Celsius Holdings Inc (CELH) 2018 Q2 法說會逐字稿

Greetings, and welcome to Celsius Holdings Second Quarter 2018 Earnings Conference Call.

您好，歡迎參加攝氏控股 2018 年第二季財報電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the conference over to your host, Mr. Cameron Donahue with Hayden IR.

現在我想將會議交給主持人 Hayden IR 的 Cameron Donahue 先生。

Thank you.

謝謝。

You may begin.

你可以開始了。

Thank you.

謝謝。

Good afternoon, everyone.

大家下午好。

We appreciate you joining us today for Celsius Holdings Second Quarter 2018 Earnings Conference Call.

我們感謝您今天參加攝氏控股 2018 年第二季財報電話會議。

Joining me on the call today are John Fieldly, President and Chief Executive Officer; and Edwin Negron Carballo, Chief Financial Officer.

今天與我一起參加電話會議的還有總裁兼執行長 John Fieldly；和財務長 Edwin Negron Carballo。

Following prepared comments, we will open the call to your questions and instructions will be given at that time.

在準備好意見後，我們將開始電話詢問您的問題，屆時將給予指示。

We have filed our quarterly report with the SEC and issued a press release today.

我們已向美國證券交易委員會提交了季度報告，並於今天發布了新聞稿。

All materials are available on the company's website at celsiusholdingsinc.com under the Investor Relations section.

所有資料均可在公司網站 celsiusholdingsinc.com 的投資者關係部分取得。

As a reminder, before I turn the call over to John, the audio replay will be available later today.

提醒一下，在我將電話轉給約翰之前，音訊重播將於今天晚些時候提供。

Please also be aware that this call may contain forward-looking statements, which are based on forecast, expectations, and other information available to management as of today, August 9, 2018.

另請注意，本次電話會議可能包含前瞻性陳述，這些陳述基於截至今天（2018 年 8 月 9 日）管理層可獲得的預測、預期和其他資訊。

These statements involve numerous risks and uncertainties, including many that are beyond the company's control.

這些陳述涉及許多風險和不確定性，其中許多風險和不確定性超出了公司的控制範圍。

Except to the extent as required by applicable law, Celsius Holdings undertakes no obligations and disclaims any duty to update any of these forward-looking statements.

除適用法律要求的範圍外，攝氏控股不承擔任何義務，也不承擔更新任何這些前瞻性聲明的義務。

We encourage you to review in full our safe harbor disclosures contained in today's press release and our quarterly filings with the SEC for additional information.

我們鼓勵您完整查看今天的新聞稿中包含的安全港披露以及我們向 SEC 提交的季度文件，以獲取更多資訊。

With that, I'd like to turn the call over to President and Chief Executive Officer, John Fieldly, for his prepared comments.

說到這裡，我想將電話轉給總裁兼執行長約翰·菲爾德利（John Fieldly），聽聽他準備好的評論。

John?

約翰？

Thank you, Cameron.

謝謝你，卡梅倫。

Good afternoon everyone and thank you for joining us today.

大家下午好，感謝您今天加入我們。

Before I get started, I would like to welcome Edwin Negron Carballo, our newly appointed Chief Financial Officer, who joined up last week.

在開始之前，我要歡迎上週加入的我們新任命的財務長 Edwin Negron Carballo。

He brings more than 30 years of financial and operational experience to our organization.

他為我們的組織帶來了 30 多年的財務和營運經驗。

Edwin is well versed in U.S. GAAP, international financial reporting standards, having worked as a CPA for many years with significant experience in mergers and acquisitions.

Edwin 精通美國公認會計原則（U.S. GAAP）和國際財務報告標準，並擔任註冊會計師多年，在併購方面擁有豐富的經驗。

We are pleased to have you join our team and look forward to you applying your experience to our operations.

我們很高興您加入我們的團隊，並期待您將您的經驗應用到我們的營運中。

Edwin, welcome.

埃德溫，歡迎。

Now, turning to our second quarter.

現在，轉向我們的第二季。

We further advanced our distribution and expansion strategy across all of our regions, in number of large retailers, convenience stores, and new channels of distribution were brought online, both domestically and internationally, further increasing our availability and visibility for our portfolio of premium fitness beverages.

我們進一步推進了在所有地區的分銷和擴張策略，在國內和國際上開設了許多大型零售商、便利商店和線上新分銷管道，進一步提高了我們優質健身飲料產品組合的可用性和知名度。

With innovative products and compelling packaging, we have reached more and more consumers each and every day.

憑藉創新的產品和引人注目的包裝，我們每天都吸引了越來越多的消費者。

Our target sales strategies are bringing Celsius to new channels, increasing product availability and our targeted marketing strategies are introducing new customers who are embracing and enjoying our great tasting, proven fitness drinks.

我們的目標銷售策略是將攝氏度引入新管道，提高產品可用性，我們的目標行銷策略是引入新客戶，讓他們接受並享受我們美味、經過驗證的健身飲料。

Our strategy of positioning Celsius as a global beverage leader for health minded consumers remains our top priority.

我們的策略是將攝氏定位為全球飲料領導者，為注重健康的消費者服務，這仍然是我們的首要任務。

Domestically, Celsius continues to gain great acceptance.

在國內，攝氏度繼續獲得廣泛認可。

Revenue increased nearly 30% to a record $8.5 million in the second quarter where we continue to see strong growth in existing accounts, despite a temporary production delay, which caused a significant shift of nearly $1.3 million in sales from the second quarter of 2018 to the third quarter of 2019.

第二季營收成長近30%，達到創紀錄的850 萬美元，儘管生產暫時延遲，導致銷售額從2018 年第二季到2018 年第二季發生了近130 萬美元的重大轉變，但我們仍然看到現有客戶強勁成長。

We managed through these timing delays and production and delivery of our product has stabilized.

我們克服了這些時間延遲，產品的生產和交付已經穩定。

In addition, domestically, we were focused on ensuring we can support our explosive growth in the U.S. market as we continue to optimize our supply chain with multiple co-factors.

此外，在國內，我們致力於確保能夠支持美國市場的爆炸性成長，同時我們繼續透過多種輔助因素來優化我們的供應鏈。

We are extremely encouraged by the number of new high quality customers we added to our domestic lineup, including Target, CVS, Food Lion, Hannafords, Menards, Wawa, Circle K, as well as many others.

我們對國內產品陣容中新增的大量優質客戶感到非常鼓舞，其中包括 Target、CVS、Food Lion、Hannafords、Menards、Wawa、Circle K 等。

We also had notable expansion in adding over 300 new Planet Fitness locations, further penetrating the fitness channel and we expanded our CELSIUS HEAT to over 25% of all 7-11s nationwide, where our core line is in approximately 50% of national distribution today.

我們也進行了顯著的擴張，增加了300 多個新的Planet Fitness 門市，進一步滲透健身管道，並將CELSIUS HEAT 擴展到全國所有7-11 便利商店的25% 以上，其中我們的核心產品線目前約佔全國分銷量的50%。

We also rolled out a healthy vending micro-market initiative with a focused dedicated team where we are seeing great opportunity targeting at work location and healthy vending opportunities in this growing channel.

我們還推出了一項健康的自動售貨微型市場計劃，並配備了一支專注的專業團隊，我們在這個不斷增長的渠道中看到了針對工作地點的巨大機會和健康的自動售貨機會。

We've entered this new channel with great success and are seeing extremely high velocity rates at these at work locations.

我們已經成功地進入了這個新管道，並且在工作地點看到了極高的速度。

We are very excited about the future of this channel, which further aligns with our strategy of continuing to target health-minded consumers where they live, work, and play.

我們對這個管道的未來感到非常興奮，這進一步符合我們繼續瞄準生活、工作和娛樂中註重健康的消費者的策略。

And our military channel.

還有我們的軍事頻道。

All 3 of our product varieties are now sold in more than 800 exchanges worldwide, including the Army, Navy, Marine Corps, and Coast Guard.

我們的所有 3 個產品品種現已在全球 800 多個交易所銷售，包括陸軍、海軍、海軍陸戰隊和海岸警衛隊。

Total growth through this channel is now up to 50,000 units per week at the end of the second quarter where just over a year ago, units were running an average about 10,000 units per week in the same period.

截至第二季末，透過該通路的總增長量已達到每週 50,000 台，而一年多前，同一時期的平均每週銷量約為 10,000 台。

Our expansion and target further establishes a nationwide platform for widespread availability.

