Traeger Inc (COOK) 2023 Q1 法說會逐字稿

Hello, and welcome to Traeger's First Quarter Fiscal 2023 Earnings Conference Call. My name is Terry, and I'm the conference operator for today. (Operator Instructions) I would now like to hand the call over to Nick Bacchus to begin. Please go ahead.

您好，歡迎來到 Traeger 的 2023 財年第一季度收益電話會議。我叫特里，我是今天的會議接線員。 （接線員說明）我現在想將電話轉交給 Nick Bacchus 開始。請繼續。

Good afternoon, everyone. Thank you for joining Traeger's call to discuss its first quarter 2023 results, which we released this afternoon and can be found on our website at investors.traegers.com. I'm Nick Bacchus, Vice President of Investor Relations at Traeger. With me on the call today are Jeremy Andrus, our Chief Executive Officer; and Dom Blosil, our Chief Financial Officer.

大家下午好。感謝您加入 Traeger 的電話會議，討論我們今天下午發布的 2023 年第一季度業績，您可以在我們的網站 investors.traegers.com 上找到這些業績。我是 Traeger 投資者關係副總裁 Nick Bacchus。今天和我一起打電話的是我們的首席執行官傑里米·安德魯斯 (Jeremy Andrus)；和我們的首席財務官 Dom Blosil。

Before we get started, I want to remind everyone that management's remarks on this call may contain forward-looking statements, including regarding our anticipated full year 2023 results which are based on current expectations but are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied herein. We encourage you to review our annual report on Form 10-K for the year ended December 31, 2022, and our other SEC filings for a discussion of these factors and uncertainties which are also available on the Investor Relations portion of our website. You should not take undue reliance on these forward-looking statements. We speak only as of today, and we undertake no obligation to update or revise them for any new information.

在我們開始之前，我想提醒大家，管理層對本次電話會議的評論可能包含前瞻性陳述，包括我們基於當前預期得出的 2023 年全年預期結果，但存在可能導致實際結果的重大風險和不確定性與此處明示或暗示的內容存在重大差異。我們鼓勵您查看我們截至 2022 年 12 月 31 日止年度的 10-K 表格年度報告，以及我們向美國證券交易委員會提交的其他文件，以討論這些因素和不確定性，這些因素和不確定性也可在我們網站的投資者關係部分獲得。您不應過分依賴這些前瞻性陳述。我們只談今天的情況，我們不承擔更新或修改任何新信息的義務。

This call will also contain certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income and adjusted gross margin, which we believe are useful supplemental measures. The most directly comparable GAAP financial measures and reconciliations of the non-GAAP measures contained herein to such GAAP measures are included in our earnings release, which is available on the Investor Relations portion of our website at investors.traeger.com.

此電話會議還將包含某些非 GAAP 財務指標，包括調整後的 EBITDA、調整後的淨收入和調整後的毛利率，我們認為這些是有用的補充措施。最直接可比的 GAAP 財務指標以及此處包含的非 GAAP 指標與此類 GAAP 指標的對賬包含在我們的收益發布中，可在我們網站 investors.traeger.com 的投資者關係部分獲取。

Now I'd like to turn the call over to Jeremy Andrus, Chief Executive Officer of Traeger.

現在我想把電話轉給 Traeger 的首席執行官傑里米安德魯斯。

Thank you, Nick. Thank you for joining our first quarter earnings call. Today we'll be discussing the first quarter results as well as our progress on executing our long-term strategies. I will then turn the call over to Dom to discuss further details on our quarterly financial performance.

謝謝你，尼克。感謝您參加我們的第一季度財報電話會議。今天我們將討論第一季度的業績以及我們在執行長期戰略方面的進展。然後，我會將電話轉給 Dom，討論有關我們季度財務業績的更多細節。

In the first quarter, we continued to execute against our plan as we navigate a challenging environment and position the business for a return to top and bottom line growth in the second half of 2023. First quarter revenues of $153 million came in towards the higher end of our guidance range, while adjusted EBITDA of $22 million exceeded the high end of our range by $2 million. I am pleased with our ability to overdeliver on our adjusted EBITDA guidance for the quarter and believe our results demonstrate our strong organizational focus on positioning Traeger for improved profitability.

在第一季度，我們繼續執行我們的計劃，因為我們應對了充滿挑戰的環境，並將業務定位為在 2023 年下半年恢復收入和利潤增長。第一季度的收入為 1.53 億美元，達到了較高水平在我們的指導範圍內，而調整後的 EBITDA 為 2200 萬美元，超出我們範圍的上限 200 萬美元。我很高興我們有能力超額完成本季度調整後的 EBITDA 指導，並相信我們的結果表明我們強烈的組織關注定位 Traeger 以提高盈利能力。

While our top line continues to be pressured by retailer destocking as well as lower consumer demand in our grill business, our first quarter results increase our confidence in our ability to achieve our full year guidance. And as a result, we are reiterating our prior guidance.

雖然我們的收入繼續受到零售商去庫存以及燒烤業務消費者需求下降的壓力，但我們第一季度的業績增強了我們對實現全年指導能力的信心。因此，我們重申了我們之前的指導意見。

During the quarter, sell-through of grills remained negative versus the first quarter last year as we continue to lap our very strong multiyear comparisons. The impact of lower consumer demand in the first quarter was compounded by continued retailer destocking compared to the first quarter last year when retailers were still building inventories. However, sell-through in the quarter was in line with our forecast coming into the year. Importantly, following a holiday period in which we lean into promotions at retail in an effort to accelerate demand in clear channel inventories, we reverted to a more typical promotional cadence in the first quarter that was similar to prior year. I am encouraged to see consumer demand return to a more predictable pattern despite less aggressive promotions and in the face of what continues to be an elevated promotional environment in the outdoor cooking industry more broadly.

在本季度，由於我們繼續進行非常強勁的多年比較，烤架的銷售量與去年第一季度相比仍然是負數。與去年第一季度零售商仍在增加庫存相比，第一季度消費者需求下降的影響因零售商持續去庫存而加劇。然而，本季度的銷售情況符合我們對今年的預測。重要的是，在假期期間我們傾向於零售促銷以加速清除渠道庫存的需求之後，我們在第一季度恢復了與去年相似的更典型的促銷節奏。我很高興看到消費者需求恢復到更可預測的模式，儘管促銷活動不那麼激進，而且面對更廣泛的戶外烹飪行業持續提升的促銷環境。

In the first quarter, we continue to execute against our near-term tactical priorities which we have discussed over the last 3 quarterly calls. In terms of inventories, we are making substantial progress on our rightsizing efforts. Our initiatives to drive sell-through in channel and a retail partners destocking efforts in conjunction with lower production levels had led to a materially improved picture on inventories with both our balance sheet inventories and inventories in the channel declining sequentially relative to last quarter. We continue to expect that this inventory rationalization process will continue through the second quarter and believe that inventories will be more fully aligned in the second half which will allow for more normalized replenishment rates of grills.

在第一季度，我們將繼續執行我們在過去 3 個季度電話會議中討論過的近期戰術重點。在庫存方面，我們在精簡規模方面取得了實質性進展。我們推動渠道銷售的舉措和零售合作夥伴的去庫存努力以及較低的生產水平導致庫存情況大幅改善，我們的資產負債表庫存和渠道庫存相對於上一季度連續下降。我們繼續預計這一庫存合理化過程將持續到第二季度，並相信庫存將在下半年更加充分地對齊，這將使烤架的補貨率更加正常化。

On gross margin, our team remains highly focused on driving margin improvement. In the first quarter, we made a strategic decision to optimize our pellet manufacturing footprint by consolidating our pellet mill portfolio from 7 mills to 5 by divesting of 2 higher cost mills and increasing efficiencies in the other 5 facilities, we expect to drive meaningful improvement in capacity utilization and cost per pound. Moreover, we have ample capacity to fuel strong growth in our pellet business in the coming years.

