Mastercraft Boat Holdings Inc (MCFT) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Q2 2023 MasterCraft Boat Holdings, Inc. Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎來到 2023 年第二季度 MasterCraft Boat Holdings, Inc. 收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Tim Oxley, CEO (sic) [CFO]. Please go ahead.

我現在想把會議交給今天的演講者，Tim Oxley，CEO (sic) [CFO]。請繼續。

Thank you, operator, and welcome, everyone. Thank you for joining us today as we discuss MasterCraft's second quarter performance for fiscal 2023. As a reminder, today's call is being webcast live and will also be archived on our website for future listening. With me on this morning's call are Fred Brightbill, Chief Executive Officer and Chairman; and George Steinbarger, our Chief Revenue Officer.

謝謝接線員，歡迎大家。感謝您今天加入我們討論 MasterCraft 2023 財年第二季度的業績。提醒一下，今天的電話會議正在進行網絡直播，也將在我們的網站上存檔以供將來收聽。與我一起出席今天上午電話會議的還有首席執行官兼董事長 Fred Brightbill；和我們的首席營收官 George Steinbarger。

Fred will begin with a review of our operational highlights from the second quarter. I will then discuss our financial performance for the quarter.

Fred 將首先回顧我們第二季度的運營亮點。然後我將討論我們本季度的財務業績。

Then I'll turn the call back to Fred for some closing remarks before we open the call for Q&A.

然後，在我們打開問答電話之前，我會將電話轉回給弗雷德，聽取一些結束語。

Before we begin, we'd like to remind participants that the information contained in this call is current only as of today, February 8, 2023. The company assumes no obligation to update any statements, including forward-looking statements. Statements that are not historical facts are forward-looking statements and subject to a safe harbor disclaimer in today's press release.

在我們開始之前，我們想提醒參與者，本次電話會議中包含的信息僅截至今天，即 2023 年 2 月 8 日。公司不承擔更新任何聲明（包括前瞻性聲明）的義務。非歷史事實的陳述是前瞻性陳述，受今天新聞稿中安全港免責聲明的約束。

Additionally, on this conference call, we will discuss non-GAAP measures that include or exclude special or items not indicative of our ongoing operations. For each non-GAAP measure, we also provide the most directly comparable GAAP measure in our fiscal 2023 second quarter earnings release, which includes a reconciliation of these non-GAAP measures to our GAAP results.

此外，在本次電話會議上，我們將討論非 GAAP 措施，包括或排除不表明我們正在進行的業務的特殊或項目。對於每項非 GAAP 衡量標準，我們還在 2023 財年第二季度收益發布中提供了最直接可比的 GAAP 衡量標準，其中包括將這些非 GAAP 衡量標準與我們的 GAAP 結果進行核對。

We would also like to remind listeners that there is a slide deck summarizing our financial results in the Investors Section of our website. As a reminder, unless otherwise noted, the following commentary is made on a continuing operations basis.

我們還想提醒聽眾，在我們網站的投資者部分有一個幻燈片總結了我們的財務結果。提醒一下，除非另有說明，否則以下評論是在持續經營的基礎上做出的。

With that, I'll turn the call over to Fred.

有了這個，我會把電話轉給弗雷德。

Thank you, Tim, and good morning, everyone. Net sales, diluted adjusted earnings per share and adjusted EBITDA were all the highest for any second quarter in the company's history, and it is our ninth consecutive year-over-year record-setting quarter. When compared to the second quarter of fiscal 2022, net sales were higher by more than 10%. Adjusted EBITDA grew by nearly 10% and adjusted net income per share grew by nearly 19%.

謝謝蒂姆，大家早上好。淨銷售額、稀釋後調整後每股收益和調整後 EBITDA 均創下公司歷史上第二季度的最高紀錄，這也是我們連續第九個季度創下同比紀錄。與 2022 財年第二季度相比，淨銷售額增長了 10% 以上。調整後的 EBITDA 增長近 10%，調整後的每股淨收入增長近 19%。

During the quarter, strong operating results and diligent working capital management allowed us to generate the most cash flow from operations and free cash flow in the company's history. This exceptional operational and financial performance was enabled by our strategic focus on the consumer and through investments in people and operations.

在本季度，強勁的經營業績和勤奮的營運資金管理使我們能夠產生公司歷史上最多的經營現金流和自由現金流。這種卓越的運營和財務業績得益於我們對消費者的戰略關注以及對人員和運營的投資。

During the quarter, we continued to make progress in building much-needed dealer inventory ahead of the summer selling season. As of the end of the second quarter, dealer inventories are approximately 55% higher than the second quarter of fiscal year 2022 and about 20% lower than the second quarter of fiscal year 2019. We believe that business process and dealer network improvements we have implemented over the past few years will allow us to maintain more levels of dealer inventory than was typical in the past.

本季度，我們在夏季銷售旺季到來之前，在建立急需的經銷商庫存方面繼續取得進展。截至第二季度末，經銷商庫存比 2022 財年第二季度高約 55%，比 2019 財年第二季度低約 20%。我們認為，我們實施的業務流程和經銷商網絡改進在過去幾年中，我們可以保持比過去更高水平的經銷商庫存。

Early boat shows results, recent retail sales data and industry commentary suggest a return to historical seasonal demand patterns. For historical context, approximately 70% of the annual powerboat retail sales occurred during the 5-month period from March to July. To date, both dealer and consumer demand remained resilient and dealer inventory and production plans position our dealers to capitalize on the boat show and summer selling seasons. Early boat show results are up for MasterCraft and Crest versus both last year and 2019 levels. As a result of the reversion to historical seasonality, we expect to have a clear picture on retail demand as we progress through the third and fourth quarters.

