Fox Factory Holding Corp (FOXF) 2024 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to Fox Factory Holding Corp.'s second quarter fiscal 2024 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.

女士們、先生們，午安。謝謝你的支持。歡迎參加 Fox Factory Holding Corp. 的 2024 財年第二季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。

And now I would like to turn the conference over to Toby Merchant, Chief Legal Officer at Fox Factory Holding Corp. Thank you, sir. You may begin.

現在我想把會議交給福克斯工廠控股公司首席法務官托比·麥錢特（Toby Merchant）。你可以開始了。

Thank you. Good afternoon, and welcome to Fox Factory's second quarter 2024 earnings conference call. I'm joined today by Mike Dennison, Chief Executive Officer; and Dennis Schemm, Chief Financial Officer.

謝謝。下午好，歡迎參加 Fox Factory 2024 年第二季財報電話會議。今天，執行長 Mike Dennison 也加入了我的行列。和財務長 Dennis Schemm。

First, Mike will provide business updates, and then Dennis will review the quarterly results and outlook. Mike will then provide some closing remarks before we open up the call for your questions. By now, everyone should have access to the earnings release, which went out earlier this afternoon. If you have not had a chance to review the release, it's available on the Investor Relations portion of our website at investor.ridefox.com. Please note that throughout this call, we will refer to Fox Factory as FOX or the company.

首先，麥克將提供業務更新，然後丹尼斯將審查季度業績和前景。然後，在我們開始詢問您的問題之前，麥克將發表一些結束語。到目前為止，每個人都應該可以看到今天下午早些時候發布的財報。如果您還沒有機會查看新聞稿，可以在我們網站的投資者關係部分找到新聞稿：investor.ridefox.com。請注意，在整個通話過程中，我們將 Fox Factory 稱為 FOX 或公司。

Before we begin, I would like to remind everyone that the prepared remarks contain forward-looking statements within the meaning of federal security laws, and management may make additional forward-looking statements in response to your questions. Such statements involve a number of known and unknown risks and uncertainties, many of which are outside the company's control and can cause future results, performance or achievements to differ materially from the results, performance or achievements expressed or implied by such forward-looking statements.

在開始之前，我想提醒大家，準備好的言論包含聯邦安全法含義內的前瞻性陳述，管理層可能會針對您的問題做出額外的前瞻性陳述。此類陳述涉及許多已知和未知的風險和不確定性，其中許多風險和不確定性超出了公司的控制範圍，並可能導致未來的結果、業績或成就與此類前瞻性陳述明示或暗示的結果、業績或成就有重大差異。

Important factors and risks that could cause or contribute to such differences are detailed in the company's quarterly reports on Form 10-Q and in the company's latest annual report on Form 10-K, each filed with the Securities and Exchange Commission. Investors should not place undue reliance on the company's forward-looking statements, and except as required by law, the company undertakes no obligation to update any forward-looking or other statements herein, whether as a result of new information, future events or otherwise.

可能導致或促成此類差異的重要因素和風險詳見公司向美國證券交易委員會提交的 10-Q 表格季度報告和 10-K 表格最新年度報告。投資者不應過度依賴公司的前瞻性陳述，除非法律要求，否則公司不承擔更新任何前瞻性陳述或其他陳述的義務，無論是由於新資訊、未來事件或其他原因。

In addition, where appropriate in today's prepared remarks and within our earnings release, we will refer to certain non-GAAP financial measures to evaluate our business, including adjusted gross profit, adjusted gross margin, adjusted operating expenses, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin, as we believe these are useful metrics that allow investors to better understand and evaluate the company's core operating performance and trends. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are included in today's earnings release, which has also been posted on our website.

此外，在今天準備好的演講中和我們的收益發布中，我們將參考某些非公認會計準則財務指標來評估我們的業務，包括調整後的毛利、調整後的毛利率、調整後的運營費用、調整後的淨利潤、調整後的每股收益稀釋後的股份、調整後的EBITDA 和調整後的EBITDA 利潤率，因為我們相信這些都是有用的指標，可以讓投資者更好地了解和評估公司的核心經營績效和趨勢。這些非公認會計原則財務指標與其最直接可比較的公認會計原則財務指標的調節表包含在今天的收益報告中，該報告也已發佈在我們的網站上。

And with that, it is my pleasure to turn the call over to our CEO, Mike Dennison.

至此，我很高興將電話轉給我們的執行長 Mike Dennison。

Thanks, Toby. Good afternoon, and thank you for joining us today. As anticipated, our second quarter results demonstrated continued sequential improvement in both net sales and profitability. For Q2, we delivered $348.5 million of revenue, a sequential increase of 4.5%, and adjusted earnings per share of $0.38.

謝謝，托比。下午好，感謝您今天加入我們。正如預期的那樣，我們第二季的業績表明淨銷售額和獲利能力持續改善。第二季度，我們實現了 3.485 億美元的收入，季增 4.5%，調整後每股收益為 0.38 美元。

Our focus and actions enabled adjusted EBITDA margin improvement to 12.7% from 12.1% in the prior quarter. Since the fourth quarter of fiscal 2023, our adjusted EBITDA margins have improved approximately 70 basis points, the result of a continued focus on expense controls and productivity optimization. Furthermore, our results have stabilized due to our enhanced equilibrium between our OEMs and our aftermarket channels. When we first became a public company in 2013, our aftermarket business was 19% of sales. In 2021 through Q2, we were at 47% and today, we stand at 57%.

我們的重點和行動使調整後的 EBITDA 利潤率從上一季的 12.1% 提高到 12.7%。自 2023 財年第四季以來，我們的調整後 EBITDA 利潤率提高了約 70 個基點，這是持續關注費用控制和生產力優化的結果。此外，由於我們的原始設備製造商和售後市場通路之間的平衡增強，我們的業績已經穩定。當我們在 2013 年首次成為上市公司時，我們的售後業務佔銷售額的 19%。2021 年到第二季度，我們的比例為 47%，而今天，我們的比例為 57%。

Diversification of our business is an essential component of our long-term strategy as it mitigates risk and enhances optionality with demand, both of which are crucial in the current macro environment. At the same time, diversification across business segments, products, markets and geographies within those segments provides incremental opportunities for growth.

我們業務的多元化是我們長期策略的重要組成部分，因為它可以降低風險並增強需求的選擇性，這兩者在當前的宏觀環境中都至關重要。同時，這些細分市場內業務部門、產品、市場和地理的多元化提供了增量成長機會。

When combined with our history of successful acquisitions, which have unlocked incremental growth opportunities, we believe we have positioned Fox as an industry leader across the categories where we compete. Our launch of Upfit UTV, our expansion in the entry premium mountain bike product and our accelerated growth internationally are perfect examples of us putting this strategy to work.

結合我們成功收購的歷史（這些收購釋放了增量成長機會），我們相信我們已將福克斯定位為我們競爭的各個領域的行業領導者。我們推出 Upfit UTV、我們在入門級優質山地自行車產品方面的擴張以及我們在國際上的加速增長都是我們將這一戰略付諸實踐的完美例子。

While the market remains incredibly difficult to forecast, we are encouraged by the stabilization we're seeing in bike, where revenues grew 52% sequentially, lending more confidence that we are in the late stages of channel destocking. However, macroeconomic dynamics continue to weigh on the speed of the recovery in consumer discretionary spending.

雖然市場仍然難以預測，但我們對自行車領域的穩定感到鼓舞，收入環比增長了 52%，這讓我們更有信心，我們正處於渠道去庫存的後期階段。然而，宏觀經濟動態持續影響消費者可自由支配支出的復甦速度。

Consequently, we continue to focus on innovation and product development, driving a relentless commitment to delivering performance-defining products. And currently, we are also laser-focused on letting costs with demand and made a concerted effort to tighten up spending across the organization, particularly to reduction of non-revenue generating positions and workforce reductions in our factories.

因此，我們繼續專注於創新和產品開發，堅定不移地致力於提供定義性能的產品。目前，我們也專注於根據需求降低成本，並齊心協力收緊整個組織的支出，特別是減少不創造收入的職位和工廠的勞動力減少。

Before reviewing our segment performance, I want to briefly touch on some leadership transitions that we announced today. Beginning August 1, Dennis Schemm, our Chief Financial Officer, will assume the responsibilities for the AAG segment as its President, following the departure of Tom Fletcher. Tom has served as President of AAG since May of 2021, and during that time, has been instrumental in building the AAG segment through strategic acquisitions that have bolstered our leadership position in the aftermarket channel. We wish Tom well as he departs Fox.