我們的擴張和目標進一步建立了一個全國性的廣泛可用的平台。

Initially, we launched and gained authorization for 3 SKUs, Sparkling Orange, Peach Mango, and Sparkling Watermelon in more than 1,000 locations of the 1,900 Target stores on the ambient energy shelf in the second quarter where the restarts started to take place.

最初，我們在第二季度開始重啟的環境能源貨架上，在 1,900 家 Target 商店的 1,000 多個地點推出並獲得了 3 個 SKU（Sparkling Orange、Peach Mango 和 Sparkling Watermelon）的授權。

As the resets took place, we have received reorders.

隨著重置的進行，我們收到了重新訂單。

We have received positive feedback and strong consumer demand, and we now expect to add additional flavors in the back half of 2018.

我們收到了積極的回饋和強勁的消費者需求，現在我們預計在 2018 年下半年添加更多口味。

Our relationship with Target is a clear sign of the change in consumer demand at shopping patterns, in the grocery and mass channel energy set continue to shift.

我們與塔吉特的關係清楚地顯示消費者購物模式需求的變化，雜貨和大眾通路能源的不斷變化。

Retail buyers are seeking brands that drive traffic and increase sales.

零售買家正在尋找能夠增加流量和增加銷售的品牌。

Many buyers are carving out new, healthy meets functional energy sets.

許多買家正在開發新的、健康且兼具功能性的能量套裝。

We are capitalizing on this evolving trend.

我們正在利用這一不斷發展的趨勢。

To that end, our IRI (inaudible) data as of July 15 validates the demand for our products and with retailers that are adding Celsius to the product lines, the convenience store market had over a 42% growth over the trailing 12 months.

為此，我們截至7 月15 日的IRI（聽不清楚）數據驗證了對我們產品的需求，並且隨著零售商將攝氏度添加到產品線中，便利商店市場在過去12 個月內增長了42 % 以上。

We were outpacing the category by 12.5x with only a 10% ACV.

我們的 ACV 僅為 10%，超出同類產品 12.5 倍。

These results demonstrate our products are in demand and we are being accepted by today's health minded consumer.

這些結果表明我們的產品很受歡迎，並且我們正在被當今注重健康的消費者所接受。

In addition, the momentum demonstrates our product had mass appeal.

此外，這種勢頭表明我們的產品具有大眾吸引力。

In the Nordic region, the month of May was the best sales month our partners had since first entering the region.

在北歐地區，5月份是我們的合作夥伴自首次進入該地區以來銷售最好的月份。

The quarter, however, was impacted by orders of Celsius due to timing of flavor launches and a reduction of inventory levels as they transition to a refreshed new look and feel.

然而，由於口味推出的時間表以及向煥然一新的外觀和感覺過渡時庫存水平的減少，該季度受到了攝氏度訂單的影響。

We are on track for a solid third quarter as production delivery has returned to more normalized levels.

隨著生產交付已恢復到更正常化的水平，我們有望迎來第三季的穩健表現。

We are encouraged by the near term prospect of adding several new retailers to expand our distribution in Finland and Norway in the back half of 2018, which will further our penetration in those markets.

我們對 2018 年下半年增加幾家新零售商以擴大我們在芬蘭和挪威的分銷的近期前景感到鼓舞，這將進一步我們在這些市場的滲透。

In China, we had a highly successful selling season by our primary distributor.

在中國，我們的主要經銷商度過了一個非常成功的銷售季。

Due to timing of retailer resets, the channel fill will flow mostly to the third quarter and the second quarter distribution was still primarily from inventory sold to our partner in March of the first quarter.

由於零售商重置的時間，通路填充將主要流向第三季度，而第二季度的分配仍主要來自第一季 3 月出售給我們合作夥伴的庫存。

Supporting this growth, we have received reorders and have already fulfilled orders for the first quarter to our distribution partners.

為了支持這一成長，我們收到了再訂單，並已經向我們的分銷合作夥伴履行了第一季的訂單。

In China, we have nearly doubled the number of stores since last quarter to more than 25,000 locations and we added over 11,000 key accounts.

在中國，自上個季度以來，我們的門市數量幾乎增加了一倍，達到 25,000 多個地點，並增加了 11,000 多個重要客戶。

We are now in 45 cities supported by 147 sub-distributors, including key accounts such as Circle K, Lawsons, (inaudible) RT Mart, Vanguard, Metro, Century Mark, and Alibaba's new Hema supermarkets in Beijing.

目前，我們的業務涵蓋45 個城市，擁有147 家二級經銷商，包括Circle K、羅森、（聽不清楚）大潤發、華潤萬家、麥德龍、世紀匯以及阿里巴巴在北京新開的盒馬超市等大客戶。

We are also selling well on jd.com and Tmall.

我們在京東和天貓也賣得很好。

Our marketing activities during the quarter in China included sampling, digital, and events targeting consumers living and active healthy lifestyle, driving trial and interaction.

本季我們在中國的行銷活動包括針對消費者積極健康生活方式的採樣、數位化和活動，推動試用和互動。

Some of the events included X-Mudder, an event series in China similar to Tough Mudder, our U.S. partner.

其中一些活動包括 X-Mudder，這是一個在中國舉辦的系列活動，類似於我們的美國合作夥伴 Tough Mudder。

In China, we have a distinct advantage.

在中國，我們有明顯的優勢。

We are producing in country, sourcing all materials locally, and we are supported by local investors and partners.

我們在國內生產，在當地採購所有材料，並得到當地投資者和合作夥伴的支持。

With operations localized, we're able to reduce the impact of tariffs, have a competitive price innovative product, able to gain mass appeal with local partners are able to leverage their experience and networks to increase our speed to market, capitalizing on today's health minded consumer with our trend forward fitness beverage.

透過在地化運營，我們能夠減少關稅的影響，擁有具有競爭力的價格創新產品，能夠獲得當地合作夥伴的廣泛吸引力，能夠利用他們的經驗和網絡來加快我們的上市速度，充分利用當今的健康意識消費者購買我們的潮流健身飲料。

We are driving tremendous progress across all of our regions of our business, reaching a broader audience with more products through an increased number of distribution channels.

我們正在所有業務領域取得巨大進步，透過更多的分銷管道向更廣泛的受眾提供更多產品。

We're very optimistic about our future and the direction we are headed.

我們對我們的未來和前進的方向非常樂觀。

In addition to the incremental momentum and expansion, we are also very active, engaging consumers in driving awareness and trial.

除了增量動力和擴張之外，我們也非常積極地吸引消費者來提高認知度和試用率。

Our Tough Mudder sponsorship is in full spring in the U.S. During the second quarter, we toured Miami, Texas, Philly, Michigan, Kentucky, Virginia, and Boston.

我們對 Tough Mudder 的贊助在美國正值春季。

And on average, we sampled over 25,000 to 30,000 people each and every weekend while touring these cities and also through our guerilla sampling events, which continue to cross the U.S.

平均而言，我們每個週末在遊覽這些城市時以及透過我們的遊擊採樣活動對超過 25,000 至 30,000 人進行採樣，這些活動繼續穿越美國。

In addition to consumer sampling, the team also sampled heavily in the trade, attending several events and trade shows targeting vending, colleges and universities, health and fitness, and retail partners.

除了消費者抽樣之外，該團隊還在業界進行了大量抽樣，參加了一些針對自動販賣機、學院和大學、健康和健身以及零售合作夥伴的活動和貿易展覽。

Our digital team continues to leverage our assets and our increasing engagement on all social platforms.

我們的數位團隊繼續利用我們的資產以及我們在所有社交平台上不斷增加的參與度。

In addition, we launched our CELSIUS LIFERS Brand Ambassador program with great success, receiving great interest and support for the program.

此外，我們推出的CELSIUS LIFERS品牌大使計畫也取得了巨大成功，受到了人們的極大興趣和支持。

We currently have a team of over 300 passionate ambassadors throughout the nations signed up for the program and many are being on-boarded -- more are being on-boarded as we speak.

目前，我們在各國擁有一支由 300 多名充滿熱情的大使組成的團隊，報名參加了該計劃，其中許多人正在加入——就在我們發言時，還有更多的大使加入。

This is going to increase our reach, engagement, and influence.