早船顯示結果，最近的零售銷售數據和行業評論表明回歸歷史季節性需求模式。從歷史背景來看，大約 70% 的年度機動艇零售額發生在 3 月至 7 月的 5 個月期間。迄今為止，經銷商和消費者的需求都保持彈性，經銷商庫存和生產計劃使我們的經銷商能夠利用船展和夏季銷售旺季。 MasterCraft 和 Crest 的早期船展結果均高於去年和 2019 年的水平。由於歷史季節性回歸，我們預計隨著第三季度和第四季度的進展，零售需求將有一個清晰的圖景。

We continue to closely monitor economic conditions and evaluate the potential impact on our business. Since last year, there have been no significant changes in our view of macroeconomic or other demand indicators and the associated implications for the upcoming summer selling season. We remain prudently conservative in our approach to wholesale production for fiscal 2023, and we have developed plans for a range of potential retail demand scenarios.

我們將繼續密切監控經濟狀況並評估對我們業務的潛在影響。自去年以來，我們對宏觀經濟或其他需求指標的看法以及對即將到來的夏季銷售旺季的相關影響沒有發生重大變化。我們對 2023 財年的批發生產方法保持謹慎保守，並且我們已經針對一系列潛在的零售需求情景制定了計劃。

Given the high degree of macroeconomic uncertainty and the historical cyclicality of our industry, we are committed to running the business in a manner that prioritizes strong performance throughout the business cycle. Guided by this philosophy, our intent is to maximize our fiscal 2023 financial performance while maintaining healthy dealer inventories.

鑑於宏觀經濟的高度不確定性和我們行業的歷史週期性，我們致力於以在整個商業周期中優先考慮強勁績效的方式開展業務。在這一理念的指導下，我們的目標是最大限度地提高 2023 財年的財務業績，同時保持健康的經銷商庫存。

Moving on to supply chain. The general environment, including cost inflation and delivery disruption is improving with certain pockets of lingering risk expected to continue for some time. Tight supplies and longer-than-normal lead times in certain components, including those with upstream exposure to Asia, continue to intermittently affect our production schedules. However, we do not expect supply chain disruption to be a constraint on our full year production. The tireless efforts of our world-class supply chain team have enabled us to provide consistent production and capital-efficient inventory control. This cautious optimism reflects a welcome change from the incredibly challenging supply chain environment in the past 2 years.

轉向供應鏈。包括成本膨脹和交付中斷在內的總體環境正在改善，某些揮之不去的風險預計將持續一段時間。某些組件的供應緊張和比正常情況更長的交貨時間，包括那些在亞洲有上游業務的組件，繼續間歇性地影響我們的生產計劃。但是，我們預計供應鏈中斷不會限制我們全年的生產。我們世界一流的供應鏈團隊的不懈努力使我們能夠提供一致的生產和資本高效的庫存控制。這種謹慎的樂觀情緒反映出過去 2 年極具挑戰性的供應鏈環境發生了可喜的變化。

Our strong operating performance has resulted in record cash flow, driven by record earnings and diligent working capital management. We've built a fortress balance sheet that provides us with abundant financial flexibility. We are well positioned to pursue our capital allocation priorities, first and foremost of which is invested in growth. We are laying the foundation for future growth by making targeted investments and initiatives that will take advantage of the strong underlying secular industry trends.

在創紀錄的收益和勤勉的營運資金管理的推動下，我們強勁的經營業績導致創紀錄的現金流。我們建立了一個堡壘資產負債表，為我們提供了豐富的財務靈活性。我們有能力追求我們的資本配置優先事項，其中首要的是投資於增長。我們正在通過有針對性的投資和舉措來為未來的增長奠定基礎，這些投資和舉措將利用強大的潛在長期行業趨勢。

Let now briefly review some of the latest developments across our brand. Our MasterCraft brand performed exceptionally well by growing net sales to a second quarter record of nearly $109 million and expanding adjusted EBITDA margin by 80 basis points year-over-year. This tremendous result is due to the extraordinary efforts of the MasterCraft team and the continued success of MasterCraft operating model. MasterCraft's best-in-class powerful and clean engines and expanded entry and mid-priced product offerings have been very well received. MasterCraft has gained share in 6 of the last 7 months and remains the #1 brand in the fastest growing and highest margin category in the powerboat industry.

現在讓我們簡要回顧一下我們品牌的一些最新發展。我們的 MasterCraft 品牌表現出色，第二季度淨銷售額增長至創紀錄的近 1.09 億美元，調整後的 EBITDA 利潤率同比增長 80 個基點。這一巨大的成績歸功於MasterCraft團隊的非凡努力和MasterCraft運營模式的持續成功。 MasterCraft 一流的強大而清潔的發動機以及擴展的入門級和中等價位產品系列受到了廣泛好評。 MasterCraft 在過去 7 個月中有 6 個月的份額有所增加，並且在機動艇行業中仍然是增長最快和利潤率最高的類別中的第一品牌。

At Crest, net sales were up by more than 23% year-over-year. Continuing a trend of generating exceptional profitability. Crest achieved a gross margin of nearly 20% for the quarter. Since its acquisition in fiscal 2019, Crest has doubled net sales and expanded gross margin by 340 basis points. Crest has and will continue to add points of distribution to its dealer network, fulfilling a key element of its growth strategy. On the innovation front, Crest new all-electric pontoon boat, the current and newly redesigned classic series have both been very well received by dealers and boat show participants. Crest sales and earnings growth demonstrates the success of the Crest acquisition and highlights our value-enhancing growth strategy.

在 Crest，淨銷售額同比增長超過 23%。繼續保持創造卓越盈利能力的趨勢。佳洁士本季度的毛利率接近 20%。自 2019 財年收購以來，Crest 的淨銷售額翻了一番，毛利率提高了 340 個基點。 Crest 已經並將繼續在其經銷商網絡中增加分銷點，以實現其增長戰略的關鍵要素。在創新方面，Crest 全新的全電動浮橋船，當前和重新設計的經典系列都受到了經銷商和船展參與者的好評。 Crest 的銷售和盈利增長證明了 Crest 收購的成功，並突出了我們的價值提升增長戰略。

At Aviara , net sales were up by more than 75% compared to the prior period, driven by a 48% increase in units and higher prices. According to the most recent all states reporting SSI market share data as of the rolling 12-month period ended September 30, 2022, Aviara increased its market share by 280 basis points in the 30- to 43-foot premium day boat category. Aviara continues to outpace all competitors, further solidifying the brand's position as the preeminent luxury devote. Looking ahead, Aviara will soon begin to launch innovative new models. These introductions will represent the next phase in Aviara's product evolution and will position the brand for continued revenue and earnings growth.

