Vista Outdoor Inc (VSTO) 2024 Q2 法說會逐字稿

Thank you all for joining. I would like to welcome you all to the Second Quarter Fiscal Year 2024 Vista Outdoor Earnings Conference Call. My name is Brika, and I will be your moderator for today's call. (Operator Instructions)

感謝大家的加入。歡迎大家參加 2024 財年第二季 Vista 戶外收益電話會議。我叫 Brika，我將擔任今天電話會議的主持人。 （操作員說明）

I would now like to pass the conference over to your host, Tyler Lindwall, Vice President of Investor Relations. Please go ahead.

現在我想將會議交給東道主投資者關係副總裁泰勒林德沃爾 (Tyler Lindwall)。請繼續。

Thank you, operator, and good morning to everyone joining us for our second quarter fiscal year 2024 earnings call. With me this morning is Gary McArthur, Interim Chief Executive Officer; Jason Vanderbrink, CEO of Sporting Products; Eric Nyman, CEO of Outdoor Products; and Andy Keegan, Vice President and Interim Chief Financial Officer.

謝謝運營商，大家早上好，參加我們 2024 財年第二季財報電話會議的所有人。今天早上和我在一起的是臨時執行長加里·麥克阿瑟 (Gary McArthur)。 Jason Vanderbrink，運動用品公司執行長；尼曼 (Eric Nyman)，戶外用品公司執行長；副總裁兼臨時財務長 Andy Keegan。

Before we begin, I'd like to remind everyone that during today's call, we will be making several forward-looking statements reflecting future events and their potential effect on our operating and financial performance, and we make these statements under the safe harbor provisions of the Private Securities Litigation Reform Act.

在開始之前，我想提醒大家，在今天的電話會議中，我們將做出幾項前瞻性聲明，反映未來事件及其對我們營運和財務業績的潛在影響，並且我們是根據《安全港條款》做出這些聲明的。私人證券訴訟改革法。

These forward-looking statements reflect our best estimates and assumptions based on our understanding of information known to us today, and we are under no obligation to provide updates to these forward-looking statements. These forward-looking statements are subject to the risks and uncertainties that face Vista Outdoor and the industries in which we operate, and actual results may differ materially from these forward-looking statements. We encourage you to review today's press release and Vista Outdoor's SEC filings for more information on these risk factors and uncertainties.

這些前瞻性陳述反映了我們基於對當今已知資訊的理解的最佳估計和假設，我們沒有義務提供這些前瞻性陳述的更新。這些前瞻性聲明受到 Vista Outdoor 和我們經營所在產業面臨的風險和不確定性的影響，實際結果可能與這些前瞻性聲明有重大差異。我們鼓勵您查看今天的新聞稿和 Vista Outdoor 向 SEC 提交的文件，以了解有關這些風險因素和不確定性的更多資訊。

Please also note that we have posted presentation materials on our website at investors.vistaoutdoor.com, which supplement our comments this morning and include reconciliations of non-GAAP financial measures.

另請注意，我們已在 Investors.vistaoutdoor.com 網站上發布了簡報資料，這些資料補充了我們今天早上的評論，並包括非 GAAP 財務指標的調節表。

Gary, I'll turn it over to you.

加里，我會把它交給你。

Thank you, Tyler, and good morning, everyone. I would like to thank all of you for joining us today as we discuss our second quarter fiscal year 2024 results.

謝謝你，泰勒，大家早安。我要感謝大家今天加入我們，討論 2024 財年第二季的業績。

For the next few minutes, I'm going to focus my comments on the sale of the sporting products segment and then turn the time over to Jason to provide an update on Sporting Products, then Eric to do the same for Outdoor Products, recently rebranded as Revelyst and to trade under the stock ticker GEAR, followed by Andy, who will provide our Q2 results and guidance.