這將增加我們的影響力、參與度和影響力。

Additionally, in the second quarter, our newest flavor to our core line, a great tasting kiwi guava, was well received, and made it to the shelves of many retail outlets in the second quarter, including 7-11 and many fitness locations.

此外，在第二季度，我們核心系列的最新口味——美味的獼猴桃番石榴，受到了好評，並在第二季度進入了許多零售店的貨架，包括 7-11 和許多健身場所。

In addition, the new flavor gained interest from many of our customers for its crisp taste, great flavor, and it's perfect and refreshing for the hot summer days.

此外，新口味以其酥脆、風味極佳，非常適合炎熱的夏季，受到了許多顧客的青睞。

Also in the quarter, we finalized and introduced in July two new flavors for our convenient on the go powdered sticks.

同樣在本季度，我們最終確定並於 7 月推出了兩種新口味，用於方便攜帶的粉末棒。

The two new flavors, combined with our clinically proven functional formula, adds coconut and cranberry lemon flavor to our existing power lineup of orange, and berries.

這兩種新口味與我們經過臨床驗證的功能配方相結合，為我們現有的橙子和漿果系列產品增添了椰子和酸果蔓檸檬風味。

These new flavors are available online as well as fitness locations and other fine retailers and adds additional points of availability.

這些新口味可在網上以及健身場所和其他優質零售商處購買，並增加了額外的供應點。

Our delicious on the go stick, loved by Celsius fans, allows consumers to enjoy Celsius anywhere.

我們的美味隨身棒深受Celsius粉絲的喜愛，讓消費者可以在任何地方享受Celsius。

We are a lean organization capitalizing on today's health and wellness trend, with our innovative portfolio of products with mass appeal.

我們是一家精實組織，利用當今的健康和保健趨勢，提供具有大眾吸引力的創新產品組合。

Our brand is resonating with today's consumer and has gained considerable momentum.

我們的品牌與當今的消費者產生了共鳴，並獲得了相當大的發展動能。

Our future has never looked brighter.

我們的未來從未如此光明。

I will now turn the call over to Edwin Negron Carballo, our Chief Financial Officer, for his prepared remarks.

現在我將把電話轉給我們的財務長 Edwin Negron Carballo，聽取他準備好的演講。

Edwin?

埃德溫？

Thank you, John.

謝謝你，約翰。

Total revenue for the second quarter of 2018 was $9.3 million compared to $10.2 million in the second quarter of 2017.

2018 年第二季的總收入為 930 萬美元，而 2017 年第二季的總收入為 1,020 萬美元。

The 9% shortfall was mainly attributable to the timing of sales, as John discussed earlier.

正如約翰之前所討論的，9% 的缺口主要歸因於銷售時機。

Looking now at the results by geography.

現在按地理位置查看結果。

North America sales were up a robust 29% year-over-year due to growth in existing accounts and new distribution expansion.

由於現有客戶的成長和新分銷的擴張，北美銷售額年增 29%。

In Europe, the normalizing of inventories translated to a 78% slowdown in sales, as our customer reduced orders in the second quarter of 2018.

在歐洲，由於我們的客戶在 2018 年第二季減少了訂單，庫存正常化導致銷售下降 78%。

And in Asia, sales decreased due to the timing of orders and the application of promotional discounts provided interest in the quarter.

在亞洲，由於訂單時間安排和促銷折扣的應用程式帶來了本季的興趣，銷售額有所下降。

Although gross profit for the second quarter of 2018 reflected a decline of $585,000 or 13% to $4 million, our margins remain very healthy at 42.8% of revenue.

儘管 2018 年第二季的毛利下降了 585,000 美元或 13%，至 400 萬美元，但我們的利潤率仍然非常健康，佔收入的 42.8%。

This compares to $4.6 million of gross profit in Q2 2017, which also delivered healthy profitability of 44.6%.

相較之下，2017 年第二季的毛利為 460 萬美元，獲利率為 44.6%。

The decline in gross profit dollars was the result of lower volume, while profitability was affected by the slotting fees and other similar charges in the international markets.

毛利下降是銷量下降的結果，而獲利能力則受到國際市場進場費和其他類似費用的影響。

Selling and marketing expenses for the quarter ending June 30, 2018 were $4.1 million compared to $2.4 million for Q2 in 2017, an increase of 72%.

截至 2018 年 6 月 30 日的季度銷售和行銷費用為 410 萬美元，而 2017 年第二季為 240 萬美元，成長 72%。

The increase is primarily due to investments in marketing programs to continue to build our brand, and employee investments in order to have a solid infrastructure for growth.

這一成長主要是由於對行銷計劃的投資，以繼續建立我們的品牌，以及員工投資，以擁有堅實的成長基礎設施。

General and administrative expenses for the second quarter of 2018 were $3.1 million compared to $1.6 million for the second quarter of 2017, an increase of 93%.

2018 年第二季的一般及管理費用為 310 萬美元，較 2017 年第二季的 160 萬美元成長 93%。

The increase was primarily due to a non-recurring charge of $945,000 related to the settlement of a territorial dispute with a former distributor and an increase of approximately $600,000 for recognition of option expense, as well as a slight increase in research and development costs of $67,000, which were partially offset by savings in other areas of approximately $120,000.

增加的主要原因是與解決與前經銷商的領土爭端有關的 945,000 美元的非經常性費用，以及用於確認期權費用的約 600,000 美元的增加，以及研發成本小幅增加 67,000 美元，這被其他領域約120,000 美元的節省所部分抵銷。

Net loss to common shareholders for the second quarter of 2018 was $3 million or $0.07 per basic and diluted share compared to a net income of $380,000 or $0.01 per basic and diluted share for the corresponding period last year.

2018 年第二季普通股股東淨虧損為 300 萬美元，即每股基本股和稀釋股 0.07 美元，去年同期淨利為 38 萬美元，即每股基本股和稀釋股 0.01 美元。

Net loss and net income attributable to common stockholders includes preferred stock dividends.

歸屬於普通股股東的淨虧損和淨收益包括優先股股息。

For the second quarter of 2018, the net loss included preferred dividends of approximately $43,000 and for the second quarter of 2017, the net loss included preferred dividends of approximately $91,000.

2018年第二季的淨虧損包括約43,000美元的優先股股息，2017年第二季的淨虧損包括約91,000美元的優先股股息。

The savings in preferred dividends is associated with a conversion of our preferred D shares to common stock during the period.

優先股股息的節省與我們在此期間將優先 D 股轉換為普通股有關。

Operating expenses for the second quarter reflected noncash charges, including depreciation, amortization and stock-based compensation, for a total of approximately $1.2 million compared to $585,000 for Q2 2017.

第二季的營運費用反映了非現金費用，包括折舊、攤提和股票薪酬，總計約為 120 萬美元，而 2017 年第二季為 585,000 美元。

Adjusted EBITDA for the second quarter of 2018 was a negative $2.1 million compared to a positive $1.1 million in the second quarter of 2017.

2018 年第二季調整後 EBITDA 為負 210 萬美元，而 2017 年第二季為正 110 萬美元。

Now, by excluding other one-time charges and the net investment in Asia, we obtained non-GAAP adjusted EBITDA results, which are very close to breakeven and a negative $261,000 in the second quarter of 2018, which is comparable to a positive $1.1 million for the corresponding period in 2017.

現在，透過排除其他一次性費用和亞洲​​的淨投資，我們獲得了非 GAAP 調整後 EBITDA 結果，該結果非常接近盈虧平衡，2018 年第二季度為負 261,000 美元，與正 110 萬美元相當2017年同期。

We believe that the information reflects the adjusted EBITDA and non-GAAP financial aspects enhances the overall understanding of our performance.

我們相信，這些資訊反映了調整後的 EBITDA 和非 GAAP 財務方面，增強了對我們業績的整體了解。

To that effect, a reconciliation of our GAAP results to non-GAAP figures has been included in our earnings release.

為此，我們的 GAAP 業績與非 GAAP 數據的調整已包含在我們的收益發布中。

Now, turning to our year to date results.

現在，轉向我們今年迄今為止的結果。

For the first 6 months of 2018, revenues increased a robust 32% to $21.4 million as a result of excellent growth in North American sales of 45%.

2018 年前 6 個月，由於北美銷售額成長 45%，營收強勁成長 32% 至 2,140 萬美元。

Similarly, Asia reflected a strong increase of approximately $1.3 million, which were partially offset by a decline of 30% in European sales of $1.4 million.

