Byrna Technologies Inc (BYRN) 2023 Q4 法說會逐字稿

Good morning.

早安.

Welcome to Byrna's fiscal fourth quarter and full year 2023 earnings conference call.

歡迎參加 Byrna 的第四財季和 2023 年全年收益電話會議。

My name is [Shamalu] and I will be your operator for today's call.

我的名字是 [Shamalu]，我將擔任您今天通話的接線生。

Joining us for today's presentation are the company's CEO, Bryan Ganz; and CFO, David North.

加入我們今天的演講的是該公司的執行長 Bryan Ganz；和財務長大衛·諾斯。

Following their remarks, we will open the call to questions.

在他們發表講話後，我們將開始提問。

Earlier today, Byrna released results for its fiscal fourth quarter and full year ended November 30, 2023.

今天早些時候，Byrna 發布了截至 2023 年 11 月 30 日的第四財季和全年業績。

A copy of the press release is available on the company's website.

該新聞稿的副本可在該公司網站上取得。

Before turning the call over to Bryan Ganz, Byrna Technologies' Chief Executive Officer, I will read the Safe Harbor statement.

在將電話轉給 Byrna Technologies 執行長 Bryan Ganz 之前，我將閱讀安全港聲明。

Some discussions held today include forward-looking statements.

今天舉行的一些討論包括前瞻性陳述。

Actual results could differ materially from the statements made today.

實際結果可能與今天的聲明有重大差異。

Please refer to Byrna's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections and assumptions.

請參閱 Byrna 最近的 10-K 和 10-Q 文件，以了解可能影響這些預測和假設的風險因素的更完整描述。

The company assumes no obligation to update forward-looking statements as a result of new information, future events, or otherwise.

本公司不承擔因新資訊、未來事件或其他原因而更新前瞻性陳述的義務。

As this call will include references to non-GAAP results, please see the press release in the investors section of our website, ir.byrna.com for further information regarding forward-looking statements and reconciliations of non-GAAP results to GAAP results.

由於本次電話會議將提及非 GAAP 業績，請參閱我們網站 ir.byrna.com 投資者部分的新聞稿，以了解有關前瞻性陳述以及非 GAAP 業績與 GAAP 業績對帳的更多資訊。

Now, I'd like to turn the call over to Byrna CEO, Bryan Ganz.

現在，我想將電話轉給 Byrna 執行長 Bryan Ganz。

Sir, please proceed.

先生，請繼續。

Thank you, operator, and thank you, everyone, for joining us today.

謝謝運營商，也謝謝大家今天加入我們。

This morning, we issued a press release providing our financial results for the fiscal fourth quarter and full year ended November 30, 2023, along with key business accomplishments for 2023 and an update on Q1 2024 performance.

今天上午，我們發布了一份新聞稿，提供了截至 2023 年 11 月 30 日的第四財季和全年的財務業績，以及 2023 年的主要業務成就和 2024 年第一季業績的最新情況。

We will also be filing our 10-K with the SEC later today.

我們還將在今天晚些時候向 SEC 提交 10-K。

I'm going to begin this morning by passing the call to David North, our CFO, to discuss our financial results for both the fourth quarter and the full year 2023.

今天早上，我將首先致電我們的財務長 David North，討論我們第四季度和 2023 年全年的財務表現。

Following that, I'll review what was a very eventful year and offer insights into our operations and go-forward strategy.

接下來，我將回顧這非常多事的一年，並對我們的營運和未來策略提出見解。

Lastly, we'll open the call to questions from our publishing analysts.

最後，我們將開始接受出版分析師的提問。

David?

大衛？

Thank you, Brian, and good morning, everyone.

謝謝你，布萊恩，大家早安。

Let's discuss our financial results for the fiscal fourth quarter and full year of 2023 ended November 30, 2023.

讓我們討論一下截至 2023 年 11 月 30 日的 2023 財年第四季和全年的財務表現。

Net revenue for the fourth quarter in 2023 was $15.6 million compared to $16.0 million in the fiscal fourth quarter of 2022.

2023 年第四季的淨收入為 1,560 萬美元，而 2022 年第四季的淨收入為 1,600 萬美元。

The slightly lower net revenue is primarily attributed to exceptional international sales in Q4 of 2022, which included a $3.4 million stocking order for the company's distributor in Argentina.

淨收入略有下降主要歸因於 2022 年第四季的出色國際銷售，其中包括該公司在阿根廷的經銷商獲得的 340 萬美元的庫存訂單。

Total international sales in Q4 of 2023 were $225,000 compared to $4.3 million in the prior year.

2023 年第四季的國際總銷售額為 22.5 萬美元，而前一年為 430 萬美元。

Without this one-time surge in international sales in the prior year, the fourth quarter displayed strong growth.

儘管沒有去年國際銷售的一次性激增，第四季仍呈現強勁成長。

Domestic revenue in the quarter totaled $15.4 million, that's a 32% increase from Q4 of 2022 and it's a quarterly record.

該季度國內收入總計 1,540 萬美元，較 2022 年第四季成長 32%，創下季度記錄。

Gross profit for Q4 2023 was $9.0 million or 58% of net revenue compared to $8.7 million or 54% of net revenue for Q4 of 2022.

2023 年第四季的毛利為 900 萬美元，佔淨收入的 58%，而 2022 年第四季的毛利為 870 萬美元，佔淨收入的 54%。

The increase in gross margin primarily resulted from a much smaller percentage of lower margin international sales.

毛利率的成長主要是由於利潤率較低的國際銷售比例要小得多。

Operating expenses for Q4 2023 were $9.7 million compared to $8.8 million for Q4 of 2022.

2023 年第四季的營運費用為 970 萬美元，而 2022 年第四季的營運費用為 880 萬美元。

The increase in operating expenses was primarily driven by an increase in marketing spend as part of the company's influencer partnership strategy.

營運費用的增加主要是由於作為公司影響者合作夥伴策略的一部分的行銷支出增加所致。

Net loss for Q4 2023 was negative $800,000 compared to negative $100,000 for Q4 of 2022.

2023 年第四季的淨虧損為負 80 萬美元，而 2022 年第四季的淨虧損為負 10 萬美元。

And the increase in net loss was primarily due to the increase in marketing spend.

淨虧損的增加主要是因為行銷支出的增加。

Adjusted EBITDA, which is a non-GAAP metric for Q4 of 2023, totaled $0.4 million compared to $1.4 million for Q4 of 2022.

調整後 EBITDA（2023 年第四季的非 GAAP 指標）總計 40 萬美元，而 2022 年第四季為 140 萬美元。

Net revenue for the full year totaled $42.6 million compared to $48.0 million for the prior year.

全年淨收入總計 4,260 萬美元，上一年為 4,800 萬美元。

This decline was again largely due to a $7.6 million decrease in international sales from South Africa, South America, and Asia, which are characterized by large but infrequent orders, as experienced in the prior year.

這一下降主要是由於來自南非、南美洲和亞洲的國際銷售額減少了 760 萬美元，這些地區的特點是訂單量大但不頻繁，與前一年一樣。

This impact was partially offset by a $900,000 increase in sales on Amazon and a $400,000 increase in Fox Labs sales, despite temporary headwinds from social media advertising bans.

儘管社群媒體廣告禁令帶來了暫時的阻力，但亞馬遜銷售額成長了 90 萬美元，福斯實驗室銷售額成長了 40 萬美元，部分抵消了這一影響。

Domestic dealer and distributor sales, which are less dependent on online advertising, grew by $1.6 million.

不太依賴線上廣告的國內經銷商和分銷商銷售額成長了 160 萬美元。

Gross profit for the full year ended 2023 was $23.6 million or 56% of net revenue compared to $26.3 million or 55% of net revenue for the prior year period.

截至 2023 年全年的毛利為 2,360 萬美元，佔淨收入的 56%，而上一年同期為 2,630 萬美元，佔淨收入的 55%。

Gross margins remained stable as the increase in lower margin dealer and distributor sales was counterbalanced by the reduction in lower margin international sales.

毛利率保持穩定，因為利潤較低的經銷商和分銷商銷售的成長被利潤較低的國際銷售的減少所抵消。

For the full year, operating expenses were $31.4 million, which is a decrease from $33.7 million in the previous year.

全年營運費用為 3,140 萬美元，較上年的 3,370 萬美元有所下降。

This $2.3 million decrease was largely achieved through strategic realignments and cost optimizations in key areas.

這 230 萬美元的減少主要是透過關鍵領域的策略調整和成本優化來實現的。

Notably, sales and marketing expenses were reduced by approximately $920,000 due to lower advertising spend earlier in the year resulting from the social media advertising ban.

值得注意的是，由於今年稍早社群媒體廣告禁令導致廣告支出減少，銷售和行銷費用減少了約 92 萬美元。

Additionally, professional fees, including legal and accounting service, were reduced by $680,000, while insurance costs decreased by $510,000 due to renegotiated premiums.