在回顧我們的部門績效之前，我想先簡單介紹一下我們今天宣布的一些領導層換屆。自 8 月 1 日起，在 Tom Fletcher 離職後，我們的財務長 Dennis Schemm 將擔任 AAG 部門總裁的職責。Tom 自 2021 年 5 月起擔任 AAG 總裁，在此期間，他透過策略性收購在建立 AAG 細分市場方面發揮了重要作用，這些收購鞏固了我們在售後市場管道的領導地位。我們祝福湯姆在離開福克斯後一切順利。

As AAG's new leader, Dennis' responsibilities will include overseeing the segment's manufacturing operations, commercial activities and R&D efforts. His past operating experience and fresh insights on Fox's businesses have been invaluable and impactful since joining our team. Dennis will continue to lead our finance organization as well as CFO, and report directly to me.

作為 AAG 的新領導者，丹尼斯的職責將包括監督該部門的製造營運、商業活動和研發工作。自從加入我們的團隊以來，他過去的營運經驗和對福克斯業務的新見解非常寶貴且具有影響力。丹尼斯將繼續領導我們的財務組織和財務官，並直接向我報告。

In support of this transition, Brendan Enick, our Chief Accounting Officer, has taken over the Treasurer role from Dennis. Brendan joined us in May of 2023 and has been heavily involved in driving excellence across our accounting and finance organization, overseeing financial stewardship and audit. He has demonstrated exceptional leadership and has a strong capacity to take on the treasury function. Brendan will continue to work closely with Dennis to lead the capital allocation strategy, oversee the balance sheet, and diligently manage our cash flows and financial risk. I look forward to Dennis and Brendan's contributions in their respective new roles.

為了支持這一過渡，我們的首席會計官布倫丹·埃尼克 (Brendan Enick) 接替了丹尼斯 (Dennis) 擔任財務主管。Brendan 於 2023 年 5 月加入我們，一直積極參與推動我們會計和財務組織的卓越發展，監督財務管理和審計。他展現了卓越的領導才能，並具有承擔財務職能的強大能力。布倫丹將繼續與丹尼斯密切合作，領導資本配置策略，監督資產負債表，並努力管理我們的現金流和財務風險。我期待丹尼斯和布倫丹在各自的新角色中做出貢獻。

Turning now to a discussion of our segment performance. In the Powered Vehicle Group, net sales were $118 million, down from $140 million in the prior year. This reduction was primarily due to lower OEM demand in power sports and automotive. This demand reduction is a result of consumer fatigue, quality issues within the auto OEMs, and the extended duration of high interest rates. The power sports industry outlook for 2024 remains challenged, and retail sales expectations for the second half have been revised downward by many, if not all of our OEMs. Dealers continue to manage inventory conservatively, and OEMs are aligning production and orders accordingly.

現在討論我們的部門業績。動力車輛集團的淨銷售額為 1.18 億美元，低於前一年的 1.4 億美元。這一減少主要是由於動力運動和汽車領域的原始設備製造商需求下降。需求減少是消費者疲勞、汽車原始設備製造商內部的品質問題以及高利率持續時間延長的結果。2024 年的動力運動產業前景仍然面臨挑戰，許多（如果不是全部）原始設備製造商都下調了下半年的零售銷售預期。經銷商繼續保守地管理庫存，原始設備製造商正在相應地調整生產和訂單。

In the Automotive sector, demand from our major OEMs is mixed, with premium trucks remaining robust as they ramp production from model year 2025 vehicles. With premium, limited production nature of these vehicles, we believe continues to insulate this important portion of our business from broader interest rate concerns. However, in the broader OEM automotive space we support, we are seeing the signs of excess inventory and consumer conservatism similar to our power sports customers.

在汽車領域，我們的主要 OEM 廠商的需求參差不齊，隨著 2025 年車型產量的增加，高端卡車仍然保持強勁。由於這些車輛的優質、有限生產性質，我們相信我們業務的這一重要部分將繼續免受更廣泛的利率擔憂的影響。然而，在我們支持的更廣泛的 OEM 汽車領域，我們看到了庫存過剩和消費者保守主義的跡象，類似於我們的動力運動客戶。

We remain steadfast in our long-term strategy for PVG. While we've implemented targeted cost reductions, we've retained our core engineering talent to support our product road map and future innovations. We're already seeing the fruits of this strategy through continued market share gains, underscoring the strength and differentiation of our product portfolio. We're particularly excited about upcoming new product introductions and opportunities in motorcycle, military and power sports. Lastly, we recently partnered with Ford to take on to car, with the Ford Raptor T1+, a program which we won based on the capability of our products in support of Ford's entire team. Look for us to be on the podium of Dakar in 2025.

我們對 PVG 的長期戰略保持堅定。在我們實施了有針對性的成本削減的同時，​​我們保留了核心工程人才來支持我們的產品路線圖和未來的創新。我們已經透過持續的市佔率成長看到了這項策略的成果，突顯了我們產品組合的實力和差異化。我們對即將推出的新產品以及摩托車、軍事和力量運動領域的機會感到特別興奮。最後，我們最近與福特合作，推出了福特猛禽 T1+ 轎車項目，我們憑藉我們的產品支持福特整個團隊的能力而贏得了這個項目。期待我們在 2025 年登上達卡的頒獎台。

Moving to AAG. Net sales were $107 million compared to $156 million in the prior year quarter. Our component aftermarket portion of this business, which includes wheels, tires and lift kits continues to show growth, demonstrating the resilience and appeal of our portfolio. This growth also exemplifies the importance of our diversification strategy, which enables consumers to participate in the Fox product portfolio at price points which may be more approachable in the short-term.

搬到AAG。淨銷售額為 1.07 億美元，去年同期為 1.56 億美元。我們該業務的零件售後市場部分（包括車輪、輪胎和舉升套件）持續呈現成長，證明了我們產品組合的彈性和吸引力。這種成長也反映了我們多元化策略的重要性，該策略使消費者能夠以短期內更容易接受的價格參與福克斯產品組合。

Our automotive upfitting business continues to face challenges from reduced chassis supply, mix and stubbornly high interest rates. However, these impacts have been tempered by the strong demand for our -- and excitement for our higher-end upfits, which aligns well with our premium brand conditioning. Our AAG business presents a huge opportunity for us to operationalize our one plus one equals three framework, which dovetails perfectly with our broader goal of creating a more resilient business supported by aftermarket channels.

我們的汽車改裝業務持續面臨底盤供應減少、產品結構和利率居高不下的挑戰。然而，這些影響已被對我們高端裝飾的強烈需求和對我們高端裝飾的興奮所緩和，這與我們的高端品牌條件非常吻合。我們的 AAG 業務為我們實施一加一等於三框架提供了巨大的機會，這與我們創建由售後通路支援的更具彈性的業務的更廣泛目標完美契合。

While we believe we did a good job of creating a portfolio of leading brands in AAG, our next phase of growth is expected to maximize product synergies like what you see in our newly launched Fox Factory Truck. Given the intensity and rate of growth over the past five years, we have not yet fully recognized core strategies, which we saw when architecting the AAG business. We believe now is the time to refocus our efforts to ensure we are meeting the needs of all the stakeholders in this channel. With this refocused effort, we believe that we can drive sustainable long-term growth and restore margins to their appropriate levels.

雖然我們相信我們在創建 AAG 領先品牌組合方面做得很好，但我們下一階段的成長預計將最大限度地發揮產品協同效應，就像您在我們新推出的福克斯工廠卡車中看到的那樣。鑑於過去五年的成長強度和速度，我們尚未完全認識到我們在建立 AAG 業務時所看到的核心策略。我們相信，現在是重新集中精力的時候了，以確保滿足該管道中所有利害關係人的需求。透過這項重新調整的努力，我們相信我們可以推動可持續的長期成長並將利潤率恢復到適當的水平。

In SSG, net sales were $124 million compared to $105 million last year, reflecting a $19 million increase, driven by the inclusion of Marucci and offset by a $23 million reduction in sales within our bike business. However, within bike, we're seeing positive signals of the OEM inventory destocking phase, which we have been discussing over the last several quarters, is nearing its conclusion. We were pleased to deliver a 52% sequential increase in bike revenue, which is a positive sign of both significance and predictability.

在 SSG 中，淨銷售額為 1.24 億美元，而去年為 1.05 億美元，增加了 1,900 萬美元，這得益於 Marucci 的納入，但被我們自行車業務銷售額減少 2,300 萬美元所抵消。然而，在自行車領域，我們看到了 OEM 庫存去庫存階段的積極信號，我們在過去幾個季度一直在討論這一階段，該階段即將結束。我們很高興自行車收入環比增長 52%，這是一個具有重要性和可預測性的積極信號。

In addition, our move into the entry premium space has been very well received and is helping offset broader sluggishness. Although the US market remains in a state of transition towards stabilization, the European market continues to improve on a relative basis due to its lower exposure to excess inventory. I am particularly excited about our multiple new product launches scheduled throughout the year. These innovations are already generating incremental demand and are expected to drive growth in the coming quarters. The e-bike category also continues to exceed our expectations, and is an important avenue for our expanding addressable market.