同樣，亞洲銷售額強勁成長約 130 萬美元，但部分被歐洲銷售額 140 萬美元下降 30% 所抵銷。

The decline in European sales mainly pertains to the timing of reorders on our core Celsius line, which was partially offset by the launch of our BCAA CELSIUS line in Northern Europe.

歐洲銷售額的下降主要與我們核心攝氏系列的再訂購時間有關，但我們在北歐推出的 BCAA CELSIUS 系列部分抵消了這一影響。

The increase in total revenue was primarily due to an increase in sales volume as opposed to increases in product pricing.

總收入的增加主要是由於銷售量的增加，而不是產品定價的增加。

Gross profit for the first 6 months of 2018 increased by a solid 26% to $8.7 million, delivering a strong gross profit margin of 41% compared to $6.9 million a year ago, which also delivered a healthy 42.8% gross profit margin.

2018 年前 6 個月的毛利穩定成長 26%，達到 870 萬美元，毛利率高達 41%，而去年同期為 690 萬美元，毛利率也達到了 42.8% 的健康水準。

The increase in gross profit dollars is primarily attributable to increases in revenue, while gross margin profitability was affected by incremental promotional allowances and slotting charges.

毛利的增加主要歸因於收入的增加，而毛利率則受到促銷津貼和進場費增量的影響。

Operating expenses for the first 6 months of 2018 increased 77% to $14.9 million, up from $8.3 million in the prior year.

2018 年前 6 個月的營運費用成長 77%，達到 1,490 萬美元，高於前一年的 830 萬美元。

This increase was driven by investment in sales and marketing initiatives of $5.2 million and a $1.4 million increase in general and administrative expenses.

這一增長是由 520 萬美元的銷售和行銷計劃投資以及 140 萬美元的一般和管理費用增加所推動的。

Regarding other expenses, there was a decline of 7.5% to $80,000 in the first 6 months of 2018 compared to $87,000 in the first 6 months of 2017 as a result of lower interest expense.

至於其他費用，由於利息支出減少，2018 年前 6 個月的費用下降 7.5%，至 80,000 美元，而 2017 年前 6 個月為 87,000 美元。

The company's net loss attributed to common stockholders for the first 6 months of 2018 was $6.4 million or $0.13 per basic and diluted share compared to a net loss of $1.6 million or $0.04 per basic and diluted share for the comparable period in 2017.

該公司2018 年前6 個月歸屬於普通股股東的淨虧損為640 萬美元，即每股基本股和稀釋股0.13 美元，而2017 年同期淨虧損為160 萬美元，即每股基本股和稀釋股0.04 美元。

Operating expenses for the first 6 months of 2018 included noncash charges for depreciation, amortization, and stock-based compensation totaling approximately $1.9 million compared to $1.6 million last year.

2018 年前 6 個月的營運支出包括折舊、攤提和股票薪酬等非現金費用，總計約 190 萬美元，而去年為 160 萬美元。

Adjusted EBITDA for the first 6 months of 2018 was a loss of $4.2 million compared to a positive adjusted EBITDA of $47,000 in the year ago period.

2018 年前 6 個月的調整後 EBITDA 虧損 420 萬美元，而去年同期調整後 EBITDA 為 47,000 美元。

By adjusting or other nonrecurring charges and investments in Asia we once again obtained very good results close to break even, reflecting a non-GAAP adjusted EBITDA for the first six months of 2018 of a negative $120,000 compared to a positive adjusted EBITDA of $805,000 for the comparable period last year.

透過調整亞洲的其他一次性費用和投資，我們再次獲得了接近收支平衡的良好業績，反映出2018 年前六個月的非GAAP 調整後EBITDA 為負120,000 美元，而2018 年前六個月調整後EBITDA 為正805,000 美元。

Now, turning to our companies.

現在，轉向我們的公司。

As of June 30, 2018, the company has cash of approximately $8.5 million and working capital of approximately $16.3 million.

截至2018年6月30日，該公司擁有現金約850萬美元，營運資金約1,630萬美元。

This compares with $14.2 million in cash and $20.6 million of working capital as of December 31, 2017.

相較之下，截至 2017 年 12 月 31 日，現金為 1,420 萬美元，營運資金為 2,060 萬美元。

We believe our current cash balance is sufficient to meet our anticipated cash needs through the next 12 months.

我們相信我們目前的現金餘額足以滿足未來 12 個月的預期現金需求。

Cash used in operations for the first 6 months of 2018 totaled $5.8 million compared to $2.7 million in the first 6 months of 2017.

2018 年前 6 個月營運中使用的現金總額為 580 萬美元，而 2017 年前 6 個月為 270 萬美元。

The increase in use of cash in 2018 is mainly related to the net loss from operations, as the net use of cash related to operational assets and liabilities was actually $1.2 million lower in 2018 than in 2017.

2018年現金使用量的增加主要與營運淨虧損有關，因為2018年與營運資產和負債相關的現金淨使用量實際上比2017年減少了120萬美元。

That concludes our prepared remarks.

我們準備好的演講到此結束。

Operator, you may open the call for questions.

接線員，您可以打開電話提問。

Thank you.

謝謝。

(Operator Instructions) Our first question comes from Jeff Van Sinderen with B. Riley FBR.

（操作員說明）我們的第一個問題來自 Jeff Van Sinderen 和 B. Riley FBR。

So maybe you can give us a little better understanding.

所以也許你可以讓我們更理解一點。

In domestic, it seems that demand temporarily outstripped supply and you had about, I think, $1 million or $1.3 million I think you said in orders that shifted into Q3.

在國內，需求似乎暫時超過了供應，我認為您在第三季的訂單中提到了大約 100 萬美元或 130 萬美元。

Was that - how much of that I guess was because you were filling the channel for Target and CVS?

我猜這其中有多少是因為你在為 Target 和 CVS 填充渠道？

And then also, can you tell us more about the sell-throughs at CVS.

另外，您能否告訴我們更多有關 CVS 銷售情況的資訊。

I think you said there was a reset there in terms of where they had the products in the stores.

我想你說過他們在商店裡的產品位置進行了重置。

Also, is CVS rolling to more stores?

另外，CVS 是否會擴及更多商店？

Are they adding more flavors?

他們會添加更多口味嗎？

So just trying to get a sense of that and then maybe just where you stand now in terms of inventory and production capacity.

因此，只是想了解這一點，然後也許了解一下您現在在庫存和生產能力方面的情況。

Do you think the stock outs are behind you now?

您認為缺貨已經過去了嗎？

We can start with those.

我們可以從這些開始。

A: Sure.

答：當然可以。

Thank you, Jeff.

謝謝你，傑夫。

Appreciate the questions.

感謝您提出的問題。

In regards to the delayed shipment of about $1.3 million, we had some temporary really production delays in regards to working with one of our largest co-packers that set us back several weeks.

關於約 130 萬美元的延遲發貨，我們在與最大的代加工商之一合作時出現了一些臨時性的實際生產延遲，這讓我們推遲了幾週。

Unfortunately, we did have - we weren’t fully out of stock on all of our SKUs but we did have about 2.5 weeks of out of stocks on timing of shipments to certain customers throughout our channels.

不幸的是，我們確實遇到了這種情況——我們的所有 SKU 並沒有完全缺貨，但在透過我們的管道向某些客戶發貨的時間上，我們確實有大約 2.5 週的缺貨情況。

The accumulation of those that crossed over from the last week in the quarter to the first week of the third quarter, the total was $1.3 million, which has now shipped in the third quarter.

從本季最後一週到第三季第一周的累計金額為 130 萬美元，現已在第三季出貨。

In regards to the procurement of the product and the production, as you recall, over the last several quarters and years, we've continued to work on solidifying really our production.

在產品採購和生產方面，正如您所記得的，在過去的幾個季度和幾年裡，我們一直在努力鞏固我們的生產。

We are now running product at multiple co-packers.

我們現在在多個代加工廠運作產品。

We feel that our inventory has stabilized.

我們認為我們的庫存已經穩定。

We have plans in place to continue to execute and we have our co-packers back online.

我們已經制定了繼續執行的計劃，並且我們的代加工廠已重新上線。

We actually added another co-packer online in the third quarter.

實際上，我們在第三季度增加了另一家線上代加工商。

So we feel we have a sufficient amount of supply.

所以我們覺得我們有足夠的供應量。

We're continuing to build more inventory as we continue to move forward.