在毛利率方面，我們的團隊仍然高度關注推動利潤率的提高。在第一季度，我們做出了一項戰略決策，通過剝離 2 家成本較高的工廠並提高其他 5 家設施的效率，將我們的製粒機組合從 7 家整合到 5 家，從而優化我們的顆粒製造足跡，我們希望推動有意義的改進產能利用率和每磅成本。此外，我們有足夠的能力在未來幾年推動我們的顆粒業務強勁增長。

In terms of our cost structure, in the first quarter, we realized the benefit of the cost reduction efforts we undertook last year, which resulted in annualized cost savings north of $20 million. Further, we have planned our expense structure prudently for 2023, which will enable the company to deliver growth in adjusted EBITDA despite our guidance for lower sales. We plan to remain highly focused on expense efficiency as we move through the year while remaining nimble enough to invest into high priority growth initiatives if investment capacity increases.

就我們的成本結構而言，在第一季度，我們實現了去年進行的成本削減工作帶來的好處，年化成本節省超過 2000 萬美元。此外，我們審慎地規劃了 2023 年的費用結構，這將使公司能夠實現調整後 EBITDA 的增長，儘管我們給出了較低的銷售額指引。我們計劃在今年繼續高度關注費用效率，同時保持足夠的靈活性，以便在投資能力增加時投資於高優先級的增長計劃。

Moving on to our strategic growth pillars. Our largest long-term opportunity continues to be accelerating brand awareness and penetration in the United States. Our strategy is to meaningfully increase household penetration from our current 3.5% by driving awareness of the Traeger brand and increasing the productivity of our existing distribution network through community engagement, enhanced retail merchandising, in-store marketing and product innovation we believe we can materially expand Traeger's share of space devoted to outdoor cooking on our retail partners' floors. Our brand awareness remains at an all-time high and is up materially from this time last year, despite our limited top-of-funnel marketing investment capacity over the last 12 months.

轉向我們的戰略增長支柱。我們最大的長期機會繼續是在美國加速品牌知名度和滲透。我們的戰略是通過提高 Traeger 品牌的知名度並通過社區參與、加強零售銷售、店內營銷和產品創新來提高我們現有分銷網絡的生產力，從而顯著提高我們目前的 3.5% 的家庭滲透率，我們相信我們可以大幅擴展Traeger 在我們零售合作夥伴樓層的戶外烹飪空間份額。儘管過去 12 個月我們的漏斗頂端營銷投資能力有限，但我們的品牌知名度仍然保持在歷史最高水平，並且比去年同期有了顯著提高。

In the first quarter, engagement with our community on social media continue to demonstrate the growing awareness of and participation in our brand. We grew our followers by 19% versus last year and user-generated content post, which we view as a key medium for our brand evangelists were up by 16%. For the Super Bowl, we offered up unique content and recipes for the game and encourage our community to post content using the Traeger game day hashtag, resulting in another record year of UGC post on the day.

在第一季度，我們在社交媒體上與社區的互動繼續表明我們品牌的知名度和參與度不斷提高。與去年相比，我們的關注者增加了 19%，用戶生成的內容帖子（我們認為這是我們品牌傳播者的重要媒介）增加了 16%。對於超級碗，我們為遊戲提供了獨特的內容和食譜，並鼓勵我們的社區使用 Traeger 遊戲日主題標籤發佈內容，從而使當天的 UGC 發布再創新高。

Our awareness also continues to benefit from consistent and increasing media coverage with articles and reviews covering our new product launches, TV spots featuring Traeger recipes and cooking tips for the Super Bowl and numerous mentions in top 10 grills of 2023 list, our media reach has more than doubled versus first quarter of last year. Traeger continues to be the grill brand that everyone is talking about.

我們的知名度也繼續受益於不斷增加的媒體報導，包括我們新產品發布的文章和評論、以 Traeger 食譜和超級碗烹飪技巧為特色的電視廣告，以及 2023 年十大燒烤榜單中的多次提及，我們的媒體覆蓋範圍更廣比去年第一季度翻了一番。 Traeger 仍然是每個人都在談論的燒烤品牌。

Going into our peak summer selling season, the excitement and enthusiasm around the Traeger brand remains as strong as ever. Next week, on May 20, we will celebrate our Sixth Annual Traeger Day, our holiday dedicated to family, friends and wood-fired food cooked on the Traeger. In anticipation of Traeger Day and ahead of the grilling season, we have released a series of videos featuring Meat Church barbecues Matt Pittman with the recipes cooked on our new Flatrock and Ironwood. The content is designed to generate top of funnel awareness and to encourage our massive community to cook together and post about it on May 20.

進入我們的夏季銷售旺季，圍繞 Traeger 品牌的興奮和熱情一如既往地強烈。下週，即 5 月 20 日，我們將慶祝第六屆年度 Traeger 日，這是我們為家人、朋友和在 Traeger 上烹製的柴火食物而設的節日。為迎接 Traeger Day 和燒烤季的到來，我們發布了一系列視頻，其中包括 Meat Church 燒烤師 Matt Pittman 以及在我們的新 Flatrock 和 Ironwood 上烹製的食譜。該內容旨在產生漏斗意識，並鼓勵我們龐大的社區一起烹飪並在 5 月 20 日發布相關信息。

Next, on to our second growth pillar, which is disrupting outdoor cooking with product innovation. The first quarter was a critical period in our product innovation road map with the launch of 2 new grills in February, our new Ironwood and our new Flatrock griddle. These launches were some of the most successful in our brand's history, and I'm extremely proud of the team's execution of our go-to-market strategy from product development to commercialization. Innovation is at the core of our company and the level of innovation that we are bringing to the outdoor cooking market is remarkable. The first quarter is product launches cement our position as an industry disruptor. Our new Ironwood offers unrivaled flavoring consistency through a series of upgrades and new features. Building on the innovation of last year's Timberline introduction, the new Ironwood includes features like Smart Combustion technology, FreeFlow Firepot and a touchscreen user interface, enabling consumers to master their cooks every time. The response from consumers and retailers has been fantastic.

接下來是我們的第二個增長支柱，即通過產品創新顛覆戶外烹飪。第一季度是我們產品創新路線圖的關鍵時期，我們在 2 月份推出了 2 款新烤架，即新的 Ironwood 和新的 Flatrock 煎鍋。這些發布是我們品牌歷史上最成功的一些，我為團隊執行我們從產品開發到商業化的上市戰略感到非常自豪。創新是我們公司的核心，我們為戶外烹飪市場帶來的創新水平令人矚目。第一季度是產品發布，鞏固了我們作為行業顛覆者的地位。我們的新 Ironwood 通過一系列升級和新功能提供無與倫比的風味一致性。基於去年推出的 Timberline 的創新，新的 Ironwood 包括 Smart Combustion 技術、FreeFlow Firepot 和触摸屏用戶界面等功能，使消費者每次都能掌握他們的廚師。消費者和零售商的反應非常好。

The Ironwood had over 400,000 views on social media during the launch period and receive positive media from Rolling Stone, Men's Journal, GQ and Forbes. The launch of our premium Flat Top Grill, the Traeger Flatrock has been something of a phenomenon. We have seen the grill category expand meaningfully over the last few years. And in speaking with our community, we understood that there was a gap in the marketplace for a premium griddle and an opportunity for Traeger to disrupt the space. Complementing the Tried and True dishes of the Wood Pellet Grill, our new Flat Top Grill opens a Traeger hood up to an entirely new menu of foods like pancakes, philly cheesesteak and smash burgers.

推出期間，Ironwood 在社交媒體上的瀏覽量超過 400,000 次，並獲得滾石雜誌、男士雜誌、GQ 和福布斯的正面媒體評價。我們的高級平頂燒烤爐 Traeger Flatrock 的推出已經成為一種現象。在過去的幾年裡，我們看到燒烤品類的擴張意義重大。在與我們的社區交談時，我們了解到優質烤盤市場存在差距，而 Traeger 有機會顛覆這一領域。作為 Wood Pellet Grill 久經考驗的菜餚的補充，我們的全新 Flat Top Grill 打開一個 Traeger 罩，提供全新的食物菜單，如煎餅、費城奶酪牛排和碎漢堡。

The Flatrock solved several common pain points for grill users with innovations like our true zone heating system with 3 separate cooking zones, Triple U-burner design for even cooking across the cooking surface and FlameLock construction, which locks in heat and blocks out wind. The launch has been the most engaging our history with over 838,000 video views and over 27,000 engagements on social media during the launch period. We are extremely pleased with the consumer response thus far. And as we have launched Flatrock with limited distribution, there is a significant opportunity to increase distribution as we move through this year.