在 Aviara ，淨銷售額比上一時期增長了 75% 以上，這得益於單位數量增長 48% 和更高的價格。根據所有州報告的截至 2022 年 9 月 30 日的滾動 12 個月期間的 SSI 市場份額數據，Aviara 在 30 至 43 英尺高級日間船類別中的市場份額增加了 280 個基點。 Aviara 繼續超越所有競爭對手，進一步鞏固了該品牌作為卓越奢侈品愛好者的地位。展望未來，Aviara 將很快開始推出創新的新型號。這些介紹將代表 Aviara 產品發展的下一階段，並將為該品牌定位以實現持續的收入和盈利增長。

I'll now turn the call over to Tim, who will provide a more detailed analysis of our financial results. Tim?

我現在將電話轉給蒂姆，他將對我們的財務業績進行更詳細的分析。蒂姆？

Thanks, Fred. We delivered another excellent quarter of financial performance. Focusing on the top line, net sales for the quarter were $159.2 million, an increase of $14.8 million or 10.2%. The net sales increase reflects higher prices, partially offset by slightly lower unit sales volume and higher dealer incentives. Incentives increased primarily due to greater floor plan -- floor planned financing costs driven by higher interest rates and recovering dealer inventory levels. When compared to the historically low amount in the prior year, discounting was also higher as we anticipate a return to more historical patterns of consumer demand and seasonality.

謝謝，弗雷德。我們又交付了一個出色的季度財務業績。關注收入，本季度淨銷售額為 1.592 億美元，增長 1480 萬美元或 10.2%。淨銷售額的增長反映了價格上漲，部分被單位銷量略有下降和經銷商激勵措施增加所抵消。激勵措施的增加主要是由於更大的平面圖——利率上升和經銷商庫存水平恢復導致的平面圖融資成本。與上一年的歷史低位相比，折扣也更高，因為我們預計消費者需求和季節性將回歸更多的歷史模式。

For the quarter, our gross margin was 24% as we -- a decrease of 120 basis points when compared to the prior year period. Lower margins were primarily a result of higher costs for inflationary pressures, changes in mix, higher dealer incentives and increased warranty costs, partially offset by higher prices and improved production efficiencies. Operating expenses were $11.8 million for the quarter or 140 basis points lower as a percentage of net sales compared to the prior year.

本季度，我們的毛利率為 24%，與去年同期相比下降了 120 個基點。較低的利潤率主要是由於通貨膨脹壓力導致成本增加、產品組合變化、經銷商激勵措施增加和保修成本增加，部分被價格上漲和生產效率提高所抵消。本季度運營費用為 1180 萬美元，占淨銷售額的百分比比上年降低 140 個基點。

Turning to the bottom line. Adjusted income for the quarter increased 11% to $21.3 million or $1.20 per diluted share, computed used in the company's estimated annual effective tax rate, 23%. This compares to an adjusted net income of $19.2 million or $1.01 per diluted share in the prior year period. Adjusted EBITDA increased nearly 10% to $29.8 million for the quarter compared to $27.2 million in the prior year period. Adjusted EBITDA margin was 18.7%, beyond 10 basis points from 18.8% in the prior year period.

轉向底線。本季度調整後收入增長 11% 至 2130 萬美元或每股攤薄收益 1.20 美元，計算結果用於公司估計的年度有效稅率 23%。相比之下，去年同期調整後的淨收入為 1920 萬美元或每股攤薄收益 1.01 美元。本季度調整後的 EBITDA 增長近 10%，達到 2,980 萬美元，而去年同期為 2,720 萬美元。調整後的 EBITDA 利潤率為 18.7%，比去年同期的 18.8% 高出 10 個基點。

Our balance sheet remains incredibly strong as we ended the quarter with nearly $190 million of total liquidity and including nearly $90 million of cash and short-term investments and $100 million of availability under our revolving credit facility. We also ended the quarter with 0 net debt.

我們的資產負債表仍然非常強勁，因為我們在本季度結束時擁有近 1.9 億美元的總流動資金，其中包括近 9000 萬美元的現金和短期投資以及循環信貸額度下的 1 億美元可用資金。我們還以零淨債務結束了本季度。

Strong earnings and favorable working capital management has translated to record cash flow from operations and free cash flow. Year-to-date, we have generated a record $79.9 million of cash flow from continuing operations were nearly 200% higher than the prior year period. Year-to-date free cash flow from continuing operations was a record $67.8 million or more than 210% higher than the prior year period. Our balance sheet positions us exceptionally well, provides us with ample financial flexibility to ensure sound operations through the business cycle and the ability to grow aggressively in alignment with retail demand.

強勁的收益和有利的營運資金管理已轉化為創紀錄的運營現金流和自由現金流。年初至今，我們從持續經營中產生了創紀錄的 7990 萬美元現金流，比上年同期增長近 200%。年初至今，來自持續經營業務的自由現金流達到創紀錄的 6780 萬美元，比上年同期增長 210% 以上。我們的資產負債表使我們處於非常有利的地位，為我們提供了充足的財務靈活性，以確保在整個商業周期中穩健運營，並能夠根據零售需求積極增長。

Given our recent operating performance, strong balance sheet and our positive long-term outlook, we believe our stock represents an outstanding value at recent prices. During the quarter, we spent approximately $4.8 million to repurchase nearly 225,000 shares of our common stock. To date, we have spent nearly 70% or $50 million program authorized in June of 2021.

鑑於我們最近的經營業績、強勁的資產負債表和積極的長期前景，我們相信我們的股票以近期價格計算具有突出的價值。本季度，我們花費了大約 480 萬美元回購了近 225,000 股普通股。迄今為止，我們已經花費了 2021 年 6 月批准的近 70% 或 5000 萬美元的計劃。

Cumulative activity under our share repurchase program provided an 8% benefit to our Q2 adjusted earnings per share. We expect to continue to opportunistically return cash to shareholders through the program while prioritizing financial flexibility and high return investments in the business that generate growth and long-term shareholder value.

