Topgolf Callaway Brands Corp (MODG) 2024 Q2 法說會逐字稿

Good day, and welcome to the Topgolf Callaway Brands second quarter 2024 conference call. (Operator Instructions). Please note that this event is being recorded.

美好的一天，歡迎參加 Topgolf Callaway Brands 2024 年第二季電話會議。（操作員說明）。請注意，該事件正在被記錄。

I would now like to turn the conference over to Katina Metzidakis, Vice President of Investor Relations and Corporate Communications. Please go ahead.

現在我想將會議交給投資者關係和企業傳播副總裁 Katina Metzidakis。請繼續。

Thank you, operator, and good afternoon, everyone. Welcome to Topgolf Callaway Brands' second quarter earnings conference call. I'm Katina Metzidakis, the company's Vice President of Investor Relations and Corporate Communications. Joining me as speakers on today's call are Chip Brewer, our President and Chief Executive Officer; and Brian Lynch, our Chief Financial Officer and Chief Legal Officer.

謝謝接線員，大家下午好。歡迎參加 Topgolf Callaway Brands 第二季財報電話會議。我是 Katina Metzidakis，公司投資人關係與企業傳播副總裁。與我一起在今天的電話會議上發言的還有我們的總裁兼執行長 Chip Brewer；以及我們的財務長兼首席法務官 Brian Lynch。

Earlier today, the company issued a press release announcing its second quarter financial results. We have published an updated presentation. Our earnings presentation as well as the earnings press release are both available on the company's Investor Relations website under the financial results tab.

今天早些時候，該公司發布新聞稿，公佈了第二季財務業績。我們發布了更新的簡報。我們的收益演示以及收益新聞稿均可在公司投資者關係網站的財務表現標籤下查看。

Aside from revenue, the financial numbers reported and discussed on today's call are non-GAAP measures. We identify these non-GAAP measures in the presentation and reconcile the measures to the corresponding GAAP measures in accordance with Regulation G. Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statements contained in the presentation and the press release for a more complete description.

除收入外，今天電話會議上報告和討論的財務數據均為非公認會計準則指標。我們在簡報中確定了這些非公認會計原則措施，並根據G 條例將這些措施與相應的公認會計原則措施進行了協調。實際結果與實際結果有重大差異的風險與不確定性。我們鼓勵您查看簡報和新聞稿中包含的安全港聲明，以獲得更完整的描述。

And with that, I would now like to turn the call over to Chip Brewer.

現在，我想將電話轉給奇普布魯爾。

Thank you, Katina. Good afternoon, everyone, and thank you for joining our call. I want to begin by reiterating the announcement we made in our press release about our formal strategic review of the Topgolf business. We remain convinced that Topgolf is a high-quality business with significant future opportunity. It is transforming the game of golf, and we believe it will deliver substantial growth and financial returns over time. At the same time, we have been disappointed in our stock performance for some time as well as the more recent same venue sales performance.

謝謝你，卡蒂娜。大家下午好，感謝您加入我們的通話。首先，我想重申我們在新聞稿中宣布的有關對 Topgolf 業務進行正式策略審查的聲明。我們仍然堅信，Topgolf 是一家高品質的企業，未來機會巨大。它正在改變高爾夫運動，我們相信隨著時間的推移，它將帶來可觀的成長和財務回報。同時，一段時間以來我們對我們的股票表現以及最近的同場銷售表現感到失望。

As a result, we are in the process of conducting a full strategic review of Topgolf. This review includes the assessment of organic strategies to return Topgolf to profitable same venue sales growth. As well as inorganic alternatives, including a potential spin of Topgolf.

因此，我們正在對 Topgolf 進行全面的策略審查。本篇回顧包括對有機策略的評估，以使 Topgolf 恢復盈利的同場銷售成長。以及無機替代品，包括潛在的頂級高爾夫旋轉。

Our strategic review of Topgolf is being conducted with the help of outside advisers and is focused on maximizing long-term shareholder value. We're active in this work at present and expect to complete our strategic review of Topgolf expeditiously. We will report back on this when the work is complete.

我們對 Topgolf 的策略審查是在外部顧問的幫助下進行的，重點是實現長期股東價值最大化。我們目前正在積極進行這項工作，並期望盡快完成對 Topgolf 的策略審查。工作完成後，我們將對此進行報告。

As you can imagine, I'm unable to provide further comments or details on any potential inorganic strategies at this time. I will try to address the organic growth initiatives during my comments, and we'll be happy to answer questions on this portion.

正如你可以想像的那樣，我目前無法就任何潛在的無機策略提供進一步的評論或細節。我將在評論中嘗試討論有機成長計劃，我們很樂意回答有關這部分的問題。

Moving on to a review of the second quarter. Total revenue of $1.158 billion was below our expectations primarily due to lower-than-expected same venue sales at Topgolf, which I'll discuss in greater detail in a few minutes. Both the golf equipment and the Active Lifestyle segments performed roughly consistent with expectations, including strong market share performance at both TravisMathew and Callaway Golf Equipment. Total company Q2 EBITDA of $206 million was ahead of expectations driven by continued strong operating efficiencies and cost management across the business.

接下來回顧第二季。11.58 億美元的總收入低於我們的預期，主要是由於 Topgolf 的同場銷售額低於預期，我將在幾分鐘內更詳細地討論這一點。高爾夫裝備和積極生活方式細分市場的表現大致符合預期，包括 TravisMathew 和 Callaway 高爾夫裝備的強勁市場份額表現。由於整個業務持續強勁的營運效率和成本管理，該公司第二季 EBITDA 總額達到 2.06 億美元，超出預期。

Given these results and current trends, we are lowering our full year revenue expectations by approximately $225 million to a range of $4.2 billion to $4.26 billion and our full year same venue sales estimates to be down very high single to low double digits. As a result, we are revising our EBITDA outlook to $570 million to $590 million, which implies an approximately flat year-over-year EBITDA margin.

鑑於這些結果和當前趨勢，我們將全年收入預期降低約2.25 億美元，至42 億至42.6 億美元之間，我們全年同場銷售額預計將下降非常高的個位數到低兩位數。因此，我們將 EBITDA 預期修正為 5.7 億美元至 5.9 億美元，這意味著 EBITDA 利潤率與去年同期基本持平。

By segment, we're lowering our second half Topgolf revenue outlook based on our updated same venue sales estimates. This will negatively impact our EBITDA but the flow-through will be mitigated by continued improvement in our venue operating efficiencies as well as cost savings initiatives.

依照細分市場，我們根據更新的同場銷售預測下調了下半年 Topgolf 的營收預期。這將對我們的 EBITDA 產生負面影響，但透過不斷提高我們的場館營運效率以及成本節約舉措，流量將得到緩解。

In the legacy or product side of our business, we are revising our second half revenues down by approximately 2% or $55 million. This reflects the potential for further slowing of consumer activity in the second half of this year. However, we believe we can manage expenses to offset the majority of any bottom line impact of this modest revenue adjustment in our products business.

在我們業務的傳統或產品方面，我們將下半年的收入下調約 2% 或 5500 萬美元。這反映出今年下半年消費者活動可能進一步放緩。然而，我們相信我們可以管理費用，以抵消我們產品業務適度收入調整的大部分利潤影響。

Finally, as Brian will discuss in a few minutes, our cash flow and financial position remains strong.

最後，正如布萊恩將在幾分鐘內討論的那樣，我們的現金流和財務狀況仍然強勁。

I'll now move to segment performance, starting with Topgolf. I'd like to start with what we're seeing from a macro perspective. As has been well documented, persistent inflation over the last few years has led to belt tightening across wide portions of consumer discretionary spending.

我現在將轉向細分錶現，從 Topgolf 開始。我想從宏觀角度談談我們所看到的情況。正如有據可查的那樣，過去幾年持續的通貨膨脹導致大部分非必需消費品支出都勒緊褲腰帶。

We see it in an internal and external survey data where price is the biggest concern of our customers as well as those in both the leisure and restaurant industries. We hear it from our peers, see it in credit card data and observe it firsthand in our venue business, including feedback from our large corporate clients. In support of this, during the quarter, we saw that our top-performing venues were positively correlated with the overall household income data.

我們在內部和外部調查數據中看到了這一點，其中價格是我們的客戶以及休閒和餐飲業客戶最關心的問題。我們從同行那裡聽到了這一點，在信用卡數據中看到了這一點，並在我們的場館業務中親眼觀察到了這一點，包括來自我們大型企業客戶的反饋。為了支持這一點，在本季度，我們看到表現最好的場館與整體家庭收入數據呈正相關。

I'll now turn to our same venue sales results, including what we saw, what we're going to do about it and our thoughts moving forward. What we're seeing, Topgolf same venue sales declined 8% in the quarter driven by soft overall traffic trends. The year-over-year data shows both the 1 and 2 Bay and the 3+ Bay down similarly in the quarter. But when you look at the two year stack in the 2019 data, it shows the consumer portion of our business remains stronger than our events business. The 1 to 2 Bay trends appear to be moving directionally with that of other similar entertainment experiences and restaurants.