隨著我們繼續前進，我們將繼續建立更多庫存。

But at this time point in time, we are shipping orders and we have sufficient inventory for growth.

但在這個時間點，我們正在運送訂單，我們有足夠的庫存來實現成長。

When you look at your question in regards to CVS, as you recall, we went into -- in the first quarter, early second quarter, we entered 550 open-air front checkout coolers at CVS.

當您查看有關 CVS 的問題時，您還記得，我們​​在第一季、第二季初進入了 CVS 的 550 個露天前結帳冷卻器。

We have received reorders, strong reorders from CVS, and we are extremely optimistic as we continue to partner with them.

我們收到了來自 CVS 的再訂購，大量再訂購，我們對繼續與他們合作感到非常樂觀。

As we mentioned before last call that there would be a review taking place somewhere around September for the resets coming.

正如我們在上次電話會議之前提到的，將在 9 月左右對即將到來的重置進行審查。

So based on the momentum and volume of reorders we're receiving from the CVS locations, we're very excited about the opportunity.

因此，根據我們從 CVS 地點收到的再訂單的勢頭和數量，我們對這個機會感到非常興奮。

In Target, we were authorized with 3 SKUs, as I stated, in 1,000 stores.

正如我所說，在 Target，我們在 1,000 家商店中獲得了 3 個 SKU 的授權。

So through the quarter, the second quarter, we were going through that process with reorders.

因此，在整個季度、第二季度，我們都在經歷重新訂購的過程。

The great news that we were very excited, as well as Targets, when the product hit the shelf, in regards to the reorders we are receiving.

好消息是，當產品上架時，我們和 Targets 都對收到的重新訂單感到非常興奮。

So we're very excited about the momentum there and we stated earlier in the call that we are very optimistic on gaining additional SKUs of additional placement in the back half of this year due to the initial success of the product.

因此，我們對那裡的勢頭感到非常興奮，我們在電話會議早些時候表示，由於該產品的初步成功，我們對今年下半年獲得額外放置的更多 SKU 非常樂觀。

So we're really excited about that partnership at Target and we look forward to a very prosperous future as we move forward with that.

因此，我們對塔吉特的這種合作關係感到非常興奮，並且隨著我們的推進，我們期待著一個非常繁榮的未來。

Okay, well, those sounds like great launches.

好吧，這些聽起來像是很棒的發布。

And then maybe if we can shift a little bit to the Nordic region, if you can help us understand better what was behind the decline in the Nordic region.

然後也許我們可以稍微轉向北歐地區，如果你能幫助我們更了解北歐地區衰落背後的原因。

I know you mentioned a couple of elements there with new flavor launches and so forth.

我知道你提到了一些元素，包括新口味的推出等等。

But I think you also said that in May you had a really strong month.

但我想你也說過五月是一個非常強勁的月份。

So was trying to parse those out.

所以我試著解析這些內容。

Maybe just touch on the sell-throughs, how sell-throughs have been in that region and it sounds like maybe there's a disconnect between the sell-throughs and the orders you’ve received in Q2.

也許只是談談銷售率，該地區的銷售率如何，聽起來銷售率和你在第二季度收到的訂單之間可能存在脫節。

And then maybe just give us a sense of what you're expecting in Q3 from that region.

然後也許只是讓我們了解您對該地區第三季的期望。

A: Thank you, Jeff.

答：謝謝你，傑夫。

Out of the Nordics, when we look at the Nordics, we're talking about Sweden, we're talking about Finland, and Norway as the opportunity there with our strategic distribution partner.

在北歐地區，當我們關注北歐地區時，我們談論的是瑞典、芬蘭和挪威，它們是我們與策略分銷合作夥伴合作的機會。

When you look at the prior quarter, in 2017 to 2018, there was a variety of new SKU launches, which took place in that quarter recycling those.

當你查看 2017 年至 2018 年的上一季時，會發現有各種新的 SKU 發布，這些 SKU 是在該季度回收的。

In addition, we mentioned our distribution partner is bringing investments down to more of a more manageable volume.

此外，我們提到我們的分銷合作夥伴正在將投資減少到更易於管理的數量。

So as a result of that, and they're going through this transition of a new packaging refresh, of a new look and feel.

因此，他們正在經歷新包裝更新、新外觀和感覺的轉變。

We are very confident that these orders will be more normalized as we move forward.

我們非常有信心，隨著我們的前進，這些訂單將會更加正常化。

We already have orders in place that are under production as we speak for the third quarter.

正如我們所說的第三季度，我們已經有訂單正在生產中。

So it was really a timing in regards to replenishment orders with our customer in the Nordics.

因此，這確實是我們向北歐客戶補貨訂單的時機。

In regards to May, I stated May was a great sales month.

關於五月，我說過五月是銷售旺季。

Speaking with our distribution partner over there, their sell-through in the month of May was very strong.

與我們那邊的分銷合作夥伴交談，他們五月份的銷售量非常強勁。

They had a variety of programs where they had pallet drops in a variety of the co-op location and they were very motivated for the May momentum.

他們有各種各樣的計劃，在不同的合作社地點進行托盤投放，他們對五月的勢頭非常有動力。

So we expect this to be a timing as we move forward and get back to more normalized levels.

因此，我們預計這將是我們向前邁進並恢復到更正常化水平的時機。

The other positive news that's coming out of the Nordics in regards to Finland and Norway is we're getting information that we're further expansion into the co-op locations in those outlets.

來自北歐的關於芬蘭和挪威的另一個積極消息是，我們得到的資訊表明我們正在進一步擴展到這些商店的合作社地點。

There's a great opportunity as resets take place in the back half of 2018, early 2019.

隨著 2018 年下半年、2019 年初的重置，這是一個很好的機會。

We'll be able to gain additional national distribution with the other key accounts in the market.

我們將能夠透過市場上的其他主要客戶獲得額外的全國分銷。

And then just one more for me.

然後再給我一個。

I China, I think you said you're now in about 25,000 doors, which is great.

在中國，我想你說過你現在大約有 25,000 個門，這很棒。

You’ve increased the door count a lot there.

你在那裡增加了很多門的數量。

Can you give us a sense of how the sell-throughs are trending there?

能為我們介紹一下那裡的銷售趨勢嗎？

Maybe what you expect in terms of the trajectory of your business there in the near term?

也許您對您的近期業​​務發展軌跡有何期望？

A: Absolutely.

答：當然。

In regard to China, and you look at the quarter, the second quarter, we had a considerable amount of product that shipped in March.

就中國而言，你看一下第二季度，我們在三月發貨了相當多的產品。

So in addition to that, our team anticipated the resets taking place earlier in the second quarter than they did post-Chinese New Year.

因此除此之外，我們的團隊預計第二季的重置會比農曆新年後更早進行。

A lot of the retail resets were taking place on key accounts further back towards the back end of the quarter.

許多零售重置是在本季末對關鍵客戶進行的。

And as a result of that, we lost several, really several weeks of sell-through opportunity.

結果，我們失去了好幾個星期的銷售機會。

But at the end of the quarter, as you mentioned and stated on the call, we were in over 25,000 locations and 11,000 key accounts, which is really key to our success there.

但在本季末，正如您在電話中提到和指出的那樣，我們的業務覆蓋超過 25,000 個地點和 11,000 個重要客戶，這對於我們在那裡取得成功確實至關重要。

We are in some monumental accounts.

我們正處於一些不朽的記錄中。

The sell through has been extremely positive in these accounts when we're seeing the initial take rates, which we've been in there about four to really several weeks now.

當我們看到最初的接受率時，這些帳戶的銷售情況非常積極，我們已經在那裡待了大約四到幾週了。

So we are getting reorders.

所以我們收到了重新訂購。

We have a reorder in July that we produced and have sold to our master distributor, and we're gearing up for another order to come in for August any day now.

我們在 7 月收到了一份重新訂購的訂單，我們生產了該訂單並將其出售給我們的主經銷商，現在我們正在為 8 月隨時收到的另一份訂單做準備。

So the product is turning and we're gaining more feedback, more ground data to understand further how Celsius is performing.

因此，產品正在發生變化，我們正在獲得更多回饋和更多地面數據，以進一步了解攝氏度的表現。

But we are getting great placement in the stores and we're seeing some great execution by our distribution partners.