此外，我們進軍入門級高端市場的舉措受到了熱烈歡迎，有助於抵消更廣泛的低迷狀況。儘管美國市場仍處於向穩定過渡的狀態，但歐洲市場由於庫存過剩風險較低，相對而言繼續改善。我對我們全年計劃推出的多個新產品感到特別興奮。這些創新已經產生了增量需求，預計將推動未來幾季的成長。電動自行車類別也持續超越我們的預期，是我們擴大目標市場的重要途徑。

On the other side of the house, Marucci continues to be a standout performer. I just returned from attending the Marucci World Series were over 10,000 fans, players, coaches and families descended upon Baton Rouge. While the highlight was watching young players compete for the championship, the excitement for me was seeing the potential for our combined businesses. Our Hitter's House associated pop-up stores were essentially sold out. Marucci and Victus bats were literally everywhere as thousands of players guiding to the swing of things.

在房子的另一邊，馬魯奇仍然是一名出色的表演者。我剛參加完馬魯奇世界職棒大賽回來，超過 10,000 名球迷、球員、教練和家人來到了巴吞魯日。雖然最精彩的是觀看年輕球員爭奪冠軍，但令我興奮的是看到我們合併後的業務的潛力。我們與擊球手之家相關的快閃店基本上已經賣光了。Marucci 和 Victus 球棒幾乎無所不在，為成千上萬的玩家指引著揮桿的方向。

And parking lots were filled with trucks boasting Fox shocks, including our latest vehicles such as the Fox Factory Truck and upfitted UTVs, which generated tons of interest. It was a reminder that Marucci and Fox customers are one and the same, united by two aspirational brands and a combined vision to make high-performance products for our enthusiasts. Marucci's success is being driven by a host of growth factors across their product portfolio, including the Victus and Marucci brands in baseball and softball, Lizard Skins accessories, apparel and international markets.

停車場裡停滿了配備福克斯減震器的卡車，包括我們最新的車輛，如福克斯工廠卡車和改裝的 UTV，引起了人們的極大興趣。這提醒我們，Marucci 和 Fox 的客戶是同一個人，兩個有抱負的品牌和共同的願景聯合在一起，為我們的愛好者製造高性能產品。Marucci 的成功得益於其產品組合中的一系列成長因素，包括棒球和壘球領域的 Victus 和 Marucci 品牌、Lizard Skins 配件、服裝和國際市場。

The Hitter's House platform also continues to gain traction. And with the opening of Hitter's House Tokyo, it further solidifies Marucci's market position as the innovation leader in this category. In fact, both our Victus and Marucci brands were very well represented at the MLB's recent All-Star game with both finalists of the Home Run Derby using our bats.

Hitter's House 平台也持續受到關注。隨著 Hitter's House Tokyo 的開業，進一步鞏固了 Marucci 作為該類別創新領導者的市場地位。事實上，我們的 Victus 和 Marucci 品牌在 MLB 最近的全明星賽中都得到了很好的體現，本壘打大賽的決賽入圍者都使用了我們的球​​棒。

To that end, I'm particularly thrilled to highlight that we recently announced the exclusive license agreement with Major League Baseball, designated Marucci and Victus as the official bats of MLB starting January 1, 2025. This four year agreement not only underscores our brand's leadership in professional baseball, but also provides exclusive rights for our products. This partnership, combined with Lizard Skins' position as the official bat grip of MLB, further cement our status as a premier choice for players at all levels.

為此，我特別高興地強調，我們最近宣布了與美國職棒大聯盟的獨家許可協議，從 2025 年 1 月 1 日起指定 Marucci 和 Victus 作為 MLB 的官方球棒。這項為期四年的協議不僅強調了我們品牌在職棒領域的領導地位，而且還提供了我們產品的獨家權利。這種合作關係，加上 Lizard Skins 作為 MLB 官方球棒握把的地位，進一步鞏固了我們作為各級球員首選的地位。

With this new MLB agreement on the horizon, we're even more excited about Marucci's future growth potential and congratulate the team for achieving this distinction. Looking ahead, we're optimistic about the trajectory of SSG. The anticipated recovery in the bike segment, coupled with Marucci's consistent strong performance and our exciting product pipeline positions us well for continued growth through the second half of this year.

隨著這項新的 MLB 協議的臨近，我們對 Marucci 未來的成長潛力感到更加興奮，並祝賀該團隊取得了這一殊榮。展望未來，我們對 SSG 的發展軌跡持樂觀態度。自行車領域的預期復甦，加上 Marucci 一貫的強勁表現和令人興奮的產品線，使我們在今年下半年保持持續成長。

Now for some comments on our outlook. While we continue to see encouraging signs of stabilization in bike, we must be prudent and responsible in aligning our guidance with revised expectations of our large OEM customers. As a result, we are adjusting our full year guidance to reflect a more tempered sequential revenue lift in the second half of the year. This adjustment is directly driven by ongoing industry demand and quality challenges, which passed from our OEMs directly to us in the form of lowered forecasts, which culminate in reduced orders that are subduing but not eliminating our anticipated growth.

現在就我們的前景發表一些評論。雖然我們繼續看到自行車行業穩定的令人鼓舞的跡象，但我們必須謹慎和負責地將我們的指導與大型 OEM 客戶修改後的期望保持一致。因此，我們正在調整全年指引，以反映下半年營收較上季成長更為溫和的情況。這項調整是由持續的行業需求和品質挑戰直接驅動的，這些挑戰以降低預測的形式從我們的原始設備製造商直接傳遞給我們，最終導致訂單減少，從而抑制但並沒有消除我們的預期增長。

Despite these near-term challenges, we maintain a positive outlook. We still expect sequential growth throughout the second half of the year, albeit at a more moderate pace than initially projected. Furthermore, we anticipate this trend of sequential improvement to continue through 2025. Our revised assumptions for the second half of the year include, gradual improvement in bike channel inventory and the impact of OE's model year '25 releases, Marucci's continued growth across its diversified portfolio and new product launches, slow but steady improvement in power sports dealer inventory, ongoing progress in upfit chassis availability and mix, and new product launches within our lift kit and wheel business.

儘管有這些近期挑戰，我們仍保持積極的前景。我們仍然預計下半年將較上季成長，儘管成長比最初預期的要溫和。此外，我們預計這種連續改善的趨勢將持續到 2025 年。我們對下半年的修訂假設包括：自行車通路庫存的逐步改善以及 OE '25 車型發布的影響、Marucci 的多元化投資組合和新產品發布的持續增長、動力運動經銷商庫存的緩慢但穩定的改善，在改裝底盤可用性和組合方面不斷取得進展，以及我們的舉升套件和車輪業務中的新產品發布。

In closing, our company remains well positioned for the second half, fueled by a strong pipeline of new product launches. We're doubling down on what's made us successful, our brand strength, product excellence and relentless innovation. Our R&D investments are strategically targeted at groundbreaking 2025 model releases and high-margin aftermarket components, both of which we believe will expand our market share and augment our growth. In the meantime, we're navigating the cycle by focusing on what we can control to position us to emerge stronger and well equipped to capitalize on future opportunities. We're not just adapting to the current environment. We're building a more diversified company intended to enhance and protect shareholder value.

最後，在大量新產品推出的推動下，我們公司在下半年仍處於有利地位。我們正在加倍努力，我們的成功因素包括我們的品牌實力、卓越的產品和不懈的創新。我們的研發投資策略性地瞄準了 2025 年突破性的車型發布和高利潤的售後零組件，我們相信這兩者都將擴大我們的市場份額並促進我們的成長。同時，我們正在透過專注於我們可以控制的事情來引導我們的週期，以使我們變得更強大，並有能力充分利用未來的機會。我們不僅僅是在適應當前的環境。我們正在建立一家更多元化的公司，旨在提高和保護股東價值。

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

然後，我會將電話轉給丹尼斯。

Thanks, Mike, and good afternoon, everyone. I'll begin by discussing our second quarter financial results and then move to our balance sheet and cash flows, capital structure strategy and then wrap up with a review of our guidance.

謝謝麥克，大家下午好。我將首先討論我們第二季度的財務業績，然後討論我們的資產負債表和現金流量、資本結構策略，最後回顧我們的指導。

Before we dive into the quarter, I want to build upon Mike's comments about my new responsibilities. I'm honored to lead the AAG segment as its next President. Since joining Fox last year, I've had the pleasure of working closely with Mike and the leadership across all three segments. This includes a focused effort on improving our operational efficiency, streamlining our internal processes and enhancing execution capabilities, both within our organization and in our interactions with partners and customers.