Flatrock 通過創新解決了燒烤用戶的幾個常見痛點，例如我們具有 3 個獨立烹飪區的真正區域加熱系統、用於在整個烹飪表面均勻烹飪的三重 U 型燃燒器設計和鎖住熱量並阻擋風的 FlameLock 結構。此次發布是我們歷史上最引人入勝的一次發布，發布期間視頻觀看次數超過 838,000 次，社交媒體互動次數超過 27,000 次。到目前為止，我們對消費者的反應非常滿意。由於我們推出了有限分銷的 Flatrock，因此隨著我們今年的推進，我們有很大的機會增加分銷。

Our next strategic pillar is driving recurring revenues. As expected, our consumables business was pressured by lower demand from a large customer who introduced a private label pellet offering last year. Outside of this, our pellet business remains healthy and sell-through in the first quarter was relatively in line with the first quarter last year, excluding those customer, demonstrating the recurring nature of this revenue stream. We also continue to grow distribution of pellets into the grocery channel. In the first quarter, we added pellets into nearly 450 new grocery doors across Albertson's, Spartan Nash, and Raley's. We also grew our pellet offering at Kroger by adding our new value-sized 30-pound barbecue select pellet in over 1,600 doors.

我們的下一個戰略支柱是推動經常性收入。正如預期的那樣，我們的消耗品業務受到去年推出自有品牌顆粒產品的大客戶需求下降的壓力。除此之外，我們的顆粒業務保持健康，第一季度的銷售量與去年第一季度基本持平（不包括這些客戶），表明該收入流具有經常性。我們還繼續將顆粒分銷到雜貨店渠道。在第一季度，我們在 Albertson's、Spartan Nash 和 Raley's 的近 450 個新雜貨店門口添加了顆粒。我們還在 Kroger 增加了我們的顆粒產品，在 1,600 多扇門中添加了我們新的超值 30 磅燒烤精選顆粒。

On the food consumables side, we continue to execute on our growth strategy through channel expansion and new product offerings. Of note, we secured new distribution for Traeger rubs and sauces in over 250 doors of Myer. We also launched 3 new rubs focused on the most popular griddle meals to support the launch of Flatrock, Burger Rub, Breakfast Rub, and Spicy Fajita rub. Our final growth pillar is expanding the Traeger brand internationally. Similar to the U.S. market, our international business was pressured by the retailer destocking in the first quarter. However, results internationally for the quarter were in line with our expectations. In the first quarter, we introduced our new Timberline in European markets and our new Ironwood in Europe and Canada. The product munis drove excitement on retail floors and led to improved reorder activity.

在食品消費品方面，我們繼續通過渠道擴張和新產品供應來執行我們的增長戰略。值得注意的是，我們在 Myer 的 250 多家門店中確保了 Traeger 磨砂膏和調味醬的新分銷。我們還推出了 3 種新的磨砂，專注於最受歡迎的干鍋餐，以支持 Flatrock、Burger Rub、Breakfast Rub 和 Spicy Fajita 磨砂的推出。我們最後的增長支柱是在國際上擴展 Traeger 品牌。與美國市場類似，我們的國際業務在第一季度受到零售商去庫存的壓力。然而，本季度的國際業績符合我們的預期。第一季度，我們在歐洲市場推出了新的 Timberline，並在歐洲和加拿大推出了新的 Ironwood。市政產品在零售區引起了興奮，並導致了再訂購活動的改善。

Overall, we were pleased to see the consumer respond to new product. And while we continue to expect near-term softness in our international markets, we do expect meaningful improvement in second half sales trends. In conclusion, I'm encouraged by the meaningful progress we have made in the last 3 quarters on our tactical priorities. Our team's focus on rightsizing inventories, reducing our cost structure and driving gross margin improvement will position the business for a return to growth in the second half of the year and beyond. Moreover, the excitement and exceptional consumer response to our new product launches bolsters my confidence in Traeger's long-term strategy and positioning as an innovator and disruptor in the outdoor cooking industry.

總的來說，我們很高興看到消費者對新產品做出反應。雖然我們繼續預計國際市場近期疲軟，但我們確實預計下半年銷售趨勢將出現顯著改善。總之，我對過去三個季度在戰術重點方面取得的有意義的進展感到鼓舞。我們團隊專注於調整庫存、降低成本結構和推動毛利率提高，這將使該業務在今年下半年及以後恢復增長。此外，消費者對我們新產品發布的興奮和異常反響增強了我對 Traeger 的長期戰略和定位為戶外烹飪行業創新者和顛覆者的信心。

And with that, I'll turn the call over to Dom. Dom?

有了這個，我會把電話轉給 Dom。主場？

Thank you, Jeremy, and good afternoon, everyone. Today, I'll review our first quarter performance and discuss our outlook for fiscal year 2023. First quarter revenue declined 32% to $153 million. Grill revenues declined 40% to $90 million. Grill revenue was negatively impacted by lower unit volumes as our retail partners continue to destock in an effort to drive lower end channel inventories partially offset by higher average selling prices. Consumables revenues were $30 million, down 24% to first quarter of last year, driven by lower volume of pellets. Our consumables business was negatively impacted by the loss of volume with a customer who introduced a private label pellet last year as well as lapping the large load-in of food consumables into the grocery channel in the first quarter of last year.

謝謝你，傑里米，大家下午好。今天，我將回顧我們第一季度的業績並討論我們對 2023 財年的展望。第一季度收入下降 32% 至 1.53 億美元。燒烤收入下降 40% 至 9000 萬美元。由於我們的零售合作夥伴繼續去庫存以推動低端渠道庫存被較高的平均售價部分抵消，燒烤收入受到較低單位數量的負面影響。消耗品收入為 3000 萬美元，較去年第一季度下降 24%，這是由於顆粒產量下降所致。我們的消耗品業務受到去年推出自有品牌顆粒的客戶銷量下降以及去年第一季度將大量食品消耗品投放到雜貨渠道的負面影響。

Accessories revenue decreased 1% to $33 million due to lower unit volumes of Traeger branded accessories, partially offset by increased sales of meter. Geographically, North American revenues were down 33%, while Rest of World revenues were down 13%. Gross profit for the first quarter decreased to $55 million from $83 million in the first quarter of 2022. Gross profit margin was 36.2%, down 80 basis points versus first quarter of 2022. The decline in gross margin is primarily driven by, one, lower drill margin due to pricing mix and the timing of some expenses tied to our spring promotion, which negatively impacted gross margin by 240 basis points.

配件收入下降 1% 至 3300 萬美元，原因是 Traeger 品牌配件的單位銷量下降，部分被儀表銷售額的增長所抵消。從地域上看，北美收入下降了 33%，而世界其他地區的收入下降了 13%。第一季度毛利潤從 2022 年第一季度的 8300 萬美元下降至 5500 萬美元。毛利率為 36.2%，較 2022 年第一季度下降 80 個基點。毛利率下降的主要原因是，一個，較低的由於定價組合和與我們的春季促銷相關的一些費用的時間安排，鑽井利潤率對毛利率產生了 240 個基點的負面影響。

Two, increased amortization of 70 basis points; and three, other unfavorable items worth 110 basis points. Offsetting these margin pressures were: one, FX favorability, which positively impacted margin by 170 basis points; and two, lower freight and logistics costs, which drove 170 basis points of margin favorability.