我們的股票回購計劃下的累積活動為我們第二季度調整後的每股收益帶來了 8% 的收益。我們希望繼續通過該計劃機會主義地向股東返還現金，同時優先考慮財務靈活性和高回報投資業務，以產生增長和長期股東價值。

Looking forward, we are raising our guidance for the full year based on our strong performance and incremental retail demand visibility. We will continue to monitor the strength of retail demand and adjust our production plans as appropriate to maintain healthy dealer inventories. Our guidance continues to reflect the potential for a range of retail demand scenarios as we approach the all-important summer selling season.

展望未來，我們將根據我們強勁的業績和不斷增長的零售需求可見性提高全年的指導。我們將繼續監測零售需求的強度並適當調整我們的生產計劃以維持健康的經銷商庫存。隨著我們接近最重要的夏季銷售季節，我們的指引繼續反映一系列零售需求情景的潛力。

For full year fiscal 2023, consolidated net sales is now expected to be between $620 million and $640 million, with adjusted EBITDA between $111 million and $118 million. And adjusted earnings per share of between $4.40 per share and $4.66. We continue to expect capital expenditures to be approximately $30 million for the full year.

對於 2023 財年全年，合併淨銷售額預計在 6.2 億美元至 6.4 億美元之間，調整後的 EBITDA 在 1.11 億美元至 1.18 億美元之間。調整後的每股收益在每股 4.40 美元至 4.66 美元之間。我們繼續預計全年的資本支出約為 3000 萬美元。

For the third quarter of fiscal 2023, consolidated net sales is expected to be approximately $158 million and adjusted EBITDA of approximately $26 million and adjusted earnings per share of approximately $1.04. Despite the dynamic business environment and macroeconomic uncertainties, we are confident in delivering strong financial results for our shareholders.

2023 財年第三季度，合併淨銷售額預計約為 1.58 億美元，調整後 EBITDA 約為 2600 萬美元，調整後每股收益約為 1.04 美元。儘管商業環境充滿活力，宏觀經濟存在不確定性，但我們有信心為股東帶來強勁的財務業績。

I will now turn the call back to Fred for closing remarks.

我現在將把電話轉回給 Fred 以作結束語。

Thanks, Tim. Our business has performed extremely well through the first half of fiscal 2023, delivering record financial results, which have exceeded expectations. Our diligent approach in business planning and our best-in-class operating model have allowed us to operate efficiently and have provided us with the confidence and agility to respond to a range of potential retail demand scenarios. A robust portfolio of innovative products, healthy dealer inventory levels and our flexible production capabilities position us to capitalize on the boat show and summer selling seasons.

謝謝，蒂姆。我們的業務在 2023 財年上半年表現非常出色，實現了創紀錄的財務業績，超出了預期。我們勤奮的業務規劃方法和一流的運營模式使我們能夠高效運營，並使我們有信心和敏捷性來應對一系列潛在的零售需求場景。強大的創新產品組合、健康的經銷商庫存水平和我們靈活的生產能力使我們能夠利用船展和夏季銷售旺季。

Despite significant macroeconomic uncertainty, we remain on track to achieve the second best year of financial performance in the company's history. We look forward to delivering strong results by prioritizing resilience throughout the business cycle while maintaining a key emphasis on the pursuit of long-term growth opportunities and thereby generating exceptional shareholder returns.

儘管宏觀經濟存在重大不確定性，但我們仍有望實現公司歷史上第二好的財務業績年度。我們期待通過在整個商業周期中優先考慮彈性來取得強勁的業績，同時保持對追求長期增長機會的重視，從而產生卓越的股東回報。

Operator, we may now open the line for questions.

接線員，我們現在可以打開問題熱線。

Certainly. But I'd like to note a correction, Tim Oxley, CFO, with our beginning host today. (Operator Instructions)

當然。但我想指出一個更正，首席財務官蒂姆奧克斯利，今天我們的主持人。 （操作員說明）

And our first question will come from Joe Altobello of Raymond James.

我們的第一個問題將來自 Raymond James 的 Joe Altobello。

So a couple of questions on the guidance. I guess, first, if you look at the top line, you beat the sales guidance that you gave us 3 months ago by about $9 million, raised the full year by $22 million, at least at the midpoint. Is that on a better demand outlook? And maybe help us out? Is that coming from more units or more pricing?

所以有幾個關於指導的問題。我想，首先，如果你看一下頂線，你比 3 個月前給我們的銷售指導高出約 900 萬美元，全年提高了 2200 萬美元，至少在中點是這樣。這是更好的需求前景嗎？也許能幫助我們？這是來自更多的單位還是更多的定價？

Yes. It's George. So I think when you think about the retail demand environment, I don't think that our overall view of industry retail has changed. But obviously, we've got an additional 3 months of visibility in terms of how our brands have performed at retail. We're continuing to take market share. So I think that is a factor in how we have adjusted our guidance to reflect our confidence in our ability to deliver retail against a challenging environment.

是的。是喬治。所以我認為當你考慮零售需求環境時，我認為我們對行業零售的整體看法沒有改變。但顯然，就我們的品牌在零售方面的表現而言，我們還有 3 個月的可見度。我們將繼續佔據市場份額。因此，我認為這是我們如何調整我們的指導以反映我們對我們在充滿挑戰的環境中提供零售的能力的信心的一個因素。

With that said, we obviously still have an eye out to that March through July period, which accounts for 70% of retail. So we still are being very prudent and cautious with our production plan and our guidance gives us the flexibility to modulate our retail -- I'm sorry, our production to make sure that we are achieving returns and healthy inventory levels that we've committed to providing both our dealers and our brands.

話雖如此，我們顯然仍然關注 3 月至 7 月期間，該期間佔零售業的 70%。因此，我們仍然對我們的生產計劃非常謹慎和謹慎，我們的指導讓我們可以靈活地調整我們的零售——對不起，我們的生產是為了確保我們實現我們承諾的回報和健康的庫存水平為我們的經銷商和我們的品牌提供服務。

And also, you're still looking for a sales decline in your categories this year of, call it, 15% to 20%. Is that correct?

