BowFlex Inc (BFX) 2019 Q1 法說會逐字稿

Good day, and welcome to the Nautilus Inc.

美好的一天，歡迎來到鸚鵡螺公司。

First Quarter 2019 Earnings Results Conference Call.

2019 年第一季度盈利結果電話會議。

Today's conference is being recorded.

今天的會議正在錄製中。

At this time, I would like to turn the conference over to John Mills with ICR.

現在，我想將會議交給 ICR 的約翰·米爾斯 (John Mills)。

Please go ahead, sir.

請繼續，先生。

Thank you.

謝謝。

Good afternoon, everyone.

大家下午好。

Welcome to Nautilus' First Quarter 2019 Conference Call.

歡迎參加 Nautilus 2019 年第一季度電話會議。

Participants on the call from Nautilus are Carl Johnson, Interim Chief Executive Officer; Sid Nayar, Chief Financial Officer; and Bill McMahon, Special Assistant to the CEO.

參加 Nautilus 電話會議的包括臨時首席執行官 Carl Johnson； Sid Nayar，首席財務官；和首席執行官特別助理比爾·麥克馬洪(Bill McMahon)。

Our earnings release was issued earlier today and may be downloaded from our website at nautilusinc.com on the Investor Relations page.

我們的收益報告於今天早些時候發布，可以從我們的網站 nautilusinc.com 的投資者關係頁面下載。

The earnings release include a reconciliation of the non-GAAP financial measures mentioned in today's call to the most directly comparable GAAP measures.

收益發布包括今天電話會議中提到的非公認會計原則財務指標與最直接可比的公認會計原則指標的調節。

Remarks on today's conference call will include forward-looking statements within the meaning of the securities laws.

今天電話會議的發言將包括證券法含義內的前瞻性陳述。

These include statements concerning financial projections; operating trends; anticipated growth and profitability; anticipated timing and market acceptance of new product introductions and the impact of new product introductions on our future financial results; planned capital expenditures; and anticipated results of new product, business development initiatives and strategic partnerships.

其中包括有關財務預測的聲明；經營趨勢；預期增長和盈利能力；新產品推出的預期時間和市場接受度以及新產品推出對我們未來財務業績的影響；計劃的資本支出；新產品、業務發展計劃和戰略合作夥伴關係的預期成果。

Forward-looking statements are subject to a number of risks and uncertainties, and actual results may differ materially from these statements.

前瞻性陳述受到許多風險和不確定性的影響，實際結果可能與這些陳述存在重大差異。

Additional factors that could cause Nautilus' actual results to differ materially from these forward-looking statements include legal and anticipated demand for new or existing products; our ability to timely acquire inventory that meets our quality control standards from sole source foreign manufacturers at acceptable costs; experiencing delays and/or greater-than-anticipated costs in connection with the launches of new products, entry into new markets or strategic initiatives; our ability to hire and retain key management personnel; changes in consumer fitness trends; changes in the media consumption habits of our target consumers or the effectiveness of our media advertising; a decline in consumer spending due to the unfavorable economic conditions; and softness in the retail marketplace.

可能導致 Nautilus 的實際結果與這些前瞻性陳述產生重大差異的其他因素包括對新產品或現有產品的法律和預期需求；我們有能力以可接受的成本從單一來源的外國製造商處及時獲取符合我們質量控制標準的庫存；在推出新產品、進入新市場或戰略舉措方面遇到延誤和/或超出預期的成本；我們僱用和留住關鍵管理人員的能力；消費者健身趨勢的變化；我們的目標消費者的媒體消費習慣或我們的媒體廣告效果的變化；由於不利的經濟狀況導致消費者支出下降；以及零售市場的疲軟。

For more information about these risks and uncertainties, please refer to today's earnings announcement and our most recent annual report on Form 10-K and supplemented by our quarterly reports on Form 10-Q.

有關這些風險和不確定性的更多信息，請參閱今天的收益公告和我們最新的 10-K 表格年度報告以及 10-Q 表格季度報告的補充。

Nautilus undertakes no obligation to update or otherwise publicly release any revision to forward-looking statements to reflect new information, events or circumstances after they were made or to reflect the occurrence of unanticipated events.

Nautilus 不承擔更新或以其他方式公開發布前瞻性陳述的任何修訂的義務，以反映前瞻性陳述作出後的新信息、事件或情況，或反映意外事件的發生。

All information and comments regarding our operating results pertain to our continuing operations unless otherwise noted.

除非另有說明，有關我們經營業績的所有信息和評論均適用於我們的持續經營。

And with that, it is my pleasure to turn the call over to our interim CEO, Mr. Carl Johnson.

至此，我很高興將電話轉給我們的臨時首席執行官卡爾·約翰遜先生。

Thank you, John.

謝謝你，約翰。

Good afternoon, everyone, and thank you for joining our call today.

大家下午好，感謝您今天加入我們的電話會議。

I would like to start today's call with a brief summary of my experience with Nautilus and my background.

我想在今天的電話會議開始時簡要總結一下我在 Nautilus 的經歷和我的背景。

Although, I was new to Nautilus management when I was appointed interim CEO on March 2nd, I was not new to the company.

雖然，當我 3 月 2 日被任命為臨時首席執行官時，我對 Nautilus 管理層還是個新人，但我對這家公司來說並不陌生。

I joined the Board of Directors in 2010 and have served as Chairman of the Board since 2011.

我於 2010 年加入董事會，並自 2011 年起擔任董事長。

During my tenure, annual sales have grown from about $170 million in 2010 to about $400 million today, with a significantly increased market cap.

在我任職期間，年銷售額從 2010 年的約 1.7 億美元增長到如今的約 4 億美元，市值也大幅增加。

Over this time period, we have strengthened our balance sheet and have grown market share in both the Retail and Direct segments.

在此期間，我們加強了資產負債表，並增加了零售和直營領域的市場份額。

We have done this by building a robust knowledge of consumer insights, investing in advertising and media and by investing in a new product development, including a state-of-the-art innovation center.

我們通過建立豐富的消費者洞察知識、投資廣告和媒體以及投資新產品開發（包括最先進的創新中心）來實現這一目標。

In addition, we have continued to add to the team by hiring great innovation talent in a variety of roles.

此外，我們還通過聘請擔任各種角色的優秀創新人才來不斷充實團隊。

These investments have resulted in a series of high quality, unique fitness offerings, with a robust pipeline ahead.

這些投資帶來了一系列高品質、獨特的健身產品，並擁有強大的產品線。

From a historical perspective, we have faced challenging fitness and market situations before.

從歷史的角度來看，我們曾經面臨過充滿挑戰的健身和市場形勢。

And due to the talent of the Nautilus team and our strong brands key advantage strengths, we have been able to overcome these challenges successfully in the past.

由於 Nautilus 團隊的才華和我們強大的品牌關鍵優勢，我們過去能夠成功克服這些挑戰。

As I will outline in a few minutes, I am fully confident that we'll do the same this year and in 2020.