在我們深入了解本季之前，我想以麥克對我的新職責的評論為基礎。我很榮幸能夠作為下一任主席領導 AAG 部門。自從去年加入福克斯以來，我很高興與麥克以及所有三個部門的領導層密切合作。這包括在我們的組織內部以及與合作夥伴和客戶的互動中集中精力提高我們的營運效率，簡化我們的內部流程並增強執行能力。

I believe we have a very strong foundation to build upon in AAG. In fact, we have an opportunity to take our brands and leverage the power of the portfolio that the team has created. I'm convinced that one plus one is not quite adding up to three right now, and I'm eager to deploy a fresh perspective to the business and accelerate the execution of the strategy, and work with the team to unlock our full potential within AAG.

我相信我們在 AAG 擁有非常堅實的基礎。事實上，我們有機會利用我們的品牌並利用團隊創建的產品組合的力量。我確信一加一現在還不足以等於三，我渴望為業務部署一個新的視角並加速戰略的執行，並與團隊合作釋放我們的全部潛力亞AG。

I'd also like to recognize our Chief Accounting Officer, Brendan Enick for his solid leadership of our finance team, including accounting, financial planning and analysis and treasury, and his aptitude for methodically working to integrate our acquisitions in an efficient manner. Particularly his hard work with Marucci, including his involvement in the term loan deal given its size and scale.

我還要感謝我們的首席會計官布倫丹·埃尼克(Brendan Enick) 對我們財務團隊（包括會計、財務規劃和分析以及財務）的紮實領導，以及他以有效的方式有條不紊地整合我們的收購的能力。特別是他與馬魯奇的辛勤工作，包括鑑於其規模和規模，他參與了定期貸款交易。

As many contributions to our broader finance team have prepared him well to take on the role of Treasurer, which frees up capacity for me to focus on our AAG business. I look forward to our continued partnership and making sure that Fox remains well positioned to drive growth and maximize shareholder value.

由於他對我們更廣泛的財務團隊所做的許多貢獻，讓他為擔任財務主管的角色做好了充分的準備，這讓我有能力專注於我們的 AAG 業務。我期待我們繼續合作，並確保福斯繼續處於推動成長和最大化股東價值的有利地位。

Now on to the results. Total consolidated net sales in the second quarter of fiscal 2024 were $348.5 million, a decrease of 13% versus sales of $400.7 million in the second quarter of fiscal 2023. We delivered in the second quarter and for the first half of the year, in line with our expectations, albeit at a lower year-over-year result due to the macro headwinds and temporary and unique challenges that exist within the various industries we serve.

現在來看結果。2024 財年第二季的合併淨銷售額總額為 3.485 億美元，比 2023 財年第二季的 4.007 億美元下降了 13%。我們在第二季和上半年的業績符合我們的預期，儘管由於宏觀不利因素以及我們所服務的各個行業內存在的暫時和獨特的挑戰，業績同比有所下降。

Our gross margin was 31.8% in the second quarter of fiscal 2024, compared to 32.9% in the same quarter last year. The decrease in gross margin was primarily driven by shifts in our product line mix and reduced operating leverage on lower volumes across the three segments, partially offset by increased efficiencies at our North American facilities.

2024 財年第二季我們的毛利率為 31.8%，去年同期為 32.9%。毛利率的下降主要是由於我們的產品線組合的變化以及三個細分市場銷售下降導致的營運槓桿降低所致，但部分被我們北美工廠效率的提高所抵消。

Adjusted gross margin, which excludes the effects of amortization of acquired inventory valuation markup, decreased to 31.9% in the second quarter of fiscal 2024 versus 34.4% in the prior year. Total operating expenses were $92.4 million or 26.5% of net sales in the second quarter of fiscal 2024 compared to $79.2 million or 19.8% of net sales in the same quarter last year. The increase in operating expenses as a percentage of sales was attributed to the inclusion of operating expenses from our Custom Wheel House and Marucci acquisitions, partially offset by cost controls. Excluding these acquisitions, our base organic operating expenses decreased year-over-year.

2024 財年第二季調整後毛利率（不包括收購庫存估價加價攤銷的影響）下降至 31.9%，而前一年為 34.4%。2024 財年第二季的總營運費用為 9,240 萬美元，佔淨銷售額的 26.5%，而去年同期為 7,920 萬美元，佔淨銷售額的 19.8%。營業費用佔銷售額百分比的增加歸因於包括我們收購 Custom Wheel House 和 Marucci 的營業費用，部分被成本控制所抵銷。排除這些收購，我們的基本有機營運費用較去年同期下降。

Adjusted operating expenses as a percentage of sales increased to 22.5% in the second quarter of 2024 compared to 17.7% in the same period last year. The company's tax benefit was $0.4 million in the second quarter of fiscal 2024 compared to a tax expense of $8.1 million in the second quarter of 2023. Tax benefit was primarily due to a decrease in pre-tax income.

2024 年第二季調整後營運費用佔銷售額的百分比增至 22.5%，去年同期為 17.7%。該公司 2024 財年第二季的稅收優惠為 40 萬美元，而 2023 年第二季的稅收支出為 810 萬美元。稅收優惠主要是因為稅前收入減少。

Net income in the second quarter of fiscal 2024 was $5.4 million or $0.13 per diluted share, compared to net income of $39.7 million or $0.94 per diluted share in the same quarter last year. And adjusted net income was $15.9 million or $0.38 per diluted share, compared to $51.4 million or $1.21 per diluted share in the second quarter last year.

2024 財年第二季的淨利為 540 萬美元，即稀釋後每股收益 0.13 美元，而去年同期淨利為 3,970 萬美元，即稀釋後每股收益 0.94 美元。調整後淨利為 1,590 萬美元，即稀釋後每股收益 0.38 美元，而去年第二季為 5,140 萬美元，即稀釋後每股收益 1.21 美元。

Adjusted EBITDA was $44.1 million for the second quarter of fiscal 2024, compared to $79.4 million in the same quarter last year. Adjusted EBITDA margin was 12.7% in the second quarter of fiscal 2024, compared to 19.8% in the second quarter of fiscal 2023. The decrease in our adjusted EBITDA margin reflects the temporary and unique challenges that our customers across various industries are facing, which is impacting volumes and fixed cost absorption at our facilities.

2024 財年第二季調整後 EBITDA 為 4,410 萬美元，而去年同期為 7,940 萬美元。2024 財年第二季調整後 EBITDA 利潤率為 12.7%，而 2023 財年第二季為 19.8%。我們調整後的 EBITDA 利潤率的下降反映了我們各行業的客戶面臨的臨時和獨特的挑戰，這影響了我們工廠的產量和固定成本吸收。

Other drivers of our adjusted EBITDA margin performance include shifts in our portfolio mix and cost increases associated with our facilities expansions to support growth, partially offset by cost control measures and continuous improvement initiatives. Sequentially, we delivered a 60 basis point improvement in EBITDA margin to 12.7% on the strength of aftermarket sales and our cost control measures.

調整後的 EBITDA 利潤率表現的其他驅動因素包括我們的投資組合組合的變化以及與我們為支持增長而擴建設施相關的成本增加，但部分被成本控制措施和持續改進舉措所抵消。隨後，憑藉售後市場銷售和成本控制措施的優勢，我們的 EBITDA 利潤率提高了 60 個基點，達到 12.7%。

Now moving to the balance sheet and cash flows. Our balance sheet continues to be a source of strength for Fox and underpins our capital allocation strategy. In the six months ended June 28, 2024, inventory rose by $8.6 million or 2.3% compared to year end 2023, driven by planned inventory builds to ensure sufficient inventory to meet anticipated demand, partially offset by our strong execution of continuous improvement efforts to optimize inventory levels across the organization, particularly within PVG.

現在轉向資產負債表和現金流量。我們的資產負債表仍然是福斯的力量源泉，並支撐我們的資本配置策略。截至2024 年6 月28 日的六個月中，庫存比2023 年底增加了860 萬美元，即2.3%，這是由計劃庫存建設推動的，以確保有足夠的庫存來滿足預期需求，但我們大力執行持續改善工作以優化庫存，部分抵消了這一影響。

Our net leverage is 3.46 times, as of quarter end and in line with our expectations. Our flexible cap structure gives us the ability to invest in growth through R&D, CapEx, sales and marketing and to allow us to pay down debt. Our revolver balances of June 28, 2024, was $194 million versus $370 million as of December 29, 2023. Our term loan A balance was approximately $570 million net of loan fees. During the first six months of fiscal 2024, we drew $200 million on our delayed draw term loan and used those proceeds to pay down the revolver balance. We recently secured an improved covenant profile on our capital structure to provide us with more flexibility, given the uncertain macro.

