Clarus Corp (CLAR) 2023 Q4 法說會逐字稿

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Clarus Corporation's financial results for the fourth quarter and full year ended December 31, 2023.

大家下午好，感謝大家參加今天的電話會議，討論 Clarus Corporation 截至 2023 年 12 月 31 日的第四季度和全年財務業績。

Joining us today are Clarus Corporation's Executive Chairman, Warren Kanders; CFO, Mike Yates; and the company's External Director of Investor Relations, Matt Berkowitz. Following their remarks, we'll open the call for your questions.

今天加入我們的有 Clarus Corporation 執行主席 Warren Kanders；財務長麥克·耶茨；以及公司投資者關係外部總監 Matt Berkowitz。在他們發表講話後，我們將開始電話詢問您的問題。

Before we go further, I would like to turn the call over to Mr. Berkowitz as he reads the company's Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995. That provides important cautions regarding forward-looking statements. Please go ahead.

在我們進一步討論之前，我想將電話轉給 Berkowitz 先生，他正在閱讀該公司 1995 年《私人證券訴訟改革法案》含義內的安全港聲明。這為前瞻性陳述提供了重要的警告。請繼續。

Thank you.

謝謝。

Before we begin, I'd like to remind everyone that during today's call, we will be making several forward-looking statements, and we make these statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements reflect our best estimates and assumptions based on our understanding of information known to us today.

在開始之前，我想提醒大家，在今天的電話會議中，我們將做出一些前瞻性聲明，並且我們是根據《私人證券訴訟改革法案》的安全港條款做出這些聲明的。這些前瞻性陳述反映了我們基於對當今已知資訊的理解的最佳估計和假設。

These forward-looking statements are subject to potential risks and uncertainties that could cause the actual results of operations or financial conditions of Clarus Corporation to differ materially from those expressed or implied by the forward looking statements. More information on potential factors that could affect the Company's operating and financial results is included from time to time in the company's public reports filed with the SEC.

這些前瞻性陳述受到潛在風險和不確定性的影響，可能導致 Clarus 公司的實際營運結果或財務狀況與前瞻性陳述中明示或暗示的結果有重大差異。有關可能影響公司營運和財務表現的潛在因素的更多資​​訊不時包含在公司向 SEC 提交的公開報告中。

I'd like to remind everyone this call will be available for replay through March 21, 2024, starting at 7 PM Eastern Time tonight. A webcast replay will also be available via the link provided in today's press release as well as on the company's website at claruscorp.com.

我想提醒大家，此電話會議將於東部時間今晚 7 點開始，並在 2024 年 3 月 21 日之前重播。也可透過今天新聞稿中提供的連結以及公司網站 claruscorp.com 進行網路廣播重播。

Now I'd like to turn the call over to Clarus's Executive Chairman, Warren Kanders.

現在我想將電話轉給 Clarus 執行主席 Warren Kanders。

Good afternoon, and thank you for joining Clarus's earnings call to review our results for the fourth quarter and the full year. I am joined today by our Chief Financial Officer, Mike Yates. I will start the call by addressing the overall business and corporate strategy. Mike will then provide specific comments on the performance of our segments and a more detailed financial review. While consumer demand remains constrained, adversely impacting our fourth quarter results, we have taken crucial steps to realign our overall platform and individual brands to position Claru

下午好，感謝您參加 Clarus 的財報電話會議，回顧我們第四季和全年的業績。今天我們的財務長 Mike Yates 也加入了我的行列。我將首先討論整體業務和公司策略。然後，麥克將對我們部門的業績提出具體評論，並進行更詳細的財務審查。雖然消費者需求仍然受到限制，對我們第四季度的業績產生不利影響，但我們已採取關鍵步驟來重新調整我們的整體平台和單一品牌，以定位 Claru

s for long-term profitable growth as a pure-play ESG-friendly outdoor business. Specifically, we completed completed the sale of our Precision Sports segment, streamlining the Company to focus on our outdoor and adventure segments. As we have communicated in prior quarters, we are establishing new baselines for our brands during this transition period. Our leadership teams of both outdoor and adventure spent much of 2023 identifying areas for structural change, business process improvement and enhanced operational efficiencies. Incremental initiatives in the fourth quarter included taking sharp action on inventory and product categories that we view as non-core going forward, while exiting unprofitable retail decisions from prior years, we entered 2024 with highly capable leadership teams, committed to increasing profitability and unlocking new opportunities while continuing to build the foundation to scale and achieve operating leverage in future years before discussing those segments in greater depth, let me first address the monetization of our precision sports segment. Last week, we completed the $175 million sale, which represents a highly successful outcome for Claire's. I'd like to highlight that we invested approximately 132 million in this segment since 2017. And during our ownership period, precision sport returned nearly $94 million of cash to Claire's inclusive of the gross proceeds from the sale, we generated nearly 270 million during our ownership period. Importantly, the proceeds from this sale allowed us to retire all of Chorus's outstanding debt. Our balance sheet is now debt-free with approximately 43 million of cash on hand that provides flexibility in how we pursue our long term value creation objectives and growth initiatives. From an operating perspective, Claire's has now simplified around two traditional outdoor brands without the overhang from the associate association with ammunition. We believe that our product platform offers an attractive entry point into two consumer segments with broad appeal and tailwinds supporting growth as we enter a more normalized post-COVID environment in the near term.

作為純粹的 ESG 友善戶外企業，我們致力於長期獲利成長。具體來說，我們完成了 Precision Sports 部門的出售，精簡了公司，專注於戶外和冒險部門。正如我們在前幾季所傳達的那樣，我們正在在此過渡期間為我們的品牌建立新的基準。我們的戶外和探險領導團隊在 2023 年的大部分時間裡都在確定結構變革、業務流程改進和提高營運效率的領域。第四季的增量措施包括對我們認為未來非核心的庫存和產品類別採取嚴厲行動，同時退出前幾年無利可圖的零售決策，進入2024 年，我們擁有高素質的領導團隊，致力於提高獲利能力並釋放新的潛力。在更深入地討論這些細分市場之前，讓我先談談我們精準運動細分市場的貨幣化問題，同時繼續為未來幾年的擴展和實現營運槓桿打下基礎。上週，我們完成了 1.75 億美元的銷售，這對 Claire's 來說是一個非常成功的結果。我想強調的是，自 2017 年以來，我們在這一領域投資了約 1.32 億美元。在我們持有期間，Precision Sport 向 Claire's 返還了近 9,400 萬美元現金，其中包括出售總收益，我們在持有期間創造了近 2.7 億美元。重要的是，這筆出售的收益使我們能夠償還合唱團的所有未償債務。我們的資產負債表現在沒有債務，手頭上有約 4,300 萬現金，這為我們追求長期價值創造目標和成長計畫提供了靈活性。從營運角度來看，克萊爾現在已經圍繞著兩個傳統戶外品牌進行了簡化，沒有與彈藥相關的關聯。我們相信，隨著我們在短期內進入更正常化的後疫情環境，我們的產品平台為兩個消費群體提供了一個有吸引力的切入點，具有廣泛的吸引力和支持增長的順風。

Our capital allocation strategy will focus on strengthening our existing operating businesses, either through reinvestment in our high margin categories or through bolt-on product acquisitions that enhance our brands.