正如我將在幾分鐘內概述的那樣，我完全有信心我們今年和 2020 年也會這樣做。

We know what the temporary challenges are, and they are certainly solvable.

我們知道暫時的挑戰是什麼，而且它們當然是可以解決的。

Now just a few words about my background.

現在簡單介紹一下我的背景。

I've been privileged to have worked in my career for some of the most iconic consumer products with companies in the world including Colgate-Palmolive, Kraft Foods, Campbell Soup and, most recently, Del Monte Foods and Big Heart Pet Brands.

我很榮幸能夠在我的職業生涯中為世界上一些最具標誌性的消費品公司工作，包括高露潔棕欖、卡夫食品、金寶湯，以及最近的德爾蒙特食品和 Big Heart Pet Brands。

I have run small- and medium-sized businesses and large multibillion-dollar organizations.

我經營過中小型企業和價值數十億美元的大型組織。

My expertise beyond general management is in consumer marketing and strategy, the areas in which we believe Nautilus' current challenges are centered.

除了一般管理之外，我的專業知識還包括消費者營銷和戰略，我們認為鸚鵡螺當前面臨的挑戰集中在這些領域。

And with that, I will now provide a general overview of our first quarter 2019, discuss our business segments as well as new product activity and then turn the call over to Sid Nayar to review our financials in more detail.

接下來，我將概述 2019 年第一季度的情況，討論我們的業務部門以及新產品活動，然後將電話轉給 Sid Nayar，以更詳細地審查我們的財務狀況。

I will close with a few final remarks before opening the call up to your questions.

在開始電話會議回答大家的問題之前，我將作最後幾句話的結束語。

During the quarter, the same issues that affected us in the fourth quarter of 2018 continued into 2019.

在本季度，2018 年第四季度影響我們的相同問題持續到 2019 年。

As expected, we experienced soft sales in the Direct segment due to the slow ramp of the refreshed Max Trainer product and our new digital platform, while the Retail segment was impacted by temporarily elevated inventory stocking levels with the key retailers.

正如預期的那樣，由於更新後的 Max Trainer 產品和我們的新數字平台的緩慢增長，我們在直營部門經歷了疲軟的銷售，而零售部門則受到主要零售商庫存水平暫時升高的影響。

To combat the challenges in Direct, as a highest priority, we have initiated short- and longer-term actions to address the underlying issues.

為了應對 Direct 中的挑戰，我們已啟動短期和長期行動來解決根本問題，這是我們的首要任務。

We are working in the immediate term to boost performance in Direct through a broad range of tactical digital, social media and PR programs to support the Bowflex Max Trainer, the digital platform and other Direct products.

我們近期正在努力通過廣泛的戰術數字、社交媒體和公關計劃來支持 Bowflex Max Trainer、數字平台和其他 Direct 產品，從而提高 Direct 的績效。

To recap the underlying issues in Direct, we have identified through research and analysis that the miss with Max Trainer starting in the fourth quarter traces to suboptimal advertising creative that did not resonate with consumers and resulted in low awareness and insufficient communication of the differentiated digital capabilities of the platform.

為了回顧Direct 的根本問題，我們通過研究和分析發現，從第四季度開始，Max Trainer 的失敗可歸因於廣告創意欠佳，未能引起消費者共鳴，導致差異化數字能力的認知度低和溝通不足。平台的。

Our team is working to develop effective new positioning and advertising for Bowflex, the Max Trainer line and our digital platform using leading-edge consumer insights techniques.

我們的團隊正在努力利用領先的消費者洞察技術為 Bowflex、Max Trainer 系列和我們的數字平台開發有效的新定位和廣告。

Important to note, early adopters of the latest Max Trainer product offerings with digital capabilities have overall provided very positive meaningful insights that we believe will translate into improvements in both the system and the messaging.

值得注意的是，具有數字功能的最新 Max Trainer 產品的早期採用者總體上提供了非常積極且有意義的見解，我們相信這些見解將轉化為系統和消息傳遞的改進。

By September, we expect to have a vastly improved advertising campaign and media spin strategy rolled out so we are ready for the next holiday and fitness season and can return the Direct business to a profitable growth trajectory as we exit 2019.

到 9 月，我們預計將推出大幅改進的廣告活動和媒體宣傳策略，以便我們為下一個假期和健身季節做好準備，並在 2019 年結束時使 Direct 業務恢復盈利增長軌道。

In our Retail segment, sales were temporary affected this quarter due to the expected realignment of inventories at select strategic partners.

在我們的零售部門，由於選定戰略合作夥伴的庫存預計將進行調整，本季度的銷售受到暫時影響。

However, we continue to see strong sell-through and expect a healthy fall and a holiday season for the Retail segment.

然而，我們仍然看到強勁的銷售量，並預計零售領域將迎來健康的秋季和假日季。

Turning now to the digital platform.

現在轉向數字平台。

Even though it is not happening as quickly as we have previously expected, we continue to see improved adoption and subscription rates with Max Intelligence.

儘管發生的速度沒有我們之前預期的那麼快，但我們仍然看到 Max Intelligence 的採用率和訂閱率有所提高。

To further increase our customer engagement, we recently begin offering a 2-month free trial to all new users of the digital platform.

為了進一步提高客戶參與度，我們最近開始向數字平台的所有新用戶提供為期 2 個月的免費試用。

This move has the added benefit of giving all users access to the customized and personalized workout features, which can help them better achieve their fitness goals and allowing them to try RunSocial, a video app that combines social running with high-definition videos of amazing running routes; Bowflex Radio and workout videos to better understand the value of these features.

此舉還有一個額外的好處，那就是讓所有用戶都可以使用定制化和個性化的鍛煉功能，這可以幫助他們更好地實現健身目標，並允許他們嘗試RunSocial，這是一款將社交跑步與精彩跑步的高清視頻相結合的視頻應用程序路線； Bowflex Radio 和鍛煉視頻可以更好地了解這些功能的價值。

We believe we have a sticky platform, and once we get customers using it and seeing the increased functionality, they will likely become loyal subscribers.

我們相信我們擁有一個粘性平台，一旦我們讓客戶使用它並看到增加的功能，他們很可能會成為忠實的訂閱者。

We also began expanding the capabilities of our digital offering to further enhance the customer experience.

我們還開始擴展數字產品的功能，以進一步增強客戶體驗。

We are utilizing direct communication and feedback with thousands of users on our platform to quickly add highly requested features, and we will continue to do so with the intent of developing the best and most engaging individualized user experience in the industry.

我們正在利用與我們平台上數千名用戶的直接溝通和反饋來快速添加高要求的功能，並且我們將繼續這樣做，旨在開發業內最好、最具吸引力的個性化用戶體驗。

This includes more advanced coaching, further deployment of our artificial intelligence capabilities, features to allow sharing on social media and even more music choices.