截至季末，我們的淨槓桿率為 3.46 倍，符合我們的預期。我們靈活的上限結構使我們能夠透過研發、資本支出、銷售和行銷來投資成長，並償還債務。截至 2024 年 6 月 28 日，我們的左輪手槍餘額為 1.94 億美元，而截至 2023 年 12 月 29 日為 3.7 億美元。我們的定期貸款 A 餘額扣除貸款費用後約為 5.7 億美元。在 2024 財年的前六個月，我們從延遲提取定期貸款中提取了 2 億美元，並用這些收益來償還循環餘額。考慮到宏觀經濟的不確定性，我們最近改進了資本結構的契約狀況，為我們提供了更大的靈活性。

Now I'd like to comment on guidance. While our year-to-date performance has been largely in line with our expectations, we must acknowledge the duration of the headwinds influencing the broader macro environment. As a result, we are revising our outlook for fiscal 2024. We now expect full year sales to be in the range of $1.407 billion to $1.477 billion, and adjusted earnings per diluted share in the range of $1.40 to $1.72.

現在我想對指導發表評論。雖然我們今年迄今為止的表現基本上符合我們的預期，但我們必須承認影響更廣泛宏觀環境的逆風的持續時間。因此，我們正在修改 2024 財年的展望。我們目前預計全年銷售額將在 14.07 億美元至 14.77 億美元之間，調整後每股攤薄收益將在 1.40 美元至 1.72 美元之間。

Our full year guidance continues to assume an income tax rate in the range of 15% to 18%. For the third quarter of 2024, we expect sales in the range of $355 million to $385 million, and adjusted earnings per diluted share of $0.35 to $0.50. While this reflects impacts from the prevailing industry conditions, it still implies an expectation of a return to year-over-year growth beginning in the third quarter at the midpoint, albeit at a more moderate pace than what was suggested in our prior full year plan. And we expect that year-over-year growth to continue into Q4 as well.

我們的全年指引繼續假設所得稅稅率在 15% 至 18% 範圍內。我們預計 2024 年第三季的銷售額將在 3.55 億美元至 3.85 億美元之間，調整後每股攤薄收益將在 0.35 美元至 0.50 美元之間。雖然這反映了當前行業狀況的影響，但仍然意味著預計將從第三季度中點開始恢復同比增長，儘管增速比我們之前的全年計劃中建議的要溫和。我們預計同比增長也將持續到第四季度。

There are several drivers underpinning the sequential growth in the second half of the year, including bike stabilizing and our launch of new products into the entry-premium bike market, Marucci's launch of the CATX2 and growth from its diversified portfolio, improving chassis mix and availability in AAG, and new product launches in the aftermarket space. However, the impact of these positive factors has been tempered by the ongoing industry challenges and macroeconomic headwinds.

有幾個驅動因素支撐了下半年的連續成長，包括自行車穩定性和我們向入門級高階自行車市場推出新產品、Marucci 推出 CATX2 以及多元化產品組合的成長、改善底盤組合和可用性AAG 以及售後市場領域的新產品發布。然而，這些正面因素的影響受到持續的產業挑戰和宏觀經濟逆風的影響。

With that, I'd like to turn the call back to Mike.

說到這裡，我想把電話轉回給麥克。

Thanks, Dennis. While we remain grounded in the realities of the current macroeconomic dynamics and the current challenges facing our large OEM customers, I'd like to reiterate that we're entering the second half of the year very well positioned with leading market share in a product portfolio that is better than it's ever been. Our diversified business model, premium brand positioning and commitment to innovation have us prepared to capitalize on improving market conditions and deliver value to our shareholders. I would like to thank the entire Fox team for their commitment to our company, our culture and our customers.

謝謝，丹尼斯。雖然我們仍然立足於當前宏觀經濟動態的現實以及我們大型 OEM 客戶當前面臨的挑戰，但我想重申，我們在進入今年下半年時處於非常有利的位置，在產品組合中擁有領先的市場份額這比以往任何時候都好。我們多元化的業務模式、優質品牌定位和對創新的承諾使我們準備好利用不斷改善的市場狀況並為股東創造價值。我要感謝整個福斯團隊對我們公司、我們的文化和我們的客戶的承諾。

I would now like to open the call for questions. Operator?

我現在想開始提問。操作員？

(Operator Instructions)

（操作員說明）

Larry Solow of CJS Securities.

CJS 證券公司的拉里·索洛。

A lot to unwrap there. Can you maybe, I guess, as far as just the revised outlook. It sounds like you're not rising SSG too much, sounds like that, that seems pretty good, but you did throughout the kind of caution there, too. But it feels like most of that's coming from SSG to the PVG and AAG. And then I guess the second part of that question is sort of the confidence you have that the recovery will continue through '25. Do you need -- does that -- do you need consumer demand and interest rate environment to improve also to kind of continue that growth trajectory for the next several quarters?

那裡有很多東西需要解開。我想，就修改過的前景而言，您可以嗎？聽起來你的 SSG 並沒有上升太多，聽起來不錯，但你也一直保持謹慎。但感覺大部分都是從 SSG 到 PVG 和 AAG 的。然後我想這個問題的第二部分是你對復甦將持續到 25 年的信心。您是否需要—是否需要—消費者需求和利率環境得到改善，以便在未來幾季繼續保持這種成長軌跡？

Yes, Larry, this is Mike. So from our perspective, SSG, which is combining both bike and Marucci are both meeting plan and on, on plan for the balance of the year. So they're intact with what we've thought through for the year so far. In terms of the takedown in the back half of the year, it is a function of AAG and PVG, and it's really around those large OEMs, especially in the automotive space, which are seeing such a significant impact caused by interest rates and quality issues in some cases, and other challenges they have in their supply chain.

是的，拉里，這是麥克。因此，從我們的角度來看，將自行車和 Marucci 結合在一起的 SSG 都在按計劃進行，並在今年餘下的時間裡進行規劃。因此，它們與我們今年迄今為止的想法保持一致。就下半年的淘汰而言，這是AAG和PVG的功勞，而且主要圍繞著那些大型整車廠，特別是在汽車領域，利率和品質問題對這些整車廠造成瞭如此重大的影響在某些情況下，以及他們在供應鏈中面臨的其他挑戰。

So that's the significant portion of that back half takedown. In terms of what we see going into 2025, we're focused on driving product and product innovation, and we think that outweighs a lot of these headwinds, but not all. So as we see sequential growth continue into Q3 and Q4, it's a function of that. And we think that same scenario plays out in 2025.

這就是後半場擊倒的重要部分。就我們對 2025 年的展望而言，我們將專注於推動產品和產品創新，我們認為這將抵消許多不利因素，但並非全部。因此，當我們看到第三季和第四季持續成長時，這是一個函數。我們認為同樣的情況將在 2025 年上演。

Okay. And on the powered vehicle side, yes, the -- in PPG, the powered vehicles, the auto OEMs, I guess that's probably the biggest surprise to me or that it feels like the biggest change. And not so much the -- is it the economic tough hindering? Obviously, that's a portion of it, but how much of it is -- it may be hard to quantify that, how much of it is just these quality issues, lack of supply, stuff which hopefully can improve versus underlying demand that is a big question mark?

好的。在動力車輛方面，是的，在 PPG、動力車輛、汽車原始設備製造商中，我想這可能是我最大的驚喜，或者感覺是最大的變化。與其說是經濟困難阻礙了？顯然，這是其中的一部分，但其中有多少——可能很難量化，其中有多少只是這些品質問題，供應不足，以及希望能夠改善的東西，而不是巨大的潛在需求。

Yes, it's a great question. When we think about the automotive OEMs at the tail of two cities, in Ford and Toyota, where these are premium products, usually limited addition, demand isn't the problem. And I've talked about that in the past, these trucks are typically presold. These vehicles are presold or highly sought after. That's not a demand problem, that's a quality issue. And those supply chains continue to kind of be a headwind for both Toyota and Ford.

是的，這是一個很好的問題。當我們想到福特和豐田這兩個城市尾部的汽車原始設備製造商時，這些產品都是優質產品，通常添加量有限，需求不是問題。我過去曾談到過，這些卡車通常是預售的。這些車輛已預售或備受追捧。這不是需求問題，而是品質問題。這些供應鏈仍然對豐田和福特來說是一種阻力。

In Stellantis and Jeep and Ram, it's a different story. In those cases, there is an inventory issue. It's an excellent share to dealers, which is a function of both product and interest rates. And that's probably a harder challenge to solve than the quality issues as you mentioned in the supply chain (inaudible). So you can kind of break into those two pieces, and it's pretty clear for us where they land.