但我們在商店中獲得了很好的定位，並且我們看到我們的分銷合作夥伴的出色執行力。

Our next question comes from Jeff Cohen with Ladenburg Thalmann.

我們的下一個問題來自傑夫·科恩和拉登堡·塔爾曼。

Hi, Edwin and John.

嗨，埃德溫和約翰。

This is actually Bethany on for Jeff.

這實際上是貝瑟尼為傑夫做的。

Can you hear me okay?

你聽得到我說話嗎？

A: Yes, we can, Bethany.

A：是的，我們可以，貝瑟尼。

Thank you.

謝謝。

Okay, great.

好的，太好了。

So I just had a couple questions.

所以我有幾個問題。

I think I'd like to start with any trends within the fitness energy drink segment, including flavors?

我想我想從健身能量飲料領域的趨勢開始，包括口味？

I know that you had introduced a coconut one because coconut water had become so popular.

我知道您推出了椰子水，因為椰子水變得如此受歡迎。

Are you seeing any other trends similar to that one?

您是否看到其他與該趨勢類似的趨勢？

A: That’s a great question.

答：這是一個很好的問題。

We had a variety of great momentum in the second quarter with our flavors and one of the big interests in our flavor, which was one of our new flavors, was the kiwi guava.

我們的口味在第二季度取得了各種巨大的發展勢頭，我們的口味中最受關注的之一是獼猴桃番石榴，這是我們的新口味之一。

We got excellent feedback, excellent distribution from our distribution partners.

我們從我們的分銷合作夥伴那裡得到了極好的反饋和出色的分銷。

It was really embraced by the fitness channel as well and we got a substantial off take in regards to that product turning and we expect that kiwi guava flavor to gain additional authorizations in our key accounts as we continue to move forward for the next planogram reset.

它也確實受到了健身頻道的歡迎，我們對該產品的轉變有了很大的興趣，隨著我們繼續推進下一個貨架圖重置，我們預計獼猴桃番石榴口味將在我們的主要客戶中獲得更多授權。

When you look at, as you mentioned, our coconut, which is our powder product, we just launched it in July, as well as our cranberry lemon, which is a great flavor.

正如您所提到的，當您查看我們的椰子（我們的粉末產品）時，我們剛剛在 7 月推出了它，還有我們的蔓越莓檸檬，這是一種很棒的味道。

It really is an excellent product.

這確實是個優秀的產品。

Everyone loves it and that is just now rolling in through really the fitness channel.

每個人都喜歡它，而且它現在才真正透過健身頻道滾滾而來。

Okay, got it.

好的，明白了。

And then also, I think you mentioned that you had expanded into about 300 Planet Fitness locations.

另外，我想您提到您已經擴展到大約 300 個 Planet Fitness 地點。

Did that include the HEAT line and your original line or are you aiming more towards one or the other?

其中是否包括 HEAT 系列和您原來的系列，還是您更傾向於其中一個？

A: When you look at our HEAT line, our HEAT line initially launched in the fitness channel and we look at the distribution of the heat line currently.

答：當你看我們的 HEAT 系列時，我們的 HEAT 系列最初是在健身頻道推出的，我們目前關注的是 HEAT 系列的分佈。

It is mainly in the fitness channel and we do have SKUs authorized nationally at 7-11 where we have about 25% ACV distribution throughout the nation today.

主要是在健身管道，我們確實在 7-11 上有全國授權的 SKU，目前我們在全國範圍內分銷了大約 25% 的 ACV。

Our teams are focused on expanding that because we do have national authorization with those two SKUs.

我們的團隊致力於擴大這一範圍，因為我們確實擁有這兩個 SKU 的國家授權。

But specifically speaking to Planet Fitness, you're going to see a combination of our original line as well as our CELSIUS HEAT line in those Planet Fitness locations, as well as through all the fitness channels.

但具體到 Planet Fitness，您將在這些 Planet Fitness 地點以及所有健身管道看到我們的原始系列和 CELSIUS HEAT 系列的組合。

You'll see a combination of our core line as well as the Celsius heat.

您將看到我們的核心線和攝氏熱量的組合。

And both lines are performing extremely well in that fitness channel.

兩條產品線在該健身頻道的表現都非常出色。

I also was wondering if you could talk a tiny bit about the vending micro-market initiative.

我還想知道您是否可以談談自動販賣微型市場計劃。

Could you add a little more color on that?

能在上面再添加一點顏色嗎？

A: Absolutely.

答：當然。

The vending micro-market opportunity is extremely exciting for us.

自動售貨微型市場的機會對我們來說非常令人興奮。

When we look at how Celsius goes to market, we're targeting consumers where they live, work, and play.

當我們研究攝氏度如何進入市場時，我們瞄準的是消費者生活、工作和娛樂的地方。

And this is full encompassing.

這是全面的。

So the micro-market, we have a dedicated team focused on the opportunity and really, addition to micro-markets, it's healthy vending as well as colleges and universities as well.

因此，在微觀市場上，我們有一個專注於機會的專門團隊，實際上，除了微觀市場之外，還有健康的自動販賣機以及學院和大學。

And the micro-markets, which we started to roll into that channel in the second quarter, which is really at work locations, we're seeing an extremely high off-tick in regards to the number of sales running through on a weekly basis out of these micro-markets.

我們在第二季開始進入該通路的微型市場（實際上是在工作地點），我們發現每週的銷售數量非常高。

It is a great opportunity for us.

這對我們來說是一個很好的機會。

So you're going to see us at your at-work location.

因此，您將在您的工作地點見到我們。

You'll see us at your health club.

您會在您的健身俱樂部見到我們。

You'll see us in your vitamin specialty store.

您會在維生素專賣店看到我們。

You'll see us in your drug channel.

您會在毒品頻道中看到我們。

You'll see us in your mass channel and you'll also be able to purchase this online.

您將在您的大眾頻道中看到我們，您也可以在線上購買。

So we're available for consumers.

所以我們可供消費者使用。

We're going to continue to expand that distribution.

我們將繼續擴大這種分佈。

That is a major focus, which aligns nicely with our marketing strategies, as well that continue to target consumers where they live, work, and play.

這是一個主要焦點，它與我們的行銷策略非常吻合，並且繼續以消費者生活、工作和娛樂的地方為目標。

And last, I wanted to ask one more related to your online presence.

最後，我想再問一個與您的網路形象相關的問題。

I remember last quarter, you had started the Ambassador program, and I guess you said you had about 300 with more onboarding by the minute.

我記得上個季度，你們啟動了大使計劃，我猜你們說你們有大約 300 名大使，而且每分鐘都有更多的大使加入。

I'm curious, can you track clicks from your Ambassador's posts to your website?

我很好奇，您能追蹤大使貼文到您網站的點擊次數嗎？

And if so, are you seeing any additional volumes from those clicks?

如果是這樣，您是否看到這些點擊帶來了任何額外的銷售？

A: That's a good question.

答：這是個好問題。

We have very passionate fans of the brand.

我們擁有該品牌非常熱情的粉絲。

We have on boarded over 300 and more as we're speaking.

截至我們發言時，我們已有超過 300 名乘客加入。

We are seeing more social engagement.

我們看到更多的社會參與。

We do have some additional software we use to be able to track the engagement that's out there, not only on our sites, but other third party sites as well.

我們確實有一些額外的軟體，可以用來追蹤我們的網站和其他第三方網站上的參與度。

And we're seeing increases in the overall engagement.

我們看到整體參與度增加。

So this program is really a great opportunity for us to really continue to attract our core fans, to really spread Celsius.

所以這個節目對我們來說確實是一個很好的機會，可以真正繼續吸引我們的核心粉絲，並真正傳播Celsius。

People are very vocal.

人們非常有發言權。

They're excited.

他們很興奮。

It is a great product.

這是一個很棒的產品。

It's an experiential product and this platform allows them to get additional benefits for being a fan of the brand.

這是一款體驗式產品，這個平台讓他們能夠因為成為品牌的粉絲而獲得額外的好處。

So we're really excited about that and it's all incremental.

所以我們對此感到非常興奮，而且這一切都是漸進的。

Our next question comes from Anthony Vendetti with Maxim Group.

我們的下一個問題來自 Maxim Group 的 Anthony Vendetti。

I was just wondering, John, if you could just go a little bit more into what the situation with the Nordic distribution partner.

約翰，我只是想知道您是否可以進一步了解北歐分銷合作夥伴的情況。

Just trying to understand if it was partly timing or other factors there and the same with China.