這包括更高級的指導、進一步部署我們的人工智能功能、允許在社交媒體上分享的功能以及更多的音樂選擇。

Our the course of 2019, and with our partners Samsung, Vi and Feed.fm, we expect to introduce additional features such as language localization, tracking enhancements, a tighter integration of RunSocial into the platform, custom workout upgrades, fitness scores and much more.

2019 年，我們希望與合作夥伴 Samsung、Vi 和 Feed.fm 一起推出更多功能，例如語言本地化、跟踪增強、將 RunSocial 更緊密地集成到平台中、自定義鍛煉升級、健身分數等等。

Innovation has always been a top priority for this company, and we have plans to roll out a range of new products across all of our sales channels in the fall of 2019.

創新一直是該公司的首要任務，我們計劃於 2019 年秋季在所有銷售渠道推出一系列新產品。

Most importantly, we are pleased to announce the launch of our newest flagship product, the new Bowflex Max Trainer M10, combining an amazing cardio solution with upper-body strength training.

最重要的是，我們很高興地宣布推出我們最新的旗艦產品，即新型 Bowflex Max Trainer M10，它將令人驚嘆的有氧運動解決方案與上身力量訓練相結合。

The M10 provides the balanced full-body workout that helps build strength, burn fat and take control of their personal fitness.

M10 提供均衡的全身鍛煉，有助於增強力量、燃燒脂肪並控制個人健康。

One of the best features of a new M10 is the built-in Samsung 9.5-inch LCD display, which seamlessly connects with the latest-generation Max Intelligence digital platform.

新款M10的最佳功能之一是內置三星9.5英寸液晶顯示屏，可與最新一代Max Intelligence數字平台無縫連接。

With artificial intelligence coaching that learns from past performance, the app offers motivating, trainer-led custom workouts designed to help build healthy exercise habits and deliver effective personalized experiences.

通過從過去的表現中學習的人工智能指導，該應用程序提供激勵性的、由教練主導的定制鍛煉，旨在幫助建立健康的鍛煉習慣並提供有效的個性化體驗。

Other 2019 new product introductions include Bowflex treadmills with custom workouts and advanced personalized artificial intelligence coaching incorporating Vi technology; Octane commercial Max Trainer; and the Octane XR6000S, an upgrade to the latest elliptical line.

2019 年推出的其他新產品包括帶有定制鍛煉功能的 Bowflex 跑步機和採用 Vi 技術的高級個性化人工智能輔導； Octane 商業 Max Trainer； Octane XR6000S，是最新橢圓機的升級版。

We will continue to provide you with more detail on these new products and more as they come to market in the back half of the year.

我們將繼續為您提供有關這些新產品的更多詳細信息，以及它們將於今年下半年上市的更多信息。

And now Sid will provide an overview of the financials for the quarter.

現在 Sid 將概述本季度的財務狀況。

Sid?

席德？

Thank you, Carl.

謝謝你，卡爾。

Good afternoon, everyone.

大家下午好。

I'd like to review the details of our financial results for the first quarter of 2019.

我想回顧一下我們 2019 年第一季度財務業績的詳細信息。

Net sales for the first quarter totaled $84.4 million, a decrease of 26.5% as compared to the same period in the prior year, reflecting a 34.4% decline in Direct segment sales and a 14.4% decrease in the Retail segment.

第一季度淨銷售額總計8440萬美元，同比下降26.5%，其中直接部門銷售額下降34.4%，零售部門銷售額下降14.4%。

First quarter gross margins in the Direct segment decreased by 650 basis points to 56.5% and were down by 790 basis points in the Retail segment to 23.3% when compared to the same quarter last year.

與去年同期相比，第一季度直營業務毛利率下降 650 個基點至 56.5%，零售業務毛利率下降 790 個基點至 23.3%。

Margins in both segments were negatively impacted by unfavorable overhead absorption related to the decline in sales coupled with unfavorable product mix.

這兩個部門的利潤均受到與銷售下降以及不利的產品組合相關的不利管理費用吸收的負面影響。

On an overall basis, total company gross margins for the first quarter of 2019 decreased by 880 basis points to 42.5% versus the same period last year, reflecting the lower rate in both segments and a shift in channel mix to an increased percentage of Retail segment revenue.

總體而言，2019年第一季度公司總毛利率較去年同期下降880個基點至42.5%，反映出兩個細分市場的毛利率均較低，以及渠道組合向零售細分市場比例增加的轉變收入。

Total operating expenses for the first quarter of 2019 as a percentage of net sales increased to 54.5% from 42% in the same period last year, primarily reflecting the decrease in sales.

2019年第一季度總運營費用占淨銷售額的比例從去年同期的42%上升至54.5%，主要反映了銷售額的下降。

Sales and marketing expense for the first quarter of 2019 was $34 million or 40.3% of net sales as compared to $36.8 million or 32% of net sales in the same period last year.

2019 年第一季度的銷售和營銷費用為 3400 萬美元，占淨銷售額的 40.3%，而去年同期為 3680 萬美元，占淨銷售額的 32%。

The decreased dollar spending reflected a reduction in media spend along with lower financing fees related to the decrease in sales.

美元支出的減少反映了媒體支出的減少以及與銷售額下降相關的融資費用的降低。

The increase in sales and marketing as a percentage of sales reflects the decrease in sales.

銷售和營銷佔銷售額百分比的增加反映了銷售額的下降。

General and administrative expenses were $7.7 million or 9.1% of net sales for the first quarter of 2019 compared to $6.9 million or 6% of net sales in the same period last year.

2019 年第一季度的一般及管理費用為 770 萬美元，占淨銷售額的 9.1%，而去年同期為 690 萬美元，占淨銷售額的 6%。

The increased dollar spending in G&A primarily reflects increased legal cost partially offset by lower stock compensation expense.

G&A 美元支出的增加主要反映了法律成本的增加，部分被股票補償費用的減少所抵消。

Research and development expenses in the first quarter of 2019 were $4.3 million or 5.1% of net sales compared to $4.5 million or 3.9% of net sales in the same period last year.

2019 年第一季度的研發費用為 430 萬美元，占淨銷售額的 5.1%，而去年同期為 450 萬美元，占淨銷售額的 3.9%。

The dollar decrease reflects lower third-party app development spending.

美元下跌反映了第三方應用程序開發支出的減少。

Operating loss for the first quarter of 2019 was $10.2 million as compared to operating income of $10.7 million in the same quarter of last year.

2019 年第一季度的運營虧損為 1,020 萬美元，而去年同期的運營收入為 1,070 萬美元。

The decrease reflects the decline in sales and gross margin rates partially offset by the decrease in operating expenses.

這一下降反映出銷售額和毛利率的下降被營業費用的下降部分抵消。

EBITDA loss from continuing operations in the first quarter of 2019 was $8.1 million versus $13.1 million in income for the same quarter of the prior year.

2019 年第一季度持續運營帶來的 EBITDA 損失為 810 萬美元，而上年同期的收入為 1,310 萬美元。

Loss from continuing operations for the first quarter of 2019 was $8.5 million or minus $0.29 per diluted share as compared to income of $8.1 million or $0.27 per diluted share for the same period last year.