現在我將談談我們同一場館的銷售結果，包括我們所看到的、我們將採取的措施以及我們未來的想法。我們看到，由於整體客流量趨勢疲軟，Topgolf 本季同場銷售額下降了 8%。年比數據顯示，1、2 灣以及 3+ 灣在本季均類似下降。但當你查看 2019 年資料中的兩年堆疊時，你會發現我們業務的消費者部分仍然強於我們的活動業務。1 至 2 灣的趨勢似乎與其他類似的娛樂體驗和餐廳的趨勢一致。

Turning to Events and 3+ Bay. This is the slowest part of our business, but perhaps the easiest to understand. For the quarter, 3+ Bay same venue sales was down 9% year-over-year, 27% on a two year stack and 5% versus 2019. We previously thought the events business was stabilizing, but it then deteriorated further in late May and June. We believe the events business results reflect a normalization from a post-COVID surge as well as softness in demand typical of slowing economic conditions and corporate belt tightening. Based on sales lead data, we now expect this slowness to continue through Q3 with the potential to level off by the end of the year.

轉向活動和 3+ 灣。這是我們業務中最慢的部分，但也許是最容易理解的部分。本季度，3+ Bay 同場館銷售額年減 9%，與兩年相比下降 27%，與 2019 年相比下降 5%。我們先前認為活動業務正在穩定，但在 5 月下旬和 6 月進一步惡化。我們認為，這些活動的業務結果反映了新冠疫情後經濟激增的正常化，以及典型的經濟狀況放緩和企業勒緊褲帶的需求疲軟。根據銷售線索數據，我們現在預計這種放緩將持續到第三季度，並有可能在年底前趨於平穩。

Looking at the most recent data, we saw our combined US same venue sales deteriorate in June as there was a step change in macro demand starting in late May. This was despite the rollout, or more likely partially mitigated by the rollout, of our free 30 promotion and advertising campaign. Both of which had tested quite well in May. June US same venue sales was down 8% when we expected it to be slightly positive. July was down approximately 11% on a retail calendar basis, with the last two weeks of the month trending better than the first few weeks.

從最新數據來看，我們看到 6 月美國同場銷售總額惡化，因為從 5 月底開始宏觀需求發生了階梯變化。儘管我們推出了 30 次免費促銷和廣告活動，或更可能部分緩解了這種情況。兩者在五月份的測試中都表現得很好。6 月美國同場銷售額下降 8%，而我們原本預計該銷售額將略有成長。以零售日曆計算，7 月下降了約 11%，該月最後兩週的趨勢比前幾週好。

With this as the backdrop, we're now forecasting our full year same venue sales to decline very high single digits to low double digits. This implies the trends we've been seeing in June and July continue for the balance of the year. Given the fact that August through mid-December should be a period of relatively easier comps, this forecast also allows for some additional slowing of overall demand.

以此為背景，我們現在預測全年同場銷售額將從非常高的個位數下降到低兩位數。這意味著我們在 6 月和 7 月看到的趨勢將在今年剩餘時間繼續下去。考慮到 8 月到 12 月中旬應該是競爭相對容易的時期，這項預測也考慮到整體需求會進一步放緩。

Now turning to what we're going to do about it. First of all, we're furthering our digital efforts as well as refining our select promotional offerings. As I've noted on the last several calls, we believe the biggest opportunity for us is building out Topgolf's digital business. In fact, our digital sales penetration increased again this quarter by another 50 basis points year-over-year to 35%.

現在轉向我們要做什麼。首先，我們正在進一步推進數位化工作並完善我們精選的促銷產品。正如我在最近幾次電話會議中指出的那樣，我們相信我們最大的機會是建立 Topgolf 的數位業務。事實上，本季我們的數位銷售滲透率再次年增 50 個基點，達到 35%。

This is important as we know that venues with higher digital sales penetration have consistently outperformed our fleet averages. And this is why a significant portion of our investments are focused on strengthening our digital capabilities, both from a technology perspective, such as implementing PIE, our reservation system, and our consumer data platform as well as from a talent and organizational perspective. To this end, the digital team is going to be investing further in additional performance marketing, loyalty program and consumer insight expertise.

這很重要，因為我們知道數位銷售滲透率較高的場館的表現始終優於我們的平均水準。這就是為什麼我們的投資很大一部分都集中在加強我們的數位能力，無論是從技術角度來看，例如實施 PIE、我們的預訂系統和消費者數據平台，還是從人才和組織角度來看。為此，數位團隊將進一步投資於額外的績效行銷、忠誠度計劃和消費者洞察專業知識。

Turning to promotions. To protect long-term profitability and brand value, any promotions that we offer need to be selective and targeted. With this in mind, we have analyzed our free 30 promotion and found it to be effective in driving traffic and interest from existing customers, smoothing out demand and driving an improved overall results, but it has been less effective in attracting new customers. Many new customers generally visit for the first time by walking in, and we believe they may be reluctant to book it to our reservation.

轉向促銷。為了保護長期獲利能力和品牌價值，我們提供的任何促銷活動都需要選擇性和有針對性。考慮到這一點，我們分析了免費 30 次促銷活動，發現它在吸引現有客戶的流量和興趣、平滑需求和改善整體績效方面非常有效，但在吸引新客戶方面效果較差。許多新顧客通常會走進來才第一次來，我們相信他們可能不願意預訂到我們的預訂。

Given these insights, we will be utilizing our consumer data platform and targeting new customers with a walk-in version of our free 30 promotion that is redeemable anytime, not only nine-to-five weekdays and not requiring a two hour reservation, while continuing to drive our existing efforts via reservations for customers who value the reservations model we have built. We are trialing this now and look forward to seeing the results.

鑑於這些見解，我們將利用我們的消費者數據平台，針對新客戶推出免費30 促銷活動的步入式版本，該促銷活動可以隨時兌換，而不僅僅是工作日朝九晚五，也不需要兩小時的預訂，同時繼續透過為重視我們建立的預訂模式的客戶進行預訂來推動我們現有的努力。我們現在正在嘗試這一點，並期待看到結果。

Partnerships are another way to increase awareness and drive incremental traffic. As we have gained scale, we've been able to find bigger, more national partners. Our recently announced partnership with Visa is a good example of this. With this partnership, Topgolf is being promoted to cash at Visa cardholders via special offers intended to drive both new and repeat visits.

合作關係是提高知名度和增加流量的另一種方式。隨著我們規模的擴大，我們已經能夠找到更大、更多的全國性合作夥伴。我們最近宣布與 Visa 的合作就是一個很好的例子。透過此次合作，Topgolf 將透過特別優惠向 Visa 持卡人提供現金促銷，旨在吸引新客和回頭客。

Lastly, but importantly, we're going to be stepping up our game on delivering newness, continually improving the quality of our experience and reasons to visit. We are a premium experience and thus, by design, we are not made to be cheap. But we are unique and we can provide more fun in this value than other offerings. By refocusing on newness, we believe we can give customers more reasons to give Topgolf a try or come back and visit us again.

最後但重要的是，我們將加強提供新鮮感，不斷提高我們的體驗品質和訪問理由。我們提供優質體驗，因此，從設計上來說，我們並不是為了便宜而設計的。但我們是獨一無二的，我們可以在這個價值上提供比其他產品更多的樂趣。透過重新關注新穎性，我們相信我們可以為客戶提供更多理由來嘗試 Topgolf 或再次光臨我們。

From this point forward, on a national basis, we will be delivering exciting and fun new reasons to visit at least three to four times per year. For Q3, this includes the recently launched Sure Thing Golf Club which was designed by the Callaway engineers in consultation with the Topgolf team and is geared towards new golfers. It features a unique and innovative design that makes it easier to get the ball airborne and forward.

從現在開始，我們將在全國範圍內提供每年至少三到四次令人興奮和有趣的新理由。第三季度，其中包括最近推出的 Sure Thing 高爾夫俱樂部，該俱樂部由 Callaway 工程師與 Topgolf 團隊協商設計，面向新高爾夫球手。它具有獨特和創新的設計，使球更容易在空中飛行和前進。

Then in Q4, we'll be launching our next new in-venue game and if you're a fan of video games, we think you'll love it. In addition to these big national programs, there will also be more local initiatives to drive incremental visits and excitement such as concerts and live DJ nights.

然後在第四季度，我們將推出下一款新的場內遊戲，如果您是電玩迷，我們認為您會喜歡它。除了這些大型的國家級計畫外，還將推出更多地方性措施來增加遊客數量和刺激活動，例如音樂會和現場 DJ 之夜。

Turning to my thoughts moving forward. Overall, I firmly believe we are already doing a lot of the right things to drive growth in same venue sales over time, including constantly improving our teams and initiatives. As evidence of this, I point to the fact that since launching our spring and summer initiatives, we have seen purchase intent, brand recommendation and price perception scores improve. And perhaps most importantly, our fun scores are up, which we believe is a leading indicator for future growth and has historically been highly correlated to our consumers' likelihood to both return and recommend Topgolf.

轉向我前進的想法。總的來說，我堅信我們已經做了很多正確的事情來推動同場銷售隨著時間的推移而成長，包括不斷改進我們的團隊和舉措。作為這一點的證據，我指出，自從推出春季和夏季計劃以來，我們已經看到購買意願、品牌推薦和價格感知得分有所提高。也許最重要的是，我們的樂趣分數上升了，我們認為這是未來成長的領先指標，並且在歷史上與我們的消費者回歸和推薦 Topgolf 的可能性高度相關。

At the same time, we've also identified a fewer areas where we can do better, and we're putting in the plans and resources to quickly address these going forward. Although it is clear that some of these initiatives will take some time to implement and the macro environment remains choppy, I continue to believe in Topgolf's ability to drive same venue sales growth over time.