在《史黛蘭提斯》和《吉普車與公羊》中，情況則不同。在這些情況下，就會出現庫存問題。對於經銷商來說，這是一個很好的份額，它是產品和利率的函數。這可能比您在供應鏈中提到的品質問題更難解決（聽不清楚）。所以你可以把這兩個部分分成兩個部分，我們很清楚它們落在哪裡。

Got you. And if I can just squeeze one more, just on cost management. I guess there's only so much you can do. So what are some of the initiatives? And are you actually trying to manage headcount? Or I know you expect growth to come back, but maybe not so fast as that? Or do you start to manage headcount as well?

明白你了。如果我還能再擠一點的話，那就是成本管理。我想你能做的就這麼多了。那麼有哪些舉措呢？您真的在嘗試管理員工人數嗎？或者我知道您預計增長會恢復，但可能不會那麼快？或者您也開始管理員工人數嗎？

It's a great question. And my job as CFO is all about protecting margin, given the lack of absorption that we're seeing in our plans. I'm super proud of the team for the decisions that they're making right now to really curtail on cost. And like let me break it down for you in like three different buckets of where I'm seeing these cost actions, because I think it's really important.

這是一個很好的問題。鑑於我們在計劃中看到缺乏吸收，我作為財務長的工作就是保護利潤。我為團隊現在做出的真正削減成本的決定感到非常自豪。讓我將我所看到的這些成本行動分為三個不同的部分，因為我認為這非常重要。

Corporate OpEx is one, and you can see this right on our press release. We are down $3.5 million in our corporate OpEx year-over-year, year-to-date. OpEx in general, we are down year-to-date $15 million when excluding Marucci. That is significant. That's over 11 -- almost 11% decline. And so it's really, really hard to keep your operating leverage when you're having revenue decreases that are much more significant than that. But to take out that amount of cost very, very significant.

企業營運支出就是其中之一，您可以在我們的新聞稿中看到這一點。年初至今，我們的企業營運支出較去年同期減少了 350 萬美元。總體而言，如果不包括 Marucci，我們今年迄今的營運支出減少了 1500 萬美元。這很重要。下降幅度超過 11%，接近 11%。因此，當您的收入下降幅度比這要大得多時，要保持營運槓桿確實非常困難。但要去掉這筆費用非常非常巨大。

And then I wanted to talk about some COGS actions as well, because these are some things that we just took decisions on here recently and one is in the AAG Group, we've decided to close our Colorado facility. That is going to give us some basis point improvements in the future on year-over-year basis. And then also in AAG, we also took an action on one of our manufacturing facilities in outside vans. And so we did like a consolidation move there, which will also save COGS dollars moving forward.

然後我還想談談一些 COGS 行動，因為這些是我們最近剛在這裡做出決定的一些事情，其中​​之一是 AAG 集團，我們決定關閉我們的科羅拉多工廠。這將使我們未來的同比基礎上取得一些基點的改進。然後，在 AAG，我們也對戶外貨車中的一個製造設施採取了行動。因此，我們確實喜歡在那裡進行整合，這也將節省未來的銷貨成本。

But I think what I'm most excited about on the operating leverage standpoint is the following. Remember, we had discussed with you guys about our ability to flex up that costs are going to lag revenue growth. And you've got to look no further than bike to see that take shape here in the second quarter. As they move from Q1 to Q2, we saw that 50% increase in revenue, but our COGS add was very, very insignificant. So our operating leverage there went from 25% to 17%. This is what gets me extremely exciting. This is what Mike was talking about early days. When we start to turn the corner and these businesses come out of the trough, we are going to be well positioned to see some great, great leverage.

但我認為從營運槓桿的角度來看，我最興奮的是以下幾點。請記住，我們已經與你們討論了我們調整成本的能力將落後於收入的成長。你只需看看自行車就可以看到第二季的情況。當他們從第一季轉向第二季時，我們看到收入成長了 50%，但我們的 COGS 增加非常非常微不足道。因此我們的營運槓桿從 25% 上升到 17%。這讓我非常興奮。這就是麥克早期所說的。當我們開始扭轉局面、這些企業走出低潮時，我們將處於有利地位，看到一些巨大的槓桿作用。

(Operator Instructions)

（操作員說明）

Mike Swartz at Truist.

Truist 的 Mike Swartz。

I just wanted to follow-up on the commentary. I think you talked about the sequential growth through the back half of the year and then kind of the expectation as that continues through 2025. If we look at the guidance, the implied revenue guidance for the fourth quarter, which I think brackets right around $400 million or so. Is that the right baseline to use to say we grow off of that quarter in, quarter out through 2025?

我只是想跟進評論。我認為您談到了今年下半年的連續成長，以及對 2025 年持續成長的預期。如果我們看一下指導，第四季度的隱含收入指導，我認為大約在 4 億美元左右。這是用來說明我們在 2025 年之前一個季度一個季度實現成長的正確基準嗎？

Yes. I mean it's too early to guide 2025 today. But that's where we see our product and our product mix going in 2025. And keep in mind, we have a lot of things that are going to come tailwinds very quickly for us in 2025, like our license agreements with the MLB. So we've got a lot of good tailwinds starting the beginning of the year, that we think are going to be meaningful for us. We can't predict the economy, and we don't want to try to predict that yet, but we can tell you that we have set up everything we can to see sequential growth off of that $400 million thereabouts into Q1 and Q2 of next year.

是的。我的意思是，現在指導 2025 年還為時過早。但這就是我們的產品和產品組合在 2025 年的發展方向。請記住，到 2025 年，我們有很多事情很快就會順風順水，例如我們與 MLB 的許可協議。因此，從今年年初開始，我們就獲得了很多良好的推動力，我們認為這對我們來說是有意義的。我們無法預測經濟，而且我們還不想嘗試預測這一點，但我們可以告訴您，我們已做好一切準備，以確保下一季度第一季和第二季的 4 億美元能夠實現連續成長。

Okay. Great. And I think on the first quarter call, you kind of -- you gave a little color around backlog and order books in the bike business. Do you have any updates on that as we're sitting here kind of almost midway through the third quarter, what we're seeing for third quarter? And I guess whether there's any visibility in the fourth quarter right now at all?

好的。偉大的。我認為在第一季的電話會議上，您對自行車業務的積壓訂單和訂單簿做了一些說明。當我們坐在這裡幾乎是第三季中期時，您有任何關於這方面的最新情況嗎？我想現在第四季是否有任何可見性？

We're seeing limited visibility in Q4 this early. But Q3 is trending like we saw in Q2, where Q3 is above Q2 and looking strong. So it's pretty positive. Like I said in my comments to Larry, our back half predictions and projections for both the bike business and our Marucci business is on plan. They're doing very, very well.

我們這麼早就看到第四季的能見度有限。但第三季的趨勢就像我們在第二季看到的那樣，第三季高於第二季並且看起來很強勁。所以這是非常積極的。就像我在對拉里的評論中所說的那樣，我們對自行車業務和馬魯奇業務的後半部分預測和預測正在按計劃進行。他們做得非常非常好。

Okay. Great. And then within -- just final question within the Marucci business, you got the CATX2 launch. I guess what's the cadence of that launch? And was there any destocking of retail that need to be done just with prior generation inventory before that hits the channel?

好的。偉大的。然後，在 Marucci 業務的最後一個問題中，CATX2 發布了。我猜這次發射的節奏是怎麼樣的？在進入通路之前，是否需要僅使用上一代庫存來減少零售庫存？

No. We didn't see any destocking required. But one of the things we're doing with our Marucci business in the way that we see product launches and product innovation, as you know within Fox is we're more aggressive on that front. So you may see more product launches, more quicker going forward with Marucci and Victus and the other brands than we've probably seen in the past. So we think it's important to continue to provide new products and new technology to the enthusiast and consumer base. So that's why we're driving that so hard.

不。我們沒有看到任何去庫存的必要。但我們在 Marucci 業務上所做的一件事是，我們看到產品發布和產品創新，正如您在 Fox 內部所知，我們在這方面更加積極主動。因此，與我們過去可能看到的相比，您可能會看到更多的產品發布，Marucci 和 Victus 以及其他品牌的進展更快。因此，我們認為繼續向愛好者和消費者群提供新產品和新技術非常重要。這就是我們如此努力推動這一目標的原因。

Alex Perry at Bank of America.

美國銀行的亞歷克斯·佩里。

Two sort of like modeling questions here. I guess, just first, what is sort of embedded in the growth by segment in the guide or sort of sequential recovery by segment? And then what is the expected Marucci contribution in the back half?