2019 年第一季度持續運營虧損為 850 萬美元，稀釋後每股收益減 0.29 美元，而去年同期收益為 810 萬美元，稀釋後每股收益減 0.27 美元。

The effective tax rate for the first quarter of 2019 was 20% compared to 23.7% in the same period last year.

2019年第一季度的有效稅率為20%，去年同期為23.7%。

Total net loss including discontinued operations for the first quarter of 2019 was $8.6 million or minus $0.29 per diluted share, which includes a $0.1 million loss, net of taxes, from discontinued operations.

2019 年第一季度包括終止經營業務在內的淨虧損總額為 860 萬美元，稀釋後每股虧損 0.29 美元，其中包括終止經營業務帶來的 10 萬美元的稅後虧損。

This compares to the first quarter last year when we reported total net income including discontinued operations of $8.1 million or $0.26 per diluted share, which included a net loss from discontinued operations of $0.1 million.

相比之下，去年第一季度我們公佈的包括終止經營業務在內的淨利潤總額為 810 萬美元，即稀釋後每股收益 0.26 美元，其中包括來自終止經營業務的淨虧損 10 萬美元。

Turning now to our segment results.

現在轉向我們的部門業績。

Net sales in the Direct business totaled $46.7 million for the first quarter of 2019, a 34.4% decrease over the same quarter last year.

2019年第一季度直營業務淨銷售額總計4670萬美元，比去年同期下降34.4%。

Direct segment sales were primarily impacted by a decline in Max Trainer sales.

直接部門銷售額主要受到 Max Trainer 銷售額下降的影響。

Gross margin for the Direct business declined to 56.5% for the first quarter of 2019 compared to 63% in the same quarter of last year due to unfavorable overhead absorption related to the lower sales coupled with unfavorable product mix due to lower Max Trainer sales.

2019 年第一季度，直接業務的毛利率下降至 56.5%，而去年同期為 63%，原因是銷售額下降導致的管理費用吸收不利，以及 Max Trainer 銷量下降導致的產品組合不利。

Operating loss for the first quarter of 2019 in our Direct business was $4.5 million compared to income of $11.3 million in the same quarter prior year.

2019 年第一季度我們的直接業務運營虧損為 450 萬美元，而上年同期的收入為 1130 萬美元。

Operating income was negatively impacted by the lower net sales and gross margins in the first quarter of 2019 partially offset by reduced marketing expenses.

2019 年第一季度淨銷售額和毛利率下降對營業收入產生了負面影響，但營銷費用減少部分抵消了這一影響。

Net sales in our Retail segment for the first quarter of 2019 were $36.8 million, a decrease of 14.4% compared to $43 million in the first quarter of last year.

2019 年第一季度零售部門的淨銷售額為 3680 萬美元，比去年第一季度的 4300 萬美元下降 14.4%。

The decrease was primarily due to lower order volume from certain customers working through reductions in inventory stocking levels.

減少的主要原因是某些客戶通過減少庫存水平而減少了訂單量。

Gross margins for the Retail business decreased by 790 basis points to 23.3% in the first quarter of 2019 as compared to 31.2% for the same quarter last year, mostly from unfavorable overhead absorption related to the lower sales coupled with unfavorable product mix.

2019 年第一季度，零售業務的毛利率下降 790 個基點，至 23.3%，而去年同期為 31.2%，這主要是由於銷售額下降以及不利的產品組合導致的管理費用吸收不利。

In the first quarter of 2019, operating loss for the Retail business totaled $0.7 million as compared to income of $3.9 million in the same period of last year.

2019年第一季度，零售業務運營虧損總計70萬美元，而去年同期收入為390萬美元。

The decrease is attributable to lower sales and gross margin rates.

下降的原因是銷售額和毛利率下降。

Now turning to the consolidated balance sheet.

現在轉向合併資產負債表。

Cash and investments totaled $23.6 million as of March 31, 2019, with $20.5 million of debt.

截至 2019 年 3 月 31 日，現金和投資總額為 2,360 萬美元，債務為 2,050 萬美元。

This compares to $63.5 million in cash and investments and debt of $32 million at December 31, 2018.

相比之下，截至 2018 年 12 月 31 日，現金和投資為 6,350 萬美元，債務為 3,200 萬美元。

While there will be seasonal working capital requirements for the business, we anticipate ending the year with a net cash balance.

雖然該業務會有季節性營運資金需求，但我們預計年底將出現淨現金餘額。

Inventories were $60.9 million as of March 31, 2019, compared to $68.5 million at December 31, 2018, and $37.7 million at March 31, 2018.

截至2019年3月31日，庫存為6090萬美元，而2018年12月31日為6850萬美元，2018年3月31日為3770萬美元。

As noted in our Q4 2018 release, we ended 2018 with more inventory than planned for, and we are strategically reducing inventory throughout 2019.

正如我們在 2018 年第四季度發布的報告中指出的，我們在 2018 年結束時的庫存量超出了計劃，並且我們將在 2019 年戰略性地減少庫存。

Trade payables were $40.7 million as of March 31, 2019, compared to $87.3 million at the end of 2018, reflecting seasonality of purchases as well as lower new inventory purchases during Q1 2019.

截至 2019 年 3 月 31 日，應付賬款為 4070 萬美元，而 2018 年底為 8730 萬美元，反映了採購的季節性以及 2019 年第一季度新庫存採購的減少。

Capital expenditures totaled $1.1 million for the 3 months ended March 31, 2019, with spending primarily on new software systems and production tooling and equipment.

截至 2019 年 3 月 31 日的三個月，資本支出總計 110 萬美元，主要用於新軟件系統以及生產工具和設備。

We anticipate full year CapEx to be in the range of $8 million to $10 million.

我們預計全年資本支出將在 800 萬至 1000 萬美元之間。

At this time, I'd like to turn the call back over to Carl for his final comments.

此時，我想將電話轉回卡爾以徵求他的最終意見。

Carl?

卡爾？

Thank you, Sid.

謝謝你，席德。

To sum up, over the past few months, we have done a thorough assessment of both our internal and external situations given the changes in our revenue trends and competitive landscape and weaker media ROI performance.

綜上所述，在過去的幾個月裡，鑑於我們的收入趨勢和競爭格局的變化以及媒體投資回報率表現的疲弱，我們對內部和外部的情況進行了全面的評估。

This assessment has led to a revised set of 2019 priorities on which the whole company is focused and which are designed to get Nautilus back on a profitable growth trajectory.

此次評估導致了整個公司重點關注的 2019 年優先事項的修訂，旨在讓 Nautilus 重回盈利增長軌道。

It is a testament to the hard work, flexibility and ingenuity of our employees that positions us to be able to do so while staying the course and maintaining a healthy balance sheet.