而且，你還在尋找今年你的類別的銷售額下降，稱之為 15% 到 20%。那是對的嗎？

That's correct. We're still kind of -- from an industry standpoint for our fiscal year. We still expect retail to be down in that mid-teens level.

這是正確的。我們仍然有點 - 從我們財政年度的行業角度來看。我們仍然預計零售業將下降到十幾歲左右的水平。

Okay. And then on EBITDA, the beat was a little bit better than the guide. So maybe tell us where the incremental margin pressures are coming from in the second half.

好的。然後在 EBITDA 上，節拍比指南好一點。因此，也許可以告訴我們下半年增加的利潤率壓力來自何處。

Sure. The floor plan financing costs are kind of #1 as the interest rates continue to grow as we are successful and restocking the dealers. That's the big one. Another important one is a mix, we -- as George mentioned, we try to build what's retailing and we've introduced some new NXT models that have been very successful in the marketplace. So we're mixing down to some of our smaller models as a result.

當然。隨著我們成功並為經銷商補貨，利率繼續增長，平面圖的融資成本位居第一。那是最重要的。另一個重要的是混合，我們 - 正如喬治提到的那樣，我們試圖建立零售業，我們已經推出了一些在市場上非常成功的新 NXT 模型。因此，我們正在混合使用一些較小的模型。

And our next question will come from Craig Kennison of R.W. Baird.

我們的下一個問題將來自 R.W. Baird 的 Craig Kennison。

(inaudible) talk about the promotional environment and maybe what the trends you're seeing across your 3 main brands?

（聽不清）談談促銷環境，也許您在 3 個主要品牌中看到的趨勢是什麼？

Craig, you kind of broke up there for a minute. I caught the last piece of that. Would you mind repeating the question?

克雷格，你在那一刻分手了。我抓住了最後一塊。你介意重複這個問題嗎？

Sure. Sorry about that. My question is on the promotional environment. Would you please comment on trends across your 3 brands?

當然。對於那個很抱歉。我的問題是關於促銷環境。您能否評論一下您的 3 個品牌的趨勢？

Yes. Sure. So given what we are seeing is kind of a return to more retail seasonality with that, we've also seen a return of higher levels of discounts, certainly higher than we've seen in the last past couple of years. And so that's pretty consistent across our brands, probably not as much as Aviara given where that brand is positioned. But certainly, with our Crest pontoon product and the price points that we have there, we are seeing higher levels of promotional activity and then also in the Ski wake category, we have seen a return of promotions.

是的。當然。因此，鑑於我們看到的是更多零售季節性的回歸，我們也看到了更高水平的折扣回歸，肯定比我們在過去幾年看到的要高。因此，這在我們的品牌中非常一致，可能不如 Aviara 考慮到該品牌的定位。但可以肯定的是，憑藉我們的 Crest 浮橋產品和我們在那裡的價格點，我們看到了更高水平的促銷活動，然後在 Ski wake 類別中，我們看到了促銷活動的回歸。

With that, we try to be good partners with our dealers. So we're really working with them to help how do we help them drive retail. And so that's a combination of not just us providing promotional activity or support for our dealers, but helping our dealers get more aggressive with pricing. And so far, they've been very receptive to that. And I think that's very much our approach to how we want to work with dealers and be very dealer-centric as much as we are consumer-centric.

因此，我們努力成為我們經銷商的良好合作夥伴。所以我們真的在與他們合作，幫助我們如何幫助他們推動零售。因此，這不僅是我們為經銷商提供促銷活動或支持的結合，而且還幫助我們的經銷商在定價方面更加積極。到目前為止，他們對此非常接受。我認為這正是我們與經銷商合作的方式，我們以經銷商為中心，就像我們以消費者為中心一樣。

Craig, I'd like to add that while the promotional environment is higher than the last couple of years, it's not back up to historical levels. So we're comparing to a period where it's kind of an all-time low.

克雷格，我想補充一點，雖然促銷環境高於過去幾年，但還沒有恢復到歷史水平。因此，我們將其與歷史最低點的時期進行比較。

Yes, that's very helpful. And then just on the floor plan issue, a lot of dealers are struggling with the fact that there's interest cost now on all of their inventory. Just wondering what the pushback has been among dealers to take on inventory? And whether maybe you have the infrastructure in place to be more demand-driven and operate with less inventory in the channel and keep that floor plan expense down?

是的，這很有幫助。然後就平面圖問題而言，許多經銷商都在為他們所有庫存現在都有利息成本這一事實而苦苦掙扎。只是想知道經銷商對庫存的抵制是什麼？以及您是否擁有適當的基礎設施來更加以需求為導向並以更少的渠道庫存進行運營並降低平面圖費用？

Yes. So I'll answer the latter part first. We absolutely have the flexibility, and we believe that we can operate our businesses and take market share and get the dealers the product they need while maintaining lower levels of inventory in the channel versus historical levels. We think the dealers very much view that similarly as we do. And so that's very much built into our financial plan and how we manage the business every day. We're tracking retail activity every day, every week. And so we're making sure that our production is getting inventory into the markets and the dealers where it's retailing. And as I mentioned previously, we're very much focused on how do we help our dealers retail product, not just pushing them wholesale inventory.

是的。所以我先回答後半部分。我們絕對有靈活性，我們相信我們可以經營我們的業務並佔據市場份額並為經銷商提供他們需要的產品，同時保持渠道庫存水平低於歷史水平。我們認為經銷商與我們的看法非常相似。因此，這在很大程度上融入了我們的財務計劃以及我們每天管理業務的方式。我們每天、每週都在跟踪零售活動。因此，我們確保我們的產品能夠將庫存投放到市場和零售的經銷商中。正如我之前提到的，我們非常關注如何幫助我們的經銷商零售產品，而不僅僅是推動他們批發庫存。

In terms of the floor plan financing, I mean every OEM programs are different, but with our free flooring [upwork] to pro-flooring support that we provide, right now, we're not getting any pushback from our dealers in terms of taking product. And so we feel very confident that our programs are structured in a way that really allows the dealer to minimize the stocking risk throughout the selling season and allows us and positions us to be able to get the inventory to the dealer to maximize on our retail opportunities.