我們的資本配置策略將專注於加強我們現有的營運業務，無論是透過對高利潤類別的再投資，還是透過增強我們品牌的補強產品收購。

Turning to our two remaining segments, outdoor and adventure. We are confident that we have two leaders in place fully capable of driving closes turnaround. We believe that we are at different points from the reset of both segments but each segment is showing signs that the steps steps taken thus far are positive. These brands are leaders in their respective core categories, and we expect that they will rebound as the market stabilizes and reaches a new normal. We continue to believe that we are in the early stages of our action plan and recognize that our strategic business initiatives require patience you'll hear more from both Nilfisk and Matt Hayward at our upcoming Investor Day, where they will share details on the significant strides we've taken in our strategic review, including rebuilding top level leadership reengaging with our customer base and restarting the product development pipeline with a focus on delivering enhanced product margins. While we are excited to share our longer-term vision next week, I would like to take a moment now to discuss Q4 developments after turning the corner in Q three, adventure had its best quarter of the year with 43% sales growth and gross margins of 38.1%. This reflected increasing sales in the Australian market and the benefit of the TRED outdoors acquisition.

轉向我們剩下的兩個部分，戶外和冒險。我們相信，我們的兩位領導者完全有能力推動績效扭虧為盈。我們認為，我們正處於兩個階段的重置階段，但每個階段都顯示出跡象，表明迄今為止採取的步驟是積極的。這些品牌都是各自核心品類的領導者，我們預期隨著市場穩定並達到新常態，它們將會反彈。我們仍然相信，我們正處於行動計劃的早期階段，並認識到我們的戰略業務計劃需要耐心，您將在即將到來的投資者日聽到Nilfisk 和Matt Hayward 的更多信息，他們將分享有關重大進展的詳細資訊我們已經進行了策略審查，包括重建高層領導層，重新與我們的客戶群互動，並重新啟動產品開發流程，重點是提高產品利潤。雖然我們很高興在下週分享我們的長期願景，但我現在想花點時間討論第三季度的轉機後第四季度的發展，冒險經歷了今年最好的季度，銷售額增長了43％，毛利率也成長了38.1%。這反映了澳洲市場銷售的成長以及 TRED Outdoor 收購帶來的好處。

For context, excluding the acquisition of TRED, a gross margins increased 700 basis points over the prior year period. We are pleased with the intermediate steps management has taken to improve overall profitability. Our revenue growth in the quarter was largely driven by the introduction of the new PIONEER six platform in Australia and the first delivered deliveries to a new OEM customer for an upcoming product launch with respect to PIONEER six. This marks the first major new product launch in the last 15 months. The Pioneer range is the hallmark of the Rhino rack, and we are excited to bring to market the portfolio of accessories that complemented over the next 12 months, along with other new product launches throughout 2024.

就背景而言，不包括收購 TRED，毛利率比去年同期增加了 700 個基點。我們對管理層為提高整體獲利能力所採取的中間步驟感到滿意。我們本季的營收成長主要得益於在澳洲推出新的 PIONEER 6 平台，以及為即將推出的 PIONEER 6 產品首次向新 OEM 客戶交付產品。這標誌著過去 15 個月來首次推出重大新產品。Pioneer 系列是 Rhino 機架的標誌，我們很高興將未來 12 個月內補充的配件組合推向市場，並在 2024 年推出其他新產品。

With respect to outdoor sales for the quarter, were down 9.4% over the prior year period. However, when zooming into the various selling channels, we began to see signs of stabilization, particularly in North American wholesale, which ticked up 2% over the prior comparable period. This was driven by increases at our national accounts, offset by continued challenges in certain key accounts, namely big-box partners and the specialty channel and North American e-commerce sales were up 3% in the period, offset by lower pro sales. Our European and international businesses were challenged in the quarter, driven by warmer weather trends to open the winter season.

本季戶外銷售額比去年同期下降 9.4%。然而，當放大到各個銷售管道時，我們開始看到穩定的跡象，尤其是北美批發，比去年同期成長了 2%。這是由我們國民帳戶的成長所推動的，但被某些關鍵客戶（即大型合作夥伴和專業管道）持續面臨的挑戰所抵消，而北美電子商務銷售額在此期間增長了3%，被專業銷售額的下降所抵消。受冬季氣候暖化趨勢的推動，我們的歐洲和國際業務在本季面臨挑戰。

At the business unit level, we saw great gains across our footwear and Mountain products with slowness and ski and apparel. Our core climbing business was up 4% for the period. But it's important to note that we are seeing repurchasing trends in the first quarter of 2024 to fill shelves back to normalized stock levels. I am excited about our potential to build long-term value in outdoor. Neal has brought on an excellent team that is energized to bring the Black Diamond brand forward. While we believe we have identified the necessary changes. It takes time for those adjustments to manifest themselves.

在業務部門層面，我們看到鞋類、慢速、滑雪和服裝等山地產品取得了巨大的進步。在此期間，我們的核心攀岩業務成長了 4%。但值得注意的是，我們看到 2024 年第一季出現回購趨勢，使貨架恢復到正常庫存水準。我對我們在戶外領域創造長期價值的潛力感到興奮。Neal 組建了一支優秀的團隊，他們充滿活力，推動 Black Diamond 品牌向前發展。雖然我們相信我們已經確定了必要的改變。這些調整需要時間才能顯現出來。

In terms of performance, we continue to stress simplification throughout the organization. One of the core tenets of prior versions of Black Diamond was a focus on fast innovation and speed to market. Neil and team have taken a balanced approach to product, building a plan to reduce SKUs nearly 30% while focusing on fewer, better products. As part of that process, we took a critical view of necessary products and categories and the associated inventory levels. You will see that we have taken an inventory write-down of $4.2 million in the quarter, most of which is associated with these actions. Mike will cover this in greater detail in a moment.

在績效方面，我們持續強調整個組織的簡化。Black Diamond 先前版本的核心原則之一是專注於快速創新和上市速度。Neil 和團隊對產品採取了平衡的方法，制定了一項計劃，將 SKU 減少近 30%，同時專注於更少、更好的產品。作為這個過程的一部分，我們對必要的產品和類別以及相關的庫存水準進行了批判性的審視。您將看到我們在本季減記了 420 萬美元的庫存，其中大部分與這些行動相關。麥克稍後將更詳細地介紹這一點。

In summary, while 2023 was a transition year for Claire's, we are excited to begin 2024 with a solid foundation in place, driven by continued strong momentum in adventure and operational progress in outdoor. After completing the sale of our precision sports segment, we are now debt-free with over 40 million of cash on our balance sheet and the financial strength and flexibility to create sustainable value for shareholders. Our priorities remain firmly set on the stabilization of sales and margins, additional organizational reshaping and cost reduction initiatives to drive profitable growth in 2024 and beyond.

總而言之，雖然 2023 年對 Claire's 來說是過渡年，但在戶外探險和營運進展持續強勁的推動下，我們很高興以堅實的基礎開啟 2024 年。完成精準運動部門的出售後，我們現在已經沒有債務，資產負債表上有超過 4000 萬現金，並且擁有為股東創造可持續價值的財務實力和靈活性。我們的首要任務仍然堅定地放在穩定銷售和利潤、額外的組織重塑和成本削減措施上，以推動 2024 年及以後的獲利成長。

With that, thank you for being with us today, and I will turn the call over to Mike now.

在此，感謝您今天與我們在一起，我現在將把電話轉給麥克。

Thanks, Ward, and good afternoon, everyone. I'll start with our performance in the fourth quarter, but before I dive into our reported results, I'd like to share a summary of our performance, inclusive of both continuing and discontinuing operations. As Lauren mentioned, we announced the sale of precision sports on December 29, 2023 and completed and closed on the sale of the segment for approximately $175 million on February 29, 2024. Accordingly, under US GAAP, the financial statements have been presented on continuing operations and discontinued operations presentation financials and results of the precision sports segment have been segregated and reported in assets and liabilities held for sale on the December 31st, 2023 balance sheet and the income statement has been recorded under discontinued operations for all periods presented at today's earnings release and in our Form 10 K filed earlier today.