只是想了解這是否部分是時間因素或其他因素，以及中國的情況。

That one seems like it's more timing.

那個似乎比較合時宜。

A: Sure.

答：當然可以。

Thank you, Anthony.

謝謝你，安東尼。

The Nordic partner, when you look at the overall revenues, I think you get a clear picture.

北歐合作夥伴，當你看一下整體收入時，我想你就清楚了。

When you look at the quarterly run rate on revenues in 2017, they had large revenue orders in Q2 and Q3 with some of the new flavors that they brought onboard and it's taking some time for those flavors to cycle through and get inventories down to more normalized levels.

當你查看2017 年季度收入運行率時，他們在第二季度和第三季度有大量收入訂單，其中包括他們帶來的一些新口味，這些口味需要一些時間才能循環並使庫存降至更加正常化的水平水平。

So that's one thing they are focused on, our partners are focused on improving their working capital.

所以這是他們關注的一件事，我們的合作夥伴專注於改善他們的營運資本。

So they are bringing investments down to really a more manageable just-in-time system, which we've been working with them and that's something we've been working on for some time now, really bringing on those two additional co-packers.

因此，他們正在將投資減少到真正更易於管理的即時系統，我們一直在與他們合作，這也是我們已經工作了一段時間的事情，真正引入了另外兩個代加工廠。

So we've been working on a variety of different synergies on trying to be able to provide them orders in a more timely manner so that it improves their working capital needs.

因此，我們一直致力於各種不同的協同效應，試圖更及時地向他們提供訂單，從而改善他們的營運資金需求。

We have received orders for the third quarter.

我們已經收到了第三季的訂單。

We have produced orders for July.

我們已經生產了 7 月的訂單。

We have orders in August and September.

我們八月和九月有訂單。

Actually, we have an order in-house for October as well.

事實上，我們內部也有 10 月的訂單。

So it is moving towards more normalized levels as they work through that inventory.

因此，當他們處理該清單時，它正朝著更標準化的水平邁進。

Plus, they had a repackaging and a refresh that they were going through really cycling down some of their inventory levels.

另外，他們還進行了重新包裝和更新，這確實降低了一些庫存水準。

When you look at China, you are correct, it is truly a timing issue there in regards to the recognition of revenue because when we produce the product, just like in the Nordics and just like in China, we're selling full production runs to our master distributor.

當你看看中國時，你是對的，這確實是一個關於收入確認的時間問題，因為當我們生產產品時，就像在北歐和中國一樣，我們將全部生產的產品出售給我們的總經銷商。

So a lot of those orders in China took place late in the quarter, and as a result of those resets really taking place later in the quarter that affected the sell-through.

因此，中國的許多訂單都是在本季末發出的，而這些重置實際上是在本季末發生的，這影響了銷售量。

And as a result, we did not get reorders in the quarter, but we do have orders in-house for July and we should be getting another order momentarily for August production as well.

因此，我們在本季度沒有收到重新訂單，但我們確實有 7 月的內部訂單，而且我們應該也會立即收到 8 月生產的另一個訂單。

You have two co-packers that are back online, which should enable better just-in-time inventory; correct?

您有兩台代包裝機已恢復在線，這應該可以實現更好的準時庫存；正確的？

A: Well, that's in the Nordics.

答：嗯，那是在北歐。

We have two co-packers in the Nordics, one in Holland and one in Germany that we had, we brought online for some time, and we're really working with our partner to streamline a lot of that inventory and the flow of that inventory as well.

我們在北歐有兩家代包裝商，一家在荷蘭，一家在德國，我們已經上線了一段時間，我們正在與我們的合作夥伴合作，以簡化大量庫存和庫存流程以及。

And then they're bringing down their inventory levels for additional working capital.

然後他們降低庫存水準以獲得額外的營運資金。

That's what I meant.

這就是我的意思。

I flipped back to the Nordic.

我又回到了北歐。

Okay, and then I don't know if you provided an update on 7-11.

好的，然後我不知道你是否提供了 7-11 的更新。

But if you could just talk about how that rollout is going.

但如果您能談談該推廣的進展。

Absolutely.

絕對地。

I mentioned on the call, 7-11 is a great opportunity for us.

我在電話中提到，7-11對我們來說是一個很好的機會。

We are focused on 7-11.

我們專注於7-11。

We are right around on really our core line, we're right around a 50% ACV at 7-11.

我們確實處於我們的核心線上，7-11 的 ACV 處於 50% 左右。

We are coming through the national wholesaler network at McLane, but we've been able to maintain our position.

我們透過麥克萊恩的全國批發商網絡進入，但我們已經能夠保持我們的地位。

We're seeing increases each and every month on the increase in really ACV as we go forward, as well as the volume per outlet.

隨著我們的發展，我們每個月都看到 ACV 的實際數量以及每個銷售點的銷售量都在增加。

So we're really optimistic and very excited about that partnership.

因此，我們對這種夥伴關係非常樂觀和興奮。

It continues to forget this relationship.

它繼續忘記這種關係。

We are attending a lot of the FOA franchise association meetings to gain additional distribution.

我們參加了很多 FOA 特許經營協會會議以獲得額外的分銷。

It is a continual work in process because 7-11 is a franchise owned really retailer.

這是一項持續進行中的工作，因為 7-11 是一家真正擁有特許經營權的零售商。

So we have to go door by door in order to sell additional distribution.

所以我們必須挨家挨戶地銷售額外的分銷品。

So we're doing a variety of different tactics to continue to grow within 7-11.

因此，我們正在採取各種不同的策略來繼續在 7-11 內實現成長。

We're in about 50% of our core line, 25% with our CELSIUS HEAT line, and a tremendous amount of opportunity as we continue to grow and increase our ACV.

我們的核心產品線佔大約 50%，CELSIUS HEAT 系列佔 25%，隨著我們不斷發展和增加 ACV，我們擁有大量機會。

And that's just going to take time.

這只是需要時間。

It's going to take effort and we're focused on it.

這需要付出努力，我們會專注於此。

With these stores continuing to perform well and sales increasing a monthly, quarterly basis as we continue to build the brand base, these other retailers are going to - the other stores will come online.

隨著這些商店繼續表現良好，隨著我們繼續建立品牌基礎，銷售額每月、每季都在成長，這些其他零售商將 - 其他商店將上線。

Very optimistic about that and they are a great partner for us.

對此非常樂觀，他們是我們很好的合作夥伴。

Just two last quick ones.

只有最後兩個快點。

Vending machines, I know that that's a relatively new opportunity for you.

自動販賣機，我知道這對您來說是一個相對較新的機會。

But can you talk about the traction there?

但你能談談那裡的吸引力嗎？

A: The traction there has been very successful.

答：那裡的牽引非常成功。

We currently have 2 team members that are truly focused on this initiative.

我們目前有 2 名團隊成員真正專注於這項計劃。

We are in -- I'll have updated numbers on the next call.

我們在－我會在下次通話時更新號碼。

In the third quarter, I can provide further detailed numbers on our update, how many hypermarkets, micro-markets we are in, as well as additional vending machines.

在第三季度，我可以提供有關我們更新的進一步詳細數據，我們有多少個大賣場、微型市場，以及額外的自動販賣機。

But initially throughout the quarter, we feel confident we gained in excess of about 1,000 vending machines and micro-market locations.

但在整個季度初期，我們有信心獲得超過 1,000 台自動販賣機和微型市場。

So those at work and healthy vending machines.

所以那些工作的人和健康的自動販賣機。

And the opportunity is exponential out there.

那裡的機會是指數級的。

There is a great opportunity for us and the turns we're seeing at these at work locations and in these healthy vending machines is extremely positive.

這對我們來說是一個很好的機會，我們在工作地點和這些健康的自動販賣機中看到的轉變是非常積極的。

Then just the last question.

然後就是最後一個問題了。

There was, it looks like, a $1 million legal settlement with a former distributor.

看起來，他們與一位前經銷商達成了 100 萬美元的法律和解協議。

Can you just refresh our memory on what that was about and is that completely resolved now?

您能幫我們回憶一下那件事嗎？

A: We did have a legal dispute, territorial dispute with a distributor that we had ongoing in the LA Court System for some time.

答：我們確實與經銷商發生了法律糾紛和領土糾紛，並在洛杉磯法院系統中持續了一段時間。

It was last year it was filed.