就平面圖融資而言，我的意思是每個 OEM 計劃都是不同的，但是通過我們提供的免費地板 [upwork] 到專業地板支持，現在，我們在接受方面沒有得到經銷商的任何反對產品。因此，我們非常有信心，我們的計劃的結構能夠真正讓經銷商在整個銷售季節最大限度地降低庫存風險，並讓我們和定位我們能夠將庫存提供給經銷商，以最大限度地利用我們的零售機會.

Just to follow up on that. How long does the free flooring last for dealers? And how does that flow through the income statement? Is that a contrary revenue or is there a cost?

只是為了跟進。經銷商免費地板能用多久？這如何流經損益表？這是相反的收入還是有成本？

Craig, correct. It is contra-revenue and every boat has at least 6 months of free flooring. And if it's bought early in the season, say, July, it will get up to 9 months. So [to between] 6 and 9 months. There's also a cash alternative which has taken advantage of primarily in Q4 of our fiscal year.

克雷格，正確的。這是對收入的抵銷，每艘船至少有 6 個月的免費地板。如果它是在季節早期購買的，比如 7 月，它最多可以保存 9 個月。所以 [到] 6 到 9 個月。還有一種現金替代方案，主要在我們財政年度的第四季度使用。

And our next question will come from Drew Crum of Stifel.

我們的下一個問題將來自 Stifel 的 Drew Crum。

Maybe just sticking with the brand commentary and specifically on MasterCraft, maybe a little more detail on the unit sales performance down 12% year-on-year in the quarter. And any commentary in terms of what you're seeing at retail in terms of consumer demand. And then separately, on Aviara, can you talk about how the brand is tracking relative to some of the financial targets you had set out for the fiscal year?

也許只是堅持品牌評論，特別是 MasterCraft，也許更多關於本季度單位銷售業績同比下降 12% 的細節。以及你在零售業看到的消費者需求方面的任何評論。然後分別在 Aviara 上，你能談談該品牌如何跟踪你為本財年設定的一些財務目標嗎？

I think from a unit perspective at MasterCraft, Drew, we have gone back to a more level-loaded production schedule throughout the year. That's a big part of the efficiencies that we get in manufacturing. So I think some of the year-over-year comparisons are challenging, especially when you compare to last year and some of our production was more dictated by supply chain and product availability than what we would consider more of a normal manufacturing cadence.

我認為從 MasterCraft 的單位角度來看，德魯，我們已經回到了全年的生產計劃。這是我們在製造業中獲得的效率的很大一部分。所以我認為一些同比比較具有挑戰性，特別是當你與去年相比時，我們的一些生產更多地取決於供應鍊和產品可用性，而不是我們認為的正常製造節奏。

So this year reflects a more level-loaded production versus what we expect to ship throughout the year, and that's going to influence the year-over-year comparisons, but nothing we would note there from a negative perspective, nothing from a retail perspective that's driving that more so than just manufacturing efficiencies. And then the second part of your question.

因此，今年反映了與我們預計全年出貨量相比，負載水平更高的生產，這將影響同比比較，但從負面的角度來看，我們不會注意到那裡，從零售的角度來看，沒有什麼是推動這一點的不僅僅是製造效率。然後是你問題的第二部分。

I'll take that. Aviara is on track. This year, we expect them to at least breakeven, and that's a significant improvement from the past year and a stair step toward where we see that brand in the future. So there may be variation month-to-month, but certainly quarter-to-quarter and overall for the year, we see steady opportunity to continue to improve the margin and profitability.

我會接受的。 Aviara 步入正軌。今年，我們預計他們至少會實現收支平衡，這比去年有了顯著改善，也是朝著我們未來看到的品牌邁出的一步。因此，每個月可能會有變化，但肯定是每個季度和全年都有變化，我們看到穩定的機會繼續提高利潤率和盈利能力。

And a significant improvement over the prior year.

並且比上一年有顯著改善。

Got it. Okay. Very helpful. And then maybe 1 for Tim. Tim, you talked about some record cash flow metrics. Any notable call-outs in the quarter? And what should we expect in the second half of the year for cash flow?

知道了。好的。很有幫助。然後可能 1 給蒂姆。蒂姆，你談到了一些創紀錄的現金流量指標。本季度有什麼值得注意的呼籲嗎？我們對下半年的現金流有何期待？

I think you're going to continue to see some improvements in the working capital partly its a result of supply chain, greater supply chain reliability, if you will, but stock going to be as much as you saw in Q2. But it's just to be a continuing theme for us. So we generate strong cash flow, and that's going to continue in the second half.

我認為你將繼續看到營運資金的一些改善，部分原因是供應鏈，供應鏈可靠性更高，如果你願意的話，但庫存將與你在第二季度看到的一樣多。但這對我們來說只是一個持續的主題。因此，我們產生了強勁的現金流，而且這種情況將在下半年繼續。

Our next question comes from Eric Wold of B. Riley Securities.

我們的下一個問題來自 B. Riley Securities 的 Eric Wold。

A couple of questions kind of follow-up on what's been asked so far. I guess, you made the comment that you're kind of watching inventories and kind of expect to be a little more efficient with inventory and possibly lower inventory levels. I think you said you're about 20% below inventories where you were in '19. Is this the right level here? Or what do you think the right kind of percentage decline or lower level from '19 is the right level going forward to be efficient in dealerships?

有幾個問題是對到目前為止所問內容的跟進。我想，您發表評論說您有點在觀察庫存，並且有點期望庫存效率更高，並且可能會降低庫存水平。我想你說過你的庫存比 19 年時低了大約 20%。這是正確的水平嗎？或者您認為從 19 年開始的正確百分比下降或更低水平是提高經銷商效率的正確水平？

Can I maybe respond to your question slightly differently, but hopefully tells you how we think about it, how we look at it. We estimate what we think retail demand is going to be, we back into what we think is an appropriate level of inventory based on turnover and based on model-by-model mix. And that's the way we drive what we think is the right level. Now we certainly can compare to '19 or '20 or any other period, but that's not the way we set our goals. We set our goals based on looking forward and our expectation of retail sales and overall industry trends and segment trends.