同時，我們也確定了一些可以做得更好的領域，並且我們正在投入計劃和資源來快速解決這些問題。儘管顯然其中一些措施需要一段時間才能實施，而且宏觀環境仍然不穩定，但我仍然相信 Topgolf 有能力隨著時間的推移推動同場銷售成長。

Shifting gears to our second key performance driver, margin expansion. Our team has consistently shown its ability to drive venue operating margins, both in positive and difficult market conditions. For the quarter, despite soft top line trends, we were able to expand total segment adjusted EBITDA margin by 260 basis points year-over-year. That said, given our lowered revenue outlook for the back half of the year, we now expect full year venue EBITDA margins to be roughly flat versus last year at approximately 34%, which is still quite healthy considering our lower revenue expectations and is a full 100 basis points ahead of our 2022 margin with plenty of room to grow as top line improves.

轉向我們的第二個關鍵績效驅動因素，即利潤擴張。無論在積極或困難的市場條件下，我們的團隊始終展現出提高場館營運利潤的能力。本季度，儘管營收趨勢疲軟，但我們仍能夠將部門調整後 EBITDA 利潤率較去年同期擴大 260 個基點。也就是說，鑑於我們下調了下半年的收入前景，我們現在預計全年場館EBITDA 利潤率將與去年大致持平，約為34%，考慮到我們較低的收入預期，這仍然相當健康，並且是一個全面的成長。

Moving to new venue openings. We remain on track to add seven venues this year. We added Bryan, Texas in Q1, successfully opened Durham in Montebello in Q2 and the four remaining 2024 venues are under construction and on schedule. Venues continue to open well and are achieving our high financial targets.

搬到新的場地開放。今年我們仍有望增加七個場館。我們在第一季度新增了德克薩斯州布萊恩，在第二季度成功開設了蒙特貝羅的達勒姆，其餘 4 個 2024 年場館正在建設中並按計劃進行。場館繼續開放良好，並正在實現我們的高財務目標。

In conclusion on the Topgolf segment report, TopGolf is performing well in two of its three key performance drivers, including venue margins and new venue development. On the same venue sales front, results have been below our expectations, and we are committed to improving here.

總而言之，Topgolf 部門報告顯示，TopGolf 在三個關鍵績效驅動因素中的兩個方面表現良好，包括場地利潤和新場地開發。在同一場館的銷售方面，結果低於我們的預期，我們致力於改進這裡。

However, I believe that the vast majority of what we are seeing is an economic cycle and or a post-COVID normalization in the events portion of our business. Importantly, we are continuing to strengthen our capabilities and expertise to drive positive same-venue sales in a normalized environment.

然而，我相信我們所看到的絕大多數是經濟週期和/或疫情後我們業務中事件部分的正常化。重要的是，我們正在繼續加強我們的能力和專業知識，以在正常化的環境中推動積極的同場銷售。

I believe the enduring strength of Topgolf remains intact. This being that consumers really enjoy the experience. In addition, the sport of golf remains on trend as does Topgolf, and Topgolf retains a strong economic model, a model where the core profitability of our venues, as measured on a normalized revenue level, is increasing over time. This combines well with an outstanding growth outlook as we can identify and build new venues with high confidence and unmatched execution and the business benefits from a uniquely strong defensive moat.

我相信 Topgolf 的持久力量仍然完好無損。這是消費者真正享受的體驗。此外，高爾夫運動和 Topgolf 一樣仍然處於流行趨勢，並且 Topgolf 保留了強大的經濟模型，在該模型中，我們場館的核心盈利能力（以標準化收入水平衡量）隨著時間的推移而不斷增加。這與出色的成長前景完美結合，因為我們可以以高度的信心和無與倫比的執行力來識別和建造新場館，並從獨特的強大防禦護城河中獲得業務收益。

Turning now to Golf Equipment. The Callaway brand remains strong with growing market share positions. This quarter, Callaway held its position as the number one US market share brand in driver, fairway woods and hybrids. Our Ai Smoke line maintained the number one US model market share position in driver, fairway woods and irons, and Odyssey also maintained its position as the number one putter brand.

現在轉向高爾夫裝備。卡拉威品牌依然強勁，市佔率不斷成長。本季度，卡拉威在發球木、球道木桿和混合木桿方面保持了美國市場份額第一品牌的地位。我們的Ai Smoke系列在發球桿、球道木桿和鐵桿方面保持了美國型號市場份額第一的地位，而Odyssey也保持了其第一推桿品牌的地位。

One stat that I'm particularly proud of is our June green grass woods market share of 38%. 38% is a terrific number. it showcases the outstanding performance of our Ai Smoke woods in a fitting environment. And the fact that we can deliver this at green grass also showcases our scale and strengthened distribution in this important channel.

我特別自豪的一項統計數據是我們 6 月綠草樹林的市佔率為 38%。 38%是一個了不起的數字。它在合適的環境中展示了我們艾煙木的卓越性能。事實上，我們能夠在 greengrass 上提供這項服務也展示了我們在這個重要管道的規模和加強的分銷。

Turning to golf ball. The significant and strategic investments we've made in golf ball over the last several years continue to pay dividends for the Callaway brand. A major focus for Callaway this year was to grow in our tour ball segment with our new Chrome Tour product line. Our results show that we're doing just that.

轉向高爾夫球。過去幾年我們在高爾夫球領域的重大策略投資持續為卡拉威品牌帶來紅利。卡拉威今年的主要重點是透過新的 Chrome Tour 產品線來發展我們的巡迴賽球領域。我們的結果表明我們正在這樣做。

As you may recall, last quarter, I announced we will be hosting Chrome Tour ball speed and spin challenges. We have now done hundreds of these, and the results have been impressive. Our test data shows that we are faster in 86% of the test and that we deliver an advantage in pitch shot back spin in 66% of the test. Our overall June US ball market share increased by 120 basis points year-over-year to 21.9% and our premium ball share achieved a new record market share of 12%, up 150 basis points year-over-year.

您可能還記得，上個季度，我宣布我們將舉辦 Chrome Tour 球速和旋轉挑戰賽。我們現在已經做了數百個這樣的事情，結果令人印象深刻。我們的測試數據顯示，我們在 86% 的測試中速度更快，並且在 66% 的測試中我們在投球後旋方面具有優勢。我們 6 月美國球的整體市佔率年增 120 個基點，達到 21.9%，我們的優質球市佔率創下 12% 的新紀錄，較去年同期成長 150 個基點。

Our brand has also had an outstanding year on tour, with Yuka Saso winning her second US Women's Open and Xander winning both his first and his second major championships, the PGA Championship and then the Open Championship.

我們的品牌在巡迴賽上也度過了出色的一年，Yuka Saso 贏得了她的第二個美國女子公開賽冠軍，Xander 贏得了他的第一個和第二個大滿貫賽冠軍、PGA錦標賽和公開賽冠軍。

Looking at global markets. The core golf markets of the US, Japan, and Europe all remain healthy with field inventories, consumer demand and overall market conditions steady, if not slightly positive. In each of these markets, we believe we are slightly outperforming the overall market as measured by revenues and market share. The Korean market, on the other hand, remains soft, down double digits this year and unfortunately, we have also underperformed in this market. As a result, we have recently made changes aimed at improving our relative performance here, and we are seeing positive signs.

放眼全球市場。美國、日本和歐洲的核心高爾夫市場均保持健康，場地庫存、消費者需求和整體市場狀況即使不是略微樂觀，也保持穩定。我們相信，從收入和市佔率來看，在每個市場中，我們的表現都略勝於整體市場。另一方面，韓國市場仍然疲軟，今年下降了兩位數，不幸的是，我們在這個市場的表現也不佳。因此，我們最近做出了一些改變，旨在提高我們的相對錶現，並且我們看到了積極的跡象。

For the balance of the year, we're excited about our recent upcoming product launches. We just launched our new Opus Wedge, and they are already a popular choice on tour. In my opinion, this is the best wedge we have launched in my time here at Callaway. Congrats and well done to the teams that drove this.

在今年剩下的時間裡，我們對最近即將推出的產品感到興奮。我們剛剛推出了新的 Opus Wedge，它們已經成為巡迴演出的熱門選擇。在我看來，這是我在卡拉威期間推出的最好的挖起桿。祝賀推動這一切的團隊，他們做得很好。

And looking only slightly forward, on next Monday, we will be announcing the launch of our new APEX line of irons. This is our most premium line of irons and the product is both beautiful and innovative. I'm particularly excited about the new fusion technology that will be introduced as part of this exciting new line up, and I invite you to tune into our launch communication to learn more.

稍微展望一下，下週一，我們將宣布推出新的 APEX 系列鐵桿。這是我們最優質的熨斗系列，該產品既美觀又創新。我對新的融合技術感到特別興奮，該技術將作為這個令人興奮的新系列的一部分推出，我邀請您收聽我們的發布通訊以了解更多資訊。

Looking at our full year forecast for this segment, we now see revenues being approximately flat for the full year but up slightly on a currency-neutral basis.