此外，包括法律和會計服務在內的專業費用減少了 68 萬美元，而由於重新協商保費，保險費用減少了 51 萬美元。

Payroll expenses decreased by $340,000, contributing to our overall more efficient cost structure.

工資支出減少了 34 萬美元，使我們的整體成本結構更有效率。

Looking ahead, we are focused on maintaining a balanced approach to managing our operating expenses.

展望未來，我們的重點是保持平衡的方法來管理我們的營運費用。

We are preparing for a measured uptick in these costs as part of our strategic investment to drive revenue growth.

作為我們推動收入成長的策略投資的一部分，我們正在為這些成本的適度上升做好準備。

Net loss for the full year was $8.2 million compared to a loss of $7.9 million for the prior year.

全年淨虧損為 820 萬美元，而前一年的淨虧損為 790 萬美元。

The slight increase in net loss was primarily due to the decrease in revenue, partly offset by a decrease in operating expenses.

淨虧損小幅增加主要是因為收入減少，部分被營業費用減少所抵銷。

For the full year, adjusted EBITDA totaled negative $2.0 million compared to negative $1.0 million in the prior year.

全年調整後 EBITDA 總額為負 200 萬美元，而前一年為負 100 萬美元。

The decrease in adjusted EBITDA was primarily due to the increase in net loss previously noted.

調整後 EBITDA 的減少主要是由於先前提到的淨虧損增加。

Cash and cash equivalents.

現金及現金等價物。

Here I want to call attention to a complete reversal of the trend of declining cash balances that prevailed through the first quarter -- three quarters of the year due to declining sales and high inventory balances.

在這裡，我想提請大家注意，由於銷售額下降和庫存餘額較高，第一季（今年三個季度）現金餘額下降的趨勢已完全扭轉。

The balance of cash and cash equivalents was $13.7 million at the end of the third quarter on August 31, 2023.

截至2023年8月31日第三季末，現金及現金等價物餘額為1,370萬美元。

By year end on November 30, 2023, cash and cash equivalents had risen to $20.5 million due to the increase in sales and also to our ability to sell down high inventory levels.

截至 2023 年 11 月 30 日年底，由於銷售額增加以及我們銷售高庫存水準的能力，現金和現金等價物已增至 2,050 萬美元。

Inventory at November 30, 2023, totaled $13.9 million compared to $16.7 million at August 31, 2023.

截至 2023 年 11 月 30 日的庫存總額為 1,390 萬美元，而 2023 年 8 月 31 日的庫存總額為 1,670 萬美元。

The company currently has no current long-term debt.

公司目前無長期負債。

And that concludes my prepared remarks.

我準備好的發言就到此結束。

I will turn it back over to Bryan.

我會把它轉回給布萊恩。

Thanks, David. 2023 was a pivotal year for Byrna and it was marked by both formidable challenges and frankly, remarkable achievements.

謝謝，大衛。 2023 年對 Byrna 來說是關鍵的一年，既面臨著艱鉅的挑戰，也坦率地說，取得了非凡的成就。

The year began with Byrna running headlong into two extremely challenging problems.

今年伊始，拜納就一頭栽進了兩個極具挑戰性的問題中。

The first was a number of unforeseen production problems related to the rollout of the new Byrna LE launcher.

首先是與新 Byrna LE 發射器的推出相關的一些不可預見的生產問題。

The second was what was in essence a total ban on our ability to advertise on social media when we were deemed to be contraband product by Meta, Google and Twitter.

第二個是，當我們被 Meta、Google 和 Twitter 視為違禁產品時，實質上是全面禁止我們在社群媒體上做廣告的能力。

First, the Byrna LE.

首先是 Byrna LE。

We rolled out our new much more powerful Byrna LE launcher to great fanfare at SHOT Show in January 2023, where we gave industry insiders and the press the chance to test fire the Byrna LE at Industry Day, better known as Range Day.

我們在 2023 年 1 月的 SHOT Show 上大張旗鼓地推出了功能更強大的新型 Byrna LE 發射器，我們為業內人士和媒體提供了在工業日（俗稱“靶場日”）試射 Byrna LE 的機會。

The Byrna LE was tremendously well-received, and it generated a flood of orders in the wake of SHOT Show.

Byrna LE 非常受歡迎，在 SHOT Show 之後就產生了大量訂單。

However, as we ramped up production, we ran into a number of production problems and quality control issues that required us to halt production and stop taking orders.

然而，當我們提高產量時，我們遇到了一些生產問題和品質控制問題，導致我們停止生產並停止接受訂單。

Not only was this a black eye for the company, it had a material negative impact on sales as many customers wanted to wait for the more powerful Byrna LE after it was introduced at SHOT Show.

這不僅給公司帶來了麻煩，還對銷售產生了重大負面影響，因為在 SHOT Show 上推出功能更強大的 Byrna LE 後，許多客戶都想等待它。

The production problems stem from out-of-spec components received from our vendors as they transitioned from prototype production to serial production.

生產問題源自於我們的供應商從原型生產過渡到大量生產時收到的不合格組件。

This led to an unforeseen stack-up of tolerances that adversely affected the operation of the launcher.

這導致了不可預見的公差疊加，對發射器的運作產生了不利影響。

The team went into high gear as we worked closely with our vendors to improve DFM or design for manufacturability.

當我們與供應商密切合作以改進 DFM 或可製造性設計時，團隊全力以赴。

In fact, I personally spent three weeks essentially living at the factory.

事實上，我個人在工廠裡住了三個星期。

The incredible effort by the entire Byrna team in combination with our vendors paid off, and in May, we were able to relaunch the Byrna LE.

整個 Byrna 團隊與我們的供應商的令人難以置信的努力得到了回報，五月份，我們能夠重新推出 Byrna LE。

Since then, production and demand for the LE have remained strong.

自那時起，LE 的生產和需求一直保持強勁。

And for the most part, we've been able to keep up with the elevated demand for the LE launcher, even though it has proven to be much stronger than originally predicted.

在大多數情況下，我們已經能夠滿足對 LE 啟動器不斷增長的需求，儘管事實證明它比最初預測的要強大得多。

Prior to the launch of the LE, we forecasted 10% as the demand would be for the much more expensive Byrna LE.

在 LE 推出之前，我們預測 10%，因為對昂貴得多的 Byrna LE 的需求將會增加。

However, LE demand has been running more than a third of our total demand.

然而，LE 需求一直占我們總需求的三分之一以上。

In the wake of this production problem and product launch, we terminated the VP of New Product Development and Production, and we demoted our Chief Technology Officer, which ultimately led to his resignation.

在這個生產問題和產品發布之後，我們解雇了新產品開發和生產副總裁，並降職了我們的首席技術官，最終導致他辭職。

We have since replaced both these positions with two highly qualified individuals.

此後，我們用兩位高素質人員取代了這兩個職位。

To replace our VP of New Product Development and Production, we hired John Brasseur as our Head of Product Development and Production.

為了接替新產品開發和生產副總裁，我們聘請了 John Brasseur 擔任產品開發和生產主管。

John joins Byrna with more than two decades of on-point experience, including more than 10 years as VP of Product Management at SIG SAUER, a leading manufacturer of firearms.

John 在加入 Byrna 時擁有二十多年的現場經驗，其中包括在領先的槍械製造商 SIG SAUER 擔任產品管理副總裁 10 多年。

This gun industry experience has given John an extremely good understanding of both the particular engineering issues we faced as well as the nature of our market.

槍支行業的經驗使約翰對我們面臨的特定工程問題以及市場的性質有了非常好的了解。

In addition, we just recently hired Stuart Putz as Director of Design and Manufacturing Engineering.

此外，我們最近剛聘請 Stuart Putz 擔任設計與製造工程總監。

Stuart, who will be starting later this month, brings more than 30 years of design and engineering experience to Byrna.

Stuart 將於本月稍後上任，他將為 Byrna 帶來 30 多年的設計和工程經驗。

Most recently, Stuart was Director of Test and Manufacturing Engineering for Walmart Advanced Systems & Robotics, where he successfully led the development of internal and external manufacturing technology resources for the Alphabot warehouse micro-fulfillment system.

最近，Stuart 擔任沃爾瑪先進系統和機器人技術的測試和製造工程總監，成功地領導了 Alphabot 倉庫微履行系統的內部和外部製造技術資源的開發。

We are confident that the new policies, procedures, and processes that we have put into place, along with the addition of these two very senior and experienced managers that we've added to the engineering team, will prevent a repeat of the mistakes made with the LE rollout and will ensure a smooth introduction of the much vaunted and highly anticipated Byrna compact launcher, which is due out next year.