這證明了我們員工的辛勤工作、靈活性和聰明才智，使我們能夠在堅持到底並保持健康的資產負債表的同時實現這一目標。

And I thank all of our Nautilus team members for their dedication and excellent efforts.

我感謝所有 Nautilus 團隊成員的奉獻精神和出色的努力。

Our strategies over the next several months are clear and focused.

我們未來幾個月的戰略明確且重點突出。

We have multiple initiatives underway to return the Direct business to profitability by the fourth quarter of this year, including significant investments in creative, messaging, market research and commercial production, plus new products that we anticipate will directly influence traction within this channel.

我們正在採取多項舉措，力求在今年第四季度之前使直營業務恢復盈利，包括在創意、信息傳遞、市場研究和商業生產方面的大量投資，以及我們預計將直接影響該渠道吸引力的新產品。

In our Retail segment, we are introducing several new products that should provide further opportunities for market share growth in this channel as we head into the fitness season during the back half of the year.

在我們的零售部門，我們正在推出幾款新產品，隨著下半年健身季節的到來，這些產品將為該渠道的市場份額增長提供進一步的機會。

And we believe this will lead to retail growth in the third and fourth quarters.

我們相信這將帶來第三和第四季度的零售增長。

Initiatives including a workforce reduction, broad cost-containment controls, value-engineering initiatives and simplification of processes have been executed or are underway and will support improving our current operating margins and rescale our operations to be more profitable at current revenue levels and to lay the foundation to restore growth to the sales base.

包括裁員、廣泛的成本控制、價值工程舉措和流程簡化在內的舉措已經執行或正在進行，這些舉措將支持提高我們當前的營業利潤率，並重新調整我們的業務規模，以在當前的收入水平上實現更高的盈利，並奠定為銷售基礎恢復增長奠定基礎。

While we are not now in a position to provide full year guidance pending visibility into the traction gained from these various initiatives, we expect to see the changes we are making to the business start to impact results positively in the latter part of 2019.

雖然我們現在無法提供全年指導，但我們預計我們對業務所做的改變將在 2019 年下半年開始對業績產生積極影響。

I believe we have the right plans and people in place to work through our temporary setbacks and position Nautilus for continued growth and success in the years ahead.

我相信我們有正確的計劃和合適的人員來克服暫時的挫折，並使鸚鵡螺在未來幾年能夠持續增長和成功。

We have a distinct place in the fitness world and in our customers' lives, and we will continue to serve both through innovative and quality-driven products.

我們在健身界和客戶的生活中擁有獨特的地位，我們將繼續通過創新和質量驅動的產品提供服務。

And now I'd like to open the call up to your questions.

現在我想在電話會議上回答大家的問題。

Operator?

操作員？

(Operator Instructions) And we'll take our first question today from Michael Swartz with SunTrust.

（操作員說明）今天我們將回答 SunTrust 的 Michael Swartz 提出的第一個問題。

I guess my first question is just to -- it sounds like you've done some work around diagnosing maybe what's some of the challenges have been on the Direct business and perhaps, more specifically, with Max Trainer and Max Intelligence.

我想我的第一個問題只是——聽起來您已經做了一些工作來診斷 Direct 業務上可能面臨的一些挑戰，更具體地說，可能是 Max Trainer 和 Max Intelligence 方面的挑戰。

I guess I'm just trying to get a sense from a comfort standpoint of the -- it's a messaging issue maybe rather than something in the competitive environment or just with the way media is being consumed today.

我想我只是想從舒適的角度來理解——這可能是一個消息傳遞問題，而不是競爭環境中的問題，或者只是當今媒體消費方式的問題。

So maybe give us a little help understanding what you've diagnosed and how you course correct that?

那麼，也許可以給我們一些幫助，讓我們了解您的診斷結果以及您如何糾正它？

Fair enough.

很公平。

This is Carl.

這是卡爾.

First of all, we have used leading-edge consumer insights technique to get what the underlying issues are with the Direct business.

首先，我們使用領先的消費者洞察技術來了解直營業務的根本問題。

And so we have confirmed that the drivers behind the shortfall relate to suboptimal positioning in messaging and advertising.

因此，我們已經確認，短缺背後的驅動因素與消息傳遞和廣告方面的定位不理想有關。

And the steps we are taking longer term are directly designed to address those shortcomings.

我們長期採取的措施就是為了解決這些缺陷而直接設計的。

Certainly, the level of advertisings we said past, in the past -- over this past month and past quarter -- at the last quarter's call, the high level of spending by competition undoubtedly affected us to a certain extent.

當然，我們過去所說的廣告水平，過去——過去一個月和過去一個季度——在上個季度的電話會議上，競爭的高水平支出無疑在一定程度上影響了我們。

However, we were still spending at fairly heavy levels.

然而，我們的支出仍然相當高。

And while awareness may have been a factor, the primary factor is our own messaging and advertising.

雖然意識可能是一個因素，但主要因素是我們自己的信息和廣告。

Okay.

好的。

Okay.

好的。

That's helpful.

這很有幫助。

And then, just with the -- Sid, could you just give us a little bit more color on the inventory position at current?

然後，Sid，您能給我們更多關於當前庫存狀況的信息嗎？

It seems it's still elevated year-over-year.

看起來還是比去年同期有所上升。

When should we begin to see some of that improve and start to see the cash generation come in?

我們什麼時候應該開始看到其中的一些改善並開始看到現金的產生？

Sure.

當然。

So I probably would split it out by channel again.

所以我可能會再次按頻道將其拆分。

So we do believe some of the -- certainly on the Direct side, it's just the -- comes back to the hangover of certainly not meeting our expectations for Q4 and Q1, and we expect some of that product will just flow through the balance of this year.

因此，我們確實相信，其中一些——當然是在直接方面，這只是——回到了肯定無法滿足我們對第四季度和第一季度的預期的宿醉，我們預計其中一些產品將流經平衡今年。

So there won't be a significant ratchet down till we get through -- back into the Q3, Q4 season.

因此，在我們回到第三季度、第四季度之前，不會出現顯著的下降。

On the Retail side though, it's a little different.

但在零售方面，情況略有不同。

There were certain products that we felt we had an excess situation on which we are strategically and pretty significantly ramping back down, and we should anticipate getting through most of that by the end of the second quarter or latest by the early part of third quarter.

我們認為某些產品存在過剩情況，我們正在戰略性地大幅削減產品數量，我們預計將在第二季度末或最遲在第三季度初之前解決其中的大部分問題。

Next, we'll hear from Frank Camma with Sidoti.

接下來，我們將聽取 Frank Camma 和 Sidoti 的發言。

Just dovetailing on the inventory question.

只是與庫存問題相吻合。

Could you just talk about the split a little bit?

您能簡單談談分裂嗎？

Is it heavier in Direct than Retail as you would expect?

正如您所期望的那樣，直營業務比零售業務更重嗎？

Or is it pretty even?

或者說很均勻？

What's the...

這是什麼...

It's a little heavier on the Retail side.

