebody is talking about putting a tariff in fairly quickly and the market moves on steel where you've got orders and pricing and things out there to get those changes in. So there is a time delay there, James.

我的意思是，這些因素確實在發揮作用。當有人談到很快就要加徵關稅，而鋼材市場又在波動時，你手上有訂單、有定價等各種安排，要把這些變動反映進去是很困難的。所以這裡會有時間落差，James。

So, just so I'm clear, that -- some of that guidance includes new duties and tariffs on some of your international product?

所以，為了確認清楚——你們的部分指引包含了對你們某些國際產品新增的稅負與關稅？

It includes higher cost of raw materials that could result from market -- that could be tied into market prices, James. So we are assuming that our input costs are going up. And we'll not (inaudible) price.

它包含了原物料成本上升，而這可能來自市場——也可能與市場價格連動，James。所以我們假設投入成本正在上升。而我們不會（聽不清楚）價格。

Got it. And I guess, just more broadly -- got it. So I guess bigger picture here, we sort of reset thinking on Fitness after 3Q, another time after 4Q. We're, to some degree, resetting expectations in 1Q. I guess, what assurances can you give us that you finally got your arms around the issues pertaining to Fitness? And as I guess -- as I think about Fitness as a separate entity, the increased focus that comes with that, will that allow that the business to not only better address some of these issues, but may be better anticipate some of these issues?

了解。那我想更廣泛地——了解。所以從更大的角度看，我們在 3Q 之後對 Fitness 的看法做了一次重置，4Q 之後又一次。而在 1Q 我們某種程度上又在重置預期。我想問，你們能給我們什麼保證，讓我們相信你們終於掌握了與 Fitness 相關的問題？以及我想——如果把 Fitness 當作一個獨立實體來看，隨之而來的更高專注度，是否能讓該業務不僅更好地處理這些問題，也能更好地預先掌握這些問題？

Well, I think it's pretty broad question there. I think the first part of this is, there are new elements that have come in from -- I don't think in the third quarter we are thinking about tariffs on steel. I don't think we're seeing some of the freight impacts, just some things that we saw in the third. So there's been new elements, James, that have come into play as we've moved from third to fourth to first. I think the other -- I don't think it would surprise you in saying this. The new product and the new model launches didn't go as smooth as we expected in the third quarter, and we've had some carryover of that. But I think the important thing is really that as the guidance we've given and we talk about, I think the exiting of 2018 is going to be at a different place than where we are today. And I think that's the real important element for -- as we look at 2019 and beyond. But it's -- there some new variables that have come into play, and I would tell you that product launches weren't as clean as we would've liked to have seen them.

嗯，我認為這是一個相當廣泛的問題。我想第一部分是，有一些新的因素加入——我不認為在第三季我們有在考慮鋼材關稅。我也不認為我們在第三季就看到一些運費的影響，或是那些我們在第三季看到的某些事情。所以從第三季到第四季再到第一季，確實有新的因素開始發揮作用，James。另外——我想我這麼說不會讓你意外。新產品與新機型的上市推進在第三季並沒有如我們預期般順利，而這也有一些延續影響。但我認為重要的是，依照我們給出的指引與我們所談到的，我認為 2018 年結束時的狀態會和我們今天所在的位置不同。而我認為那才是我們在看 2019 年及之後時真正重要的要素。但確實有一些新的變數加入，我也會告訴你，產品上市並沒有像我們希望看到的那麼順暢。

And our next question comes from David MacGregor from Longbow Research.

我們的下一個問題來自 Longbow Research 的 David MacGregor。

Just while we're talking about kind of raw materials and some of the inflation around tariffs. I mean, it wasn't only steel, it included aluminum as well. So I guess, I'm wondering about your aluminum fishing boat business and [has this] become a margin headwind into the second half?