我們相信，我們實施的新政策、程序和流程，以及我們在工程團隊中添加的這兩位非常資深且經驗豐富的經理，將防止重蹈覆轍。LE 的推出將確保順利推出備受讚譽且備受期待的Byrna 緊湊型發射器，該發射器將於明年推出。

The second and frankly much more serious challenge that we ran into in the early part of 2023 was the almost total prohibition on advertising our products on the major social media platforms, including Facebook, Instagram, Google, and Twitter.

坦白說，我們在 2023 年初遇到的第二個也是更嚴重的挑戰是，幾乎完全禁止在 Facebook、Instagram、Google 和 Twitter 等主要社群媒體平台上為我們的產品做廣告。

We have never been able to advertise on mainstream media, including both broadcast and cable TV, due to the nature of our products.

由於我們產品的性質，我們從未能夠在主流媒體上做廣告，包括廣播和有線電視。

However, we had spent millions of dollars on social media advertising over the prior two years.

然而，在過去的兩年裡，我們在社群媒體廣告上花費了數百萬美元。

In truth, up until just recently, social media advertising had been our primary means for both educating the public about less-lethal self-defense and driving demand for Byrna products.

事實上，直到最近，社群媒體廣告一直是我們教育大眾有關低致命自衛知識和推動對 Byrna 產品需求的主要手段。

When without warning, we were denied access to this advertising venue, the effect, frankly, was devastating.

在沒有警告的情況下，我們被拒絕進入這個廣告場所，坦白說，其影響是毀滅性的。

We saw an immediate 60% drop in web traffic from Q1 to Q2.

我們發現從第一季到第二季度，網路流量立即下降了 60%。

Initially, sales were somewhat resilient due to the tail effect of our prior advertising.

最初，由於我們先前廣告的尾部效應，銷售有些彈性。

However, by Q3, we saw a significant negative impact on sales, posting our worst quarter in years at just $7.1 million of revenues as we averaged only $44,000 a day on byrna.com and $11,000 a day on amazon.com. This sharp decline in sales resulting from the social media advertising ban had the potential to be an existential threat to the company if we could not find a way to manage around it.

然而，到了第三季度，我們的銷售受到了重大負面影響，營收僅為710 萬美元，是多年來最糟糕的一個季度，因為我們在byrna.com 上的平均每天收入僅為44,000 美元，在amazon.com 上的平均每天收入為11,000 美元。如果我們找不到解決方法，社群媒體廣告禁令導致的銷售額急劇下降可能會對公司的生存構成威脅。

We simply could not cut expenses enough while maintaining our robust R&D efforts and new product development pipeline to be profitable at $7 million a quarter.

我們根本無法在維持強勁的研發努力和新產品開發管道的同時削減足夠的開支，以實現每季 700 萬美元的盈利。

While other industries such as firearms and tobacco have also had to deal with what wide-ranging advertising bans, these were mature industries with well-known products and large well-established markets and customer bases.

雖然槍支和菸草等其他行業也不得不應對廣泛的廣告禁令，但這些行業都是成熟的行業，擁有眾所周知的產品和龐大而完善的市場和客戶群。

By contrast, few Americans know what less-lethal is, and even fewer have ever heard of Byrna.

相較之下，很少美國人知道什麼是低致命性，甚至更少有人聽說過拜納。

We needed to find a way to both educate the general public as to the benefits of less-lethal self-defense and drive demand for our products, and we needed to find it quick.

我們需要找到一種方法，既讓大眾了解低致命自衛的好處，又能推動對我們產品的需求，我們需要盡快找到它。

The management team worked around the clock, exploring every conceivable option to build brand awareness, before settling on the celebrity endorsement model pioneered by Phil Knight at Nike.

管理團隊日以繼夜地工作，探索各種可能的選擇來建立品牌知名度，最後決定採用 Phil Knight 在耐吉首創的名人代言模式。

In September 2023, Byrna signed its first celebrity endorser, Sean Hannity, and committed to a multi-million-dollar advertising campaign on Sean's afternoon drive time radio show aired nationally on iHeart Radio.

2023 年 9 月，Byrna 簽下了第一位名人代言人 Sean Hannity，並承諾在 iHeart Radio 全國播出的 Sean 下午駕車時間廣播節目中開展價值數百萬美元的廣告活動。

This shift in strategy not only helped us circumnavigate around the mainstream and social media advertising bans, but propelled us to a record-breaking fourth quarter, as our daily sales spiked to $120,000 a day on byrna.com, and $35,000 a day on amazon.com, posting $15.4 million in domestic sales.

這一戰略轉變不僅幫助我們繞過了主流媒體和社交媒體廣告禁令，而且推動我們在第四季度創下了破紀錄的成績，我們的日銷售額在byrna.com 上飆升至每天120,000 美元，在亞馬遜上達到每天35,000 美元。com，國內銷售額為 1540 萬美元。

This represented a 182% increase from the third quarter.

這比第三季增長了 182%。

Our new marketing approach has significantly enhanced brand visibility and has driven a dramatic increase in website visits and sales.

我們的新行銷方法顯著提高了品牌知名度，並推動了網站流量和銷售額的大幅成長。

In the fourth quarter, daily web sessions jumped to 32,500, an increase of 174% from the third quarter and a 22% increase from the same period in 2022, before the social media advertising ban.

第四季度，每日網路會話次數躍升至 32,500 次，較第三季成長 174%，較社群媒體廣告禁令前的 2022 年同期成長 22%。

This surge in web traffic led to a 41.2% year-over-year increase in Q4 direct-to-consumer sales.

網路流量的激增導致第四季直接面向消費者的銷售額年增 41.2%。

Based on the initial success of our partnership with Sean Hannity, our network of celebrity partners has expanded over the past several months, with the addition of Judge Jeanine Pirro, Glenn Beck, and Bill O'Reilly.

基於我們與 Sean Hannity 合作的初步成功，我們的名人合作夥伴網絡在過去幾個月中不斷擴大，增加了法官 Jeanine Pirro、Glenn Beck 和 Bill O'Reilly。

These partners, whose influence spans radio, TV, and social media, have been instrumental in our success, offering a substantial return on advertising spend, or ROAS.

這些合作夥伴的影響力遍及廣播、電視和社群媒體，為我們的成功發揮了重要作用，為廣告支出（ROAS）帶來了豐厚的回報。

Our ROAS for the holiday fourth quarter reached 7.5x. We are seeing a continuation of this momentum with a 5.9x ROAS in the first two months of fiscal 2024, that's December and January.

第四季假期的 ROAS 達到 7.5 倍。我們看到這一勢頭將持續下去，2024 財年的前兩個月（即 12 月和 1 月）的 ROAS 為 5.9 倍。

These campaigns have been particularly effective in attracting new customers, with first-time customer rates soaring to 66.5% of daily orders in Q4, an 11% increase from the prior year, when our first-time customer rate was 55.5%.

這些活動在吸引新客戶方面特別有效，第四季的首次客戶率飆升至每日訂單的 66.5%，比去年同期的 55.5% 增加了 11%。

Higher first-time customer rates mean higher average order values, AOV, as first-time customers purchase a launcher kit at the very minimum.

較高的首次客戶率意味著較高的平均訂單價值 (AOV)，因為首次客戶至少會購買啟動器套件。

For Q4, we saw a 15.2% increase in average order value.

第四季度，平均訂單價值成長了 15.2%。

Higher first-time customer rates also give us the opportunity to go back to the well as we engage these customers with follow-on offers of ammunition and accessories as we look to garner the lifetime value of these new customers.

更高的首次客戶率也讓我們有機會重返油井，因為我們希望為這些新客戶提供後續的彈藥和配件優惠，從而獲得這些新客戶的終身價值。

I'm extremely proud of what the team at Byrna accomplished in dealing with these twin challenges.

我對 Byrna 團隊在應對這些雙重挑戰方面所取得的成就感到非常自豪。

It's no secret that we were under tremendous pressure.

眾所周知，我們承受著巨大的壓力。

Our stock price had fallen as low as $2.24 at the end of September, giving the company a market cap of less than 1 times sales as investors headed to the exits.

9 月底，我們的股價已跌至 2.24 美元，隨著投資者紛紛退出，該公司的市值不到銷售額的 1 倍。

Analysts reduced both sales projections and price targets, and some even downgraded the stock despite the already precipitous decline.

分析師降低了銷售預測和價格目標，儘管股價已經大幅下跌，但有些分析師甚至下調了該股的評級。

Some investors even questioned whether Byrna had enough cash to survive.

一些投資者甚至質疑拜納是否有足夠的現金生存。

This led to some middle-level management employees giving notice.

這引起了一些中階管理人員的注意。

In the face of these mounting pressures, the senior leadership team at Byrna remained laser-focused on finding a way around these problems.