謝謝沃德，大家下午好。我將從第四季度的業績開始，但在深入研究報告的業績之前，我想分享我們的業績摘要，包括持續經營和終止經營業務。正如勞倫所提到的，我們於 2023 年 12 月 29 日宣佈出售精準運動業務，並於 2024 年 2 月 29 日以約 1.75 億美元的價格完成並結束了該部門的出售。因此，根據美國公認會計原則，財務報表已按持續經營業務和非持續經營業務列報，精密運動部門的財務報表和業績已在2023年12月31日資產負債表上的持有待售資產和負債中單獨列報，以及收入該聲明已記錄在今天的收益發布和今天早些時候提交的 10 K 表格中列出的所有期間的已停止運營項下。

In the fourth quarter, sales of precision sport were $18.3 million, which exceeded our expectations compared to the guidance we gave on reporting our third quarter 2023 results, including precision sport. Total fourth quarter sales were $94.8 million. This compares favorably to the $83 million to $87 million we guided for the fourth quarter for the full year sales, including the contribution contributions of Precision's four, we delivered sales of approximately $376 million, which again reflects outperformance versus our guidance range of $364 million to $368 million of revenue.

第四季度，精準運動的銷售額為 1830 萬美元，與我們在報告 2023 年第三季業績（包括精準運動）時給出的指引相比，超出了我們的預期。第四季總銷售額為 9,480 萬美元。這與我們指導的第四季度全年銷售額8300 萬至8700 萬美元相比是有利的，包括Precision 的四家公司的貢獻，我們實現了約3.76 億美元的銷售額，這再次反映出優於我們指導範圍3.64 億至8700 萬美元的表現。收入 3.68 億美元。

From an adjusted EBITDA perspective, precision sport generated $26.8 million for the full year 2023 on sales of nearly $90 million or 29.8% EBITDA margin and $4.9 million of adjusted EBITDA in the fourth quarter or 26.7% on the $18.3 million of revenue.

從調整後EBITDA 的角度來看，Precision Sports 2023 年全年銷售額為2,680 萬美元，銷售額近9,000 萬美元，佔EBITDA 利潤率的29.8%；第四季調整後EBITDA 為490 萬美元，佔1,830萬美元收入的26.7%。

Why beginning today going forward, our US GAAP results will be comprised of our outdoor and adventure segments and results we refer to as continuing operations. Fourth quarter sales from continuing operations were $76.5 million compared to $73.8 million in the prior year fourth quarter, driven largely by the strength in our adventure segment the strength that adventure was partially offset by softness in the European region at Outdoor, consistent with the softness we discussed during our last call. On a reported basis, sales were up 3.6%.

為什麼從今天開始，我們的美國公認會計準則業績將包括我們的戶外和探險業務以及我們稱之為持續經營業務的業績。第四季持續經營業務的銷售額為7,650 萬美元，而上年第四季為7,380 萬美元，這主要是由我們冒險業務的強勁推動的，而冒險業務的強勁部分被歐洲地區戶外業務的疲軟所抵消，這與我們的疲軟狀況一致。我們上次通話時討論過。據報道，銷售額增長了 3.6%。

On a constant currency basis, sales were up 3.8%. Fx was not material in the fourth quarter. As you can see, our adventure segment saw first quarter of the year, sales increased 43% to $26.4 million or $26.6 million on a constant currency basis compared to $18.5 million in the year-ago quarter. This increase reflects increased sales in the Australian market and the benefit of the trade Outdoor's acquisition announced during the fourth quarter.

以固定匯率計算，銷售額成長 3.8%。外匯在第四季並不重要。正如您所看到的，我們的冒險部門今年第一季的銷售額成長了 43%，達到 2,640 萬美元，按固定匯率計算為 2,660 萬美元，而去年同期為 1,850 萬美元。這一增長反映了澳洲市場銷售額的成長以及第四季度宣布的 Trade Outdoor 收購帶來的好處。

TRED contributed approximately $1.7 million of revenue in the fourth quarter. The adventure business has started to benefit from various initiatives, including the trade acquisition, new product development, new customers, and a new global leadership, slow global leadership team under the direction that Matt Hayward, new channels, new products and new customers will be critical as we grow adventure in 2024. And we are excited to introduce Matt Hayward at our Investor Day, as Lorne mentioned, on Monday, March 11th to share a vision for adventure in more detail. Sales in the outdoor segment was $50.1 million or $50 million on a constant currency basis compared to $55.3 million in the year-ago quarter.

TRED 在第四季度貢獻了約 170 萬美元的營收。冒險業務已開始受益於各種舉措，包括貿易收購、新產品開發、新客戶以及新的全球領導層，在馬特·海沃德的指導下緩慢的全球領導團隊、新管道、新產品和新客戶將對於我們在 2024 年開展冒險活動至關重要。正如 Lorne 所提到的，我們很高興在 3 月 11 日星期一的投資者日上介紹 Matt Hayward，他將更詳細地分享冒險願景。戶外領域的銷售額為 5,010 萬美元，以固定匯率計算為 5,000 萬美元，而去年同期為 5,530 萬美元。

The decline primarily reflected continued challenging market conditions in both North and North America and the European wholesale market as well as the unseasonably warm winter weather. Notably, however, we are beginning to see the wholesale market stabilize both in North America and Europe. Our business simplification initiative initiatives are beginning to take hold as we operate in the first quarter of 2024.

下降主要反映了北美和北美以及歐洲批發市場持續充滿挑戰的市場狀況以及異常溫暖的冬季天氣。然而值得注意的是，我們開始看到北美和歐洲的批發市場趨於穩定。我們的業務簡化計劃在 2024 年第一季營運時開始生效。

This process and the benefits from our simplification journey will be ongoing throughout 2024. The good news is the North American wholesale market is stabilizing. However, our direct-to-consumer channels still are very highly promotional as the market continues to work through excess inventory levels.

這個過程以及我們的簡化之旅所帶來的好處將持續到 2024 年。好消息是北美批發市場正在穩定下來。然而，隨著市場繼續克服庫存過剩的問題，我們的直接面向消費者的管道仍然大力促銷。

During the fourth quarter, we made some adjustments to our retail strategy, which is part of our DTC business. As Lauren alluded to, we closed four retail locations. We also However, we also opened a new location in Seattle, Washington area and are committed to opening a flagship retail store in the Seattle Seattle area as well the Seattle metro area has proven to be a highly attractive market based on strong DTC e-commerce sales based on the demographics we reviewed.

第四季度，我們對零售策略進行了一些調整，這是我們DTC業務的一部分。正如勞倫所提到的，我們關閉了四個零售店。然而，我們也在華盛頓州西雅圖地區開設了新店，並致力於在西雅圖開設旗艦零售店 西雅圖地區以及西雅圖都市區已被證明是一個基於強大的 DTC 電子商務的極具吸引力的市場銷售額基於我們審查的人口統計資料。

Moving to consolidated gross margins in the fourth quarter. Gross margin was 28.9% compared to 37.2% in the year-ago quarter. The decrease in gross margin was primarily due to a $4.2 million our inventory reserve write off at the outdoor segment during the fourth quarter. The bulk of this reserve resulted from our category review and product simplification process that will reduce SKUs from around 14,000 to under 10,000.