零售方面的情況稍重一些。

When you sort of just look at the -- and maybe, I would say you're talking about probably at $10 million number, and it's probably split more like $7 million to $3 million between Retail and Direct.

當你看一下——也許，我會說你談論的可能是 1000 萬美元的數字，零售和直銷之間的分配可能更像是 700 萬到 300 萬美元。

Okay.

好的。

Great.

偉大的。

And you made a comment that in Retail there was still strong sell-through.

您評論說，零售業的銷售仍然強勁。

Can you talk about what categories and/or products specifically you're seeing that sell-through at?

您能具體談談哪些品類和/或產品的銷量較高嗎？

Yes.

是的。

I think it's really broad based, the sell-through that we are seeing.

我認為我們所看到的銷售量非常廣泛。

It's bikes.

是自行車。

It's treadmills.

這是跑步機。

It's pretty much -- it's kind of products across the board, I would say.

我想說，這幾乎是一種全面的產品。

We've seen some softness in Max Trainer sales at Retail, but all of these other categories have been really strong.

我們看到零售店 Max Trainer 的銷售有些疲軟，但所有其他類別的銷售都非常強勁。

Yes.

是的。

I was going to ask about that, the Max Trainer that you have at DICK'S, for example.

我想問一下這個問題，例如你們在 DICK'S 擁有的 Max Trainer。

Can you just talk about that initiative in general and how that's going?

您能簡單談談該倡議的總體情況以及進展如何嗎？

And what do you think that's doing for the business?

您認為這對企業有什麼好處？

Yes.

是的。

Frank, this is Bill.

弗蘭克，這是比爾。

I think -- yes, we still love the relationship with DICK'S Sporting Goods on allowing folks to try the product before they buy it, which is a real strategic advantage for us.

我認為 - 是的，我們仍然喜歡與 DICK'S Sporting Goods 的關係，允許人們在購買前試用產品，這對我們來說是一個真正的戰略優勢。

Certainly, DICK'S might have been -- there seems some slowdown in Max Trainer.

當然，DICK'S 可能是這樣——Max Trainer 似乎有些放緩。

But some of that is in anticipation of evolving to the new product, which our current plans would be that DICK'S Sporting Goods would plan to carry our new Max Trainer products in the fall.

但其中一些是為了發展到新產品，我們目前的計劃是 DICK'S Sporting Goods 計劃在秋季推出我們的新 Max Trainer 產品。

So we continue to feel like that's a very strong category and a great relationship.

所以我們仍然覺得這是一個非常強大的類別和良好的關係。

And I think it has helped the business in terms of creating awareness.

我認為它在提高意識方面對企業有所幫助。

As Michael before you had mentioned changing media landscape, so I mean it's an opportunity for us to get more visibility to that product line out, and we think ultimately more visibility to the Max Intelligence Platform.

正如邁克爾之前提到的不斷變化的媒體格局，所以我的意思是，這對我們來說是一個機會，可以讓我們更好地了解該產品線，我們認為最終可以提高 Max Intelligence 平台的知名度。

And I think Carl has something to add on that.

我認為卡爾對此還有一些補充。

I was going to make the last point you just made, Bill, and that's -- for the first time, we'll have the digital platform on the Max 6 and 8 out in retail at DICK'S.

Bill，我要強調你剛才提出的最後一點，那就是——我們將首次在 DICK'S 零售店推出 Max 6 和 8 上的數字平台。

And we'll be obviously demonstrating those capabilities in store.

我們將在商店中明顯地展示這些功能。

So we're quite excited about that proposition as is the customer.

因此，我們和客戶都對這個提議感到非常興奮。

Good.

好的。

And I guess last one if it gets through is just on Max Intelligence itself.

我想如果最後一項能夠通過的話，就只有 Max Intelligence 本身了。

Do you have any stats so far just on how many people or percentage or whatever are actually subscribing to the platform after they get the trial done?

到目前為止，您是否有任何統計數據表明有多少人或百分比或其他什麼在完成試用後實際訂閱了該平台？

We do.

我們的確是。

And those subscription rates and usage rates continue to grow continuously.

而且這些訂閱率和使用率還在持續增長。

So we're quite happy with that.

所以我們對此非常滿意。

That's only 6 months data though right now, right?

現在這只是 6 個月的數據，對吧？

Is it about right?

是關於正確的嗎？

Yes.

是的。

Yes.

是的。

A fair measure of stickiness would require an annual comp on that, but we're happy to see the trend improving.

公平地衡量粘性需要每年進行比較，但我們很高興看到趨勢有所改善。

And that's what we're trying to do.

這就是我們正在努力做的事情。

Despite our challenges and awareness in messaging, we're pleased with adoption of Max Intelligence.

儘管我們在消息傳遞方面面臨挑戰和認識，但我們對 Max Intelligence 的採用感到高興。

But I'd say we have more work to do there, just as we do in everything related to Direct.

但我想說，我們在這方面還有更多工作要做，就像我們在與 Direct 相關的所有事情上所做的那樣。

That's right.

這是正確的。

We're also seeing the average time spent on the platform and on the machine growing, which is another very encouraging sign for obviously mid- to longer-term adoption.

我們還看到在平台和機器上花費的平均時間在增長，這顯然是中長期採用的另一個非常令人鼓舞的跡象。

Next, we'll hear from Michael Kawamoto with D.A. Davidson.

接下來，我們將聽取邁克爾·河本 (Michael Kawamoto) 和 D.A. 的發言。戴維森。

Yes.

是的。

Can you just talk about what the M10 is?

你能簡單談談M10是什麼嗎？

Is that another iteration of the Max Trainer?

這是 Max Trainer 的另一次迭代嗎？

Or is that a new modality altogether?

或者說這完全是一種新的模式？

Yes.

是的。

Let's see.

讓我們來看看。

It's obviously an upgrade to the line.

這顯然是對產品線的升級。

The machine itself will be much more of a whole-body workout where the strength aspect of it is greatly ramped up.

機器本身將更多地是一種全身鍛煉，其力量方面將大大提高。

And so as far as the digital platform, it will have a 9.5-inch Samsung LCD screen on it and all the continually upgraded digital features.

就數字平台而言，它將配備9.5英寸三星液晶顯示屏以及所有不斷升級的數字功能。

So it's quite impressive machine, and we're excited about the potential.

所以這是一台令人印象深刻的機器，我們對其潛力感到興奮。

Got it.

知道了。

And so will the price point on that one be a little bit higher than the M8?

那麼該機的價格會比 M8 高一點嗎？

Yes.

是的。

A little bit higher than M8.

比M8高一點點。

So it'll make sense in the line of the product, and it will have more to say on that as we get closer to launch.

因此，它在產品線中是有意義的，並且隨著我們距離發布越來越近，它將有更多的內容。

Okay.

好的。

Yes.

是的。

And then you've talked about kind of accelerating Direct launches.

然後您談到了加速直接發布。

I think you started talking about that last year.

我想你去年就開始談論這個了。

Is that still the plan going forward to kind of do one big launch a year?