面對這些不斷增加的壓力，Byrna 的高階領導團隊仍然專注於尋找解決這些問題的方法。

And as my dad always used to say, when the going gets tough, the tough get going.

正如我父親常說的，當事情變得艱難時，艱難的人就開始前進。

I am proud to say that I am surrounded by a group of tough SOBs here at Byrna that do not know the word surrender.

我很自豪地說，在拜納，我周圍有一群強硬的混蛋，他們不知道「投降」這個詞。

And it was through their grit, tenacity, and determination that we were able to lift these twin challenges and frankly, come out the other side even stronger.

正是透過他們的勇氣、堅韌和決心，我們才能夠應對這些雙重挑戰，坦白說，讓對方變得更強大。

I'd now like to discuss our 2023 performance across the various sales channels.

我現在想討論一下我們 2023 年各個銷售管道的表現。

First, let me start with international sales.

首先，讓我從國際銷售開始。

As David mentioned, the primary reason for the dip in our full-year revenue for 2023 was the $7.6 million decline in year-over-year international sales.

正如 David 所提到的，我們 2023 年全年營收下降的主要原因是國際銷售額年減 760 萬美元。

While the timing of large international orders is often sporadic and hard to predict, the real reason for the decline in international sales is that starting in 2023, our sales to South America no longer showed up in Byrna Technologies' numbers.

雖然大型國際訂單的時間往往是零星的且難以預測，但國際銷售額下降的真正原因是，從 2023 年開始，我們對南美的銷售額不再出現在 Byrna Technologies 的數據中。

Rather, they are reported in Byrna LATAM numbers.

相反，它們是在 Byrna LATAM 數據中報告的。

And because we do not consolidate Byrna LATAM's results for financial statement reporting purposes, their sales are not included in Byrna's top-line revenue number.

由於我們沒有出於財務報表報告目的合併 Byrna LATAM 的業績，因此其銷售額不包含在 Byrna 的營收資料中。

For this reason, we expect that our reported international sales number in 2024 will remain depressed and will come in well below our 2022 record of $9 million.

因此，我們預計 2024 年報告的國際銷售額將繼續低迷，並將遠低於 2022 年 900 萬美元的記錄。

That said, we expect to see continued strong sales in South America, particularly in Argentina and with some luck, Brazil.

也就是說，我們預期南美洲的銷售將持續強勁，尤其是阿根廷，幸運的話還有巴西。

If you remember, in October, we announced two large sales in Argentina through Byrna's Argentinian distributor and our Latin American partner, Bersa.

如果你還記得，十月份，我們宣布透過 Byrna 的阿根廷經銷商和我們的拉丁美洲合作夥伴 Bersa 在阿根廷進行兩項大規模銷售。

Notably, one of these was the landmark $6 million order from Córdoba Provincial Police, the largest single order for Byrna launchers in the company's history.

值得注意的是，其中之一是來自科爾多瓦省警察局的具有里程碑意義的 600 萬美元訂單，這是該公司歷史上 Byrna 發射器最大的單筆訂單。

Since the launchers sold to the Córdoba Police by Bersa were part of the initial stocking order Bersa placed last year in Q4, this sale wasn't reflected in our 2023 numbers, but rather was part of the $4.3 million in international sales we reported in Q4 of 2022.

由於Bersa 向科爾多瓦警方出售的發射器是Bersa 去年第四季首次庫存訂單的一部分，因此這筆銷售並未反映在我們2023 年的數據中，而是我們在第四季度報告的430 萬美元國際銷售額的一部分2022 年。

This year, we project that Byrna LATAM will do $8 million in sales.

今年，我們預計 Byrna LATAM 的銷售額將達到 800 萬美元。

And while these revenues will not show up as part of Byrna Technologies' reported sales numbers, we will benefit as a 51% owner of Byrna LATAM.

雖然這些收入不會顯示在 Byrna Technologies 報告的銷售數據中，但我們將作為 Byrna LATAM 51% 的所有者而受益。

More importantly, the breakthrough in Argentina with the Córdoba Police, as well as agencies in Buenos Aires, Santa Fe, Lanus, highlights the product's appeal to police departments around the world.

更重要的是，阿根廷科爾多瓦警察局以及布宜諾斯艾利斯、聖塔菲、拉努斯機構的突破凸顯了該產品對世界各地警察部門的吸引力。

As the demand for less-lethal use force grows ever stronger, orders like the one from the Córdoba Police can only serve to further validate Byrna's suite of less-lethal products and confirm Byrna's position as one of the leading less-lethal companies globally.

隨著對低致命性使用武力的需求越來越強烈，像科爾多瓦警方這樣的訂單只能進一步驗證Byrna 的低致命性產品套件，並確認Byrna 作為全球領先的低致命性公司之一的地位。

With sales in South America going through our Byrna LATAM joint venture subsidiary, our focus in 2024 as it pertains to international sales will be a heavily reliant on Mexico and Canada.

由於南美洲的銷售是透過我們的 Byrna LATAM 合資子公司進行，因此我們 2024 年國際銷售的重點將嚴重依賴墨西哥和加拿大。

In 2023, sales into Canada were slightly more than $1 million, with most of this coming through our online DTC efforts.

2023 年，加拿大的銷售額略高於 100 萬美元，其中大部分來自我們的線上 DTC 努力。

We expect to see significant growth in this market in 2024 with the opening of our first premiere dealer in Canada, Byrna Toronto.

隨著我們在加拿大 Byrna Toronto 開設第一家首家經銷商，我們預計到 2024 年市場將顯著成長。

Starting with only a $25,000 initial stocking order in January, Byrna Toronto sold out in just two days.

1 月份，Byrna Toronto 的初始備貨訂單僅為 25,000 美元，短短兩天內就銷售一空。

The owner and operator of Byrna Toronto, [Emiliano Mans], reported that the second order for $100,000, placed two days after selling out the initial stocking order, was also sold out before the product even arrived.

Byrna Toronto 的業主兼經營者 [Emiliano Mans] 報告稱，在第一筆庫存訂單售完兩天后下的第二筆價值 10 萬美元的訂單，在產品到達之前也已售空。

He has since placed the third order, all in the span of less than two months.

此後，他下了第三份訂單，所有訂單都在不到兩個月的時間內完成。

The overwhelming success in Byrna Toronto underscores the opportunity that exists in Canada, as restrictive gun laws serve to drive the demand among Canadians looking for a means to be able to protect themselves and their families.

拜納多倫多的壓倒性成功凸顯了加拿大存在的機會，因為限制性槍支法推動了加拿大人尋求保護自己和家人的方法的需求。

Based on the success of byrna.ca and of Byrna Toronto, the company has made the decision to hire a person dedicated to the Canadian market, with a particular emphasis on growing our online presence in Canada.

基於 byrna.ca 和 Byrna Toronto 的成功，該公司決定聘請一名專門負責加拿大市場的人員，特別專注於擴大我們在加拿大的線上業務。

With both an online and dealer presence in this important market to our north, we expect to see our Canadian sales eclipse $1.5 million in 2024.

憑藉我們北部這個重要市場的線上和經銷商業務，我們預計 2024 年加拿大銷售額將超過 150 萬美元。

In 2023, our sales into Mexico were de minimis.

2023 年，我們對墨西哥的銷售額微乎其微。

In fact, they were so insignificant, we did not even bother to report our sales into Mexico as a separate line item, as they amounted to less than $200,000.

事實上，它們是如此微不足道，我們甚至懶得將我們在墨西哥的銷售額作為單獨的行項目報告，因為它們的金額還不到 20 萬美元。

Rather, we simply lumped them in with dealer sales.

相反，我們只是將它們與經銷商銷售歸為一類。

Recently however, Byrna has seen significant interest from Mexico, and orders during the first two months of the year from Mexican dealers have already exceeded our full-year 2023 Mexico sales.

然而最近，Byrna 發現了墨西哥的濃厚興趣，今年前兩個月墨西哥經銷商的訂單已經超過了我們 2023 年墨西哥全年的銷量。

We believe that Mexico offers an amazing opportunity for growth, as we expand our presence into both law enforcement and military markets, as well as the consumer market through dealers and a soon-to-be-created online presence.

我們相信，墨西哥提供了絕佳的成長機會，因為我們將業務擴展到執法和軍事市場，以及透過經銷商和即將創建的線上業務擴展到消費市場。

We project 2024 sales into Mexico will be more than $1 million.

我們預計 2024 年墨西哥的銷售額將超過 100 萬美元。

Turning to our domestic dealer channel, dealer sales were one of the bright spots for 2023, with sales growth of $1.6 million or 21%.

轉向我們的國內經銷商通路，經銷商銷售是 2023 年的亮點之一，銷售額成長 160 萬美元，即 21%。

This was on the heels of $2.9 million in growth or 52% the prior year.