趁我們在談原物料以及關稅帶來的一些通膨。我的意思是，不只是鋼材，也包含鋁。所以我想問的是，你們的鋁製釣魚船業務是否因此在下半年成為毛利的逆風？

Yes. So we buy very, very little foreign aluminum as well. The thing you've seen though is obviously aluminum prices going up. When there was the actions around Russia, you saw the stuff spike, they pulled some of that away, prices overnight dropped about 10%. So there's a lot of volatility in the aluminum market. But in the case of things like our pontoons and the aluminum fish, we've obviously -- it's not a function of the tariff per se, it's the function of literally how the domestic market is going to respond to the -- with that tariff being in place. And fundamentally, we think everybody's going to be affected equally there, and it's probably going to result in pricing across the board to the industry, which isn't material enough, in our opinion, to really change the demand profile and, therefore, shouldn't impact our margin profile.

是的。所以我們也只採購非常、非常少的進口鋁材。不過你看到的情況顯然是鋁價上漲。當時圍繞俄羅斯的行動發生時，你看到相關材料價格飆升，之後又撤回了一部分，價格一夜之間下跌了約 10%。所以鋁市場波動很大。但就像我們的浮筒船（pontoons）和鋁製釣魚船而言，顯然——這本身並不是關稅本身的問題，而是國內市場在關稅存在的情況下將如何反應的問題。而從根本上來看，我們認為大家在這方面都會同樣受到影響，這很可能會導致整個產業全面調價；以我們的看法，這個幅度不足以實質改變需求輪廓，因此也不應影響我們的毛利輪廓。

Have you advanced on pricing in those categories now or is that something you'd approach maybe later in the year?

你們現在已經在這些品類上調整價格了嗎？還是可能會在今年稍晚才採取行動？

Yes. We have already made those -- some of those announcements. And then typically about this time of the year, we are doing pricing for 2019 model year. So we've already taken some action, and we'll be looking at 2019 as well.

是的。我們已經做出了那些——其中一些公告。而且通常在每年這個時候，我們會為 2019 年式（model year）進行定價。所以我們已經採取了一些行動，也會同時檢視 2019 年的定價。

Is this an issue that we need to think about with regard to the fiberglass product as well, just with resin prices and everything else there?

就玻璃纖維產品而言，樹脂價格以及其他因素，這也是我們需要考慮的問題嗎？

No, the resin stuff, those things are more around the oil side, and a lot of that stuff is -- it's not as tied to purely oil, as one might think, but those, a lot of those things are in multi-year contractual arrangements as well.

不，樹脂那些事情更多是與油價端相關，而且其中很多——它並不像人們想的那樣完全與油價緊密連動，但其中很多也都在多年期的合約安排之中。

Okay. My second question was just a there's been sort of a longer-term concern about your ability to attract first-time boaters. So I guess I just wanted to take your temperature on opening price point boat product and maybe just a Bayliner brand or just that lower end of the market, that lower price point -- what kind of traffic you're seeing that and how that's trending?

好的。我的第二個問題是，長期以來外界一直擔心你們吸引首次購船者的能力。所以我想了解一下你們在入門價位船艇產品方面的情況，可能是 Bayliner 品牌或市場較低端、較低價位那一塊——你們看到的客流情況如何、趨勢如何？

I mean, first of all, the Bayliner brand is doing extremely well. And on the entry side, our Lowe brand is really focused around the entry market coming in. So if you look at some of that, and you'll notice, we -- in the slide presentation, we showed the things around aluminum fish, but we also started to separate some of the smaller fiberglass areas. And Bayliner's had some really -- has had some really nice -- the other -- one of the things is, one of our customers who -- TRACKER, for instance, has been running some -- a heritage model and some things around their entry, and I think the data would tell you they're actually attracting used boat buyers into buying new. So there's a lot of things going on, David, about the entry boater and being attentive to those price points.

我的意思是，首先，Bayliner 品牌表現非常好。而在入門端，我們的 Lowe 品牌非常聚焦於切入入門市場。所以如果你看其中一些內容，你會注意到我們——在投影片簡報中，我們展示了鋁製釣魚船相關的內容，但我們也開始把一些較小型的玻璃纖維領域區分開來。而 Bayliner 也有一些非常——表現非常不錯——另外——其中一件事是，我們的一位客戶——例如 TRACKER——一直在推出一些——傳承款（heritage model）以及一些入門端的產品，我認為數據會告訴你，他們其實正在把二手船買家吸引來購買新船。所以在入門船主這塊有很多事情正在發生，David，我們也很關注這些價位帶。

And our next question comes from Joe Altobello from Raymond James.