第四季綜合毛利率。毛利率為 28.9%，去年同期為 37.2%。毛利率下降主要是因為第四季戶外業務部門的庫存儲備沖銷了 420 萬美元。這項儲備的大部分來自我們的品類審查和產品簡化流程，這將使 SKU 從大約 14,000 個減少到 10,000 個以下。

Another material contributor to the reserve for the recently announced PFAS regulation change, Keith, that is an evolving industry issue that we'll be dealing with throughout 2024. It has a chemical used in many products to create the waterproof benefit found in many outdoor goods, including our apparel, certain states in the USA have banned the sale of products containing PCEE beginning in 2025, and some large retailers would no longer accept our purchase any products with PFS beginning this summer.

Keith 是最近宣布的 PFAS 法規變更儲備金的另一位重要貢獻者，這是一個不斷變化的行業問題，我們將在 2024 年處理。許多產品中都使用了一種化學物質，可以產生許多戶外用品（包括我們的服裝）中的防水效果，美國某些州已從2025 年開始禁止銷售含有PCEE 的產品，一些大型零售商將不再接受我們的購買從今年夏天開始，任何帶有 PFS 的產品。

We are actively managing the end of life of our products containing PFAS during 2024. But depending on our execution and the market reaction to these regulatory changes, we may have further exposure to PFS inventory.

我們正在積極管理 2024 年期間含有 PFAS 的產品的生命週期終止問題。但根據我們的執行情況以及市場對這些監管變化的反應，我們可能會進一步接觸 PFS 庫存。

During 2024, we exit exposures both inventory on hand and commitments to buy inventory containing PFS from our vendors other than the PFS risks, we believe we have rightsized and properly valued our inventory at Outdoor. Based on this fourth quarter action inventory ended the year at Outdoor of $64.8 million. Total inventory continuing operations was $91 million. Gross margin at the adventure segment improved to 38.1% from 31.7% in the year-ago quarter. This increase was due to cost out initiatives to rightsize the business earlier in the year as well as lower freight cost.

2024 年期間，除了 PFS 風險外，我們將退出現有庫存和承諾從供應商購買含有 PFS 的庫存，我們相信我們已經對 Outdoor 的庫存進行了合理規模調整和正確估值。根據第四季的行動，截至今年年底，Outdoor 的庫存為 6,480 萬美元。持續營運庫存總額為 9,100 萬美元。冒險業務的毛利率從去年同期的 31.7% 提高至 38.1%。這一成長是由於今年稍早調整業務規模的成本計劃以及較低的貨運成本。

The adjusted gross margin in the fourth quarter was 29.0% compared to 37.2% in the year-ago quarter related to inventory step-up due to the trade Outdoor's acquisition.

第四季調整後毛利率為 29.0%，去年同期為 37.2%，這與收購戶外貿易導致庫存增加有關。

Selling, general and administrative expenses in the fourth quarter were $30.7 million compared to $29.9 million in the same year-ago quarter. The increase was attributable to the outdoor segment with higher legal and marketing expenses compared to the prior year.

第四季的銷售、一般和管理費用為 3,070 萬美元，而去年同期為 2,990 萬美元。這一增長歸因於戶外業務的法律和行銷費用比上一年更高。

Loss from continuing operations in the fourth quarter of 2023 was $7.2 million, a loss of $0.19 per diluted share compared to a net loss from continuing operations of $83.3 million, our $2.25 per diluted share in the year-ago quarter.

2023 年第四季持續營運虧損為 720 萬美元，稀釋後每股虧損 0.19 美元，去年同期持續營運淨虧損為 8,330 萬美元，稀釋後每股虧損 2.25 美元。

Net loss in the fourth quarter included $1.5 million of one-off charges related to restructuring and transaction costs as well as a $4.2 million inventory reserve net loss in the fourth quarter of 2022 included a noncash impairment charge of $92.3 billion in the venture segment.

第四季的淨虧損包括與重組和交易成本相關的150 萬美元一次性費用，以及2022 年第四季420 萬美元的庫存儲備淨虧損，其中包括創投部門923 億美元的非現金減損費用。

Adjusted loss from continuing operations was a net loss of $2.8 million or $0.07 per diluted share compared to adjusted income from continuing operations of $4.4 million, or $0.11 per diluted share in the year-ago quarter. Adjusted EBITDA in the fourth quarter was a negative $3.5 million or an adjusted EBITDA margin of a negative 4.5%.

調整後的持續經營業務虧損為淨虧損 280 萬美元，即稀釋後每股虧損 0.07 美元，而去年同期調整後的持續經營業務收入為 440 萬美元，即稀釋後每股虧損 0.11 美元。第四季調整後 EBITDA 為負 350 萬美元，調整後 EBITDA 利潤率為負 4.5%。

This compares to $3.6 million on an adjusted EBITDA margin of 4.9% in the same year-ago quarter. The decline in adjusted EBITDA was primarily driven by continuing challenging market conditions at Outdoor, an increase in the inventory reserves at Outdoor and higher legal and marketing expenses by segment, adjusted EBITDA was negative $4.6 million at Outdoor, primarily due to the inventory reserve of $4.2 million in the fourth quarter. Adjusted EBITDA at adventure for the fourth quarter was $3.9 million or 14.8%.

相較之下，去年同期的調整後 EBITDA 利潤率為 360 萬美元，調整後的 EBITDA 利潤率為 4.9%。調整後 EBITDA 下降的主要原因是 Outdoor 市場環境持續充滿挑戰、Outdoor 庫存儲備增加以及各部門法律和營銷費用增加，Outdoor 調整後 EBITDA 為負 460 萬美元，主要是由於庫存儲備為 4.2 美元第四季度達100 萬元。Adventure 公司第四季調整後 EBITDA 為 390 萬美元，成長 14.8%。

Let me shift now over to liquidity. At December 31st, 2023, cash and cash equivalents were $11.3 million compared to $12 million at December 31st, 2022. Total debt on December 31st, 2023 was $119.8 million compared to $139 million at the end of 2022. After the closing of the sale proceeds and sport. Last week, our total debt today is zero. The credit agreement was terminated and repaid in full at closing and cash of approximately $43 million is on our balance sheet.

現在讓我轉向流動性。截至 2023 年 12 月 31 日，現金及現金等價物為 1,130 萬美元，而 2022 年 12 月 31 日為 1,200 萬美元。截至 2023 年 12 月 31 日，債務總額為 1.198 億美元，而 2022 年底的債務總額為 1.39 億美元。銷售結束後收益並進行運動。上週，我們今天的總債務為零。信貸協議已終止並在交易結束時全額償還，我們的資產負債表上有約 4,300 萬美元的現金。

As of today, we expect to realize a gain on the sale of Precision Sports in the first quarter of 2024. The gain will be recognized through discontinued operations. The expected cash tax expense is only expected to be $2 million to $3 million, allowing us to maintain most of the net cash realized from the sale of precision sports free cash flow, defined as net cash provided by operating and operating activities less capital expenditures for the fourth quarter of 2023 was $13.3 million compared to $30.3 million in the prior year quarter.

截至今天，我們預計 Precision Sports 的銷售將在 2024 年第一季實現收益。該收益將透過已終止經營業務予以確認。預計現金稅支出預計僅為200萬至300萬美元，使我們能夠維持出售精準體育自由現金流所實現的大部分淨現金，自由現金流定義為經營和經營活動提供的淨現金減去資本支出2023年第四季的營收為1,330 萬美元，去年同期為3,030 萬美元。

These free cash flow results include both continuing and discontinued operating results. As a reminder, we have NOL carryforwards for U.S. federal income tax purposes of approximately $7.7 million at December 31st, 2023, company expecting expects to utilize all of the remaining NOLs in their entirety in 2024. Claire's utilized 103 million of NOLs during the ownership period of precision sports from 2017 to 2023. Let me share a few additional thoughts regarding capital allocation.