繼上一年增長 290 萬美元（即 52%）之後。

We expect to see strong continued growth in the dealer segment.

我們預計經銷商領域將持續強勁成長。

While dealer sales are less impacted by Byrna's advertising efforts, we have seen a recent spike in dealer sales, which can be attributed to increased brand recognition resulting from our celebrity endorsement program.

雖然經銷商銷售受 Byrna 廣告努力的影響較小，但我們最近看到經銷商銷售激增，這可歸因於我們的名人代言計劃帶來的品牌認知度的提高。

In addition to the growth we expect to see from our traditional brick-and-mortar dealers, we expect significant growth in our premiere dealer program.

除了我們預期傳統實體經銷商的成長之外，我們預計我們的首要經銷商計畫也會顯著成長。

As we have previously explained, premiere dealers are essentially Byrna franchisees.

正如我們之前所解釋的，一級經銷商本質上是 Byrna 特許經營商。

While we do not require a franchise fee to become a premiere dealer, premiere dealers must derive more than 50% of their revenue from Byrna products and could only sell non-lethal self-defense products.

雖然我們不需要繳納特許經營費才能成為一級經銷商，但一級經銷商必須有 50% 以上的收入來自 Byrna 產品，並且只能銷售非致命自衛產品。

The minimum annual purchase commitment for a premiere dealer is $250,000, and the store must adhere to strict brand standards, including a firing range on premises so that potential customers can test fire the Byrna launchers.

首屈一指的經銷商每年的最低購買承諾為 250,000 美元，商店必須遵守嚴格的品牌標準，包括在店內設置射擊場，以便潛在客戶可以試射 Byrna 發射器。

In return, we assist with the design of the store, provide point-of-sale display materials, and allow these dealers to use the Byrna name and nomenclature.

作為回報，我們協助商店設計，提供銷售點展示材料，並允許這些經銷商使用 Byrna 名稱和術語。

For example, Byrna Toronto, the UnGun Bar in Breckenridge, Colorado, and of course, our original premiere dealer, Live Safe Hawaii in Oahu.

例如，Byrna Toronto、科羅拉多州布雷肯里奇的 UnGun Bar，當然還有我們最初的首家經銷商、歐胡島的 Live Safe Hawaii。

The premiere dealer concept was developed in May of last year.

首屈一指的經銷商概念於去年五月提出。

And in just six short months, we opened 15 premiere dealers in addition to the original premiere dealer, Live Safe Hawaii.

在短短六個月內，除了原來的首家經銷商 Live Safe Hawaii 之外，我們還開設了 15 家首家經銷商。

We look for potential premiere dealer partners from the ranks of entrepreneurs who are committed to our mission of saving lives.

我們從致力於拯救生命的企業家隊伍中尋找潛在的首要經銷商合作夥伴。

This year, we'll be attending several franchise shows in the hopes of finding enough new premiere dealer partners to double the size of our premiere dealer program in 2024.

今年，我們將參加幾場特許經營展，希望找到足夠多的新首映經銷商合作夥伴，以便在 2024 年將首映經銷商計劃的規模擴大一倍。

The big story of 2023, as I previously explained, was of course the turnaround of our online DTC program on both byrna.com and amazon.com. If we look at full year's online sales through byrna.com and amazon.com, sales were relatively flat, ending the year at $29.2 million, down less than 2% from 2022.

正如我之前所解釋的，2023 年的重大事件當然是我們在 byrna.com 和 amazon.com 上的線上 DTC 計劃的轉變。如果我們看一下 byrna.com 和 amazon.com 的全年線上銷售額，就會發現銷售額相對持平，年終銷售額為 2920 萬美元，比 2022 年下降了不到 2%。

That of course is very misleading, as strong Q4 sales, up 33% for the prior year, made up for a significant shortfall in Q3 before we had settled on a means to replace the sales driven by social media advertising.

這當然是非常具有誤導性的，因為在我們決定採取一種方法來取代社交媒體廣告驅動的銷售之前，第四季度的強勁銷售（比上一年增長了33%）彌補了第三季度的重大缺口。

While dealing with the social media advertising ban was extraordinarily stressful, it was a blessing in disguise.

雖然應對社群媒體廣告禁令的壓力非常大，但因禍得福。

While our social media advertising program was effective, its effectiveness had been waning as consumers were becoming numb to the barrage of social media ads.

雖然我們的社群媒體廣告計畫很有效，但隨著消費者對社群媒體廣告的接二連三變得麻木，其效果一直在減弱。

Compounding the problem was the reduced effectiveness of ads on Facebook, Instagram, Google, and Twitter due to the fact that the big tech companies were bowing to public pressure when it came to capturing and selling personal data, making it more difficult for us and other businesses to micro-target consumers.

雪上加霜的是，由於大型科技公司在獲取和出售個人資料方面屈服於公眾壓力，Facebook、Instagram、Google和 Twitter 上的廣告效果下降，這使得我們和其他人的處境變得更加困難。企業針對微觀目標消費者。

The net result is that our online growth had waned in terms of both sessions and sales.

最終結果是我們的線上成長在會話和銷售額方面均有所下降。

In 2022, prior to the advertising ban, sessions growth had gone from 95% in Q1, to 56% in Q2, to 35% in Q3, to 22% by Q4.

2022 年，在廣告禁令之前，會話成長從第一季的 95% 上升到第二季的 56%，第三季的 35%，第四季的 22%。

This negative trend accelerated in 2023 once the advertising ban took effect.

廣告禁令生效後，這種負面趨勢在 2023 年加速。

For the first 10 months of 2022, the year-over-year sessions growth was 56.3%.

2022 年前 10 個月，會話次數較去年同期成長 56.3%。

By contrast, for the first 10 months of 2023, year-over-year sessions growth was a negative 11%.

相較之下，2023 年前 10 個月，會話次數較去年同期負數成長 11%。

In the last two months of the year, however, once we had fully implemented the celebrity endorsement program, sessions grew to 37,550 a day, up 41% from the 27,000 daily sessions for the last two months of 2022, demonstrating the effectiveness of the new celebrity endorsement program compared with the social media advertising program employed prior year.

然而，在今年最後兩個月，當我們全面實施明星代言計劃後，每日訪問量增至37,550 次，比2022 年最後兩個月的日訪問量27,000 次增長了41%，這證明了新計劃的有效性。名人代言計劃與去年採用的社交媒體廣告計劃進行比較。

What do we see when we look forward to 2024 and beyond?

展望 2024 年及以後，我們會看到什麼？

How confident are we that we can maintain the current sales momentum?

我們對維持目前的銷售動能有多大信心？

And what is the risk of further production problems or supply chain disruptions?

進一步生產問題或供應鏈中斷的風險是什麼？

First, let's talk about sales.

首先，我們來談談銷售。

When we initiated the celebrity endorsement program, we had three questions.

當我們啟動明星代言計畫時，我們提出了三個問題。

One, was it replicable?

一，它可以複製嗎？

Two, was it scalable?

第二，它可擴展嗎？

And three, was it sustainable?

第三，它可持續嗎？

After almost six months, we can answer the first two questions.

差不多六個月後，我們可以回答前兩個問題。

First, it is replicable.

首先，它是可複製的。

After kicking off the program with Sean Hannity, we have been able to successfully add three additional celebrities to the mix: Judge Jeanine, Glenn Beck, and Bill O'Reilly.

在肖恩·漢尼提(Sean Hannity) 啟動該計劃後，我們成功地添加了另外三位名人：珍妮法官(Judge Jeanine)、格倫·貝克(Glenn Beck) 和比爾·奧萊利(Bill O 'Reilly)。

In each instance, we have seen very similar rollout numbers.

在每種情況下，我們都看到了非常相似的推出數量。

Second, we've found out that it's not scalable.

其次，我們發現它不可擴展。

Adding more money to these individual campaigns results in diminishing returns.

向這些單獨的活動投入更多資金會導致回報遞減。

Once we're advertising three to four days a week, increasing the frequency does not yield a commensurate increase in revenue.

一旦我們每週投放三到四天廣告，增加頻率並不會帶來相應的收入成長。

Third, with regards to sustainability, the simple answer is that we do not yet know how sustainable this program is.

第三，關於永續性，簡單的答案是我們還不知道該計劃的可持續性如何。

Will we see a drop in ROAS over time once we have saturated each celebrity-endorsed market?

一旦我們飽和了每個名人認可的市場，我們會看到廣告支出回報率隨著時間的推移而下降嗎？

To date, we've not seen any material decline in effectiveness over time.

到目前為止，我們還沒有看到有效性隨著時間的推移而出現任何實質下降。

However, it's still early and we will be closely monitoring ROAS numbers for any changes in the trend.

不過，現在還為時過早，我們將密切關注 ROAS 數據以了解趨勢的任何變化。

So what does that mean for growth?