看看我們對該細分市場的全年預測，我們現在認為全年收入大致持平，但在貨幣中性的基礎上略有上升。

Switching gears to our active lifestyle segment. Q2 revenues were in line with expectations. TravisMathew had a solid quarter, delivering share gains at wholesale and also opening five new retail stores. They are on track to open 10 stores for the full year for a total of 57. The women's initiative also continues to develop nicely and is now approaching 10% of revenues. It appears to be on its way to being a significant portion of this business. In addition, the TravisMathew team has done a great job growing their outerwear business, which in turn is helping them be a less seasonally focused brand.

轉向我們積極的生活方式部分。第二季度營收符合預期。TravisMathew 的季度業績表現強勁，批發市場份額有所增長，並開設了五家新零售店。他們預計全年將開設 10 家門市，總數將達到 57 家。婦女倡議也持續良好發展，目前已接近收入的 10%。它似乎正在成為該業務的重要組成部分。此外，TravisMathew 團隊在拓展外套業務方面做得非常出色，這反過來又幫助他們成為一個不太注重季節性的品牌。

Moving to Jack Wolfskin. I'd like to commend the team for their hard work as we took significant steps to rightsize the business since we last spoke on our Q1 earnings call. The brand has successfully shifted its strategic focus back to its core markets in Central Europe and China. We are encouraged by recent results, including achieving our sales targets for Q2 and we still expect a positive EBITDA performance in 2024. Consistent with last quarter's communication, we expect revenues in this segment to decline year-over-year as we form a new base in which to resume growth.

轉向傑克·沃爾夫斯金。我要讚揚該團隊的辛勤工作，自從我們上次在第一季財報電話會議上發言以來，我們採取了重大措施來調整業務規模。該品牌已成功將戰略重心轉移回中歐和中國的核心市場。我們對最近的業績感到鼓舞，包括實現第二季度的銷售目標，我們仍然預計 2024 年將實現積極的 EBITDA 表現。與上季的溝通一致，我們預計該部門的收入將同比下降，因為我們形成了恢復成長的新基礎。

In conclusion, we are pleased with the overall performance of both our golf equipment and Active Lifestyle segments. At Topgolf, we are working through what we view as a short-term cycle of volatility in our same venue sales while, at the same time, significantly improving organization's ability to drive positive results in a normalized environment.

總之，我們對高爾夫裝備和積極生活方式領域的整體表現感到滿意。在 Topgolf，我們正在努力解決同場銷售的短期波動週期，同時顯著提高組織在正常化環境中推動積極成果的能力。

We continue to demonstrate our ability to drive improved operating efficiency within our venues, to reliably deliver strong performance in newly opened venues with highly attractive financial returns, to grow our digital acumen and penetration and to build on the overall strength of the consumer experience, an experience, which continues to resonate with Topgolf players as one of the most fun entertainment options available.

我們繼續證明我們有能力提高場館內的營運效率，在新開業的場館中可靠地提供強勁的業績，並提供極具吸引力的財務回報，提高我們的數位敏銳度和滲透率，並增強消費者體驗的整體實力，體驗，作為最有趣的娛樂選擇之一，繼續引起 Topgolf 玩家的共鳴。

As we look forward, we remain confident that we have the proper strategy in place to drive long-term growth in both revenue and profitability.

展望未來，我們仍然相信我們擁有適當的策略來推動收入和獲利能力的長期成長。

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

這樣，我會將電話轉給布萊恩。

Thank you, Chip, and good afternoon, everyone. Chip covered our announcement regarding the strategic review of Topgolf, so I will jump right into our financial results. I will start with some financial highlights for the quarter.

謝謝奇普，大家下午好。Chip 報告了我們關於 Topgolf 策略審查的公告，所以我將直接進入我們的財務表現。我將從本季度的一些財務亮點開始。

Q2 non-GAAP net income of $83 million, adjusted EBITDA of $206 million and EPS of $0.42 were all ahead of expectations despite a 2% year-over-year decrease in revenue. First half cash provided by operations improved $173 million compared to first half last year. Our inventory reduction initiatives were successful, with our consolidated inventory decreasing $193 million since Q2 last year. We made a $50 million discretionary payment against the outstanding principal of our term loan debt at the end of May. Our available liquidity remains strong and increased $136 million compared to Q2 last year.

儘管營收年減 2%，但第二季非 GAAP 淨利潤為 8,300 萬美元，調整後 EBITDA 為 2.06 億美元，每股收益為 0.42 美元，均超出預期。與去年上半年相比，上半年業務提供的現金增加了 1.73 億美元。我們的庫存削減計劃取得了成功，自去年第二季以來，我們的綜合庫存減少了 1.93 億美元。5 月底，我們根據定期貸款債務的未償本金酌情支付了 5,000 萬美元。我們的可用流動性仍然強勁，與去年第二季相比增加了 1.36 億美元。

Now turning to the specifics. Q2 consolidated revenues decreased 2% year-over-year to $1.158 billion and were 3% below the midpoint of our guidance primarily due to softer trends in our Topgolf business. On a year-over-year basis, the decrease was attributable to an 8% decrease in golf equipment and 3% decrease in active lifestyle, both of which were largely in line with our expectations. This decrease was partially offset by revenue growth at Topgolf driven by new venues. Changes in foreign currency rates negatively impacted consolidated revenue by approximately $11 million.

現在轉向具體細節。第二季合併營收年減 2%，至 11.58 億美元，比我們的指引中位數低 3%，這主要是由於我們的 Topgolf 業務趨勢疲軟。與去年同期相比，下降的原因是高爾夫裝備減少了 8%，積極生活方式減少了 3%，這兩者基本上符合我們的預期。這一下降被新場地推動的 Topgolf 收入成長部分抵消。外幣匯率的變化對合併收入產生了約 1,100 萬美元的負面影響。

Q2 adjusted EBITDA of $206 million is approximately flat compared to last year and trailing 12-month adjusted EBITDA increased over 10% year-over-year. These results exceeded the high end of our Q2 2024 guidance range driven by strong operational efficiencies at Topgolf and reduced cost and expenses across the business.

Q2調整後 EBITDA 為 2.06 億美元，與去年基本持平，過去 12 個月調整後 EBITDA 年成長超過 10%。這些結果超出了我們 2024 年第二季指引範圍的上限，這得益於 Topgolf 強勁的營運效率以及整個業務成本和費用的降低。

Q2 non-GAAP net income was $83 million, up approximately 10% year-over-year. This increase in net income is primarily due to an increase in investment income and a tax benefit for the quarter. Net income also benefited from lower term loan interest expense as a result of our refinancing.

第二季非 GAAP 淨利潤為 8,300 萬美元，較去年同期成長約 10%。淨利潤的增加主要是由於投資收入的增加和本季的稅收優惠。由於我們的再融資，淨收入也受益於較低的定期貸款利息支出。

Moving to segment performance. At Topgolf, Q2 revenue grew 5% to $494 million driven primarily by the new venues opened since Q2 last year. The new venues are performing well and consistent with the financial targets and returns we previously communicated.

轉向細分績效。Topgolf 第二季營收成長 5%，達到 4.94 億美元，主要得益於去年第二季以來開設的新場館。新場館表現良好，符合我們先前溝通的財務目標和回報。

Topgolf operating income was $56 million in the second quarter, up 28% compared to the prior year, while adjusted EBITDA increased 19% year-over-year to $110 million. The adjusted EBITDA growth was driven primarily by the increased revenue and continued strong operating efficiencies, including benefits from our new labor model and cost management initiatives. We commend the team at Topgolf for their ability to drive profit in a volatile top line environment.

Topgolf第二季營業收入為5,600萬美元，較上年同期成長28%，調整後的EBITDA年增19%，達1.1億美元。調整後的 EBITDA 成長主要是由收入增加和持續強勁的營運效率推動的，包括我們新的勞動力模式和成本管理措施帶來的好處。我們讚揚 Topgolf 團隊在不穩定的營收環境中推動利潤的能力。

Moving to Q2 results for Golf Equipment. Overall, the underlying golf equipment business continued to see strong momentum from this year's club and ball launches with strong market shares, as Chip discussed earlier.

轉向高爾夫裝備第二季的業績。總體而言，正如 Chip 之前討論的那樣，今年的球桿和球類產品推出，基礎高爾夫裝備業務繼續保持強勁勢頭，市場份額強勁。

Revenue decreased 8% year-over-year to $414 million consistent with our expectations primarily due to lapping last year's launch of our Big Bertha woods and irons, which had an approximate $30 million impact compared to Q2 this year. This is just timing between quarters, and we still expect golf equipment to be up for the full year on a constant currency basis. Our golf equipment segment was also negatively impacted by approximately $7 million related to foreign exchange headwinds during the quarter.

營收年減 8% 至 4.14 億美元，與我們的預期一致，這主要是由於去年推出的 Big Bertha 木桿和鐵桿的研磨，與今年第二季度相比產生了約 3000 萬美元的影響。這只是季度之間的時間安排，我們仍然預期高爾夫裝備在固定匯率基礎上全年會有所成長。本季我們的高爾夫設備部門也受到與外匯逆風相關的約 700 萬美元的負面影響。

golf equipment operating income of $77 million decreased 20% year-over-year due to the lower revenue, higher airfreight costs and foreign exchange headwinds, which were partially offset by management of operating expenses.