這仍然是每年進行一次大型發布的計劃嗎？

Yes.

是的。

In terms of the Direct business, we would like to get -- move up to once a year versus every few years.

就直接業務而言，我們希望將每隔幾年增加到每年一次。

We have additional products in the Direct pipeline that are near.

我們在附近的直接管道中還有其他產品。

They're certainly physical and they exist, and we're testing them now.

它們當然是物理的並且存在，我們現在正在測試它們。

I don't think we're ready to talk about them quite yet as the majority of our focus is really on the upfront addressing our Direct profitability challenges in the media and messaging.

我認為我們還沒有準備好談論它們，因為我們的大部分重點實際上是在前期解決媒體和消息傳遞方面的直接盈利挑戰。

So I think once we conquered that, we'll have more to say about additional products to layer on, but they are coming.

所以我認為一旦我們克服了這個問題，我們就會有更多關於其他產品的內容可以說，但它們即將到來。

And I would anticipate a launch in 2020 of a new Direct platform that's wholly new to the Direct space.

我預計 2020 年將推出一個全新的 Direct 平台，該平台對於 Direct 領域來說是全新的。

Right.

正確的。

Our next question comes from Steve Dyer with Craig-Hallum Capital Group.

我們的下一個問題來自 Craig-Hallum Capital Group 的 Steve Dyer。

Ryan Sigdahl on for Steve Dyer.

瑞安·西格達爾替補史蒂夫·戴爾。

So I notice you aren't giving formal guidance, but just to back in a few things you've said.

所以我注意到你沒有提供正式的指導，而只是為了支持你所說的一些事情。

So you expect to exit the year with positive net cash, which you currently have, while generating positive working capital from $10 million of inventory reduction.

因此，您預計今年結束時會獲得目前擁有的正淨現金，同時通過減少 1000 萬美元的庫存產生正的營運資金。

This plus other commentary it seems to imply that profitability is fairly unlikely or it will be a challenge in 2019.

加上其他評論，似乎意味著盈利的可能性相當小，或者將在 2019 年面臨挑戰。

Am I way off target there?

我是不是偏離了目標？

Or am I adding those right?

或者我添加這些對嗎？

Yes.

是的。

I can't comment on the '19 numbers, Ryan.

我無法對 19 年的數據發表評論，瑞安。

Okay.

好的。

Switching gears.

切換齒輪。

So as it relates to the new marketing strategies, are you changing advertising channels between digital, TV, social media?

那麼，就新的營銷策略而言，您是否正在改變數字、電視、社交媒體之間的廣告渠道？

Or is it more of a change in the content in messaging or maybe both?

或者更多的是消息傳遞內容的變化，或者兩者兼而有之？

Maybe a little color there?

也許那裡有一點顏色？

Sure.

當然。

I would say both.

我會說兩者。

The key thing is we've got to get the positioning and messaging right.

關鍵是我們必須正確定位和傳達信息。

And so the primary focus is there, but obviously, you have to have a media strategy going along with it.

所以主要焦點就在那裡，但顯然，你必須有一個與之相伴隨的媒體策略。

We do a fair amount of digital today, and we would expect that we would also do that and potentially use PR and organic social to a greater extent than we have historically.

今天我們做了相當多的數字化工作，我們希望我們也能這樣做，並可能比歷史上更大程度地使用公關和有機社交。

But those plans are still being worked on.

但這些計劃仍在製定中。

I'd say the primary thing is to get the messaging correct, but suffice to saying that we'll be making changes -- improvements in both.

我想說首要的事情是讓消息傳遞正確，但足以說明我們將做出改變——在這兩方面進行改進。

I would also note that we will be using an outside creative agency we are quite excited about.

我還要指出的是，我們將使用我們非常興奮的外部創意機構。

We're working on that path right now.

我們現在正在沿著這條道路努力。

We'll move on to our next question from Brennan Matthews with Berenberg.

我們將繼續討論布倫南·馬修斯和貝倫貝格提出的下一個問題。

So one thing I just wanted to ask about was it -- I think during Q4 you had kind of highlighted I think it was like some ERP issues in relation to the international business as well as commercial.

所以我想問的一件事是——我認為在第四季度你強調了我認為這就像一些與國際業務和商業相關的 ERP 問題。

And it sounds like you guys had fixed that in the fourth quarter.

聽起來你們在第四季度已經解決了這個問題。

But any commentary on kind of the trends you're seeing in those 2 channels?

但是對於您在這兩個渠道中看到的趨勢有什麼評論嗎？

And did the issues -- the ERP or integration issues you have there, I mean have they led to anymore kind of longer-term issues with your customers in those channels?

ERP 或集成問題是否會導致這些渠道中的客戶出現更多長期問題？

So we did had a little trailing factors coming out of that into the first quarter, but what I would say broadly is the international channel is doing well.

因此，我們確實在第一季度受到了一些影響，但我想說的是，國際渠道表現良好。

And we, just at a very high level, expect that to continue to grow in 2019.

我們預計這一數字將在 2019 年繼續增長。

We did see some challenges in the commercial side of the commercial specialty channel, which we think was really more timing related at this point.

我們確實看到了商業專業渠道的商業方面的一些挑戰，我們認為目前這實際上與時間更為相關。

But we did have some continued service issues in that channel in Q1, which I would say most of those are behind us.

但我們在第一季度的該渠道中確實遇到了一些持續的服務問題，我想說其中大部分已經過去了。

Okay.

好的。

And then one -- just kind of one other question.

然後還有一個問題——只是另一個問題。

I just wanted to understand a little bit better about kind of launching another Max Trainer product, I think this will be the sixth, especially kind of given some of the communication and messaging issues you guys have.

我只是想更好地了解如何推出另一個 Max Trainer 產品，我認為這將是第六個產品，特別是考慮到你們遇到的一些溝通和消息傳遞問題。

Why not -- I guess maybe why not wait until you've got that kind of messaging and communication piece out there?

為什麼不——我想也許為什麼不等到你有了那種消息傳遞和溝通的作品呢？

Or any concerns that just adding another product to that lineup could create any confusion?

或者是否擔心在該產品系列中添加另一種產品可能會造成混亂？

Well, I would say that when we launch the M10, it will be backed by our new messaging creative and, obviously, support it with significant media investment in both TV and, call it, the digital world.

好吧，我想說，當我們推出 M10 時，它將得到我們新的消息創意的支持，並且顯然，我們將在電視和數字世界方面進行大量媒體投資。

The Max 10 is actually a significant differentiated product from its other brothers and sisters in the line.

Max 10 實際上是一款與該系列其他兄弟姐妹產品顯著不同的產品。

And so we think the combination will be powerful, but clearly, the repositioning, the new messaging creative will be the primary driver.

因此，我們認為這種組合將是強大的，但顯然，重新定位、新的消息傳遞創意將是主要驅動力。

(Operator Instructions) We'll now hear from George Kelly with Imperial Capital.