那麼這對成長意味著什麼呢？

As we look ahead to the rest of the year, based on what we have seen to date, we are quite optimistic about the sustained impact of our celebrity endorsement model.

展望今年剩餘時間，根據迄今為止所看到的情況，我們對名人代言模式的持續影響非常樂觀。

For the month of December, the only month in 2024 where we've closed the books, byrna.com's preliminary revenue numbers were up 89% over last year, and amazon.com's preliminary revenue numbers were up 98% over last year.

12 月是 2024 年唯一結帳的月份，byrna.com 的初步收入數據比去年增長了 89%，amazon.com 的初步收入數據比去年增長了 98%。

While this torrid pace has slowed somewhat in the post-holiday selling season, the trend in January and February to date remains very strong.

雖然這種快速成長的速度在節後銷售季節有所放緩，但一月和二月迄今為止的趨勢仍然非常強勁。

There is of course no assurance that these trends will continue, and given the fact that we are still in the early innings of our new celebrity endorsement program, we will not be giving guidance.

當然，不能保證這些趨勢會持續下去，而且鑑於我們仍處於新的名人代言計劃的早期階段，我們不會提供指導。

However, it is safe to say that based on the first 11 weeks of Q1, we expect to see strong growth in our online business in Q1 and hopefully well beyond.

然而，可以肯定地說，根據第一季的前 11 週，我們預計第一季的線上業務將出現強勁成長，並有望在更遠的將來實現成長。

Of course, strong sales requires significant ad expenditures.

當然，強勁的銷售需要大量的廣告支出。

And we expect to see a significant increase in marketing expenses related to our celebrity endorsement program.

我們預計與名人代言計畫相關的行銷費用將大幅增加。

However, with a 5 times ROAS and a 60%-plus gross profit margin for our online sales, the return on marketing spend is very accretive.

然而，我們的線上銷售 ROAS 達到 5 倍，毛利率超過 60%，行銷支出的回報非常可觀。

At the same time that we expect to see strong sustainable growth in DTC sales, we also expect to see a marked increase in dealer sales, driven largely by our premiere dealer program, as we look to double the number of participating dealers.

在我們預計 DTC 銷售將強勁可持續增長的同時，我們也預計經銷商銷售將顯著增長，這主要是由我們的首要經銷商計劃推動的，因為我們希望將參與經銷商的數量增加一倍。

We also expect to see strong double-digit growth from both Canada and Mexico this year.

我們也預計今年加拿大和墨西哥將出現兩位數的強勁成長。

All told, we have every reason to expect strong yet manageable year-over-year growth in 2024.

總而言之，我們有充分的理由預計 2024 年將出現強勁且可控的年成長。

In 2025, we may look to add additional names to our roster of celebrity endorsers.

2025 年，我們可能會在名人代言人名冊中添加更多名字。

However, that decision will depend largely upon the success of our new compact launcher, which we hope to debut early in 2025.

然而，這項決定在很大程度上取決於我們新型緊湊型發射器的成功，我們希望該發射器在 2025 年初首次亮相。

This launcher will be the size of a micro compact pistol, similar to the SIG SAUER P365, the most popular handgun in the world.

此發射器的大小相當於微型緊湊型手槍，類似於世界上最受歡迎的手槍 SIG SAUER P365。

We believe that the compact launcher will be a game changer for Byrna, as the number one complaint we currently get about the Byrna SD is its size.

我們相信，緊湊型發射器將改變 Byrna 的遊戲規則，因為我們目前對 Byrna SD 的第一大抱怨就是它的尺寸。

For this reason, we believe that this new, much smaller launcher will appeal to many of Byrna's current customers and at the same time, expand our market to women and those customers interested in easily concealable non-lethal launcher.

出於這個原因，我們相信這款新的、更小的發射器將吸引 Byrna 的許多現有客戶，同時將我們的市場擴展到女性和對易於隱藏的非致命發射器感興趣的客戶。

If SIG SAUER's success with the introduction of their micro compact pistol is any indication, we should see a dramatic increase in overall sales when we introduce this micro compact launcher.

如果西格紹爾推出微型緊湊型手槍所取得的成功有任何跡象的話，那麼當我們推出這款微型緊湊型發射器時，我們應該會看到整體銷量的大幅增長。

For 2024, we also expect to see improved operational efficiencies, reduced product costs, and improved margins as a result of a number of initiatives that we are undertaking.

到 2024 年，我們也預計，由於我們正在採取的一系列舉措，營運效率將提高，產品成本將降低，利潤率將提高。

One recent change we made is to simplify our product offering.

我們最近做出的一項改變是簡化我們的產品供應。

Recognizing the need for simplicity and ease in the purchasing process, last month, we introduced the Byrna Universal Kit, a one-size-fits-all solution that is legal in all 50 states and Canada.

認識到購買過程需要簡單易用，上個月，我們推出了 Byrna 通用套件，這是美國所有 50 個州和加拿大合法的通用解決方案。

This replaces the Byrna Pepper and Byrna Kinetic kits.

它取代了 Byrna Pepper 和 Byrna Kinetic 套件。

Having two different configurations created a lot of confusion for first-time customers.

兩種不同的配置給初次使用的客戶帶來了很多困惑。

Now, we have only one configuration.

現在，我們只有一種配置。

Customers are asked to choose between the Byrna SD, our most popular pistol, and the Byrna LE, our most powerful pistol.

客戶需要在我們最受歡迎的手槍 Byrna SD 和我們最強大的手槍 Byrna LE 之間進行選擇。

They are then asked to choose their color: black, orange, or tan.

然後他們被要求選擇自己的顏色：黑色、橙色或棕褐色。

Every other color will be a special offering; for example, pink on Valentine's Day, which we're actually rolling out today.

其他所有顏色都將是特別產品；例如，情人節的粉紅色，我們今天實際上推出了。

Finally, customers will be asked if they want a launcher with or without a thumb safety.

最後，客戶將被詢問是否需要有或沒有拇指安全裝置的發射器。

The configuration of each kit, however, will be the same: one launcher, one extra five-round magazine, one five-count tube of Kinetic, one five-count tube of Eco Kinetic, and one five-count tube of Pro Training.

不過，每個套件的配置都是相同的：一個發射器、一個額外的五發彈匣、一管五連裝的 Kinetic、一管五連裝的 Eco Kinetic 和一管五連裝的 Pro Training。

Chemical irritant rounds will be sold separately.

化學刺激彈將單獨出售。

This streamlines the checkout process and offers additional opportunities to upsell ammunition, making this a win-win for customers and Byrna.

這簡化了結帳流程，並提供了額外銷售彈藥的機會，使這對客戶和 Byrna 來說是雙贏。

We anticipate that this change will lead to a slight increase in average order value over time, as the Universal Kit is selling for the same price as the Pepper Kit was previously selling for, despite the fact that it does not come with chemical irritant rounds.

我們預計這項變更將導致平均訂單價值隨著時間的推移略有增加，因為通用套件的售價與胡椒套件之前的售價相同，儘管它不附帶化學刺激彈。

This change has also allowed us to reduce the number of product variants offered by more than 25 SKUs.

這項變更也使我們能夠減少超過 25 個 SKU 提供的產品變體數量。

This should allow us to both reduce inventory levels and improve factory efficiency, which in turn should bring down costs over time.

這將使我們能夠降低庫存水準並提高工廠效率，從而隨著時間的推移降低成本。

This simplified offering, coupled with our new expedited shipping offering option, should help improve both revenues and margins.

這種簡化的服務，加上我們新的加急運輸服務選項，應該有助於提高收入和利潤。

To be able to keep up with the anticipated growth this year, we've recently initiated plan to scale up our manufacturing capabilities.

為了跟上今年的預期成長，我們最近啟動了擴大製造能力的計畫。

This initiative includes increasing our production facility personnel by 25% and opening a second assembly line.

該舉措包括將我們的生產設施人員增加 25% 並開設第二條組裝線。

These steps are designed to increase long-term production capacity, from 10,000 units per month to 12,500 units per month.

這些步驟旨在提高長期產能，從每月 10,000 件增加到每月 12,500 件。

Since we are still operating on only one shift a day, we have significant excess capacity for expansion as needed.

由於我們仍然每天只實行一班制，因此我們有大量過剩產能可以根據需要進行擴張。

In addition to the expansion of our launcher production capacity, we are also focusing on increasing ammunition production by opening a second ammunition production facility, which will be located here in the US.

除了擴大發射器生產能力外，我們還致力於透過在美國開設第二個彈藥生產設施來增加彈藥產量。

This move is aimed at both strengthening our supply chain and reducing the risk of supply chain disruption, thereby ensuring that we can meet the forecasted demand for our high-margin ammunition products, even if international shipments become more difficult for any reason.