二、增加攤銷70個基點；三、其他價值110個基點的不利項目。抵消這些利潤率壓力的是：一是外匯優惠，這對利潤率產生了 170 個基點的積極影響；第二，較低的運費和物流成本，推動了 170 個基點的利潤率。

Sales and marketing expenses were $22 million compared to $35 million in the first quarter of 2022. The decrease was driven primarily by lower marketing expense, employee costs and lower professional service fees. General and administrative expenses were $27 million compared to $41 million in the first quarter of 2022. The decrease in general and administrative expense was driven primarily by lower stock-based compensation expense, lower professional service fees and reduced employee costs. First quarter operating expenses benefited from the restructuring and cost savings actions taken last year, and we realized in excess of $20 million in annualized savings. Net income for the first quarter was $8 million as compared to a net loss of $9 million in the first quarter of 2022. Net income per diluted share was $0.07 compared to a loss of $0.08 in the first quarter of 2022.

銷售和營銷費用為 2200 萬美元，而 2022 年第一季度為 3500 萬美元。減少的主要原因是營銷費用、員工成本和專業服務費用降低。一般和行政費用為 2,700 萬美元，而 2022 年第一季度為 4,100 萬美元。一般和行政費用的減少主要是由於基於股票的薪酬費用減少、專業服務費用減少和員工成本減少。第一季度的運營支出受益於去年採取的重組和成本節約措施，我們實現了超過 2000 萬美元的年化節省。第一季度淨收入為 800 萬美元，而 2022 年第一季度為淨虧損 900 萬美元。攤薄後每股淨收入為 0.07 美元，而 2022 年第一季度為虧損 0.08 美元。

Adjusted net income for the quarter was $5 million or $0.04 per diluted share as compared to adjusted net income of $19 million or $0.17 per diluted share in the same period in 2022. Adjusted EBITDA was $22 million in the first quarter as compared to $30 million in the same period of 2022. First quarter adjusted EBITDA was approximately $2 million ahead of the high end of our guidance range. Outperformance relative to our guidance was driven mainly by lower-than-expected operating expenses largely due to the timing of expenses between the first and the second quarter.

本季度調整後淨收入為 500 萬美元或稀釋後每股收益 0.04 美元，而 2022 年同期調整後淨收入為 1900 萬美元或稀釋後每股收益 0.17 美元。第一季度調整後 EBITDA 為 2200 萬美元，而 2022 年同期為 3000 萬美元2022 年同期。第一季度調整後的 EBITDA 比我們指導範圍的高端高出約 200 萬美元。相對於我們的指引而言，表現出色主要是由於運營費用低於預期，這主要是由於第一季度和第二季度之間的費用時間安排所致。

Now turning to the balance sheet. At the end of the first quarter, cash, cash equivalents and restricted cash totaled $28 million compared to $52 million at the end of the previous fiscal year. We ended the quarter with $404 million of long-term debt. At the end of the quarter, the company had drawn down $41 million under its receivables financing agreement and $43 million under its revolving credit facility, resulting in total net debt of $460 million. From a liquidity perspective, we ended the first quarter with total liquidity of $98 million. We expect liquidity to ramp as we collect on receivables and reduce inventory moving through the second quarter which is our peak selling season at retail. Inventory at the end of the first quarter was $132 million compared to $153 million at the end of the fourth quarter of 2022 and $160 million at the end of the first quarter of 2022. We are pleased with the progress we made in the first quarter and rightsizing our balance sheet inventories and, in particular, grill inventories which drove the majority of the sequential decline in total inventories versus the fourth quarter.

現在轉向資產負債表。第一季度末，現金、現金等價物和受限制現金總計 2800 萬美元，而上一財年末為 5200 萬美元。我們在本季度結束時背負了 4.04 億美元的長期債務。截至本季度末，該公司根據其應收賬款融資協議提取了 4100 萬美元，並根據其循環信貸額度提取了 4300 萬美元，導致淨債務總額為 4.6 億美元。從流動性的角度來看，我們在第一季度結束時的總流動性為 9800 萬美元。我們預計流動性會增加，因為我們在第二季度收取應收賬款並減少庫存流動，這是我們的零售銷售旺季。第一季度末的庫存為 1.32 億美元，而 2022 年第四季度末的庫存為 1.53 億美元，2022 年第一季度末的庫存為 1.6 億美元。我們對第一季度取得的進展感到滿意，並且調整我們的資產負債表庫存，尤其是燒烤庫存，這導致了與第四季度相比，總庫存連續下降的大部分。

In channel, we are seeing continued improvement in our retail partners' weeks of supply. While we expect the inventory rebalancing process to continue in the second quarter, we are well positioned to be in a substantially more balanced position going into the second half of the year. In terms of our outlook for full year 2023, we are reiterating our guidance for revenues to be between $560 million and $590 million and adjusted EBITDA to be between $45 million and $55 million. As we discussed on our fourth quarter call, we expect our first half sales to be pressured by continued retailer destocking and challenging multiyear comparisons before seeing a return to growth in the second half of the year as replenishment rates normalize and we lap the substantial sales decline driven by destocking in the second half of 2022.

在渠道方面，我們看到零售合作夥伴的供應週數持續改善。雖然我們預計庫存重新平衡過程將在第二季度繼續，但我們有能力在今年下半年處於更加平衡的狀態。就我們對 2023 年全年的展望而言，我們重申我們的收入指引為 5.6 億至 5.9 億美元，調整後的 EBITDA 為 4500 萬至 5500 萬美元。正如我們在第四季度電話會議上所討論的那樣，我們預計我們上半年的銷售額將受到零售商持續去庫存和具有挑戰性的多年比較的壓力，然後隨著補貨率正常化以及我們應對大幅銷售下滑，下半年將恢復增長受2022年下半年去庫存推動。

We continue to expect that second quarter sales could decline in excess of 20% versus prior year. We are reiterating our outlook for gross margins of 36% to 37% which represents 80 to 180 basis points of improvement relative to our fiscal 2022 adjusted gross margin of 35.2%. We expect to see the largest gain in gross margin in the third quarter given the expected improvement in fixed cost leverage as we lap the large sales decline we experienced in the third quarter of 2022. We expect that lower transportation costs will be the largest driver of gross margin improvement for the year due to the decline in inbound freight rates.

我們繼續預計第二季度的銷售額可能比去年同期下降 20% 以上。我們重申我們的毛利率前景為 36% 至 37%，相對於我們 2022 財年調整後的毛利率 35.2% 提高了 80 至 180 個基點。考慮到我們在 2022 年第三季度經歷的大幅銷售下滑後固定成本槓桿率有望改善，我們預計第三季度毛利率將實現最大增幅。我們預計較低的運輸成本將是最大的驅動因素由於進港運費下降，本年度毛利率有所改善。

In summary, I am pleased with the solid progress we made in the first quarter on our key tactical priorities and believe we are well positioned as we move through our peak selling season. We will continue to balance our building confidence in our outlook for the year with the continued uncertainty around the macroeconomic environment, which remains highly volatile. We will remain agile in this rapidly evolving environment as we continue to execute against our strategy.

總而言之，我對我們在第一季度在關鍵戰術重點方面取得的穩固進展感到高興，並相信我們在度過銷售旺季時處於有利地位。我們將繼續平衡我們對今年前景的信心與宏觀經濟環境的持續不確定性，該環境仍然高度波動。隨著我們繼續執行我們的戰略，我們將在這個快速發展的環境中保持敏捷。

And with that, I will turn the call over to the operator for questions. Operator?

有了這個，我會把電話轉給接線員提問。操作員？

(Operator Instructions) The first question on the line comes from Simeon Siegel from BMO Capital Markets. Please go ahead.

（操作員說明）線路上的第一個問題來自 BMO Capital Markets 的 Simeon Siegel。請繼續。

Thanks so much, guys. Good afternoon. So I was hoping that we could talk a little bit more about pellets. Maybe both sides. So can we talk a little bit more about what you think the consolidation will do of the mills? So any color there from the supply side, thinking through the benefits, maybe quantifying some of the costs? And then secondarily, on the demand side, so can you guys talk through obviously, the element with a large retailer. So when do we lap that? Maybe any color you've seen from their offering, how people are responding? And then lastly, we use pellet as an engagement proxy. So to distill out maybe the change in retailer and timing? Just help us think through how you're seeing engagement of just usage in general?