我能否以稍微不同的方式回答你的問題，但希望能告訴你我們是如何思考它的，我們是如何看待它的。我們估計我們認為零售需求將會是什麼，我們根據營業額和逐個模型組合回到我們認為適當的庫存水平。這就是我們推動我們認為正確水平的方式。現在我們當然可以與 19 年或 20 年或任何其他時期進行比較，但這不是我們設定目標的方式。我們根據對零售銷售和整體行業趨勢和細分趨勢的展望和預期來設定目標。

So in that regard, we're getting very close to where we want to be at MasterCraft and probably in a very good shape in the Crest brand. So I -- the other thing I think that's important to consider is we've expanded distribution significantly in those additional points of distribution, take additional inventory to support across the brands. So when you merge that all together, the key is that we expect to turn inventory at our dealers at a much higher rate than we have in the past.

所以在這方面，我們已經非常接近我們想要在 MasterCraft 達到的目標，並且可能在 Crest 品牌中處於非常好的狀態。所以我 - 我認為另一件重要的事情是我們已經在這些額外的分銷點顯著擴大了分銷，採取額外的庫存來支持跨品牌。因此，當您將所有這些合併在一起時，關鍵是我們希望以比過去更高的速度周轉經銷商的庫存。

Got it. That's helpful. I guess just last question. You mentioned some of the pressure on margins is mix as you've introduced some lower-priced NXT models based on where you're seeing demand. Maybe talk a little bit about what other kind of demand drivers you're seeing in terms of where consumers are shifting their purchasing? Are they going towards lower models kind of overall? Are they going to less options? I guess maybe kind of get a sense of is that the only indication of where you're seeing maybe some pressure on spending. Or are there others as well?

知道了。這很有幫助。我想只是最後一個問題。你提到了一些利潤壓力是混合的，因為你已經根據你看到的需求推出了一些價格較低的 NXT 模型。也許談談你在消費者轉移購買方面看到的其他類型的需求驅動因素？他們總體上會轉向較低型號嗎？他們會減少選擇嗎？我想也許有點感覺是你看到的唯一跡象可能是支出壓力。或者還有其他人嗎？

Go ahead George.

喬治。

Yes. What I would say, we're not seeing a real change in the consumer habits in terms of options and whatnot. I think part of it is in our NXT portfolio, we've previously had 3 models in within the last 12 months, we've added 2 incremental models. So part of it is just as we level load our production and try to make sure that we're getting those new models into the marketplace into the consumers that are demanding that new product that is partly driving the mix towards some of the higher percentage of NXT production relative to prior years.

是的。我要說的是，我們沒有看到消費者在選擇等方面的習慣發生真正的變化。我認為其中一部分在我們的 NXT 產品組合中，我們在過去 12 個月內有 3 個模型，我們添加了 2 個增量模型。因此，部分原因是我們將生產水平加載並嘗試確保我們將這些新模型推向市場，滿足要求新產品的消費者，這在一定程度上推動了產品組合向更高比例的方向發展。與往年相比的 NXT 產量。

But we're seeing pretty good -- very strong ordering patterns throughout the portfolio, both at our premium X line all the way through our midline and NXT models. So -- and the consumers continue to option up the boats and put different features on. That being said, we are seeing a higher percentage of stock boats. The dealers are ordering more boats that are going into stock inventory versus the last couple of years, we had a high percentage of retail sold boats being ordered where the customers were ordering the boats, [stocking] them out to their particular needs.

但我們看到非常好——整個產品組合中非常強大的訂購模式，無論是在我們的優質 X 系列中，還是在我們的中線和 NXT 模型中。所以 - 消費者繼續選擇船隻並安裝不同的功能。話雖如此，我們看到庫存船的比例更高。與過去幾年相比，經銷商正在訂購更多進入庫存的船隻，我們在客戶訂購船隻的地方訂購了很高比例的零售銷售船隻，[庫存]它們以滿足他們的特定需求。

And when you have a higher percentage of retail sold boats you tend to see more options, more higher-margin type of option selected versus the stock boat. So it's really less about what we're seeing from the consumer and more about just the mix of retail sold to a consumer retail orders, which is consistent with kind of past seasonal type of patterns.

當你擁有更高比例的零售船時，你往往會看到更多的選擇，與庫存船相比，選擇的選擇類型更多、利潤率更高。因此，這真的不是我們從消費者那裡看到的，更多的是零售銷售到消費者零售訂單的組合，這與過去的季節性模式是一致的。

Eric, (inaudible) sometimes you have a segment mix going on with Crest versus MasterCraft that can impact margins as well as -- again, just a reminder, in the model mix and we refreshed the NXT and the XT product offering. And so those have been doing very -- refreshed and expanded. So those have been doing very well. And then in some other cases too, in the COVID era, we were able to constrain, if you will, the mix of models based on our ability to managed throughput. And now we're much more responding to true retail demand. So there's some reversion there in some models there that we've constrained in the past that there's pent-up demand for.

埃里克，（聽不清）有時你會在 Crest 與 MasterCraft 之間進行細分市場組合，這可能會影響利潤率以及 - 再次提醒，在模型組合中，我們更新了 NXT 和 XT 產品。所以那些一直在做 - 更新和擴展。所以那些人一直做得很好。然後在其他一些情況下，在 COVID 時代，如果你願意的話，我們能夠根據我們管理吞吐量的能力來限制模型的組合。現在我們對真正的零售需求做出了更多的回應。因此，在某些模型中存在一些回歸，我們過去曾限制這些模型存在被壓抑的需求。

And our next question comes from Michael Swartz of Truist.

我們的下一個問題來自 Truist 的 Michael Swartz。

Just maybe a quick question on -- I think you mentioned that NXT is kind of margin dilutive in the back half of the year. But I think if we go back a couple of years, the commentary was there was no real difference between kind of the premium MasterCraft and the NXT sub-brand, if you want to call it that. So I guess has something changed in that margin relationship between the 2? Or is this totally a commentary just around kind of content or attachment rates?