這裡有兩種類似的建模問題。我想，首先，指南中按段的增長或按段的順序恢復的嵌入是什麼？那麼馬魯奇在後半場的預期貢獻是多少呢？

Yes. So the way I'd look at this is when we're thinking about the second half, Mike talked about bike and Marucci basically being on track. So really no changes there from the guide perspective on those two. The real change in the back half is essentially PVG and AAG. And essentially, the two of them combined are coming off around $100 million to $120 million. I think from a modeling perspective, I think it'd be fairly safe here to say kind of flattish going forward like for the full year, PVG is right around that $120 million mark. I think it's fine to be right around there for PVG, and I would probably put AAG similar to the first couple of quarters with an inflection in Q4. That's probably our main driver in Q4 as AAG starts to flex up. Does that help?

是的。所以我看待這個問題的方式是，當我們考慮下半場時，麥克談到了自行車，而馬魯奇基本上已經走上了正軌。所以從指南的角度來看，這兩者確實沒有任何改變。後半區真正的變化本質上是PVG和AAG。從本質上講，兩者合計的收入約為 1 億至 1.2 億美元。我認為從建模的角度來看，我認為可以相當安全地說，全年的前景平平，PVG 就在 1.2 億美元大關左右。我認為 PVG 處於這個位置很好，我可能會將 AAG 與前幾季度類似，但在第四季度有所變化。隨著 AAG 開始發揮作用，這可能是我們第四季度的主要驅動力。這樣有幫助嗎？

Great. And then any commentary on Marucci and how we should be thinking of that in the back half?

偉大的。然後對 Marucci 有何評論以及我們應該如何在後半部分考慮這一點？

Well, I mean, Marucci is a growth story the entire year. We're looking at seeing strong double-digits here for the full year. So I think last year, they did right around $184 million. And I think from a conservative standpoint, putting them around $200 million plus would be good modeling. Again, we're thinking that they're going to be around 10% up year-on-year.

嗯，我的意思是，馬魯奇全年都是一個成長故事。我們預計全年將實現強勁的兩位數成長。所以我認為去年他們的收入約為 1.84 億美元。我認為從保守的角度來看，投入 2 億美元左右就是一個很好的模型。同樣，我們認為它們將同比增長 10% 左右。

Yes. Our current order book with Marucci is pretty exciting to see. When you're in an economy that's deflating across most consumer discretionary goods, Marucci will literally have a record quarter every quarter this year.

是的。我們目前與 Marucci 的訂單非常令人興奮。當大多數非必需消費品都在通貨緊縮的經濟中時，馬魯奇今年每季都會創下創紀錄的季度業績。

(Operator Instructions) We'll go next now to Jim Duffy with Stifel.

（操作員指示）我們現在將與 Stifel 一起前往 Jim Duffy。

I'm going to try to take a big picture view on bikes and upfitting, two of your higher margin businesses. They've also been two of the more volatile recently. And I know you want to stay away from guiding to 2025, but I'm hoping you could help us take a bottoms-up approach, try to anchor those businesses to 2019 levels. Encouragingly, the bike business in 2Q is back to the 2Q '19 run rate. Bikes was a $300 million business in '19. If I understand it correctly, since that time, you have pricing, you've got the addition of e-bikes. You also have capacity to expand into lower priced bikes, when you think about OEM units and content per bike. What should be thinking about relative to that $300 million figure in 2019?

我將嘗試對自行車和改裝這兩項利潤率較高的業務進行全面了解。它們也是最近波動較大的兩個。我知道您不想以 2025 年為目標，但我希望您能幫助我們採取自下而上的方法，嘗試將這些業務固定在 2019 年的水平。令人鼓舞的是，第二季的自行車業務回到了 19 年第二季的運行率。19 年，自行車業務的銷售額達 3 億美元。如果我理解正確的話，從那時起，你就有了定價，你就增加了電動自行車。當您考慮 OEM 單位和每輛自行車的內容時，您還有能力擴展到價格較低的自行車。相對於 2019 年的 3 億美元數字，應該考慮什麼？

Yes. You've got it right, Jim. Well said, when we look at 2025, as you said, we're not guiding 2025 yet, but we believe that number gets back north of $400 million in bike. And we think that's a very positive sign that, that recovery has occurred in the industry. And then it gets down to, as you said, product, product mix, innovation, pricing, power, expanding our portfolio, all those things are helping us. Those are all tailwinds for us this year, which is why we're kind of bucking some of the trends in bike as you can see our results. We think that continues to be a tailwind for us in 2025 as we emerge out of this destocking scenario. So we think that's our view of 2025.

是的。你說得對，吉姆。說得好，當我們展望 2025 年時，正如您所說，我們還沒有製定 2025 年的指導方針，但我們相信這個數字將回到 4 億美元以上的自行車市場。我們認為這是一個非常積極的跡象，表明該行業已經出現復甦。然後，正如您所說，產品、產品組合、創新、定價、實力、擴大我們的產品組合，所有這些都在幫助我們。這些都是我們今年的順風車，這就是為什麼我們有點逆著自行車的一些趨勢，正如你可以看到我們的結果。我們認為，到 2025 年，隨著我們擺脫去庫存的局面，這仍然是我們的順風車。所以我們認為這就是我們對 2025 年的看法。

I'm going to represent this is a follow-up question, but shift of upfitting. I think with the Colorado facility out of the equation, you're probably between 10,000, 15,000 units capacity. Can you help us like in 2019, before you acquired that business, what type of vehicle volume was that business doing on an annual basis? Maybe that's a good directional indicator of kind of normalization or baselining of the marketplace?

我將表示這是一個後續問題，但是裝修的轉變。我認為，排除科羅拉多工廠的影響，產能可能在 10,000 到 15,000 單位之間。您能否幫助我們了解一下，在您收購該業務之前，2019 年該業務的年銷量是多少？也許這是市場正常化或基準的一個很好的方向指標？

I'd have to go back and pull the data on that, Larry, but I'm going to give you a range, just so I can be accurate. I would say it was between 8,000 and 11,000 pre kind of in that 2019 time frame. So it was -- but here's the difference. One of the things that we've been talking about relative to upfit vehicles is the increase in content. And the average price per vehicle from 2019 is significantly higher. So we think we can run a really strong business, when we put the right pieces together, and with Dennis's support and leadership in that area to even on a lower volume base in 2025 to drive a significant improvement in revenue off of 2024. It really comes down to product content and our relationships with our dealers.

拉里，我必須回去提取相關數據，但我會給你一個範圍，這樣我才能準確。我想說，在 2019 年的時間範圍內，這個數字大約在 8,000 到 11,000 之間。確實如此——但差別在於。我們一直在談論的與改裝車輛相關的事情之一是內容的增加。與 2019 年相比，每輛車的平均價格明顯更高。因此，我們認為，當我們將正確的部分組合在一起，並在丹尼斯在該領域的支持和領導下，即使在2025 年銷量較低的情況下，我們也可以經營一家真正強大的業務，從而推動2024 年收入的顯著改善。這實際上取決於產品內容以及我們與經銷商的關係。

Scott Stember of ROTH MKM.

ROTH MKM 的 Scott Stember。

Questions on the SSG side, bike business. Last quarter, you had talked about seeing some encouraging signs for the '25 model year product that's going out, I think you said mainly over in Europe. What are you seeing here in the US ? Maybe just give us an idea of the size or how big this launch will be versus the previous two or three years?

關於 SSG 方面的問題，自行車業務。上個季度，您談到即將推出的 25 款產品出現了一些令人鼓舞的跡象，我認為您主要是在歐洲說的。你在美國看到了什麼？也許只是讓我們了解一下這次發布的規模或與前兩三年相比有多大？

Yes. I mean, keep in mind, when we launch products, we're launching it to OEMs. We sell products across all continents. So these OEM launches cover both Europe and US , even European OEMs sell bikes into the US And we're seeing European customers and the consumer in Europe doing better with the destocking of that region. So that's been helpful. The US is lagging, but it'll catch up. And I think the US will be strong by the time we get to the end of this year going into 2025, but it still has work to do in terms of getting the inventory through the system and the final cleanup.

是的。我的意思是，請記住，當我們推出產品時，我們是將其推出給原始設備製造商。我們的產品銷往各大洲。因此，這些 OEM 的推出涵蓋了歐洲和美國，甚至歐洲 OEM 也向美國銷售自行車。這很有幫助。美國雖然落後了，但它會迎頭趕上。我認為，到今年年底進入 2025 年，美國將會變得強大，但在透過系統清理庫存和最終清理方面，它仍然有工作要做。

But I think we're late stages around most of our product mix. Again, we're at the premium level of the product anyway. So that's benefiting us in both US and Europe. It's going to be the balance this year to get it cleaned up, and we're going to see that in our numbers.