非常感謝，伙計們。下午好。所以我希望我們能多談談顆粒。也許雙方。那麼我們能否多談談您認為合併會對工廠產生什麼影響？那麼供應方有什麼顏色，考慮好處，也許量化一些成本？其次，在需求方面，你們能不能清楚地談談大型零售商的因素。那麼我們什麼時候開始呢？也許您從他們的產品中看到的任何顏色，人們的反應如何？最後，我們使用 pellet 作為參與代理。那麼要提煉出零售商和時間的變化？只是幫助我們思考一下您如何看待一般使用的參與度？

Good questions. I'd start with the closure of the 2 pellet mills, right? So I'd first start by saying this ties into the broader strategy that we've been executing over the last, call it, 12 months in terms of just really optimizing the entire cost structure of our business, right? And as we think about the dynamics during the pandemic as well as what we're seeing now post pandemic and the fact that we're getting a better understanding for the demand pull forward that we experienced. I think what we effectively landed on here as part of, again, our overall strategy to kind of reoptimize and rebalance our cost structure is, one, we really determined that at this point forward, we just had too much capacity in the system; and two, that was putting pressure on the unit economics of our pellets.

好問題。我會從關閉 2 個製粒機開始，對吧？所以我首先要說這與我們過去一直在執行的更廣泛的戰略有關，就真正優化我們業務的整個成本結構而言，稱之為 12 個月，對吧？當我們考慮大流行期間的動態以及大流行後我們現在看到的情況以及我們正在更好地了解我們所經歷的需求推動的事實時。我認為，作為我們重新優化和重新平衡成本結構的總體戰略的一部分，我們在這裡有效地著陸的是，第一，我們確實確定在這一點上，我們的系統容量太大了；第二，這給我們顆粒的單位經濟性帶來了壓力。

And so the opportunity that we identified was to rebalance our capacity in light of what we believe is the demand that we can forecast today for the next, call it, 2, 3 years. And adjust that capacity to a level that allows us to optimize the utilization rate of that capacity. And in turn, we can improve the unit economics on a run rate basis for our pellets and something that we're very excited about. And I think that the second layer to that is we were -- we had the luxury of identifying 2 pellet mills in the portfolio that, frankly, were less efficient than the remaining portfolio. And so we can actually shift some of the demand or utilization of capacity in other areas and further pick up gains from a unit economic standpoint on those pellets.

因此，我們確定的機會是根據我們認為今天可以預測下一個（稱為 2、3 年）的需求來重新平衡我們的能力。並將該容量調整到允許我們優化該容量利用率的水平。反過來，我們可以在顆粒運行率的基礎上提高單位經濟效益，這是我們非常興奮的事情。我認為第二層是我們——我們有幸在投資組合中確定了 2 家製粒機，坦率地說，它們的效率低於其餘投資組合。因此，我們實際上可以將一些需求或產能利用率轉移到其他領域，並從這些顆粒的單位經濟角度進一步獲得收益。

So that's really the driving factor. It's just a component of the broader strategy and something that we wanted to address in line with how we think about just improvements in our operation and continuing to pick up margin improvements in gross margin, in particular.

所以這才是真正的驅動因素。這只是更廣泛戰略的一個組成部分，也是我們想要解決的問題，符合我們對運營改善的看法，尤其是繼續提高毛利率。

The second question on -- sorry, can you repeat the second question?

第二個問題——抱歉，你能重複第二個問題嗎？

Just -- may be through demand..

只是 - 可能是通過需求..

Is it the last...

難道是最後...

I just think that's the supply side. Just how are you thinking about engagement? How are you thinking about demand maybe selling or sell-through? And again, just helping us basically to textualize from the what you're actually seeing versus the retailer dynamic?

我只是認為這是供應方面。您如何看待訂婚？您如何看待需求、銷售或銷售？再一次，只是幫助我們基本上從你實際看到的與零售商動態的對比中進行文本化？

So we really look at the usage and sort of the demand of consumables, in particular, in 2 ways. The first is through consumables attachment against our installed base, and what we're seeing right now is a reversion back to pre pandemic attach rates. We've talked about this on previous calls where we saw a spike in attach and during the pandemic and always believe that, that would sort of renormalize post pandemic, right, just given all of the factors associated with why that would be.

因此，我們真正關註消耗品需求的使用和分類，特別是通過兩種方式。首先是通過對我們已安裝基礎的消耗品附件，我們現在看到的是恢復到大流行前的附件率。我們已經在之前的電話會議上討論過這個問題，在這些電話會議中我們看到了附加值的激增以及在大流行期間，並且始終相信，這會在大流行後重新正常化，對吧，考慮到所有與原因相關的因素。

And so I think the good news here, as we kind of look ahead and what we're seeing now is that attach against the install is tracking or sort of falling more in line with pre-pandemic where we would expect it to be, save a little bit of incremental pressure via the private label pellet launched by one of our large customers. As we think about the second layer to that, which is more a tail on consumer demand, it's a read into the IoT data that we collect, which is a better measure of usage rates, right? And I think what we're seeing there continues to be positive. So we kind of look at it in multiple ways. One way is via cohorts, which is kind of like-for-like over time as you evaluate vintage and usage of those cohorts as well as sort of aggregate cooks month-to-month.

所以我認為這是個好消息，因為我們有點向前看，我們現在看到的是，針對安裝的附加正在跟踪或有點下降，更符合我們預期的大流行前水平，保存通過我們的一位大客戶推出的自有品牌顆粒增加了一點壓力。當我們考慮第二層時，它更符合消費者需求，它是對我們收集的物聯網數據的讀取，這是對使用率的更好衡量，對吧？我認為我們在那裡看到的仍然是積極的。因此，我們會以多種方式看待它。一種方法是通過同類群組，隨著時間的推移，當您評估這些群組的年份和使用情況以及每月匯總廚師時，這有點類似。

On the aggregate cook side, it's pretty consistent with what we've shared in the past in terms of number of cooks per month. And on the cohort data, what we're seeing is what we would expect. Like as a cohort ages, a 19 cohorts there is a marginal decline in usage over time. And part of that may be explained by the fact that as they age in to say, year 4, they're looking to replace a grill given that they're approaching that life cycle and may enter into a new cohort. So it's exactly -- it's playing out exactly as we would expect. And I think the second layer to that, which we feel is very positive is as you look at each cohort and you look at, say, a pandemic cohort, they're behaving exactly the same as pre-pandemic cohorts as are post-pandemic cohorts.

在總廚師方面，這與我們過去分享的每月廚師人數非常一致。在隊列數據上，我們所看到的正是我們所期望的。就像隨著隊列年齡的增長，19 個隊列的使用率會隨著時間的推移而略有下降。部分原因可能是，隨著年齡的增長，即第 4 年，他們正在尋求更換烤架，因為他們正在接近那個生命週期並可能進入一個新的隊列。所以這正是——它的表現完全符合我們的預期。我認為第二層，我們認為非常積極的是，當你觀察每個隊列時，比如說，一個大流行隊列，他們的行為與大流行前和大流行後的隊列完全相同同夥。

And so I think what we see here is just kind of building installed base of consumers, of users of our product who behave the same in a very similar pattern over time. And that first year of cook behavior really mirrors what we've seen historically. And so that just gives us a lot of confidence that the pull forward did what we hoped it would do at the end of the day, even though there's this overhang of pull forward in demand, we're also picking up consumers that will continue to be active and highly engaged with our product into the future.

所以我認為我們在這裡看到的只是建立消費者的安裝基礎，我們產品的用戶隨著時間的推移以非常相似的模式表現相同。第一年的廚師行為確實反映了我們在歷史上看到的情況。因此，這給了我們很大的信心，即前拉完成了我們希望在一天結束時會做的事情，即使需求的前拉懸而未決，我們也在吸引消費者，他們將繼續在未來積極參與我們的產品。

That's great. Perfect. Best of luck for the rest of the year.