我們的下一個問題來自 Raymond James 的 Joe Altobello。

First, just kind of one big picture question on the U.S. powerboat market. Obviously, the slowdown in the first quarter. Dealer inventories backed up a little bit. You guys did -- attribute that to weather, which I don't disagree with, but I'm just curious how confident you guys are that it is really weather-related because you are looking for 3% to 5% growth this year after that slow start in the first quarter. And I understand that the big months are still in front of us, but what are you hearing from dealers, what are you hearing from customers that gives you comfort that it is weather-related and not just a slowdown after multiple years of expansion?

首先，關於美國動力船市場的一個宏觀問題。顯然第一季出現放緩。經銷商庫存有些回升。你們把這歸因於天氣，我也不反對，但我想知道你們有多大信心這確實是天氣因素，因為在第一季開局偏慢之後，你們仍預期今年成長 3% 到 5%。我理解旺季的大月份還在後面，但你們從經銷商那裡聽到什麼、從客戶那裡聽到什麼，讓你們放心這是天氣因素，而不是在連續多年擴張後的放緩？

Yes, and some of this is quantitative and some is qualitative, Joe. But it goes all that away from attendance at boat shows to dealers' sentiments. The fact that we're getting dealers even with the current weather, still doing some additional orders because of their anticipated selling out or wanting some more product going into the season. There's things like request for assistance to sell product. We're not seeing any of that kind of things going on. So fundamentally, we think it's more a case of a delay or when you call the dealers, they'll talk about they've got contracts and deposits on the products. So all those things continue to tell us it's timing, not really market demand.

是的，Joe，其中一部分是量化的，一部分是質化的。但這涵蓋了從船展出席人數到經銷商情緒等各方面。事實上，即使在目前的天氣狀況下，我們仍看到經銷商因為預期會賣到缺貨、或希望在旺季前備更多貨，而追加一些訂單。也有像是請求協助銷售產品之類的情況。我們沒有看到那類事情發生。所以從根本上來看，我們認為這更像是延後；或者當你打電話給經銷商時，他們會談到他們已經有合約與訂金在產品上。因此，所有這些都持續告訴我們，這是時間點問題，而不是真正的市場需求問題。

Okay, great. And then secondly, on Sea Ray. Sounds like the timing hasn't changed, you're still looking at late June for a close there. You guys talked about that you expect to book a loss on that sale, any update on the expected loss?

好的，很好。第二個問題，關於 Sea Ray。聽起來時程沒有改變，你們仍預期在 6 月底完成交割。你們提到預期會在這筆出售上認列損失，對預期損失金額有任何更新嗎？

No, the sales process is continuing as we outlined. We expect to close in the second quarter and that's really the direction in what we've communicated.

沒有，出售流程仍如我們所說的持續進行。我們預期在第二季完成交割，這也就是我們對外溝通的方向。

And this concludes the question-and-answer session. I'll turn the call back over to Mark for final remarks.

問答環節到此結束。我將把電話交回給 Mark 作最後結語。

I want to thank everyone for their -- the time and attention here today. We think we've started off the year, a great first quarter and I said it in my comments, I think the marine business and, in particular, Mercury, it's just going to be a momentous year for us as we really look at this whole array of new products we're bringing to the market across 2018. And I think as we continue to bring these out, you'll continue to understand our confidence in the guidance and direction we're giving around the marine business. So I thank you.

我要感謝各位今天在此投入的——時間與關注。我們認為今年開局良好，第一季表現很棒；我在評論中也提到，我認為海事業務，尤其是 Mercury，對我們而言將會是具有里程碑意義的一年，因為我們在 2018 年將把一整套新產品推向市場。我想隨著我們持續推出這些產品，你們也會持續理解我們對海事業務所提供之指引與方向的信心。所以謝謝大家。

Thank you, ladies and gentlemen. This concludes today's conference call. Thank you for your participation and you may now disconnect.

謝謝各位女士先生。今天的電話會議到此結束。感謝各位的參與，您現在可以掛線。