高爾夫設備營業收入為 7,700 萬美元，年減 20%，原因是收入減少、空運成本上升和外匯不利因素，但部分被營業費用管理所抵銷。

In our active lifestyle segment, Q2 revenue decreased 3% year-over-year which is in line with our expectations and was primarily from softness in Jack Wolfskin due to high field inventories, along with unfavorable changes in foreign currency rates. Operating income decreased to $15 million compared to $20 million in the prior year primarily due to the lower sales.

在我們的正向生活方式領域，第二季營收年減 3%，這符合我們的預期，主要是由於現場庫存高以及外匯匯率的不利變化導致 Jack Wolfskin 的疲軟。營業收入從前一年的 2,000 萬美元降至 1,500 萬美元，主要是因為銷售額下降。

Moving to balance sheet and liquidity highlights. We continue to have ample liquidity. As of June 30, 2024, our available liquidity, which is comprised of cash on hand and incremental borrowing capacity under our credit facilities, increased $136 million to $784 million compared to the prior year due to better cash flow generation as the company continues to manage costs and more efficiently manage working capital, especially with regard to inventory.

轉向資產負債表和流動性亮點。我們仍然擁有充裕的流動性。截至2024 年6 月30 日，我們的可用流動性（包括手頭現金和信貸額度下的增量借款能力）與前一年相比增加了1.36 億美元，達到7.84 億美元，原因是公司繼續管理現金流，產生了更好的現金流。

At quarter end, we had total net debt of $2.4 billion, which excludes convertible debt of approximately $258 million compared to $2.2 billion for the same time last year. This increase is attributable to increased venue financing debt related to new venues partially offset by a reduction in term loan debt due to our recent debt paydown.

截至季末，我們的淨債務總額為 24 億美元，其中不包括約 2.58 億美元的可轉換債務，而去年同期為 22 億美元。這一增長歸因於與新場館相關的場館融資債務增加，但由於我們最近償還債務而導致定期貸款債務減少，部分抵消了增加。

We also think it is helpful to evaluate our net leverage position by excluding the REIT debt associated with our Topgolf venue financing, which is akin to capitalized rent with no additional principal or bullet repayment required. Excluding the REIT debt from our balance sheet, our REIT adjusted net debt is $981 million compared to $1.2 billion as of Q2 2023.

我們還認為，排除與我們的 Topgolf 場地融資相關的 REIT 債務，有助於評估我們的淨槓桿狀況，這類似於資本化租金，不需要額外的本金或子彈償還。從我們的資產負債表中剔除 REIT 債務，我們的 REIT 調整後淨債務為 9.81 億美元，而截至 2023 年第二季為 12 億美元。

Our net debt leverage, which excludes convertible debt, was 3.9 times at June 30, 2024, compared to 4.1 times in the prior year. This improvement was driven by increased EBITDA and improved cash flow, which more than offset the increased venue financing debt. Our REIT adjusted net debt leverage ratio, which burdens EBITDA with the REIT interest expense payments, was 1.9 times compared to 2.5 times in the prior year. We remain comfortable with these leverage levels.

截至 2024 年 6 月 30 日，我們的淨債務槓桿（不含可轉換債務）為 3.9 倍，而前一年為 4.1 倍。這一改善是由 EBITDA 增加和現金流改善所推動的，這遠遠抵消了場地融資債務的增加。我們的 REIT 調整後淨負債槓桿率為 1.9 倍，而前一年為 2.5 倍，該比率透過 REIT 利息支出支付 EBITDA。我們對這些槓桿水平仍然感到滿意。

Speaking of REITs, I want to provide a quick update based on what we are seeing in the market. First, our venues continue to be viewed as very attractive investments and we are seeing strong demand and in fact, increased interest from new REIT partners for these venues. Second, the cap rates on new venues remain steady and in line with the rates we have seen over the last several quarters.

說到房地產投資信託基金，我想根據我們在市場上看到的情況提供快速更新。首先，我們的場館仍然被視為非常有吸引力的投資，我們看到了強勁的需求，事實上，新的房地產投資信託基金合作夥伴對這些場館的興趣也在增加。其次，新場館的上限利率保持穩定，與我們過去幾季看到的利率一致。

Switching gears, our inventory balance decreased $193 million or 23% to $647 million at the end of Q2 2024. We continue to feel comfortable with the current level and quality of our inventory and believe we are essentially at normalized levels for our business with small opportunities in each brand or region that we will continue to pursue. Capital expenditures for the first six months of 2024 were $149 million, and we received reimbursements of $55 million from our REIT partners for net capital expenditures of approximately $95 million.

換個角度來看，截至 2024 年第二季末，我們的庫存餘額減少了 1.93 億美元，即 23%，達到 6.47 億美元。我們仍然對目前的庫存水平和品質感到滿意，並相信我們的業務基本上處於正常水平，我們將繼續追求的每個品牌或地區的機會很小。2024 年前六個月的資本支出為 1.49 億美元，我們從 REIT 合作夥伴處獲得了 5,500 萬美元的補償，淨資本支出約為 9,500 萬美元。

Now turning to our balance of year outlook. As Chip mentioned earlier, given our revised outlook for same venue sales, coupled with our expectations for a potentially softer consumer environment across our businesses, we are lowering the midpoint of our full year 2024 revenue guidance range by $225 million or approximately 5% to a range of $4.2 billion to $4.26 billion.

現在轉向我們的年度平衡展望。正如Chip 先前提到的，鑑於我們對同場銷售的展望進行了修訂，再加上我們對整個業務的消費環境可能更加疲軟的預期，我們將2024 年全年收入指導範圍的中點降低了2.25億美元或約5%，至範圍為 42 億至 42.6 億美元。

Approximately $170 million or approximately 75% of this decrease is attributable to the Topgolf business and the other $55 million to our products business.

約 1.7 億美元或約 75% 的減少歸因於 Topgolf 業務，另外 5,500 萬美元歸因於我們的產品業務。

As a result, we are also lowering the midpoint of our full year adjusted EBITDA outlook by approximately $50 million to a range of $570 million to $590 million. We were able to mitigate the impact of the change in revenue and EBITDA through cost reductions and strong operational efficiencies.

因此，我們也將全年調整後 EBITDA 前景的中點下調約 5,000 萬美元，至 5.7 億至 5.9 億美元之間。我們能夠透過降低成本和提高營運效率來減輕收入和 EBITDA 變化的影響。

By segment, at Topgolf, we are lowering our guidance to approximately $1.79 billion in revenue and approximately $310 million in adjusted EBITDA, which compares to our prior guidance of $1.96 billion and $350 million, respectively. Our outlook now assumes a softer back half of the year with updated same venue sales guidance of down very high single digits to low double digits for the year.

以細分市場，我們將 Topgolf 的營收指引下調至約 17.9 億美元，調整後 EBITDA 下調至約 3.1 億美元，而我們先前的指引分別為 19.6 億美元和 3.5 億美元。我們的前景現在假設今年下半年會更加疲軟，更新後的同場銷售指導將從非常高的個位數下降到低兩位數。

In Golf Equipment, our updated forecast now allows for a range of outcomes that includes both a continuation of current trends or some softening of the consumer in the second half of the year. Despite this potential softness and unfavorable foreign currency rates, we expect second half growth in golf equipment and are very excited about our Q3 launches of APEX irons and Opus wedges. For the full year, we anticipate golf equipment to be approximately flat year-over-year and slightly up on a currency-adjusted basis.

在高爾夫裝備方面，我們更新的預測現在考慮了一系列結果，包括當前趨勢的延續或下半年消費者的一些疲軟。儘管潛在的疲軟和不利的外匯匯率，但我們預計下半年高爾夫裝備將出現成長，並對我們第三季推出的 APEX 鐵桿和 Opus 挖起桿感到非常興奮。就全年而言，我們預計高爾夫裝備銷量將同比大致持平，並在貨幣調整後略有上升。

In active lifestyle, TravisMathew continues to perform in line with expectations. And as Chip noted, we have successfully rightsized the Jack Wolfskin business to focus on its two core markets in Central Europe and China. Overall, we continue to expect full year revenue and operating income to be down year-over-year in this segment due to lapping the $35 million corporate channel fill-in last year for TravisMathew and lower sales at Jack Wolfskin.

在積極的生活方式中，TravisMathew 的表現繼續符合預期。正如 Chip 指出的那樣，我們成功地調整了 Jack Wolfskin 的業務規模，專注於中歐和中國的兩個核心市場。總體而言，我們繼續預期該細分市場的全年收入和營業收入將年減，原因是去年 TravisMathew 的 3,500 萬美元企業通路填補費用和 Jack Wolfskin 的銷售額下降。

Foreign exchange rates have improved since we last gave guidance, we are now expecting a full year negative impact on revenue of approximately $35 million and an operating income of approximately $19 million.

自我們上次提供指導以來，外匯匯率有所改善，我們目前預計對全年收入和營業收入的負面影響約為 3500 萬美元和約 1900 萬美元。

Shifting gears, while we continue to expect to be cash flow positive in 2024, we are lowering our outlook for free cash flow. We now expect free cash flow to be approximately $130 million compared to $165 million for our prior guidance. Topgolf is also expected to be free cash flow positive for the year. From a net CapEx perspective, we estimate approximately $190 million for the full year, with $60 million coming from the non-Topgolf business and $130 million coming from Topgolf.