這是去年提交的。

We've gone through the process.

我們已經完成了這個過程。

With time, effort, we moved through settlement to move forward.

隨著時間和努力，我們透過解決方案繼續前進。

We have great opportunities in our business to continue to grow and that settlement is behind us and we are focused on growing the business.

我們的業務有很大的機會繼續成長，和解已經過去，我們專注於發展業務。

(Operator Instructions) Our next question comes from [Richard Tilley], a private investor.

（操作員說明）我們的下一個問題來自私人投資者 [Richard Tilley]。

Please proceed with your question.

請繼續你的問題。

Good afternoon, gentlemen.

下午好，先生們。

My name is [Richard Tilley].

我的名字是[理查德·蒂利]。

I'm a stockholder for 11 years, having bought my first Celsius stock in June of 2007.

我作為股東已有 11 年了，於 2007 年 6 月購買了我的第一支攝氏股票。

Now, I buy my Celsius product at the Harris Teeter store in Southern Pines, North Carolina.

現在，我在北卡羅來納州南松樹市的 Harris Teeter 商店購買攝氏產品。

So my comments can only be related to what products they carry.

所以我的評論只能與他們所攜帶的產品有關。

The first is the Celsius can that has a black top.

第一個是帶有黑色頂部的攝氏罐。

My flavors I like are watermelon and grape.

我喜歡的口味是西瓜和葡萄。

They also carry the HEAT product and finally, they carry other products with an aluminum top.

他們還銷售 HEAT 產品，最後，他們還銷售其他帶有鋁製頂部的產品。

Can you tell me why there's such a drastic difference in the taste between the black top Celsius and the aluminum top Celsius can?

可以告訴我為什麼黑頂Celsius罐和鋁頂Celsius罐的味道有這麼大的差異嗎？

I'm anxious to hear what you have to say because there is a dramatic difference in taste.

我很想聽聽你要說什麼，因為口味上有很大的不同。

A: Thank you, [Richard].

答：謝謝你，[理查德]。

First off, I truly appreciate your long-term commitment as a shareholder to this company and I can assure you the management team and employers are working very hard and diligently each and every day.

首先，我衷心感謝您作為股東對這家公司的長期承諾，我可以向您保證，管理團隊和雇主每天都在非常努力和勤奮地工作。

To answer your question at Harris Teeter, the black top cans in our core line are sparkling, are all of our sparkling flavors.

為了回答您在 Harris Teeter 的問題，我們核心系列中的黑頂罐是起泡酒，是我們所有的起泡口味。

It's a differentiation to our products.

這是我們產品的差異化。

The aluminum tops (inaudible) cans on our core line is our non-carb, which is a Raspberry Acai and a Peach Mango Green Tea.

我們核心系列上的鋁頂（聽不清楚）罐是我們的非碳水化合物，即覆盆子巴西莓和桃芒果綠茶。

So those are our two tea flavors in the core line.

這就是我們核心系列中的兩種茶口味。

We also have, in Harris Teeter, our naturally sweetened lime, the naturally caffeinated lime, which is sweetened with stevia and erythritol.

在 Harris Teeter 中，我們還有天然加甜的酸橙，即天然含咖啡因的酸橙，用甜菊糖和赤藻醣醇增甜。

So there will be some flavor profile differences from our core line to our natural line that contain -- that naturally sweetened line that contains the stevia and erythritol.

因此，我們的核心系列與含有甜菊糖和赤藻醣醇的天然甜味系列的天然系列之間會有一些風味差異。

But I will assure you, our natural line, which has just entered Harris Teeter, is doing extremely well in the natural channel and Sprouts and Fresh Market.

但我向您保證，我們剛剛進入 Harris Teeter 的天然產品線在天然渠道以及豆芽和新鮮市場中表現非常出色。

And we are seeing a lot of demand for that product as well.

我們也看到對該產品的大量需求。

Our next question comes from [Diane Nagy], a private investor.

我們的下一個問題來自私人投資者 [Diane Nagy]。

Yes, I'm a long-term investor as well and my first question is how do you see the tariffs affecting the bottom line for the coming quarters?

是的，我也是長期投資者，我的第一個問題是您如何看待關稅對未來幾季利潤的影響？

A: Thank you, [Diane].

答：謝謝你，[黛安]。

I appreciate you joining the call and thank you for your long-term support.

感謝您加入通話，並感謝您長期以來的支持。

In regards to the tariffs in China, I touched on that briefly on the call.

關於中國的關稅，我在電話中簡短地談到了這一點。

And one thing that sets us apart, which is very different than a lot of other companies that are importing into China.

有一點讓我們與眾不同，這與許多其他向中國進口的公司截然不同。

We are not importing into China.

我們不進口到中國。

We are actually producing locally.

我們實際上是在本地生產。

So it's local production, locally sourced raw materials.

所以它是本地生產、本地採購的原料。

We have a local team and we have an entity structure where we have a local company that's registered in Beijing.

我們有一個本地團隊，我們有一個實體結構，我們有一家在北京註冊的本地公司。

So we are not affected by the tariffs today because we are not importing products into China.

因此，我們今天沒有受到關稅的影響，因為我們不向中國進口產品。

I see.

我懂了。

The other question I have is a practical one.

我的另一個問題是一個實際問題。

I'm wondering you don't seek cheaper quarters.

我想知道你不尋找更便宜的宿舍。

The quarters you are in right now are pretty expensive and I think that would help the bottom line if you were to seek more reasonable rent.

您現在所在的宿舍非常昂貴，我認為如果您要尋求更合理的租金，這將有助於您的利潤。

A: Our goal has been to continue to grow this business as effectively and efficiently as we can as a management team, and I can assure you, each and every one of our employees are dedicated to that, driving topline revenue growth, improving gross profit, and ultimately improving the bottom line.

答：我們的目標是作為管理團隊繼續盡可能有效和高效地發展這項業務，我可以向您保證，我們的每一位員工都致力於此，推動營收成長，提高毛利，並最終提高利潤。

We are very diligent on all of our expenditures where we gained additional quotes and we pushed vendors and suppliers to gain the best price for Celsius.

我們對所有支出都非常勤奮，我們獲得了額外的報價，並推動供應商和供應商獲得攝氏的最佳價格。

As we continue to grow in scale, we will be able to gain additional efficiencies throughout our supply chain and throughout our (inaudible) marketing and SG&A expenses.

隨著我們規模的不斷擴大，我們將能夠在整個供應鏈以及整個（聽不清楚）行銷和銷售及行政管理費用方面獲得額外的效率。

And we continue to focus on that.

我們將繼續關注這一點。

ON a year to date basis, taking out one-time charges and the investments that were made in Asia, we are at a close to breakeven and reinvesting those dollars into marketing with considerable investments in North America, where we're seeing strong topline revenue growth.

到目前為止，扣除一次性費用和在亞洲進行的投資，我們已接近收支平衡，並將這些資金重新投資於行銷，並在北美進行了大量投資，我們在北美看到了強勁的營收生長。

I hope that answers your question on that.

我希望這能回答你的問題。

We're very diligent on controlling and monitoring expenses.

我們非常努力地控制和監控費用。

Ladies and gentlemen, we have reached the end of the question and answer session.

女士們、先生們，問答環節已經結束。

At this time, I would like to turn the call back to management for closing comments.

此時，我想將電話轉回管理層以徵求結案意見。

A: Thank you.

答：謝謝。

Our underlying second quarter results demonstrates our products are gaining considerable momentum, s we are capitalizing on today's health and wellness trends.

我們第二季的基本業績表明，我們的產品正在獲得巨大的發展勢頭，我們正在利用當今的健康和保健趨勢。

Our active healthy lifestyle position is a global position with mass appeal.

我們積極健康的生活方式的定位是具有大眾吸引力的全球定位。

We are building up on our core business and leveraging opportunities and deploying best practices.

我們正在發展我們的核心業務，利用機會並部署最佳實踐。

I'm very proud of our dedicated team and I thank our investors for their continued support.

我為我們的敬業團隊感到非常自豪，並感謝投資者的持續支持。

Thank you, everyone, for your interest in CELSIUS and have a great day.

謝謝大家對 CELSIUS 的興趣，祝您有美好的一天。

This concludes today's conference.

今天的會議到此結束。

You may disconnect your lines at this time and we thank you for your participation.

此時您可以斷開線路，我們感謝您的參與。