此舉旨在加強我們的供應鏈並降低供應鏈中斷的風險，從而確保我們能夠滿足對高利潤彈藥產品的預測需求，即使國際運輸因任何原因變得更加困難。

We expect these projects to be completed in the second half of 2024, setting a strong foundation for Byrna's continued growth and operational efficiency.

我們預計這些項目將於 2024 年下半年完成，為 Byrna 的持續成長和營運效率奠定堅實的基礎。

Fortunately, Byrna's strong financial footing provides the foundation to be able to undertake these projects and handle the expected growth in sales.

幸運的是，Byrna 強大的財務基礎為能夠開展這些項目並應對預期的銷售成長奠定了基礎。

At the end of December, cash had actually climbed to $23 million.

截至 12 月底，現金實際上已增至 2,300 萬美元。

And as David mentioned, there is no debt on our books, so we are well-positioned for growth.

正如大衛所提到的，我們的帳簿上沒有債務，因此我們處於成長的有利位置。

In conclusion, we believe that 2023 demonstrated that this management team can react to whatever challenges are thrown our way, safely navigating Byrna through troubled waters on the way to our charted destination.

總之，我們相信 2023 年證明了這個管理團隊能夠應對我們所遇到的任何挑戰，安全地帶領 Byrna 渡過難關，到達我們預定的目的地。

Now, let's open the call for your questions.

現在，讓我們開始詢問您的問題。

Operator, please provide the appropriate instructions.

操作員，請提供適當的說明。

(Operator Instructions) Jeff Van Sinderen, B. Riley Securities.

（操作員指示）Jeff Van Sinderen，B. Riley 證券。

I guess the first question I had is really just around marketing.

我想我的第一個問題其實與行銷有關。

Realize that you've added a bunch of new folks to your influencer group and just wondering what we should anticipate for the advertising budget in 2024.

意識到您已經在您的影響者群體中添加了一群新人，只是想知道我們應該對 2024 年的廣告預算進行預期。

The advertising budget in 2024 is currently around $7.5 million.

目前2024年的廣告預算約為750萬美元。

That's up from $5 million that we had when we were focused on social media advertising.

這比我們專注於社群媒體廣告時的 500 萬美元有所增加。

Okay.

好的。

And then since you were just mentioning the Universal Kit, maybe you can just touch on sales trend by product.

既然您剛剛提到了通用套件，也許您可以按產品談談銷售趨勢。

Wondering if your new marketing is driving sales of any of the other products.

想知道您的新行銷是否正在推動其他產品的銷售。

Maybe higher-velocity products versus lower-velocity products?

也許高速產品與低速產品？

And then which products you're seeing that are ramping the most outside of the Universal Kit?

那麼您看到哪些產品在通用套件之外成長最快？

Well, again, the big surprise for us was the demand for the LE.

好吧，對我們來說最大的驚喜是對 LE 的需求。

So the LE has a MSRP of $479 versus an MSRP for the SD of $379.

因此，LE 的建議零售價為 479 美元，而 SD 的建議零售價為 379 美元。

So for an extra $100, we thought that we'd only get about 10% of customers opting for the LE.

因此，如果額外支付 100 美元，我們認為只有大約 10% 的客戶會選擇 LE。

That's run as high as 40%.

高達 40%。

Right now, it's averaging about 33%, so that's been a little bit of a surprise.

目前，平均比例約為 33%，所以這有點令人驚訝。

We've also seen some very strong interest in accessories.

我們也看到一些人對配件非常濃厚的興趣。

So again, one of the benefits of this new advertising campaign is that we're bringing in a lot of new customers.

再說一次，這個新廣告活動的好處之一是我們帶來了許多新客戶。

And these new customers are then coming back, buying things like our Target Tents, holsters, sights, et cetera.

然後這些新客戶就會回來購買我們的 Target 帳篷、皮套、瞄準器等物品。

So we've seen a pretty -- across-the-board interest.

所以我們看到了相當全面的興趣。

Where we've not seen a significant strength, frankly, is in our 12-gauge.

坦白說，我們在 12 號規格中還沒有看到明顯的優勢。

That's been disappointing.

這真是令人失望。

We are going to be looking to partner with a manufacturer of pump-action shotguns so that we can have the 12-gauge sent out with each new shotgun.

我們將尋求與一家泵動式霰彈槍製造商合作，這樣我們就可以為每支新霰彈槍配備 12 號口徑的霰彈槍。

But that's probably been the biggest disappointment, is 12-gauge.

但這可能是最令人失望的，那就是 12 號。

Do you think that that 12-gauge would be more something for law enforcement at this point?

您認為目前 12 號測量儀更適合執法單位嗎？

Or do you think it's still consumer?

還是你認為它仍然是消費者？

No, we think there's a large law enforcement market.

不，我們認為執法市場很大。

Keep in mind, our law enforcement sales in the US are still relatively small.

請記住，我們在美國的執法銷售仍然相對較小。

They represent 1% to 2% of our overall domestic sales.

它們占我們國內總銷售額的 1% 至 2%。

We do have interest in the 12-gauge outside of the US, but again, there's issues with manufacturing and shipping and so forth.

我們確實對美國以外的 12 號壓力表感興趣，但同樣存在製造和運輸等方面的問題。

But I do think that ultimately, law enforcement will probably be the bigger market for 12-gauge.

但我確實認為，最終，執法部門可能會成為 12 號口徑更大的市場。

Okay.

好的。

And then just as a final follow-on to that, maybe you can just touch on the trend in ammo sales?

作為最後的後續，也許你可以談談彈藥銷售的趨勢？

And then what the outlook is for ammo sales, given the increasing pace of launchers.

然後考慮到發射器的成長速度，彈藥銷售的前景如何。

Yeah, ammo sales have always bounced around about 25%.

是的，彈藥銷量一直在 25% 左右反彈。

If we look at the full year, they are at 25%, ammo plus accessories.

如果我們看一下全年，彈藥加配件的比例為 25%。

However, in the fourth quarter, it was down to 22%.

然而，第四季下降至22%。

And I think that that's due to the fourth quarter real extreme growth and probably a lot of new customers.

我認為這是由於第四季度的真正極端增長以及可能有很多新客戶。

Okay.

好的。

Fair enough.

很公平。

Thanks for taking my questions then, and best of luck.

感謝您回答我的問題，祝您好運。

Thanks, Jeff.

謝謝，傑夫。

Jon Hickman, Ladenburg Thalmann.

喬恩希克曼，拉登堡塔爾曼。

Bryan, could you walk through what would happen on your income statement if you got another order from Latin America?

布萊恩，您能否說明一下，如果您收到另一份來自拉丁美洲的訂單，您的損益表上會發生什麼情況？

Well, again, the orders -- what do you mean orders from Latin America?

好吧，再說一次訂單——你所說的來自拉丁美洲的訂單是什麼意思？

Do you mean just in accounting terms, how that works, or?

你的意思只是在會計術語中，它是如何運作的，還是？

Yeah.

是的。

Oh, sure.

哦沒問題。

Yeah.

是的。

Basically, right now, we're using the equity method of accounting, which means that Latin America shows up simply as an investment on our balance sheet.

基本上，現在我們使用權益會計法，這意味著拉丁美洲僅作為一項投資出現在我們的資產負債表上。

And each quarter, we give our 51% of their net loss or gain.

每個季度，我們都會提供其淨虧損或淨收益的 51%。

So if they have an order there locally, say the Córdoba Police order more launchers from them, you don't see anything on our financial statements.

因此，如果他們在當地有訂單，例如科爾多瓦警方向他們訂購更多發射器，那麼您在我們的財務報表上看不到任何內容。

You simply see that, okay, they're more profitable, so we've got better results from investment in joint venture.

你只是看到，好吧，他們的利潤更高，所以我們透過合資企業的投資獲得了更好的結果。

If they make an order from us, right now, from Byrna Technologies, that does show up as an external sale.

如果他們現在從 Byrna Technologies 向我們訂購，這確實會顯示為外部銷售。

But keep in mind that there is a manufacturing facility down in Buenos Aires, so hopefully, they're not ordering too much directly from us.

但請記住，布宜諾斯艾利斯有一家製造工廠，因此希望他們不會直接向我們訂購太多。

Right now, they're producing their own launchers at Byrna LATAM.

目前，他們正在 Byrna LATAM 生產自己的發射器。

They're buying parts directly, components, parts directly from Byrna LATAM.

他們直接從 Byrna LATAM 購買零件、組件、零件。

So the only sales that go from Byrna Technologies to Byrna LATAM are ammo.

因此，Byrna Technologies 向 Byrna LATAM 的唯一銷售是彈藥。

So we're still supplying them with ammo because we don't produce ammo in Latin America.

所以我們仍然向他們提供彈藥，因為我們在拉丁美洲不生產彈藥。

But otherwise, there really are very little in the way of sales from Byrna Technologies to Byrna LATAM.