這些自由現金流結果包括持續經營績效和終止經營績效。提醒一下，截至 2023 年 12 月 31 日，我們有約 770 萬美元的 NOL 結轉用於美國聯邦所得稅，公司預計將在 2024 年全部使用所有剩餘的 NOL。克萊爾在2017年至2023年精準運動持有期間使用了1.03億個NOL。讓我分享一些關於資本配置的額外想法。

Adding to Warren's comments, our near-term capital allocation strategy will prioritize organic growth through reinvestment in our existing two businesses. Beyond organic growth, we will pay our quarterly dividends and selectively look at smaller bolt-on M&A opportunities to add to our venture business. It's like we did in the fourth quarter with the purchase of TRED otherwise throughout 2024 we will continue to focus on cash generation through our continued rightsizing of inventory and growth of our businesses with the intent of letting cash grow on our balance sheet. As we work on growing, improving the profitability of our existing businesses.

除了沃倫的評論之外，我們的近期資本配置策略將透過對現有兩項業務的再投資來優先考慮自然成長。除了有機成長之外，我們還將支付季度股息，並有選擇地尋找規模較小的補充併購機會，以增加我們的風險業務。就像我們在第四季度購買 TRED 時所做的那樣，否則整個 2024 年我們將繼續透過持續調整庫存規模和業務成長來專注於現金生成，目的是讓現金在我們的資產負債表上成長。隨著我們努力發展，提高現有業務的獲利能力。

Before looking forward to our financial guidance, I would like to highlight that we continue to proceed in our lawsuit against Hap Trading LLC, and Mr. Harsh A. Padia. parties conducted expert depositions on February 29th, March first and March sixth of 2024. At this time, there is no further discovery to be conducted, parties must submit a joint letter to the court on March 13th stating among other things, whether or not they plan to file a motion.

在期待我們的財務指導之前，我想強調一下，我們將繼續對 Hap Trading LLC 和 Harsh A. Padia 先生提起訴訟。各方於2024年2月29日、3月1日和3月6日進行了專家證詞。目前，沒有進一步的發現，雙方必須在 3 月 13 日向法院提交一封聯名信，說明他們是否計劃提出動議等。

For summary judgment, counsel for the parties are required to meet in person to discuss settlement within 14 days, have the closing of discovery parties are required to submit a joint pretrial order within 30 days of the closing of discovery or as a summary judgment, motion has been filed within 30 days of its decision on such motion included in our earnings for the year was approximately $1.4 million of legal and related cost associated with this losses. The company also intends to file similar complaints against Parallax Volatility Advisers, LP and Caption Management, LLC.

對於簡易判決，當事人的律師必須在 14 天內親自會面討論和解，如果證據開示結束，當事人必須在證據開示結束後 30 天內提交聯合預審命令，或者作為簡易判決、動議在就此類動議做出決定後30 天內提交了與此損失相關的約140 萬美元的法律和相關費用，計入我們的年度收益中。該公司還打算對 Parallax Volatility Advisers, LP 和 Caption Management, LLC 提出類似的投訴。

Moving on to our outlook for 2024. We expect 2024 sales to range between $270 million to $280 million and adjusted EBITDA from continuing operations of approximately $16 million, $18 million or an adjusted EBITDA margin of 6.2%.

繼續我們對 2024 年的展望。我們預計 2024 年銷售額將在 2.7 億至 2.8 億美元之間，持續經營業務的調整後 EBITDA 約為 1,600 萬美元、1,800 萬美元，調整後 EBITDA 利潤率為 6.2%。

At the midpoint of revenue and adjusted EBITDA, we expect capital out capital expenditures to range between $4 million and $5 million dollars and free cash flow to range between $18 million and $20 million for the full year 2024 first quarter sales are expected to be between $64 million and $66 million and adjusted EBITDA is expected to be between one and 2 million. Our outlook does not include any expense or ongoing litigation, specifically relating to the HAP matter, further increases in key past related inventory reserves, but it does reflect the early results of our effort to achieve less complexity, better margins and a streamlined business as we grow our outdoor and adventure segments.

以收入和調整後EBITDA 的中點計算，我們預計資本支出將在400 萬美元至500 萬美元之間，自由現金流將在1800 萬美元至2000 萬美元之間，2024 年第一季全年銷售金額預計將在64 美元之間100 萬至 6,600 萬美元，調整後的 EBITDA 預計為 100 至 200 萬美元。我們的展望不包括任何費用或正在進行的訴訟，特別是與HAP 問題相關的費用或過去關鍵相關庫存儲備的進一步增加，但它確實反映了我們努力實現更低的複雜性、更好的利潤和精簡業務的早期成果，因為我們發展我們的戶外和冒險業務。

As we look forward to 2024, I'd like to reinforce what Warren said about the monetization of precision sports segments. During our ownership of Precision Sport, the segment returned nearly $270 million of cash to Clarus.

在我們展望 2024 年時，我想重申 Warren 關於精準體育領域貨幣化的說法。在我們擁有 Precision Sport 期間，該部門向 Clarus 返還了近 2.7 億美元的現金。

We believe this was a very successful outcome and I'm glad to see of the value creation potential of our businesses and the teams who lead them. We're excited about our new positioning as a pure-play outdoor business and believe from. We have a strategy in place today to deliver growth and profitability in 2024 and beyond.

我們相信這是一個非常成功的結果，我很高興看到我們的企業和領導它們的團隊的價值創造潛力。我們對我們作為純戶外業務的新定位感到興奮並相信。我們今天制定了一項策略，旨在在 2024 年及以後實現成長和獲利。

At this point, operator, we're ready to take questions. Thank you.

現在，接線員，我們準備好回答問題了。謝謝。

(Operator Instructions).

（操作員說明）。

Laurent Vasilescu, BNP Paribas.

洛朗·瓦西萊斯庫，法國巴黎銀行。

So good afternoon, and thank you very much for taking my question. I wanted to ask about com the Investor Day for next week. I don't know if you can share any highlights ahead of the meeting, but should we anticipate three to five year targets on next week?

下午好，非常感謝您提出我的問題。我想在下週的投資者日詢問有關 com 的情況。我不知道您是否應該在會議前分享一些亮點，但我們是否應該在下週預計三到五年的目標？

Yes, I think you have a good question. So we'll be going through all of the segments next week, and we'll be providing you with three-year outlooks for our businesses for each one of them.

是的，我認為你的問題很好。因此，我們將在下週討論所有細分市場，並向您提供每個細分市場的三年業務展望。

Super helpful. And then and then on the TRED business, I don't think you quantified the size of it, whether it was near the announcement or the in today's press release, just so that we could understand the organic revenues and how big how much did it contribute in the fourth quarter? I think it's de minimus, but but more importantly, how do we think about TRED in the context of FY '24 revenues of $70 million to $80 million?

超有幫助。然後關於 TRED 業務，我認為您沒有量化它的規模，無論是在公告附近還是在今天的新聞稿中，只是為了讓我們能夠了解有機收入以及它有多大第四季度有貢獻嗎？我認為這是微不足道的，但更重要的是，在 24 財年收入為 7,000 萬至 8,000 萬美元的背景下，我們如何看待 TRED？

I think you'll hear more about that on from that Hayward next week. We're not going to we're not going to break out specifically the various brands, but he'll take you through the automotive as a single segment.

我想下週你會從海沃德那裡聽到更多關於這件事的資訊。我們不會具體介紹各個品牌，但他會帶您了解汽車作為一個單獨的細分市場。

Okay, fair enough.

好吧，很公平。

And then adding any genetic and he can speak to it and he'll be able to speak to kind of the U.S. kind of the margin complexion of the various businesses and how it all rolls out.