轉變方向，雖然我們繼續預期 2024 年現金流為正，但我們正在降低自由現金流的預期。我們現在預計自由現金流約為 1.3 億美元，而我們先前的指引為 1.65 億美元。預計 Topgolf 今年的自由現金流也將為正值。從淨資本支出角度來看，我們預計全年約 1.9 億美元，其中 6,000 萬美元來自非 Topgolf 業務，1.3 億美元來自 Topgolf 業務。

Now turning to Q3 specifically. In Q3, we expect consolidated revenue of $970 million to $990 million versus $1.041 billion in Q3 2023. We estimate adjusted EBITDA to be in the range of $95 million to $105 million compared to $163 million in the prior year. This decrease is due to the revenue deleverage, increased marketing spend and more hedge losses compared to the prior year.

現在具體轉向第三季。我們預計第三季的合併收入為 9.7 億至 9.9 億美元，而 2023 年第三季的合併收入為 10.41 億美元。我們預計調整後的 EBITDA 將在 9,500 萬至 1.05 億美元之間，而前一年為 1.63 億美元。這一下降是由於與前一年相比，收入去槓桿化、行銷支出增加以及對沖損失增加。

In Q3, at Topgolf, we expect to be down low single digits in revenue, and we expect operating income to be down more than revenue due to the revenue deleverage and the change in timing of marketing expenses year-over-year partially offset by continued efficiencies. We also expect same venue sales to be approximately the same in Q3 and Q4.

在第三季度，我們預計 Topgolf 的收入將下降低個位數，並且由於收入去槓桿化和行銷費用同比時間的變化，我們預計營業收入的下降幅度將超過收入。我們也預計第三季和第四季的同場銷售額將大致相同。

golf equipment sales are expected to be down slightly in Q3 primarily due to unfavorable changes in foreign currency. Q4 revenue is expected to grow due to launch timing and year-over-year growth in golf ball. Operating income is expected to be down in Q3 due to the revenue decrease and increased marketing spend related to the new product launches. Operating income is expected to be up in Q4 due to the expected revenue growth.

預計第三季高爾夫裝備銷售額將小幅下降，主要是由於匯率的不利變化。由於高爾夫球的推出時間和同比增長，預計第四季度收入將增長。由於收入減少和與新產品發布相關的行銷支出增加，預計第三季營業收入將下降。由於預期收入增長，預計第四季度營業收入將增加。

Moving to active lifestyle. We expect Q3 revenue to decline compared to last year due to lower sales estimates for Jack Wolfskin and the Europe wholesale channel. We expect growth in Q4 at both TravisMathew and Jack Wolfskin. Operating income is expected to be down in Q3 due to the revenue decrease and is expected to be up in Q4 due to the revenue leverage.

轉向積極的生活方式。由於 Jack Wolfskin 和歐洲批發通路的銷售預期較低，我們預計第三季營收將較去年下降。我們預計 TravisMathew 和 Jack Wolfskin 在第四季度都會成長。由於收入下降，預計第三季營業收入將下降，由於收入槓桿，第四季營業收入預計將上升。

As we conclude, I want to emphasize that the fundamentals of our business remain strong. Participation and interest in golf remains very strong. The TravisMathew and Jack Wolfskin brands are leaders in their core markets and the fun scores are high and improving. However, outside of our golf equipment business, we are clearly seeing some consumer softness in the current macroeconomic conditions. This is the less fun part of the economic cycle we all expected at some point.

在我們總結時，我想強調我們業務的基本面依然強勁。人們對高爾夫的參與度和興趣依然非常濃厚。TravisMathew 和 Jack Wolfskin 品牌是其核心市場的領導者，趣味性得分很高，而且還在不斷提高。然而，在我們的高爾夫裝備業務之外，我們清楚地看到當前宏觀經濟狀況下消費者的疲軟。這是我們都曾在某個時刻預期的經濟週期中最不那麼有趣的部分。

While it is having some impact on revenue, we have been able to offset much of the bottom line impact through operational efficiencies and cost management. We are free cash flow positive and have strong liquidity. We are in a great position to be able to maximize opportunities during this cycle and to take advantage of better conditions as the consumer strengthens again.

雖然它對收入產生了一些影響，但我們已經能夠透過營運效率和成本管理抵消大部分底線影響。我們的自由現金流為正，流動性強勁。我們處於有利位置，能夠在這個週期中最大限度地利用機會，並在消費者再次走強時利用更好的條件。

With that said, I would now like to open the call for questions.

話雖如此，我現在想開始提問。

Before actually opening the call for questions, I want to comment on the trading halt in our stock shortly before market close. Our long-term provider we use to manage our Investor Relations website, prematurely posted our investor presentation to our website prior to market close. Although it was quickly taken down, it had already been picked up in the media. We immediately notified the NYSE in a halted trading pending publication of our earnings announcements today. We will be discussing this matter further with our provider and apologize for this disruption.

在實際開始提問之前，我想對收盤前不久我們股票的交易暫停發表評論。我們用來管理投資者關係網站的長期提供者在收市前過早地將投資者介紹發佈到我們的網站上。雖然很快就被下架了，但已經被媒體報道了。我們立即通知紐約證券交易所暫停交易，等待今天發布我們的收益公告。我們將與我們的提供者進一步討論此事，並對此次中斷表示歉意。

Operator, with that said, please open the call for questions.

接線員，話雖如此，請打開電話提問。

(Operator Instructions).

（操作員說明）。

Alex Perry. Bank of America.

亞歷克斯·佩里。美國銀行。

Hi. Thanks for taking my question here on. First, I wanted to ask about Topgolf a little bit. I guess, does the current same venue sales trajectory sort of make you think about pausing future unit growth beyond this year? And then maybe a little color on sort of traffic versus ticket for Topgolf in the quarter and how you're thinking about it.

你好。感謝您在這裡提出我的問題。首先，我想問一下關於Topgolf 的問題。我想，目前相同的場館銷售軌跡是否會讓您考慮暫停今年以後的未來單位成長？然後可能會介紹本季 Topgolf 的流量與門票以及您對此的看法。

Sure. Alex, this is Chip. With regard to the venue expansion, so that's obviously something we've given a fair amount of thought to. And the short answer is that we believe the correct answer for creating shareholder value is to continue to build the venues. We expect to add an average of 10 per year, some years a little more, some years a little less, again starting in 2025.

當然。亞歷克斯，這是奇普。關於場地擴建，顯然我們已經考慮了很多。簡而言之，我們認為創造股東價值的正確答案是繼續建造場館。我們預計每年平均增加 10 個，有些年份多一點，有些年份少一點，同樣從 2025 年開始。

To add a little color on that, though, as previously communicated, we have very attractive returns for these venues, 18% to 22% return on gross investment, 50% to 60% cash-on-cash and less than three year cash payback. We've confirmed and looked at the new venue performance recently, and they are delivering in the financial metrics consistent with our pro formas even in the recent period of volatility. We believe the recent same venue sales volatility is just that. It's volatility. Over time, in a normalized market, we believe we'll be able to deliver low single digit or better same venue sales growth.

不過，為了補充一點，正如之前所傳達的，我們為這些場館提供了非常有吸引力的回報，總投資回報率為18% 至22%，現金回報率為50% 至60%，現金回收期不到三年。我們最近確認並研究了新場館的表現，即使在最近的波動時期，他們的財務指標也與我們的預估一致。我們認為近期同場銷售的波動正是如此。這是波動性。隨著時間的推移，在正常化的市場中，我們相信我們將能夠實現低個位數或更好的同場銷售成長。

To give you a little color on that, just looking at the consumer side of it, the 1-2 Bay, same venue sales over the last few years. In 2022, it was up 7%. In '23, it was up 4%. In '24, through the first half, it's down 7%, but it's up on a two year stack in a 2019 and versus a 2019 basis even this year.

為了讓您對此有一點了解，只需看看消費者方面，即過去幾年同一場地 1-2 灣的銷售情況。2022年增長了7%。23 年成長了 4%。24 年上半年，數字下降了 7%，但 2019 年的數字較 2019 年的兩年有所上升，甚至今年也較 2019 年為基礎。

We're strengthening our team and our ability to drive same venue sales through this period of volatility, and we'll exit it in a stronger position. And in case we're wrong, we ran downside sensitivities and the returns are still good and still far exceed our cost of capital. We're going to continue to assess this and respond to new information and circumstances. We've proven that we can and will slow down venue growth, if needed, to protect the company's cash flow goals or if we question the wisdom of the investments. Neither of those apply at present, and we remain confident.

我們正在加強我們的團隊和我們在這段波動時期推動同場銷售的能力，並且我們將以更強大的地位退出。萬一我們錯了，我們會承受下行敏感性，但回報仍然不錯，而且仍然遠遠超過我們的資本成本。我們將繼續評估這一點並對新資訊和情況做出回應。我們已經證明，如果需要的話，我們可以而且將會減緩場館的成長，以保護公司的現金流目標，或者如果我們質疑投資的明智性。目前這些都不適用，我們仍然充滿信心。

On the traffic versus spend per visit and ticket, it really is mostly a traffic issue right now. So our business, like much of the other outside data we've seen is experiencing a slowness in traffic. And there's a little bit of difference there between the event business and the consumer as well, with the consumer business being stronger when you look at it in detail.