那太棒了。完美的。祝你在今年餘下的時間裡好運。

The next question on the line comes from Peter Benedict of Robert W. Baird & Co.

下一個問題來自 Robert W. Baird & Co. 的 Peter Benedict。

The question first, just on gross margin, Dominic, see a little over 36% during the first quarter. I recognize you guys are still expecting 36%, 37% for the year. Do you still expect gross margin rate to kind of build sequentially as we move through the quarters. And so that's my first question, kind of related to that and how you see kind of maybe the walk to north of 37% over time longer term?

首先，關於毛利率，多米尼克，第一季度的毛利率略高於 36%。我知道你們仍然期望今年達到 36%、37%。您是否仍然預計毛利率會隨著季度的推移而逐步增加。所以這是我的第一個問題，有點與此有關，以及你如何看待隨著時間的推移可能會走到 37% 以北？

Sure. So I'd say that we remain -- I would give me more cautious tone on H2. I think that's consistent. So we're happy with where we landed in Q1. Really, no surprises as we look at actual gross margin versus what our internal models show. I would say that the pressures that we're seeing in Q1 will be consistent in Q2, right? So I wouldn't necessarily look at the first half of the year as sort of the building sequential improvement in gross margin in part due to the fact that, as we've talked about in the past, we still carry a high -- the carrying cost of our inventory still remains higher than we'd like it to be.

當然。所以我想說我們仍然 - 我會在 H2 上給我更謹慎的基調。我認為這是一致的。所以我們對第一季度的進展感到滿意。真的，當我們將實際毛利率與我們的內部模型顯示的結果進行對比時，這並不奇怪。我會說我們在第一季度看到的壓力在第二季度會保持一致，對嗎？因此，我不一定會將今年上半年視為毛利率的連續改善，部分原因是，正如我們過去所談到的那樣，我們仍然保持著很高的水平——我們庫存的持有成本仍然高於我們希望的水平。

Where as you shift forward to the back half of the year where we expect to start realizing sequential improvements in gross margin, that's largely driven by the fact that as we clear this higher cost inventory, we'll begin to take advantage of what our really improved rate in the inbound transportation market, where I wouldn't suggest that they're all the way back to pre-pandemic levels given some of the nuances and dynamics internally around how contracts work, et cetera, but there are substantial improvements from what we were paying for containers a year ago, 6 months ago.

當你轉向今年下半年時，我們預計將開始實現毛利率的連續改善，這在很大程度上是由於我們清理了成本較高的庫存，我們將開始利用我們真正的優勢入境運輸市場的費率有所提高，考慮到合同運作方式等內部的一些細微差別和動態，我不認為它們會一直回到大流行前的水平，但是從什麼方面有很大的改進一年前，也就是 6 個月前，我們還在為集裝箱付款。

So that's really the consistent theme, a cautious viewpoint on how gross margin comps in the first half of the year with sequential improvements in the back half. And then in terms of just how we think about the future -- in terms of the future. Yes. It's consistent with what we spoke to in the past, right? Our strategy really is focused on: one, portfolio management, driving gross margin expansion via an optimized mix within the portfolio as we launch new product at higher margin. It's strategic sourcing as we continue to lean on and build out a highly functioning and really highly expert-oriented operations and product team to go out and continue to cost down existing product within the portfolio as well as how we think about just the manufacturing landscape over time. And then lastly, just general operational improvements. Again, we've used one example of direct import where we cut out 1 layer of our value chain, which has proven to be a great element to the building tailwinds in gross margin.

因此，這確實是一貫的主題，對上半年毛利率如何與下半年的連續改善相比較持謹慎態度。然後就我們如何看待未來而言——就未來而言。是的。這和我們過去的談話是一致的，對吧？我們的戰略真正專注於：第一，投資組合管理，隨著我們以更高的利潤率推出新產品，通過優化投資組合內的組合來推動毛利率增長。這是戰略採購，因為我們繼續依靠並建立一個功能強大且真正以專家為導向的運營和產品團隊，以走出去並繼續降低產品組合中現有產品的成本，以及我們如何看待整個製造領域時間。最後，只是一般的操作改進。同樣，我們使用了一個直接進口的例子，我們切斷了價值鏈的一層，這已被證明是提高毛利率的一個重要因素。

No, that's helpful. I mean the second question is the inventory getting better in shape of (inaudible). You talked about a normalization and demand patterns. Jeremy, I think you were probably referring -- I assume you're referring to maybe week-to-week build as you kind of start to move into the spring season. Is that -- and is that what gives you confidence in forecasting that there will be replenishment by retailers in the back half of the year? Maybe just tease that out a little bit more. It's an important dynamic, and I want to make sure we understand what you guys are seeing here in the early part of spring?

不，那很有幫助。我的意思是第二個問題是庫存的形狀越來越好（聽不清）。您談到了規範化和需求模式。傑里米，我想你可能指的是——我假設你指的是隨著你開始進入春季而進行的每週構建。那是 - 是什麼讓您有信心預測今年下半年零售商將補貨？也許只是稍微梳理一下。這是一個重要的動態，我想確保我們了解你們在春季初期在這裡看到的是什麼？

Yes. So I think there are a couple of components to the predictability. One is that, I would say, this year, for the first time in multiple years, we're seeing predictability itself. And we track that very carefully week by week and certainly compare against prior years where we've got more normalized seasonality and against our forecast. And I would say we are seeing point-of-sale data that's just -- it's reasonably predictable, whereas last sort of 3 years have been fairly volatile in the pandemic on the upside and then last year on the downside.

是的。所以我認為可預測性有幾個組成部分。一是，我想說，今年，多年來，我們第一次看到了可預測性本身。我們每週都非常仔細地跟踪這一點，並且肯定會與前幾年我們的季節性更加正常化並與我們的預測進行比較。我想說的是，我們看到的銷售點數據只是——它是可以合理預測的，而過去 3 年的流行病在上行和去年下行方面相當不穩定。

The second component really that gives us confidence in our guidance -- in our forecast is retailer inventory levels coming back down to healthy levels, which effectively allows us to replenish the units as they're sold through. So we certainly -- we've seen the health improve meaningfully in the first quarter, in the second quarter. We expect that we'll end the quarter feeling like retail inventory levels are in a really good place, and that just gives us a view into revenue.

第二個因素確實讓我們對我們的指導充滿信心——在我們的預測中，零售商庫存水平回落到健康水平，這有效地使我們能夠在售出時補充產品。所以我們當然 - 我們已經看到第一季度和第二季度的健康狀況顯著改善。我們預計本季度末我們會感覺零售庫存水平非常好，這讓我們對收入有了一個看法。

The next question on the line comes from Peter Keith of Piper Sandler.

下一個問題來自 Piper Sandler 的 Peter Keith。

Thanks. Good morning, everyone. Sorry, long day. Good afternoon, everyone. The credit environment is obviously something that has kind of a steady drumbeat in the background. And we're hearing that smaller retailers are having to pull back on inventory purchases just because of the tighter credit backdrop. You guys do have some big wholesale partners, but you also have some small ones. And I'm wondering, is there any issue on order trends with some of your smaller retail partners out there because of this backdrop?

謝謝。大家，早安。對不起，漫長的一天。大家下午好。信貸環境顯然在背景中有一種穩定的節奏。我們聽說，由於信貸緊縮，小型零售商不得不縮減庫存採購。你們確實有一些大的批發合作夥伴，但也有一些小的。我想知道，由於這種背景，您的一些較小的零售合作夥伴的訂單趨勢是否存在任何問題？

No, not from our side. I mean we have a really strong partnership with our retail partners, and we work on terms and it sort of ebbs and flows over the course of the season, where we're setting larger quantities in, say, late Q1 for promotional periods or just the uptick in demand in Q2, we tend to work on extended dating programs, et cetera, to sort of optimize their own sort of cash flow positions given the fact that they are smaller retailers. In addition to that, we tend to think of specialty within our realm as kind of this one to show one to go model where they're not necessarily going to preload inventory at the levels you would see it a larger big box, right, because they don't have the storage and therefore, that gives them the ability to turn inventory more efficiently and manage their own cash conversion cycle accordingly.