然後添加任何基因，他就可以談論它，他將能夠談論美國各種業務的利潤狀況以及這一切是如何推出的。

Okay. Fair enough. And then maybe just on the guidance for the midpoint of EBITDA margins, the adjusted EBITDA margins of 6.2, I think that's roughly 600 basis point improvement over last year. Is that driven driven by gross margin or SG&A efficiencies? And then second part of that, this multipart question is this the PFS, the magnitude of PFS. I recall tell me if I'm wrong here, but apparel was like 15% of outdoor seems like it's a small business. But if you could clarify just what how big the apparel business as we think about this PFAS situation?

好的。很公平。然後，也許僅根據 EBITDA 利潤率中點的指導，調整後的 EBITDA 利潤率為 6.2，我認為比去年提高了約 600 個基點。這是由毛利率還是 SG&A 效率所驅動的？第二部分，這個由多部分組成的問題是 PFS，PFS 的大小。我記得如果我錯了請告訴我，但服裝大約佔戶外產品的 15%，看起來這是一個小生意。但如果您能澄清一下我們對 PFAS 情況的看法，服裝業有多大？

Sure, sure. Laurent. Will kind of work backwards to you, right. Apparel is about 15% of our business. So it's historically been about $30 million to $40 million of outdoor. We as I mentioned, it's the risk and 20 fours, both the inventory we have on hand in commitments. We have to purchase inventory, it really comes down to our execution and how well we execute here selling and how well the market absorbs what essentially is the waterproofing product?

一定一定。洛朗.會有點倒退給你，對吧。服裝約占我們業務的 15%。因此，歷史上戶外活動的花費約為 3000 萬至 4000 萬美元。正如我所提到的，這是風險和 20 美元，我們手頭上的庫存都是承諾的。我們必須購買庫存，這實際上取決於我們的執行力以及我們在這裡銷售的執行力如何以及市場對防水產品本質的吸收程度如何？

Yes, I just wanted to say just before we talk to the first part of your question. So everybody has this PFS issue right now. The technology for PFS is a very good technology, but it's not the note. And these are users per products and on in some cases and in many cases, actually the on the alternative approaches for waterproofing aren't as good. So we believe at this point, we believe that we will be able to and move our inventory that we have the key facts related. But given the fact that everybody's got the same in the market. New York has the same issue that could be a supply that. So we are being cautious about it. I mean, it's it would be there the numbers aren't are and aren't large, but it's a minor. It's a minor risk. How we do think actually prospectively on AL. in a year's time, the sum products will be desired by consumers just because of how well they perform.

是的，我只是想在我們討論你問題的第一部分之前先說一下。所以現在每個人都面臨這個 PFS 問題。PFS的技術是一個非常好的技術，但它不是註解。這些是每種產品的用戶，在某些情況下，在許多情況下，實際上防水的替代方法並不那麼好。因此，我們相信，在這一點上，我們相信我們將能夠轉移我們的庫存，因為我們掌握了相關的關鍵事實。但考慮到市場上每個人的情況都一樣。紐約也有同樣的問題，可能是供應問題。所以我們對此持謹慎態度。我的意思是，它的數量並不大，但也很小。這是一個小風險。我們如何對 AL 進行前瞻性思考。一年後，這些產品將因其性能而受到消費者的青睞。

Mike, do you want to ask it again for space?

麥克，你想再向它請求空間嗎？

Yes. With regards to kind of guidance next year, most all of that improvement that you referenced on is all of the growth profit level, right? It some as you recall, during 2023, there was so much promotional pricing in place you know, margins were hit pretty significantly as a result of the promotional pricing. We see a recovery both from a price stability in 24 and from some margin enhancements at the gross profit level that down both the outdoor and more importantly, the adventure business are focused on.

是的。關於明年的指導，您提到的大部分改進都是利潤成長水平，對吧？正如您所記得的，2023 年期間，有如此多的促銷價格，您知道，促銷價格導致利潤率受到相當大的打擊。我們看到了復甦，既來自 24 年的價格穩定，也來自毛利水平的一些提高，這既下降了戶外業務，更重要的是，冒險業務也受到關注。

Very helpful.

很有幫助。

Thank you very much for taking my questions.

非常感謝您回答我的問題。

Thank you.

謝謝。

One moment for questions.

請稍等一下提問。

Our next question comes from Matt Koranda, Ross MKM, you may proceed.

我們的下一個問題來自 Matt Koranda，Ross MKM，您可以繼續。

It goes from, I guess a few for me. I wanted to focus on the 2024 outlook that you provided for the roughly $275 million in revenue. Are you willing to just kind of roughly split out the assumptions between outdoor and adventure? Just looks like it has been growing nicely, even if you strip out TRED, it looks like some really healthy organic growth in the fourth quarter.

它來自，我猜對我來說有一些。我想重點關注你們為大約 2.75 億美元收入提供的 2024 年前景。您願意粗略地劃分戶外活動和冒險活動之間的假設嗎？看起來它增長得很好，即使你剔除 TRED，第四季度看起來也有一些非常健康的有機增長。

I would assume we can probably maybe not pull forward that rate of growth that we can probably pull forward some growth, which would suggest, but outdoor is declining. So why the decline after kind of a down year in '23, are we shedding some unprofitable revenue that sounded like that was what you were alluding to. So maybe just the split there and just a little bit more around the puts and takes of growth at Outdoor and adventure?

我認為我們可能無法提高成長率，而我們可能可以提高一些成長率，這表明，但戶外活動正在下降。那麼，為什麼在經歷了 23 年的下滑之後，我們是否會削減一些無利可圖的收入呢？這聽起來就像你所提到的。那麼，也許只是那裡的分裂，以及更多關於戶外和冒險領域成長的投入和收穫？

You know, Matt, thanks. Thanks. Good question.

你知道，馬特，謝謝。謝謝。好問題。

And you've pretty much nailed that. So yes, I expect on that venture to grow we're not going to give specific guidance today by segment, and you'll see on Monday, we'll talk a little bit more in detail about where we see the business is going, but Tom adventure will grow, should grow in outdoor will actually shrink, but that's a direct result of some of the simplification and the SKU reduction and leaning into our best products and it's a journey that we're going through here in 24 to kind of we've turned the outdoor business around. But your view on your assumptions are spot on.

你已經幾乎做到了這一點。所以，是的，我預計該企業會成長，今天我們不會按細分市場提供具體指導，週一你會看到，我們將更詳細地討論我們看到的業務發展方向，但湯姆冒險將會成長，如果在戶外增長的話，實際上會縮小，但這是一些簡化和SKU 減少以及傾向於我們最好的產品的直接結果，這是我們在24 小時內經歷的一個旅程我們已經扭轉了戶外業務的局面。但你對你的假設的看法是正確的。

Yes Matt, Neil will take you through some from start to finish what he found, you know, how was how we're processing that and how the and what the what the future looks like. But one of the things I had him do was it really to look at SKU rationalization, and you'll see that in in quite a bit of detail. And by virtue of that, we will shrink the revenue somewhat, but margins will improve quite considerably. And I think when he goes through the plan and you look at the the EBITDA margin progression over the next couple of years. I think it all will come sorry.