（操作員指示）我們現在將聽取來自帝國資本公司的喬治·凱利的發言。

So just a few questions.

所以只有幾個問題。

First, I remember on your prior calls you talked about allow -- coming out throughout this year with sort of upgrades for your existing Bowflex machines, the non-Max Trainer machines to make them suitable for the intelligence platform.

首先，我記得在您之前的電話中您談到允許 - 今年全年對您現有的 Bowflex 機器、非 Max Trainer 機器進行某種升級，以使它們適合智能平台。

Is that still something that you're planning on doing this year?

這仍然是你今年計劃做的事情嗎？

Yes.

是的。

We're looking at 1 or 2 options for some of the other modalities, but we're not ready to announce that yet.

我們正在考慮其他一些方式的 1 或 2 個選項，但我們還沒有準備好宣布這一點。

Do you have anything, Bill?

比爾，你有什麼東西嗎？

Yes.

是的。

I'd just say we do have upgrade kits that are available now for M7 and M5, the existing Max Trainer lines.

我只想說，我們現在確實有適用於現有 Max Trainer 系列 M7 和 M5 的升級套件。

But as Carl noted, we are also looking at other modalities.

但正如卡爾指出的，我們也在考慮其他方式。

And we look at that in conjunction with it's our -- it is our plan and we will show in the near future expansion of the Max Intelligence line to other modalities.

我們結合我們的計​​劃來看待這一點，我們將在不久的將來展示 Max Intelligence 產品線向其他模式的擴展。

And as we look at those modalities, we're also looking at [all case], we have an existing base of customers.

當我們研究這些模式時，我們也在研究[所有情況]，我們擁有現有的客戶群。

It's a great opportunity to introduce them to the platform, how can we help them with that.

這是向他們介紹該平台的絕佳機會，我們如何幫助他們呢？

And so modality by modality, we'll tackle that problem, but it remains in the plans to do so where appropriate.

因此，我們將逐個方式解決這個問題，但它仍然在計劃中，在適當的情況下這樣做。

Yes.

是的。

I would just add that the upgrade kits to digital that Bill mentioned we're actually marketing those directly to owners of the Max 5 and Max 7. And so that is one of the short-term, call it, more tactical efforts that we're doing to boost sales and engagement in the platform more broadly across our franchise.

我只想補充一下，比爾提到的數字升級套件實際上是直接向 Max 5 和 Max 7 的用戶營銷這些套件。因此，這是我們的短期更具戰術性的努力之一。我們正在努力提高整個特許經營平台的銷售和參與度。

Okay.

好的。

Okay.

好的。

Got you.

明白你了。

And then a couple of questions just around the media advertising.

然後是關於媒體廣告的幾個問題。

Can you quantify what it was in the quarter?

您能量化本季度的情況嗎？

Or just talk sort of directionally about how it compared to last year?

或者只是直接談論一下與去年相比如何？

And what's the plan for the next couple of quarters until the new -- the Max 10 comes out?

在新產品 Max 10 面世之前，接下來幾個季度的計劃是什麼？

Yes.

是的。

So for this past quarter, George, we spent a total of $19.7 million compared to the prior year quarter, which was $21.3 million.

喬治，上個季度我們總共花費了 1970 萬美元，而去年同期為 2130 萬美元。

And again, I think what I can say is that till we get -- as Carl mentioned, till we get the messaging sorted out and ready to be repositioned, we probably will be looking at slightly scaled-back media in -- certainly for Q2 and the early part of Q3.

再說一次，我想我能說的是，直到我們得到——正如卡爾提到的，直到我們整理好消息​​並準備好重新定位，我們可能會考慮稍微縮減媒體規模——當然是在第二季度以及第三季度的早期。

What I would say is media in Q1 was probably high because we came out in January really with -- behind the new digital offering.

我想說的是，第一季度的媒體可能很高，因為我們在一月份推出了新的數字產品。

We continued to spend fairly heavily during the fitness season to continue to try to build awareness and scale back really only later in Feb and March.

我們在健身季節期間繼續投入相當大的資金，繼續努力提高人們的意識，直到二月和三月晚些時候才真正縮減規模。

Okay.

好的。

Okay.

好的。

And then, I guess last question for me.

然後，我想對我來說最後一個問題。

Just on -- 2 more questions.

還有 2 個問題。

First, I understand you're not providing full year guidance, but can you just -- it sounded -- I don't know if I heard you right in your prepared remarks, but it sounds like the trends in the second quarter in both the Retail and the Direct segments are somewhat similar with what you saw in the first quarter, and then you laid out a lot of initiatives you're working on that you hope will improve the trajectory of both businesses in the back half.

首先，我知道你沒有提供全年指導，但你能——聽起來——我不知道我在你準備好的講話中是否聽對了，但這聽起來像是第二季度的趨勢零售和直營部門與您在第一季度看到的情況有些相似，然後您提出了許多正在開展的舉措，希望這些舉措能夠改善下半年這兩項業務的發展軌跡。

Am I hearing that correctly?

我聽得對嗎？

Yes.

是的。

Certainly on the Direct side, I think that's fair.

當然，在直接方面，我認為這是公平的。

Retail is just more a quest -- as we work through the inventories, we should see improving trajectories in Retail.

零售業更多的是一種追求——當我們處理庫存時，我們應該看到零售業的改善軌跡。

And that could happen sooner than the back half, is what you're saying?

這可能會比後半段發生得更早，你是這麼說的嗎？

The second quarter might be a better -- the inventory situation won't take forever to work through?

第二季度可能會更好——庫存情況不會永遠解決？

Yes.

是的。

Exactly.

確切地。

It's just a question of whether it's sort of late second quarter or early third quarter for that to bounce back to normalized levels.

問題只是要到第二季度末還是第三季度初才能反彈到正常水平。

Okay.

好的。

Great.

偉大的。

And then last one for me, just the approvals in the Direct business.

最後一項對我來說就是直接業務的批准。

What were they in the first quarter?

第一季度的表現如何？

Approval rates still remained pretty decent.

批准率仍然相當不錯。

We're at 54.3%.

我們是 54.3%。

It was up about 80 basis points versus the same quarter last year.

與去年同期相比上漲約 80 個基點。

That will conclude today's question-and-answer session.

今天的問答環節到此結束。

At this time, I'd like to turn the conference over to Mr. Carl Johnson for any additional or closing remarks.

現在，我想將會議轉交給卡爾·約翰遜先生進行補充或結束語。

Thank you for joining our call today and your continued interest in Nautilus.

感謝您今天加入我們的電話會議以及您對 Nautilus 的持續關注。

We look forward to providing you with another update on the business in a few months on our second quarter earnings call.

我們期待在幾個月後的第二季度財報電話會議上為您提供有關該業務的最新信息。

Have a great rest of the day.

祝你這一天好好休息。

Thank you.

謝謝。

That will conclude today's conference.

今天的會議到此結束。

Thank you for your participation.

感謝您的參與。