但除此之外，Byrna Technologies 向 Byrna LATAM 的銷售確實很少。

Okay.

好的。

Thank you.

謝謝。

(Operator Instructions) Jim McIlree, Dawson James.

（操作員說明）Jim McIlree、Dawson James。

I'm trying to understand the increase in operating expenses, and here's how I'm looking at it.

我正在嘗試了解營運費用的增加，以下是我的看法。

So in Q4 of this year, your OpEx was $9.7 million, and that's up about $1 million from the year-ago quarter.

今年第四季度，您的營運支出為 970 萬美元，比去年同期增加了約 100 萬美元。

And sales were down a little bit, and I understand all the puts and takes to what's going on with the sales.

銷售額略有下降，我了解銷售情況的所有看跌期權和期權。

But you talk about your current marketing campaign being much more efficient than the prior one, but we're seeing similar sales and much higher OpEx.

但您談到目前的行銷活動比之前的行銷活動更有效率，但我們看到了類似的銷售額和更高的營運支出。

And you're talking about a meaningful increase in OpEx going forward, so I'm just trying to figure out what's going on there.

你正在談論未來營運支出的有意義的成長，所以我只是想弄清楚那裡發生了什麼。

Yeah, as we said, in Q4 of 2022, $4.3 million in sales were international, with $3.4 million of that going directly to our partner in Argentina, Bersa.

是的，正如我們所說，2022 年第四季度，國際銷售額為 430 萬美元，其中 340 萬美元直接流向我們在阿根廷的合作夥伴 Bersa。

So the real comparison is not $15.6 million versus $16 million.

因此，真正的比較不是 1560 萬美元與 1600 萬美元。

It's $15.6 million versus $11 million.

兩者分別為 1560 萬美元和 1100 萬美元。

So we had a significant sales growth, accompanied by an increase in marketing spend.

因此，我們的銷售額顯著成長，行銷支出也隨之增加。

As I explained, with a 5x ROAS as a minimum, and as we described, our ROAS numbers have been running above 5x, and with a 60% gross profit margin as a minimum with our online DTC, every advertising dollar we spend is quite accretive.

正如我所解釋的，以5 倍的ROAS 為最低，正如我們所描述的，我們的ROAS 數字一直在5 倍以上，並且我們的在線DTC 的毛利率至少為60%，我們花費的每一塊廣告費用都是相當增值的。

David, is there anything you want to add to that?

大衛，你還有什麼要補充的嗎？

Yeah, I mean, what you need to do is, if you're looking at the fourth quarter, yes, that advertising spend does make our breakeven point go up.

是的，我的意思是，你需要做的是，如果你看第四季度，是的，廣告支出確實使我們的盈虧平衡點上升。

But when we talk about efficiencies, I go back to what I said in my remarks, that domestic revenue in the quarter totaled $15.4 million, and that's a 32% increase from the same quarter a year ago.

但當我們談論效率時，我回到我在演講中所說的，該季度的國內收入總計 1540 萬美元，比去年同期增長了 32%。

So that's where we're really seeing the effect of this.

這就是我們真正看到其效果的地方。

And those are our highest-margin sales as well.

這些也是我們利潤率最高的銷售量。

Okay.

好的。

And then also, Bryan, you talked about -- I just want to make sure I heard you properly.

然後，布萊恩，你談到——我只是想確保我正確地聽到了你的聲音。

You said that increasing the frequency of advertising does not increase sales.

您說增加廣告頻率並不會增加銷售量。

Is that true?

真的嗎？

And then so what is the current frequency of advertising that you were referring to when you said increasing it doesn't increase sales?

那麼，當您說增加廣告不會增加銷售額時，您指的是目前的廣告頻率是多少？

So once we've reached the threshold of around four days a week, going up to five ads a week, 10 ads a week with the same celebrity doesn't have the same impact.

因此，一旦我們達到每周大約四天的門檻，每週增加五個廣告，每週增加同一名人的十個廣告就不會產生同樣的影響。

You start to see a diminishing return in terms of ROAS.

您開始看到廣告支出回報率 (ROAS) 的回報遞減。

So if we're spending, let's just say $2 million a year with Sean Hannity, spending $4 million a year with Sean Hannity would not double our return from Sean Hannity.

因此，如果我們每年在 Sean Hannity 上花費 200 萬美元，那麼每年在 Sean Hannity 上花費 400 萬美元不會使我們從 Sean Hannity 獲得的回報翻倍。

So you reach a point where you can't just pour more money into the successful celebrity endorsers, but you have to add celebrity endorsers to the roster.

因此，你不能只向成功的名人代言人投入更多資金，而是必須將名人代言人加入名冊。

This year, our intention is to add one more celebrity endorser, which will start next quarter in March.

今年，我們的目標是再增加一位名人代言人，該計劃將於下個季度三月開始。

But beyond that, we do not intend to add any more celebrity endorsers to the roster because we feel that with these five, we will be able to generate all the growth we can handle.

但除此之外，我們不打算在名單中添加更多的名人代言人，因為我們認為有了這五個人，我們將能夠實現我們能夠應對的所有成長。

Okay.

好的。

And just one other thing on the same issue.

還有關於同一問題的另一件事。

So when you start with a new celebrity endorser, do you scale up to that, let's call it that four-times-a-week baseline?

因此，當您開始聘請新的名人代言人時，您是否會擴大規模，讓我們稱之為每週四個基準？

Or does it take -- and does it take a little time to get that ROAS that you referred to?

或者是否需要一些時間才能獲得您提到的廣告支出報酬率？

Or do you get it somewhat instantaneously?

還是你立刻就明白了？

Our experience has been that we get it somewhat instantaneously.

我們的經驗是，我們可以立即得到它。

One of the things that we've discovered is if we can get on their show, in other words, if we can get an interview on their show as we did with Sean, as we hope to do with Glenn Beck and Bill O'Reilly, it allows us to really jump-start the advertising effectiveness.

我們發現的一件事是我們是否可以參加他們的節目，換句話說，如果我們可以像我們對肖恩所做的那樣接受他們的節目採訪，就像我們希望對格倫·貝克和比爾·奧萊利所做的那樣，它使我們能夠真正提高廣告效果。

But so far, we've not seen any delay in hitting our ROAS numbers.

但到目前為止，我們在達到 ROAS 數字方面沒有看到任何延遲。

In fact, with Glenn Beck, the ROAS numbers were extraordinarily strong right out of the box because in December, Glenn spoke about our product on his show, not as part of our advertising, but just as something that he was interested in.

事實上，Glenn Beck 的 ROAS 數字非常強勁，因為去年 12 月，Glenn 在他的節目中談到了我們的產品，不是我們廣告的一部分，而是他感興趣的東西。

So we're looking for those celebrity endorsers that really believe in our product, that are passionate about our product, that believe in less-lethal self-defense.

因此，我們正在尋找那些真正相信我們的產品、對我們的產品充滿熱情、相信不那麼致命的自衛的名人代言人。

And as a result, there's a tendency for them to talk about it beyond just the advertising that we're paying for.

因此，他們傾向於談論的不僅僅是我們付費的廣告。

The other thing is that with all of these, we start out with a relatively short-term contract, so that we can make sure that this is going to be effective before we commit to anything long term.

另一件事是，對於所有這些，我們從一份相對短期的合約開始，這樣我們就可以確保在我們做出任何長期承諾之前這將是有效的。

Yeah, that's correct.

是的，這是正確的。

So for example, with Sean, we started with a 90-day contract, but then this year, we've now committed to the full-year 2024.

舉例來說，我們一開始與肖恩簽訂了一份為期 90 天的合同，但今年，我們現在承諾到 2024 年全年。

With Glenn Beck, the same thing.

格倫·貝克也是如此。

With Bill O'Rilley, the same thing.

比爾·奧裡利（Bill O'Rilley）也是如此。

Okay.

好的。

Thank you.

謝謝。

That's it for me.

對我來說就是這樣。

Jim.

吉姆.

Thank you.

謝謝。

At this time, this concludes our question-and-answer session.

至此，我們的問答環節就結束了。

I'd now like to turn the call back over to Mr. Ganz for our closing remarks.

現在我想將電話轉回給甘茨先生，讓其結束語。

Okay.

好的。

Thank you, operator, and thank you, everybody who participated today.

謝謝接線員，也謝謝今天參加的所有人。

And particularly, our investors, I want to thank you for your continued support.

我特別要感謝我們的投資人一直以來的支持。

Thank you.

謝謝。

And this concludes today's conference.

今天的會議到此結束。

We thank you for joining us today for Byrna's fiscal fourth quarter and full year 2023 conference call.

我們感謝您今天加入我們參加 Byrna 第四財季和 2023 年全年電話會議。

You may now disconnect.

您現在可以斷開連線。