但我認為我們大部分的產品組合都處於後期階段。再說一遍，無論如何，我們的產品都處於優質水平。這對我們美國和歐洲都有好處。今年將是清理它的平衡，我們將在我們的數字中看到這一點。

And I think that's the real positive of the story of our entry into entry premium, is that -- in years like this, you're not growing TAMs, right? That total addressable market is probably [ E2, ] or if not declining. And here, we are doing very, very well on those entry premium segment launches. And so, we feel like we must be taking share. And that would not surprise me because of our innovation track record and how we continue to invest in R&D and what the customer is looking for.

我認為這是我們進入入門溢價市場的真正積極的一面，那就是——在這樣的年份裡，你不會種植 TAM，對嗎？總的潛在市場可能是[E2,]或即使沒有下降。在這裡，我們在入門級高端細分市場的推出方面做得非常非常好。因此，我們覺得我們必須分享。這不會讓我感到驚訝，因為我們的創新記錄以及我們如何繼續投資於研發以及客戶的需求。

Got it. And then last question on Marucci, the Major League Baseball contract. Could you maybe just frame out how big that could be? How lucrative it will be in the '25 and then '26?

知道了。最後一個問題是關於馬魯奇，美國職棒大聯盟的合約。能簡單說明一下它有多大嗎？25 年和 26 年的利潤有多大？

Yes. It's a little bit early as we work with MLB to think about 2025. It's probably a little bit early to start putting financial numbers to it. But just think about the number of doorways, the number of storefronts that we gain with all the MLB stadiums in 2025 as the exclusive partner, and the ability to really represent our relationship with the players, which we really couldn't do before, now as a partner with those players in launching new bat lines, and in using our customization capabilities, and taking what we do in the MLB all the way down into the little league.

是的。我們與 MLB 合作考慮 2025 年還為時過早。現在開始給出財務數據可能還為時過早。但想想我們作為獨家合作夥伴在2025年與所有MLB體育場獲得的門道數量、店面數量，以及能夠真正代表我們與球員關係的能力，這是我們以前確實做不到的，現在作為這些球員的合作夥伴，推出新的球棒系列，利用我們的定制能力，並將我們在美國職棒大聯盟（MLB）所做的一切一直延伸到小聯盟。

So we actually think there is a significant step-up and a huge part of our ability to go double this business in the next three to five years is going to come from these partnerships like the MLB. So a little bit too early to call out numbers for 2025, but it's significant. It was a really important part of this business relationship, and we've been working on this since the day we started talking about Marucci.

因此，我們實際上認為，我們在未來三到五年內將這項業務翻倍的能力將得到顯著提升，很大一部分將來自於像美國職棒大聯盟這樣的合作夥伴關係。因此現在公佈 2025 年的數字還為時過早，但意義重大。這是這種商業關係中非常重要的一部分，從我們開始談論 Marucci 的那天起，我們就一直在努力解決這個問題。

Craig Kennison at Baird.

貝爾德的克雷格·肯尼森。

I think you've addressed most of my questions, but I wanted to make another run at the upfitting business. I mean in the past, you had characterized that as an opportunity to grow with and grow the number of dealers, but also the number of trucks per dealer. And I'm just wondering, Dennis, as you step into that role, if you might resize that opportunity for the long-term.

我想你已經解決了我的大部分問題，但我想在裝修業務上再做一次。我的意思是，在過去，您將其描述為與經銷商數量以及每個經銷商的卡車數量一起成長的機會。丹尼斯，我只是想知道，當你擔任這個角色時，你是否可以長期調整這個機會。

Yes, thanks for the question, and I couldn't be more excited about getting involved with the AAG team and in specific, the PVG upfitting business because we offer a fantastic product. And so, when I'm going in, I'm going in wide tide open, but there are four things I'm really going to be paying attention to, and that's going to be customer and making sure that we're meeting the customer on how he or she wants to buy. We got to be showing up in a great way with the dealer.

是的，謝謝你的提問，我對參與 AAG 團隊，特別是 PVG 改裝業務感到無比興奮，因為我們提供了出色的產品。因此，當我進去時，我會全力以赴，但有四件事是我真正要注意的，那就是客戶並確保我們滿足客戶想要如何購買。我們必須以良好的方式出現在經銷商面前。

Product is going to be extremely important for us moving forward to and ensuring we have a product road map that looks well around the corners here, so that as the market is changing, we're changing with it. And then cost going to be an emphasis. This is why we've got to make sure that we have the right level of focus on our cost structure, and it can be about people. And from my days at Danaher, something is always stuck with me, and that's been that best team wins. I think we got the best team in AAG and with a great team in PVG. And I think we're going to put this together, and we're going to win. But those are going to be my focuses get going in, in the first 30, 60 days.

產品對於我們前進並確保我們擁有一個看起來很棒的產品路線圖非常重要，以便隨著市場的變化，我們也在隨之變化。然後成本將成為重點。這就是為什麼我們必須確保我們對成本結構有適當的關注，而且這可能與人有關。從我在丹納赫的日子開始，有件事一直困擾著我，那就是最好的球隊獲勝。我認為我們在 AAG 擁有最好的團隊，在 PVG 也擁有一支出色的團隊。我認為我們將把這些放在一起，我們將會獲勝。但這些將是我在前 30、60 天內關注的重點。

Could it be a situation where maybe you shrink to grow, in other words, just partner with dealers that are anxious to carry your product. And then from there, build the base as maybe rates and other economic pressures go away?

會不會是一種縮水成長的情況，換句話說，就是與急於銷售你產品的經銷商合作。然後從那裡開始，隨著利率和其他經濟壓力的消失而建立基礎？

I think we have some great relationships right now with our dealers. I think it really is about execution. And it's really making sure that we've got the product. And then again, it's meeting the customer on how he or she wants to buy. I think we need to do a better job there, too. But again, I've got to get in there and start working with the team. I know the team has a lot of great ideas. And we'll be reporting back out on this for sure, next quarter on what we're seeing as the opportunities.

我認為我們現在與經銷商有著良好的關係。我認為這確實與執行有關。這確實確保了我們擁有產品。話又說回來，它是與客戶見面，了解他或她想要如何購買。我認為我們也需要在這方面做得更好。但同樣，我必須進入那裡並開始與團隊合作。我知道團隊有很多很棒的想法。我們肯定會在下個季度報告我們所看到的機會。

Yes. And Craig, I'd just add on to that. I think we had to shrink. You've seen that shrinkage now this year in getting the right chassis and the right dealer lineup settled, if you will. Once we've got that work done, getting the right product into the dealers, we'll be the turning point to see growth in AAG and PVG specifically. So I think some of that shrinkage, if you will, has occurred -- partially caused by just chassis mix and what we had available to sell and partially caused by having the right product to offer these dealers.

是的。克雷格，我想補充一下。我認為我們必須縮小規模。如果你願意的話，今年你已經看到了在獲得合適的底盤和合適的經銷商陣容方面的縮減。一旦我們完成這項工作，將合適的產品提供給經銷商，我們將成為看到 AAG 和 PVG 成長的轉捩點。所以我認為，如果你願意的話，這種收縮已經發生了——部分是由於底盤組合和我們可以銷售的產品造成的，部分是由於向這些經銷商提供了合適的產品造成的。

When we think about Fox Factory Truck, we're adding new dealerships by adding that halo vehicle in our lineup. So if we provide the right product, we will continue to increase dealerships or add dealerships going forward. But it's a combination of a lot of things that Dennis needs to go focus on, and we'll focus on to make sure that we've got the right dealers, the right product and the right focus in the market.

當我們想到福克斯工廠卡車時，我們會透過在我們的產品陣容中添加這款光環車輛來增加新的經銷商。因此，如果我們提供合適的產品，我們將繼續增加經銷商或未來增加經銷商。但這是丹尼斯需要關注的許多事情的結合，我們將專注於確保我們擁有合適的經銷商、合適的產品和正確的市場焦點。

And gentlemen, it appears we have no further questions this afternoon, Mr. Dennison. I'll hand things back to you, sir, for any closing comments.

先生們，丹尼森先生，看來今天下午我們沒有其他問題了。先生，我會將所有東西交還給您，以供您發表任何結束意見。

Thank you. I want to thank everyone for taking the time and their interest in Fox Factory. We hope you guys have a good evening. We'll talk soon.

謝謝。我要感謝大家抽出寶貴的時間以及對 Fox Factory 的興趣。我們希望你們度過一個美好的夜晚。我們很快就會談。

Thank you, Mr. Dennison. Again, ladies and gentlemen, that will conclude today's conference call. Again, thanks so much for joining us everyone. We wish you all a great evening. Goodbye.

謝謝你，丹尼森先生。女士們、先生們，今天的電話會議到此結束。再次非常感謝大家加入我們。我們祝福大家有個愉快的夜晚。再見。