就流量與每次造訪和門票的支出而言，目前主要是流量問題。因此，與我們看到的許多其他外部數據一樣，我們的業務正在經歷流量緩慢。活動業務和消費者業務之間也存在一些差異，當你仔細觀察時，消費者業務會更強。

Got you. That's really helpful. And then I just wanted to ask about the 3Q golf equipment guide. What's the sort of expected 3Q benefit from the launch timing with APEX versus Bertha that occurred in the quarter? I guess it sort of implies, with the golf equipment guide down, that the core is maybe down more given that last quarter, you sort of talked about a 3Q benefit. So are you seeing lower wholesale orders from your partners? Or what sort of the puts and takes there?

明白你了。這真的很有幫助。然後我就想問3Q高爾夫裝備指南。APEX 與本季發生的 Bertha 的發佈時間相比，預期的第三季收益是什麼？我想這有點暗示，隨著高爾夫裝備指南的下降，考慮到上個季度，你談到了第三季的收益，核心可能會下降更多。那麼您是否發現合作夥伴的批發訂單減少了？或者那裡有什麼樣的看跌期權和賣出期權？

Yeah, I'll take it, and Brian, you jump in. But basically, we have APEX launch now. We have other launches coming in Q4. We're slightly more favorable from a launch timing perspective in Q4 versus Q3 for the second half of the year. We're anticipating golf equipment to be up in the second half of the year. Our market shares are good. Our markets are good. We feel good about the category and our position in it.

是的，我會接受，布萊恩，你也加入吧。但基本上，我們現在已經推出了 APEX。我們將在第四季推出其他產品。從下半年的發佈時間角度來看，我們對第四季的發佈時間比第三季的發佈時間稍微有利一些。我們預計高爾夫裝備將在今年下半年上市。我們的市佔率很好。我們的市場很好。我們對該類別以及我們在其中的地位感到滿意。

It's really just some timing noise between Q3 and Q4. As Chip mentioned, we expect to be up in the second half and even currency neutral for the full year.

這實際上只是第三季和第四季之間的一些時序噪音。正如 Chip 所提到的，我們預計下半年會上漲，甚至全年貨幣中性。

Perfect. Very helpful. Best of luck going forward.

完美的。非常有幫助。祝你好運。

Matthew Boss, JP Morgan.

馬修‧博斯，摩根大通。

Thanks. So Chip, you cited pricing as one of the largest concerns for consumers today. I guess what's your comfort with the current pricing architecture or value proposition at Topgolf venues today and just further initiatives that you're considering to drive improvement in traffic over time?

謝謝。Chip，您認為定價是當今消費者最關心的問題之一。我想您對 Topgolf 場館目前的定價架構或價值主張以及您正在考慮的進一步推動流量改善的舉措感到滿意嗎？

Pricing is absolutely a topic of conversation for all consumers right now. You can't open up the media without hearing about it. And we know that there are portions of the consumer segment that are definitely feeling inflationary pressures and some level of stress. And that varies across businesses, but you can clearly see it in the Topgolf business, in some of the data there.

定價絕對是目前所有消費者談論的話題。你不可能在沒有聽過的情況下打開媒體。我們知道，部分消費者肯定感受到了通膨壓力和一定程度的壓力。這在不同的業務中有所不同，但你可以在 Topgolf 業務的一些數據中清楚地看到這一點。

We have been fairly selective and targeted in our promotional efforts at Topgolf, and I think that is wise and the right answer for the long term. If you look at the promotion that we are running, the free 30, it's both select and timing, and it's relatively modest in the offering that it gives. It's proven to be effective in driving increased demand in the time period of smoothing demand and driving incremental profitability.

我們在 Topgolf 的促銷活動中相當有選擇性且有針對性，我認為從長遠來看，這是明智且正確的答案。如果你看看我們正在進行的促銷活動，免費 30 個，它既是精選的，也是時機的，而且它提供的產品相對適中。事實證明，它可以有效地在需求平滑期間推動需求成長並推動獲利能力增量。

We also think we can kind of continue to refine this and do this in an intelligent way that builds and protects brand value for the long run, and we've talked about on this call how we're expanding that offering to make it more interesting and available to new visitors that don't use the reservation model and allows us to satiate different consumers in the manner that most satisfying for them. So we're going to continue to drive that. And we've got a lot of exciting initiatives that we're working on in the same venue sales front. The promotional side is just one of them.

我們也認為我們可以繼續完善這一點，並以智慧的方式做到這一點，從長遠來看，建立和保護品牌價值，我們在這次電話會議上討論了我們如何擴展該產品，使其變得更有趣並可供不使用預訂模式的新訪客使用，使我們能夠以最令不同消費者滿意的方式滿足他們的需求。所以我們將繼續推動這一趨勢。我們在同一場館的銷售方面正在進行許多令人興奮的舉措。促銷方面只是其中之一。

Great. And then maybe as a follow-up, could you just elaborate on the Topgolf review that you've initiated and just what strategic alternative could be considered or possibly on the table?

偉大的。然後，也許作為後續行動，您能否詳細說明您發起的 Topgolf 審查以及可以考慮或可能提出的策略替代方案？

Sure. There's not much I can say on that right now because it's a process that we're right in the middle of. We're considering all alternatives. But we mentioned specifically a potential spin. We're looking at how do we best maximize long-term shareholder value. And we'll report back on that. When that work is done, we're in the middle of that work at present.

當然。我現在對此沒什麼好說的，因為我們正處於這個過程之中。我們正在考慮所有替代方案。但我們特別提到了潛在的旋轉。我們正在研究如何最好地最大化長期股東價值。我們將對此進行報告。當這項工作完成後，我們目前正處於這項工作的中間。

Great. Best of luck.

偉大的。祝你好運。

Eric Wold, B. Riley Securities.

沃爾德 (Eric Wold)，B. 萊利證券。

Thank you, good afternoon. A couple of questions on the non-Topgolf business. As you think about pricing being a headwind to Topgolf, and you're making adjustments there, what are your thoughts on pricing within the golf equipment or lifestyle segment in the short term and long term? And how do you think about the golf equipment consumer versus the Topgolf consumer right now and their ability to spend.

謝謝你，下午好。關於非 Topgolf 業務的幾個問題。當您認為定價是 Topgolf 的不利因素，並且您正在那裡進行調整時，您對高爾夫裝備或生活方式細分市場的短期和長期定價有何看法？您如何看待現在的高爾夫裝備消費者與頂級高爾夫消費者以及他們的消費能力。

Sure. They're very different, Eric. The golf equipment consumer is wealthier, more passionate and has proven to be not especially sensitive to modest economic downturns or changes in the economic condition. And we continue to see that. The markets are remaining solid, robust across the globe, with the exception of Korea. And the -- our business is at or better than most markets out there right now.

當然。他們非常不同，埃里克。高爾夫裝備消費者更加富有、更加熱情，並且事實證明對適度的經濟衰退或經濟狀況的變化並不特別敏感。我們繼續看到這一點。除韓國外，全球市場依然穩健、強勁。我們的業務目前處於或優於大多數市場。

So we feel very good about that. The Topgolf consumer is an average demographic household income of about $100,000, which means that there are portions of them that might feel more pressure than the average golf equipment consumer.

所以我們對此感覺非常好。Topgolf 消費者的人口平均家庭收入約為 10 萬美元，這意味著他們中的一部分人可能比普通高爾夫裝備消費者感受到更大的壓力。

Got it. And so the comment before about Topgolf being more of a traffic issue than a ticket issue, safe to say that those that are visiting Topgolf, you're not seeing any degradation in their ticket and their spend kind of per person, it more just getting that lower income demographic or maybe the more pressured consumer in the door for the first place?

知道了。因此，之前關於Topgolf 的評論更多的是交通問題而不是門票問題，可以肯定地說，那些訪問Topgolf 的人，您不會看到他們的門票和每人的支出有任何下降，這更多的是首先是低收入者還是壓力更大的消費者？

It's primarily a traffic issue, Alex. So there's a little bit of noise in all segments of it, but traffic is the primary issue, and we've got a lot of initiatives underway on that. And we also shared data that shows that the consumer side of the business is actually performing significantly better and directional with what you're seeing in other similar concepts and restaurants. The event business has had some more volatility in it. There's a little bit of a post-COVID reversion going on in addition to the economic slowness that we see in the general economy right now.

這主要是交通問題，亞歷克斯。因此，它的所有部分都存在一些噪音，但交通是主要問題，我們為此採取了許多措施。我們還共享了數據，這些數據表明，與您在其他類似概念和餐廳中看到的情況相比，消費者方面的業務實際上表現得更好，更有方向性。活動業務的波動性較大。除了我們目前在整體經濟中看到的經濟放緩之外，還有一些後疫情時期的回歸正在發生。

Megan Alexander, Morgan Stanley.

梅根亞歷山大，摩根士丹利。

I wanted to take another shot at the Topgolf strategic review question, maybe just ask it a little bit differently. So in the release, you talked about assessing organic strategies to get Topgolf back to profitable same venue sales growth. Understand you don't want to talk about the inorganic alternatives today, but as far as that organic strategy part of the review goes, I guess I'm just trying to understand a little bit more about what exactly is the mandate for the external advisers that you've hired. You did just say you think it's mostly macro, mostly just volatility and that you can get back to low single digits.