不，不是從我們這邊。我的意思是我們與我們的零售合作夥伴建立了非常牢固的合作夥伴關係，我們按照條款進行工作，並且在整個季節過程中起伏不定，我們在促銷期間或只是在第一季度末設定了更大的數量由於第二季度需求的上升，我們傾向於開展擴展約會計劃等，以優化他們自己的現金流頭寸，因為他們是較小的零售商。除此之外，我們傾向於將我們領域內的專業視為一種展示一個去模型的模型，他們不一定會在你會看到一個更大的大盒子的水平上預加載庫存，對吧，因為他們沒有存儲空間，因此，這使他們能夠更有效地周轉庫存並相應地管理自己的現金周轉週期。

And so we want to be great partners here, and I think that goes a long way in terms of the trend we're seeing relative to what you're seeing, but we haven't necessarily seen anything pop up that would signal a problem from a credit standpoint and/or impact order behaviors.

所以我們想在這裡成為很好的合作夥伴，我認為就我們所看到的相對於你所看到的趨勢而言，這有很長的路要走，但我們不一定看到任何突然出現的問題從信用的角度和/或影響訂單行為。

Okay. Helpful. And then maybe for Jeremy, on the marketing side, you've talked about kind of pulling back on some of the top of funnel marketing. What about that bottom funnel marketing? I'm thinking more specifically around your boots on the ground efforts with retailers. I know you do in-store demos, you would train sales associates, you gave sales associates discounts, so they would own the product. Are those efforts still ongoing? Or is that something that also you're having to pull back on, just given the demand environment?

好的。有幫助。然後也許對於傑里米，在營銷方面，你談到了某種程度上撤回漏斗營銷的一些頂端。那底部漏斗營銷呢？我更具體地考慮了您與零售商的實地合作。我知道你做店內演示，你會培訓銷售人員，你給銷售人員折扣，所以他們會擁有產品。這些努力還在繼續嗎？還是僅考慮到需求環境，您也必須撤回一些東西？

No, I would say those efforts are still ongoing. As we think about near-term versus long-term needs. Obviously, in the long term, we do need to -- medium to long term, we need to invest more in brand awareness through top-of-funnel customer acquisition. In the near term, we focus on 2 components. One is community engagement. And I shared some of the metrics in my prepared remarks on success that we're seeing in engaging the community around social, user-generated content, cooking, just general cooking behavior, and that's sort of like -- that's the specialness, that's a secret sauce of the platform that we can always lean into.

不，我會說這些努力仍在進行中。當我們考慮近期與長期需求時。顯然，從長遠來看，我們確實需要 - 從中長期來看，我們需要通過漏斗頂部客戶獲取更多地投資於品牌知名度。在短期內，我們關注 2 個組成部分。一是社區參與。我在準備好的關於成功的評論中分享了一些指標，我們看到社區圍繞社交、用戶生成的內容、烹飪，只是一般的烹飪行為，這有點像——這就是特殊性，那是我們可以隨時了解的平台秘訣。

We built the brand long before we spend dollars on top of funnel, we built a brand by executing effectively at retail. And we really feel like that is a competitive advantage that we have that no other outdoor cooking brand has, which is national coverage. In the most important markets, boots on the ground, in retail, merchandising, training, stimulating demand, managing partnerships and we haven't pulled back there. And we think that's -- we believe it's a high returning investment. And as we go from specialty retail to national retail like Home Depot, for example, the needs change. And so we service those accounts on the ground differently. But we continue to make investments in the point of sale, I would say notably with Home Depot were sort of multiple years into making investments at retail in terms of breadth of assortment but also investment in fixturing these trigger islands as we've called them.

早在我們把錢花在漏斗之上之前，我們就建立了品牌，我們通過在零售業有效執行來建立品牌。我們真的覺得這是我們擁有的競爭優勢，這是其他戶外烹飪品牌所沒有的，即全國覆蓋。在最重要的市場，在零售、推銷、培訓、刺激需求、管理合作夥伴關係方面，腳踏實地，我們並沒有退縮。我們認為這是 - 我們相信這是一項高回報的投資。例如，當我們從專賣零售業轉向像家得寶這樣的全國性零售業時，需求發生了變化。因此，我們以不同的方式在實地為這些客戶提供服務。但我們繼續在銷售點進行投資，我要說的是 Home Depot 多年來一直在零售方面進行投資，包括品種的廣度，以及我們所說的固定這些觸發島的投資。

So the investment on the ground is alive and well. And as we progress and sort of stabilize and begin to grow and have incremental investment capacity. There's no question we will begin to lean more into this market or sell strategy, which is really connecting the boots on the ground, the retail execution with top of funnel investment in media.

因此，實地投資是活躍的。隨著我們的進步和某種程度的穩定並開始增長並具有增量投資能力。毫無疑問，我們將開始更多地關注這個市場或銷售策略，這實際上是將實地的靴子、零售執行與媒體漏斗投資的頂部聯繫起來。

Okay. That's great. Maybe you just mentioned Home Depot or at the end. Has there been any update from the -- not the door expansion, but I guess, as you call it, the building out of the island and the 2 bay walls?

好的。那太棒了。也許您剛剛提到了 Home Depot 或最後。是否有任何更新 - 不是門擴建，但我想，正如你所說的那樣，島外的建築和 2 個海灣牆？

The Home Depot partnership is a strong one. We've made a lot of progress in terms of continuing to add space. We launched a few hundred incremental fixture doors in the fall. And in the second half of this year, we will again, we will meaningfully grow the both floor space and the number of fixtures at retail. And that's sort of -- that's just -- that's a very -- it's a long-term but very predictable form of growth by really driving presence at retail, which we find is directly correlated with brand growth.

與 Home Depot 的合作夥伴關係非常牢固。我們在繼續增加空間方面取得了很大進展。我們在秋季推出了數百個增量夾具門。在今年下半年，我們將再次顯著增加零售面積和固定裝置數量。這有點 - 這只是 - 這是一種非常 - 這是一種長期但非常可預測的增長形式，通過真正推動零售業的存在，我們發現這與品牌增長直接相關。

The next question comes from Joe Feldman of Telsey Advisory Group.

下一個問題來自 Telsey Advisory Group 的 Joe Feldman。

Yes. I wanted to ask you a little bit more on some of the innovation with the Ironwood and the Flatrock griddle it sounds like you've seen a great response, at least via social media. I'm curious if you're seeing a good unit response as well. Is the industry at retail, taking it in? And you're seeing pretty decent demand from the end user. I would guess the Ironwood probably more so, you mentioned Flatrock is a little more limited distribution at the moment. But any thoughts on that?

是的。我想多問你一些關於 Ironwood 和 Flatrock 烤盤的一些創新，聽起來你已經看到了很好的回應，至少通過社交媒體是這樣。我很好奇您是否也看到了良好的單位響應。這個行業是零售業嗎？而且您看到最終用戶的需求相當可觀。我猜 Ironwood 可能更是如此，你提到 Flatrock 目前的發行版比較有限。但是對此有什麼想法嗎？

Well, we're early. We're early in May. But I would say the energy that we felt on social, in early innings, we're seeing correlated with sell-through. Our expectation out of the gate was that Ironwood would perform very well. It is -- that's a price point that is accessible to our consumer base. There's meaningful similarities in terms of design and innovation from the Timberline, which is nearly twice the retail sales price. So we're pleased with the consumer response on Ironwood.

嗯，我們來早了。我們是五月初。但我要說的是，我們在社交上感受到的能量，在早期的幾局中，我們看到與銷售相關。我們最初的期望是 Ironwood 會表現出色。這是 - 這是我們的消費者群可以訪問的價格點。 Timberline 在設計和創新方面有著有意義的相似之處，後者的價格幾乎是零售價的兩倍。因此，我們對消費者對 Ironwood 的反應感到滿意。

Flatrock, candidly, the social response caught us off guard, there was a lot more energy around that launch than we had expected, which I think really speaks to permission that we have as a brand with a very engaged community and strong retail partnerships to distribute product. It gives us confidence in our ability to do something outside of wood pellet grill, but again something that was always intended to be a complement to the wood pellet grill.