是的，馬特，尼爾將帶你從頭到尾了解他發現了什麼，你知道，我們是如何處理的，以及未來會是什麼樣子。但我讓他做的一件事是真正研究 SKU 合理化，你會看到很多細節。因此，我們的收入將有所減少，但利潤率將大幅提高。我認為，當他完成該計劃時，你會看到未來幾年 EBITDA 利潤率的進展。我想這一切都會帶來遺憾。

Okay. That's helpful. And then just I guess a bigger broader question that I know we're going to get here is basically the guidance has revenue down at the midpoint year-over-year, but EBITDA up pretty healthily. And I guess that implies we're sort of doing away with some unprofitable business and or removing structural costs. I know you mentioned most of the improvements going to come from gross margin, but maybe just help us square all of that. And are there I guess are there corporate costs that can come out now that Precision is no longer part of the portfolio here yet.

好的。這很有幫助。然後我猜想我們將會遇到一個更大更廣泛的問題，基本上是指導收入同比下降，但 EBITDA 成長相當健康。我想這意味著我們正在取消一些無利可圖的業務和/或消除結構性成本。我知道您提到大部分改進將來自毛利率，但也許只是幫助我們解決所有這些問題。我想，既然 Precision 不再是這裡投資組合的一部分，那麼企業成本是否會出現？

So we'll get into all of that on Monday, you have to provide all of the detail that you're going to need to put together the accurate models of the corporate overheads will be coming down during the course of the year. That's our expectation as we, as you know, is some of the things that we've had in place or were able to reset on the other thing that as you know, we've given some guidance to what our legal expense has been for the 16(b) trading issue.

因此，我們將在周一討論所有這些內容，您必須提供所需的所有詳細信息，以便將公司管理費用的準確模型放在一起，這些模型將在一年中下降。這是我們的期望，因為正如您所知，我們已經採取了一些措施，或者能夠在另一件事上進行重置，正如您所知，我們已經就我們的法律費用提供了一些指導16(b ) 交易問題。

And we have baked in as to our guidance for this year on the appropriate amount of legal expense to continue to pursue some of the not just the 16(b) issue again on trading, but also was, as Mike said, we will be filing complaints against both Parallax and caption. So that's built into the numbers for now. What's obviously what's not built into the numbers is obviously any interest income that we'll get on our cash balances, which is now running at it, plus five plus percent rates.

我們已經接受了今年關於適當數額的法律費用的指導，以繼續追究一些交易問題，不僅是再次解決 16(b) 問題，而且，正如邁克所說，我們將提交文件針對視差和標題的投訴。所以目前這已納入數字中。顯然，這些數字中沒有包含的顯然是我們將從現金餘額中獲得的任何利息收入（目前正在運行），再加上百分之五以上的利率。

Okay. That makes sense. And then digital and I guess the PFS commentary, can we just nail down some and maybe I missed it but did you guys quantify the exposure there?

好的。這就說得通了。然後是數位化的，我猜是 PFS 評論，我們可以確定一些，也許我錯過了，但你們量化了那裡的曝光嗎？

Obviously, there's some exposure to inventory, which sounds minimal, but then the more interesting or maybe the thing I'm interested in understanding is the vendor question, you mentioned maybe there are some commitments for minimum purchases and stuff like that. Maybe just any way to think about the.

顯然，有一些庫存暴露，這聽起來很小，但更有趣或者也許我有興趣了解的是供應商問題，你提到也許有一些最低採購承諾和類似的東西。也許只是任何一種思考方式。

I think -- go ahead, Mike.

我想——繼續吧，麥克。

I was going to say we didn't quantify it. It all depends. It could be three to four or 5 million, but as long of it depends how we execute that. That's why we're bringing it up, right? How the market absorbs this work on the product. And but as long as we work through this, as Warren alluded to it, 100% right great.

我想說我們沒有量化它。這一切都取決於。可能是三到四或五百萬，但長短取決於我們如何執行。這就是我們提出這個問題的原因，對吧？市場如何吸收產品上的這項工作。但只要我們解決這個問題，正如沃倫提到的那樣，100％正確，太好了。

That's all gravy, no auto. And so the small green product, it hits all great products. I would just highlighting it because it is a is conceivably a risk to our numbers. We don't think I'd say at this point, we don't think it's a material risk, but we're just highlighting it again because every other company in the world also has Petreco issue. And so depending upon how that how that all processes through, yes, it may be a little more challenging for us to sell the product. But again, we believe that product we believe that product and people may make may buy this now because they will be able to get it in the future.

這都是肉汁，沒有汽車。因此，小小的綠色產品，它擊中了所有偉大的產品。我只是強調這一點，因為這可能對我們的數字構成風險。我們認為我現在不會說，我們認為這不是重大風險，但我們只是再次強調這一點，因為世界上所有其他公司也有 Petreco 問題。因此，取決於所有流程如何進行，是的，我們銷售產品可能更具挑戰性。但我們再次相信，我們相信產品和人們可能製造的產品現在可能會購買，因為他們將來能夠得到它。

And it is better on the waterproofing with PFS is better than and the there's the other technologies that are out there that we'd have to use in met, Matt, the charge that we took, we did take a charge in the fourth quarter related to PFS, and that was four on commitments to take product that we that we said, no, we don't want any more of this, so we didn't want to compound our problem. The so that that's key to understand, I think is what you're trying to get to the inventory on hand or the inventory being built already is where the exposure is. And as long as we execute and move that inventory through our channels, as Warren said, we don't think it will be material. But in the same breath, if for some reason, we're not able to move that inventory.

PFS 的防水效果比我們必須在滿足中使用的其他技術更好，馬特，我們收取的費用，我們確實在第四季度收取了相關費用到PFS，這是關於採取產品的四項承諾，我們說，不，我們不想再有這樣的事情了，所以我們不想讓我們的問題複雜化。因此，這是理解的關鍵，我認為這就是你想要獲得的現有庫存或已經建立的庫存是暴露的地方。正如沃倫所說，只要我們透過我們的管道執行和轉移庫存，我們認為這不會是實質的。但同時，如果由於某種原因，我們無法移動該庫存。

And we wanted to be upfront with the situation because we do believe we've adjusted our inventory to the appropriate level. But if we do have the issue in the 24, we didn't want to ask you asking question sort of three asking questions, but I thought you've slowed down your inventory to the right levels at the end of last year. So this is the one thing that's out there that could potentially be at risk.

我們希望提前了解情況，因為我們確實相信我們已經將庫存調整到適當的水平。但如果我們確實在 24 小時內遇到了問題，我們不想問您三個問題，但我認為您已在去年年底將庫存放慢到正確的水平。因此，這是可能存在風險的一件事。

But yes, as we said, we think it's a very good inventory, very good product that should move. But we did take a charge in the fourth quarter for the stuff that we were committed to buy that we haven't bought it yet. And that's that's why we've put a line in the sand from that perspective. So the risk is just inventory on hand and inventory that's being built that we have to take steps.

但是，是的，正如我們所說，我們認為這是一個非常好的庫存，非常好的產品，應該移動。但我們確實在第四季度對我們承諾購買但尚未購買的東西收取了費用。這就是為什麼我們從這個角度劃定了界線。因此，風險只是我們必須採取措施的現有庫存和正在建立的庫存。

Okay. Now that's clear. Just timing on potential risk there. It sounds like you got to sell it into retail by summer, roughly?

好的。現在一切都清楚了。只是把握潛在風險的時機。聽起來你得在夏天之前把它賣給零售店，大概是吧？

I would think so by yields by third quarter max.

從第三季最高收益率來看，我認為是這樣。

Okay.

好的。

Max, most of the most of it will go through the second quarter.

麥克斯，其中大部分將在第二季完成。

Yes, I'll take the rest upon. Thank you.

是的，剩下的我會承擔。謝謝。

Thank you. One moment for questions.

謝謝。請稍等一下提問。

Anna Glaessgen, B. Riley.