我想再試一次 Topgolf 的策略審查問題，也許只是問得有點不同。因此，在新聞稿中，您談到了評估自然策略，以使 Topgolf 恢復盈利的同場銷售成長。了解您今天不想談論無機替代方案，但就審查的有機戰略部分而言，我想我只是想更多地了解外部顧問的任務到底是什麼你僱用的人。你剛才說過，你認為這主要是宏觀的，主要是波動性的，你可以回到低個位數。

So is it just that you want them to confirm that's the case? Or are they looking at something else as far as that organic strategy goes? Is there a time line, is it more so that there's kind of a time line to get back to same venue sales positive growth? Just trying to understand, I guess, a little bit more about the decision tree as far as the strategic alternative goal?

那你只是想讓他們確認情況是這樣嗎？或者就有機戰略而言，他們是否正在考慮其他事情？是否有一個時間線，是否有一個時間線來恢復同一場地銷售的正成長？我想，只是想多了解決策樹以及策略替代目標？

Yeah, sure. So on the organic side, we do have outside advisers working with us to look at our business and how we're approaching continually improving our ability to drive same venue sales. And although I do believe that a lot of what we're seeing is macroeconomic volatility, I also want to be clear that we can and are going to do better.

是的，當然。因此，在有機方面，我們確實有外部顧問與我們合作，研究我們的業務以及我們如何不斷提高推動同場銷售的能力。儘管我確實相信我們所看到的很多都是宏觀經濟波動，但我也想明確表示我們可以而且將會做得更好。

We recognize that we have to operate in the environment as it exists. We are making significant efforts to continue to strengthen the team, its organization, our capabilities to drive better and better performance on the same venue sales side. We talked about that in the script, the more newness and energy at venues, the fun, the reasons to visit. We talked about The Sure Thing Golf Club which is just launched, new games, concerts, et cetera, that will continue to give both new visitors and returning visitors a reason to come back. We're upping our game on the digital and performance marketing side. We're working through our promotional efforts, as I articulated already.

我們認識到我們必須在現有的環境中運作。我們正在做出巨大努力，持續加強團隊、組織和能力，以推動同場銷售的表現越來越好。我們在劇本中談到了場館的更多新鮮感和活力、樂趣以及參觀的理由。我們談到了剛推出的 The Sure Thing 高爾夫俱樂部、新遊戲、音樂會等，這些將繼續為新遊客和回頭客提供回來的理由。我們正在提高數位和效果行銷方面的水平。正如我已經闡明的那樣，我們正在進行促銷工作。

We're investing further in the digital and commercial teams and adding significant resources to that. We hired a new Chief Operating Officer, who came from the casino business, and she will undoubtedly be additive to our efforts here.

我們正在進一步投資數位和商業團隊，並為其添加大量資源。我們聘請了一位來自賭場業務的新首席營運官，她無疑將為我們的努力做出貢獻。

And I'm excited about our direction. And I believe we're going to come out of this period of volatility significantly stronger and our efforts will pay dividends in the long run. So it's not, Megan, I'm sure you realize that, it's not that we're sitting here and just taking a macro cycle and waiting it out. Far from it. We're using this as an opportunity to strengthen this organization, build the resources to drive that same venue sales even better when the conditions really do normalize. Did that answer your question?

我對我們的方向感到興奮。我相信，我們將在這段波動時期中變得更加強大，從長遠來看，我們的努力將帶來回報。所以，梅根，我相信你意識到，我們不是坐在這裡，只是等待宏觀週期結束。遠非如此。我們以此為契機，加強組織建設，建立資源，以便在情況真正恢復正常時更好地推動同一場館的銷售。這回答了你的問題嗎？

Yeah. That's helpful. And maybe sticking with Topgolf. Could you maybe tell us how much better the second two weeks of July look relative to the first two weeks? And maybe just in the context of that, you said the second half implies the trends you're seeing continue for the balance of the year. You did say compares get easier. I'm assuming that's on a one-year basis. Would there be any way to kind of talk about what compares versus '19 look like given they did see a pretty big step down in 2Q. I'm just trying to understand whether you think the second half guide is kind of sufficiently derisked at this point?

是的。這很有幫助。也許還會繼續玩Topgolf。您能否告訴我們 7 月的後兩週相對於前兩週看起來好多少？也許正是在這種背景下，您說下半年意味著您所看到的趨勢將在今年剩餘時間內持續存在。你確實說過比較變得更容易。我假設這是以一年為基礎的。鑑於他們在第二季度確實看到了相當大的下滑，是否有任何方式可以討論與 19 年相比的情況。我只是想了解您是否認為後半部分指南目前已經充分消除了風險？

Well, what we saw, as mentioned, in June and July, so the US business in June, down 8%, 11% in July. And our guide assumes that those trends continue. And so if you just do the math, we would have to be down in a double-digit number for the second half. So it's not only that the guide would say you're going to be at where the point you were but there would continue to be weakness. And the comps versus last year are easier. In other words, on at least a one-year basis, we are comping small negative numbers last year. Does that answer the question on that one?

嗯，我們所看到的，正如前面提到的，在 6 月和 7 月，美國業務在 6 月下降了 8%，在 7 月下降了 11%。我們的指南假設這些趨勢會持續下去。因此，如果你算一下，我們下半場的成績就必須下降兩位數。因此，指南不僅會說您將處於原來的位置，而且還會繼續存在弱點。而且與去年相比，比賽變得更容易。換句話說，至少在一年的基礎上，我們去年的數據是小幅負數。這是否回答了那個問題？

Yeah. I guess, can you contextualize at all how much better the second two weeks of July were than the first two weeks? I guess just asking because wondering..

是的。我想，您能具體說明一下 7 月的後兩週比前兩週好多少嗎？我想只是因為想知道才問..

Yeah, I understand the question and the reason to ask, Megan, and we're not going to get level of specificity. There is enough noise within week to week that I think you could read too much into that one way or the other, and I think it would be a bad practice to start getting into that level of granular detail.

是的，我理解這個問題和提問的原因，梅根，我們不會得到具體的資訊。一周又一周，有足夠的噪音，我認為你可能會以這種或另一種方式解讀太多，而且我認為開始進入這種粒度的細節將是一種不好的做法。

(Operator Instructions).

（操作員說明）。

Joseph Altobello, Raymond James.

約瑟夫·阿爾托貝洛，雷蒙德·詹姆斯。

Thanks, guys. Good afternoon. So not surprisingly, I want to go back to Topgolf here for a second. So Chip, you mentioned throughout the call today that your view on the business and the long-term opportunity really hasn't changed. So if you believe that the issues at Topgolf are cyclical or temporary post-COVID normalization, then what's the point of the review?

謝謝，夥計們。午安.因此，毫不奇怪，我想再回到《Topgolf》這裡來。Chip，您在今天的電話會議中提到，您對業務和長期機會的看法確實沒有改變。因此，如果您認為 Topgolf 的問題是週期性的或暫時的新冠疫情後正常化，那麼審查的意義何在？

Well, I think that it's good practice to evaluate if there's an inorganic option that would be in the better interest of long-term shareholder value.

嗯，我認為評估是否存在更符合長期股東價值的無機選擇是一種很好的做法。

Okay. So it's really a frustration with the stock, not that anything...

好的。所以這確實是對股票的挫折感，而不是什麼...

Absolutely. Yeah. Right. There are two factors in our strategic review, Joe. There's one that's inorganic or structural, and that's alternatives to maximize long-term shareholder value. And that is strictly due to our point of view that the shares have underperformed and they've underperformed for a period of time now.

絕對地。是的。正確的。喬，我們的策略審查中有兩個因素。有一種是無機的或結構性的，這是最大化長期股東價值的替代方案。這完全是因為我們認為這些股票表現不佳，而且它們已經表現不佳了一段時間。

The organic side of it is relative to the same venue sales. And that's recent same venue sales that we're committed to, obviously, be best-in-class and drive those low single-digit or better same venue sales growth over time

它的有機方面是相對於同一場地的銷售而言的。這就是我們最近致力於的同場銷售，顯然，要成為同類最佳，並隨著時間的推移推動低個位數或更好的同場銷售成長

Got it. Okay. And just a follow-up on that. Could you quantify potentially the dissynergies for Topgolf, if it were, let's say, a stand-alone business?

知道了。好的。這只是後續行動。如果 Topgolf 是一個獨立的業務，您能否量化其潛在的不協同效應？

That's something we'll be looking at as part of this process, but we're not going to comment on that at this time.

這是我們將在此過程中考慮的事情，但目前我們不會對此發表評論。

And at this time, I would like to turn the call back over to Mr. Brewer for any closing remarks.

此時，我想將電話轉回給布魯爾先生，請他發表結束語。

Well, thank you, everybody, for tuning in today. We appreciate your time, and we look forward to continue to communicate with you in the future.

好的，謝謝大家今天的收看。感謝您抽出寶貴的時間，我們期待將來繼續與您溝通。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines at this time.

會議現已結束。感謝您參加今天的演示，您現在可以斷開線路。