Flatrock，坦率地說，社會反響讓我們措手不及，這次發布帶來的能量比我們預期的要多得多，我認為這確實表明我們作為一個品牌擁有非常活躍的社區和強大的零售合作夥伴關係來分銷產品。它讓我們相信我們有能力在木質顆粒烤架之外做一些事情，但同樣是一些始終旨在補充木質顆粒烤架的東西。

In terms of Flatrock contributing to upside to the year, we believe that the disciplined approach was to launch it narrowly at retail and sell-throughs exceed our expectation will be relatively constrained for the next 6 -- sort of 6 to 8 months on inventory. There are long lead time components there but we really do believe head into '24 that this has the potential to be a meaningful grower for us.

就 Flatrock 對今年的上行貢獻而言，我們認為有紀律的方法是在零售和銷售量上以窄幅推出它，超出我們的預期，在接下來的 6 年內相對受限——大約 6 到 8 個月的庫存。那裡有很長的交貨時間組件，但我們確實相信進入 24 世紀，這有可能成為我們有意義的種植者。

That's terrific. Great to hear that. And then the one other thing I was going to ask about was I think in the prepared remarks, Jeremy, you made a comment about being nimble and able to jump into new opportunities. Potentially when they arise. And I guess I was curious if you could share any more color on that, what you may have meant?

真了不起。很高興聽到。然後我要問的另一件事是我認為在準備好的發言中，傑里米，你發表了關於敏捷和能夠抓住新機會的評論。可能在它們出現時。我想我很好奇你是否可以分享更多關於它的顏色，你可能是什麼意思？

Yes. I mean I think it's important to sort of think about that within the context of where we've been notably the last 18 months. We have -- we've worked hard to be lean -- to get lean as a business to ensure that we are very thoughtful in terms of how we prioritize initiatives and allocate investment dollars behind those initiatives. And as we -- it really -- it motivates us to get really focused and really invest back in the core business. In a moment like this, where we are constrained from an investment capacity perspective, the nimble suggests that we understand our priorities, that we are being thoughtful not just to the current moment that we're in, but we'll be thoughtful to the future.

是的。我的意思是，我認為在我們過去 18 個月的情況下考慮這一點很重要。我們已經 - 我們一直在努力實現精益 - 作為一家企業獲得精益，以確保我們在如何優先考慮計劃以及在這些計劃背後分配投資資金方面非常周到。正如我們 - 它真的 - 它激勵我們真正專注並真正投資於核心業務。在這樣的時刻，我們從投資能力的角度來看受到限制，敏捷表明我們了解我們的優先事項，我們正在考慮的不僅僅是我們所處的當前時刻，而且我們會考慮到未來。

Traeger has always been a disruptor. It's always been a share gainer and it will be going forward. And so thinking about long lead time investments product, for example, it takes multiple years to get product to market. It's important for us to continue to lean into some of the -- to those investments. And so as we create upside from plan, we have a decision to make, and that's what do we flow through versus what do we invest back in the business to ensure that we're driving future growth. And so when I spoke about being nimble is really being thought around our priorities and being willing to reinvest some of the upside to ensure that we continue to be a share gain or long term.

Traeger 一直是一個破壞者。它一直是一個份額獲得者，並且會繼續前進。因此，考慮到提前期較長的投資產品，例如，將產品推向市場需要多年時間。對我們來說，繼續依賴其中的一些投資很重要。因此，當我們從計劃中創造優勢時，我們需要做出決定，這就是我們要流過什麼，而不是我們要向業務投資什麼，以確保我們推動未來的增長。因此，當我談到敏捷時，實際上是在圍繞我們的優先事項進行思考，並願意對一些優勢進行再投資，以確保我們繼續獲得份額收益或長期收益。

The next question on the line comes from Brian McNamara from Canaccord Genuity.

下一個問題來自 Canaccord Genuity 的 Brian McNamara。

I'm curious if you could expand a bit. On channel inventories relative to where you thought they'd be 2 months ago when you reported Q4. Are they better, worse or in line? I know April wasn't helpful from a weather standpoint, but are you seeing sequential improvement into May. Historically, I would imagine there's a catch-up in May and June when there's a late start to spring for this category. Is that how you're thinking about it as you reaffirm guidance?

我很好奇你是否可以擴展一下。相對於 2 個月前報告第 4 季度時您認為的渠道庫存。它們是更好、更差還是符合要求？我知道從天氣的角度來看，4 月沒有幫助，但您是否看到 5 月的連續改善。從歷史上看，我想在 5 月和 6 月會有一個追趕，因為這個類別的春季開始較晚。當你重申指導時，你是這樣想的嗎？

Yes. So that's right. We -- over the course of Q1 relative to our plan, we actually saw a nice improvements ahead of our plan from an in-channel inventory standpoint. Part of that is kind of isolated to certain SKUs where we had more of a problem from a weeks on hand standpoint. And I think that just really builds our confidence in the fact that as we now enter peak selling season, we're sort of positioned at the front of that in a better spot from an inventory level standpoint and channel than we thought we'd be. And I think that's really positive news. So we're happy with the progress there. And that's also translating into, I think, an accelerated improvement in on-hand balance sheet inventories.

是的。所以這是對的。我們 - 在第一季度相對於我們計劃的過程中，從渠道內庫存的角度來看，我們實際上比我們的計劃看到了很好的改進。其中一部分與某些 SKU 是孤立的，從手頭的角度來看，我們遇到了更多的問題。而且我認為這真的讓我們相信，隨著我們現在進入銷售旺季，我們在庫存水平和渠道方面處於領先地位，比我們想像的要好.我認為這確實是個好消息。所以我們對那裡的進展感到滿意。我認為，這也轉化為現有資產負債表庫存的加速改善。

Got it. And I guess just from a unit share perspective, I mean, you guys have 3% to 4% unit share. So by definition, you can't be the problem in the channel. I'm just curious as the market resets after we clear all these channel inventories, do you guys expect to gain shelf space or floor space with your retail partners in a more normalized environment?

知道了。我想從單位份額的角度來看，你們有 3% 到 4% 的單位份額。所以根據定義，你不能成為頻道中的問題。我只是很好奇，在我們清除所有這些渠道庫存後市場會重新設置，你們是否希望在更規範的環境中與您的零售合作夥伴一起獲得貨架空間或地板空間？

Absolutely. Look, we feel good about our channel level inventories, and we are always motivated to add floor space, our positioning is very strong both from a consumer perspective but also in correlated fashion at a retail level. So not surprising if you were to go into some of our highest penetrated markets you're going to see the broadest assortment in the most real estate and part of the way that we grow is by adding real estate. So that part of the strategy hasn't changed. We will -- as I said, as we add incremental Traeger islands and fixtures in the Home Depot in the third quarter, we'll continue to gain share of space, and we believe that will also drive share of business in the category.

絕對地。看，我們對渠道層面的庫存感覺良好，而且我們總是有動力增加佔地面積，無論從消費者的角度還是從零售層面的相關時尚角度來看，我們的定位都非常強大。因此，如果你進入我們滲透率最高的一些市場，你會看到最廣泛的房地產種類，而我們增長的部分方式就是增加房地產，這並不奇怪。所以戰略的這一部分沒有改變。我們將 - 正如我所說，隨著我們在第三季度在 Home Depot 中增加增量 Traeger 島和固定裝置，我們將繼續獲得空間份額，我們相信這也將推動該類別的業務份額。

(Operator Instructions) Thank you, everyone. We have no further questions. Therefore, this does conclude today's conference call. Thank you all for joining. You may now disconnect your lines.

（操作員說明）謝謝大家。我們沒有其他問題了。因此，今天的電話會議到此結束。謝謝大家的加入。您現在可以斷開線路。