安娜·格拉斯根，B.萊利。

Hello, and good afternoon and thanks for taking my question. And I guess encouraging to hear that you're starting to see some stabilization at wholesale in North America. And I guess just would you characterize their inventory levels now as having been mostly appropriately normalized and and to what extent though, in 2020 for a hotel? And so I guess, when would you expect that to normalize and what's being assumed in the 2024 guidance?

您好，下午好，感謝您提出我的問題。我想聽到北美批發市場開始出現一些穩定的消息令人鼓舞。我想您是否會認為他們現在的庫存水準已基本適當正常化，但到 2020 年，飯店的庫存水準會達到何種程度？所以我想，您預計這種情況何時會正常化以及 2024 年指南中的假設是什麼？

Well, I'll answer that.

好吧，我會回答這個問題。

It's it's normalizing, it's normalizing and so on. And we're working on things that things are getting better. But we don't believe that our retail partners are fully stocked add a normalized level.

它正在正常化，它正在正常化等等。我們正在努力讓事情變得更好。但我們認為我們的零售合作夥伴的庫存並沒有達到正常水準。

Yes. Got it. So I guess, fine, when do you expect sell-in and sell-through to become more balanced?

是的。知道了。所以我想，好吧，你預計什麼時候賣出和賣出會變得更加平衡？

We're actually seeing I would sell and improved on a year-over-year basis week week-over-week basis that here in the first quarter compared to first quarter last year. And as Warren just mentioned, I think that that's starting to take hold here and have further quarters for us and half of the year, the particularly the addition of normalized nat cat?

實際上，我們看到，與去年第一季相比，第一季我的銷售量逐週逐年調高。正如沃倫剛才提到的，我認為這種情況已經開始在這裡紮根，並且我們還有半年的時間，特別是標準化的 nat cat 的增加？

Yes, there we've you'll hear from Neil and I don't want to steal his thunder Valley after changes that we've made. And but what I can say is that some of our people are on it now and we are actively pointing out to our fund to our retail partners where they're short and we're pushing them to fill out the assortments and their shelf.

是的，你會聽到尼爾的聲音，我不想在我們做出改變後竊取他的雷霆谷。但我可以說的是，我們的一些人現在正在參與其中，我們正在積極向我們的零售合作夥伴指出我們的基金短缺的地方，我們正在推動他們填補品種和貨架。

And that seems to be that seems to be working. But um, you know, they they are everybody is cautious right now. And so I think that's I think that's I think that's I think that's part of it. But our view, our view is that we're looking forward to and we're looking forward to a great, great summer, and we think that would be beyond that's kind of still and will accelerate. And we have and we have the we have the we have the we have the right inventory to come to us to achieve those goals.

這似乎正在發揮作用。但是，嗯，你知道，他們現在每個人都很謹慎。所以我認為這是其中的一部分。但我們的觀點是，我們期待一個非常非常好的夏天，我們認為這將超越現狀，並將加速。我們有，我們有，我們有，我們有，我們有合適的庫存來幫助我們實現這些目標。

You'll hear about that dynamic and maybe turning to some of the commentary around promotionality and DTC. specifically, is that a function of mix? I know it skews more toward apparel and footwear than the wholesale exposure, or is that a function of closing some of those retail locations and is clearing that inventory or something on it?

您會聽到有關這種動態的信息，並可能轉向一些有關促銷和 DTC 的評論。具體來說，這是混合的函數嗎？我知道它比批發業務更傾向於服裝和鞋類，或者這是關閉其中一些零售店並清理庫存或其他東西的功能？

It's more of that.

還不止這些。

Bye.

再見。

Yes, Mike, do you let him.

是的，麥克，你讓他這麼做嗎？

Did you hear my answer. I'm sorry,

你聽到我的回答了嗎。對不起，

I did not know we lost you, Mike, can you just --

我不知道我們失去了你，麥克，你能不能--

I'm sorry. I said it's and it's the former and it's the on apparel, the promotional pricing in the marketplace for apparel right now, really all throughout Q3, Q4 was extremely strong, and that's really the main driver.

對不起。我說的是，這是前者，這是服裝，現在服裝市場上的促銷價格，實際上整個第三季、第四季都非常強勁，這確實是主要驅動力。

Got it.

知道了。

Looking forward to Monday. Thanks, guys.

期待星期一。多謝你們。

Mark Smith, Lake Street.

馬克史密斯，湖街。

I guess first question, I just wanted to confirm, hey, the EBITDA guidance that you guys gave for 2014 that is stripping out and excluding all of your one-time items, including the legal expense expected in some of these lawsuits, is that correct?

我想第一個問題，我只是想確認一下，嘿，你們為 2014 年提供的 EBITDA 指南，該指南剝離並排除了所有一次性項目，包括其中一些訴訟中預期的法律費用，這是正確的嗎？ ？

The EBITDA guidance the EBITDA guidance of 16 to $18 million. Full year guidance does not include significant costs associated with the legal legal costs. And that's what I said in my statement in my prepared remarks.

EBITDA 指導 EBITDA 指導為 16 至 1800 萬美元。全年指導不包括與法律費用相關的重大費用。這就是我在準備好的發言中所說的內容。

Okay. And then it sounds like on Monday, you guys walk through a little bit some of the kind of corporate overhead as well as kind of total SG&A outlook, but does it seem like in the near term here, this kind of $30 million range on total SG&A seems like about the right range here in the near term?

好的。然後聽起來像是在周一，你們稍微了解了一些公司管理費用以及總體 SG&A 前景，但似乎在短期內，這種總計 3000 萬美元的範圍短期內，SG&A 似乎在合適的範圍內？

Yes. So that's a little high, but down just it's a little less than that, but you're in the ballpark.

是的。所以這個數字有點高，但比這個低一點，但還是在大概範圍內。

Okay. And then the last question for me was just, you know, if you can call out, I haven't seen it yet or maybe I missed it impact from FX and currency here in the quarter and then kind of your outlook, if you will for '24?

好的。然後我的最後一個問題是，你知道，如果你可以指出，我還沒有看到它，或者也許我錯過了本季度外匯和貨幣的影響，然後是你的前景，如果你願意的話'24？

The comments I made in the prepared remarks that FX was completely immaterial during the quarter during the fourth quarter on our R. forecast for this year, is based on exchange rates here on the news from a few weeks ago, so not significantly different. And you know that then what kind of business has been functioning at down throughout the third and fourth quarter of this last year.

我在準備好的發言中發表的評論是，第四季度外匯對我們今年的 R. 預測完全不重要，這是基於幾週前新聞中的匯率，因此沒有顯著不同。你知道去年第三季哪些業務一直在下滑。

Excellent. Thank you.

出色的。謝謝。

Thank you. I would now like to turn the call back over to Mike gates for any closing remarks.

謝謝。我現在想將電話轉回給麥克蓋茨，請他發表結束語。

And thank you. Thank you for your interest in Clarus, and we appreciate everyone's questions and we look forward to spending more time with you next week in New York City at our Investor Day where works.

謝謝你。感謝您對 Clarus 的興趣，我們感謝大家提出的問題，我們期待下週在紐約舉行的投資者日與您共度更多時光。

Both Warren and I are excited to have Matt Hayward speak in-depth about the adventure business and Neil first to spend equal time walking through his plans and vision for the outdoor business. So we thank you for your continued interest in Clarus and look forward to speaking and seeing many of you next week in New York.

華倫和我都很高興馬特海沃德深入談論冒險業務，而尼爾首先花同樣的時間闡述他對戶外業務的計劃和願景。因此，我們感謝您對 Clarus 的持續關注，並期待下週在紐約與大家見面並發表演講。

Thank you for your participation. You may now disconnect.

感謝您的參與。您現在可以斷開連線。