也許只是一個快速的問題 - 我想你提到 NXT 在今年下半年有點稀釋利潤。但我認為，如果我們回到幾年前，評論是高級 MasterCraft 和 NXT 子品牌之間沒有真正的區別，如果你想這麼說的話。所以我想這兩者之間的保證金關係是否發生了變化？或者這完全是關於某種內容或附件率的評論？

It's really content. The NXT models don't have the same level of options available to them. So when those are ordered because we have very healthy margins on the options they tend to have on a base-boat basis, it's comparable. But when you add the options in, that's when the margin erosion comes about. It's not terrible, but it's less.

真的很滿足。 NXT 模型沒有相同級別的可用選項。因此，當訂購這些產品時，因為我們在他們傾向於基於基礎船的選項上有非常可觀的利潤率，這是可比的。但是當你添加選項時，利潤率就會下降。這並不可怕，但它更少。

And Mike, I would just comment, we have competitors that are being very aggressive in terms of pricing. And so it's very important for us to make sure we content these models so they can compete with that pressure.

邁克，我只想評論，我們的競爭對手在定價方面非常激進。因此，確保我們對這些模型感到滿意對我們來說非常重要，這樣它們才能與這種壓力競爭。

Okay. That's helpful. And that kind of leads into the next question. I think, Fred, you had made comments just on maybe what you've seen at some of the early boat shows. And I think you said you're up both year-over-year and versus 2019 levels. But just a clarification on that. Is that in units? Or is that in dollars? And then maybe just clarify a little bit on the -- some of the discounts or incentives or rebates that are being offered at some of these shows. Is there any way to quantify maybe the level of discounting this year versus 2019?

好的。這很有幫助。這會導致下一個問題。我想，弗雷德，你可能只是對你在一些早期遊艇展上看到的東西發表了評論。而且我認為你說過你比去年同期和 2019 年的水平都有所提高。但只是對此進行澄清。是單位嗎？或者是美元？然後可能只是澄清一些 - 在其中一些節目中提供的一些折扣或獎勵或回扣。有什麼方法可以量化今年與 2019 年相比的折扣水平嗎？

Well, the first comment is, with the boat shows, that's with regard to units. That's why we track those -- we track amongst it 2-week window after the end of the show. So we're giving you the results from those shows that we've had -- the shows have taken place, and we've had a couple of weeks after to finish up closing leads. So that was one part of your question. And the second part, George?

好吧，第一個評論是，對於船展，這是關於單位的。這就是為什麼我們跟踪這些 - 我們在節目結束後的 2 週窗口中跟踪它。因此，我們將向您提供我們已經舉辦過的那些演出的結果——演出已經舉行，我們有幾週的時間來完成關閉線索。所以這是你問題的一部分。第二部分，喬治？

Yes. In terms of promotional activity, I think, as Tim mentioned earlier, while we're certainly seeing higher promotional activity this year versus the last 2 years compared to '19, we're not seeing -- we're not back to '19 level of promotional activity. If you recall, we ended '19 with heavy inventory, which resulted in heavy promotions. And I would say as a whole, we're probably not back to that level.

是的。在促銷活動方面，我認為，正如蒂姆之前提到的，雖然與過去 2 年相比，今年我們肯定會看到比 19 年更高的促銷活動，但我們沒有看到——我們不會回到 19 年促銷活動的水平。如果您還記得的話，我們在 19 年結束時存有大量庫存，這導致了大量促銷活動。我想說的是，作為一個整體，我們可能還沒有回到那個水平。

But I think certainly, our expectation is that the competition will get more aggressive as we get into the retail selling season, depending on what happens in the macro-economic environment and our guidance, and our plan provides us the flexibility to appropriately adjust our level of discounting to make sure that we are appropriately taking share where we expect to. So -- but I would say it's still lower than where it was in 2019.

但我認為可以肯定的是，我們的預期是隨著我們進入零售銷售旺季，競爭將變得更加激烈，這取決於宏觀經濟環境和我們的指導方針，我們的計劃為我們提供了適當調整水平的靈活性折扣以確保我們在我們期望的地方適當地分享。所以——但我想說它仍然低於 2019 年的水平。

Sure. If I had to put a number on it, I mean Q2, a combination of retail rebates as well as additional floor plan cost probably would be a headwind of about 150 basis points if I were to drive a number.

當然。如果我必須在上面加上一個數字，我的意思是第二季度，如果我要計算一個數字，零售回扣和額外的平面圖成本的組合可能會帶來大約 150 個基點的逆風。

Okay. And I assume that's a year-over-year (inaudible).

好的。我假設這是一年比一年（聽不清）。

That is correct.

那是對的。

Okay. And then just final question for me, just more of a house -- maybe a housekeeping question. In the second quarter, I think there was a pretty big drop in OpEx dollars. Was there something timing-related in that? Or was this kind of the new run rate that we should be thinking about going forward?

好的。然後是我的最後一個問題，只是一個房子——也許是一個家政問題。在第二季度，我認為 OpEx 美元出現了相當大的下降。這裡面有什麼時間相關的東西嗎？還是我們應該考慮未來的這種新運行率？

The estimate of capital expenditures for the year hasn't changed. Since that the...

全年資本支出預估未變。自那以後...

No, no, no. I'm sorry, not CapEx operating expenses. So SG&A and sales and marketing.

不不不。對不起，不是資本支出運營費用。所以 SG&A 以及銷售和營銷。

There is some seasonality there, Mike. Obviously, we've got a return to boat shows. So you're going to see some higher operating, especially on the sales and marketing side in the second half of our year as we kind of go back to boat shows, travel expenses supporting the port -- boat shows, those types of expenses are going to be more back-end loaded or second half of the year loaded as an example. So I would expect to see higher levels of operating expense in the second half of the year versus the first half.

那裡有一些季節性，邁克。顯然，我們又回到了船展。所以你會看到一些更高的運營，特別是在我們下半年的銷售和營銷方面，因為我們有點回到船展，支持港口的旅行費用 - 船展，這些類型的費用是以後端加載或下半年加載為例。因此，我預計今年下半年的運營費用會比上半年更高。

And I'm showing no further questions. This concludes today's conference call. Thank you for participating. You may now disconnect.

我沒有再提出任何問題。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。