在接下來的幾分鐘裡，我將重點討論體育產品領域的銷售，然後將時間交給 Jason 提供體育產品的最新信息，然後 Eric 為最近重新命名的戶外產品做同樣的事情作為Revelyst 並在股票代碼GEAR 下進行交易，其次是Andy，他將提供我們第二季的業績和指導。

We are currently at one of the most exciting junctures in our company's history. As recently announced, we have entered into a definitive agreement to sell our Sporting Products segment to Czechoslovak Group, or CSG, for $1.91 billion. We believe that this outcome provides great value, is the best strategic alternative for maximizing value to stockholders due to the payment of approximately $750 million of cash consideration and locking in certainty of value for stockholders in the near term.

我們目前正處於公司歷史上最令人興奮的時刻之一。正如最近宣布的，我們已達成最終協議，以 19.1 億美元的價格將我們的體育產品部門出售給捷克斯洛伐克集團 (CSG)。我們相信，這一結果提供了巨大的價值，是實現股東價值最大化的最佳策略選擇，因為支付了約 7.5 億美元的現金對價，並在短期內鎖定了股東價值的確定性。

Long term, this outcome jump starts our compelling vision for Revelyst by capitalizing its balance sheet with cash to accelerate its capital allocation strategy and puts us in a position to hit the ground running as a successful independent company.

從長遠來看，這一成果的飛躍開啟了我們對 Revelyst 的令人信服的願景，透過用現金資本化其資產負債表來加速其資本配置策略，並使我們能夠作為一家成功的獨立公司起步。

The Sporting Products business will remain headquartered in Anoka, Minnesota, will be led by Jason Vanderbrink and his team, and the business will stay true to its long-standing heritage of manufacturing and selling our iconic American brands in America. Additionally, teaming with CSG, Sporting Products will increase its efforts to market and sell these iconic brands to civilian and government customers around the globe. For every 1 share of Vista Outdoor held at the time of closing, a stockholder will receive 1 share of Revelyst and cash consideration of $12.90 per share for a total cash consideration to stockholders of approximately $750 million. This cash consideration is not a dividend and instead part of the merger consideration. Upon closing this transaction, will be treated as a taxable sale of a stockholder's Vista Outdoor shares for the Revelyst shares and cash consideration they receive in the merger.

運動產品業務的總部仍將設在明尼蘇達州阿諾卡，由 Jason Vanderbrink 及其團隊領導，該業務將秉承其在美國製造和銷售我們標誌性美國品牌的長期傳統。此外，Sporting Products 將與 CSG 合作，加強向全球平民和政府客戶推銷和銷售這些標誌性品牌。交易完成時，每持有 1 股 Vista Outdoor，股東將獲得 1 股 Revelyst 和每股 12.90 美元的現金對價，股東現金對價總額約為 7.5 億美元。該現金對價不是股息，而是合併對價的一部分。本次交易完成後，將被視為股東將 Vista Outdoor 股票出售為 Revelyst 股票以及他們在合併中收到的現金對價的應稅出售。

Vista Outdoor stockholders will generally recognize gain or loss in the transaction equal to the difference between their tax basis in the Vista Outdoor shares they exchange and the sum of the cash consideration and the fair market value of the Revelyst shares they receive determined as of the closing date. This allows stockholders to recover tax basis and recognize built-in gain and loss in their Vista Outdoor shares at the time of closing.

Vista Outdoor 股東通常會確認交易中的收益或損失，等於其所交換的 Vista Outdoor 股票的計稅基礎與現金對價和截至交割時確定的 Revelyst 股票公平市場價值之和之間的差額日期。這使得股東能夠在交割時恢復稅基並確認其 Vista Outdoor 股票的內在損益。

Looking forward, a stockholder's new tax basis in each share of Revelyst received will equal the fair market value of such share determined as of the closing date. Additionally, we expect that immediately after closing any cash remaining after the payment of taxes, transaction costs and other customary closing-related payments, the paydown of all debt, the approximately $750 million payment to stockholders and the capitalization of Revelyst with cash up to $250 million will be returned to stockholders of Revelyst in the form of a share buyback or a onetime special dividend.

展望未來，股東收到的每股 Revelyst 股票的新稅基將等於截止日期確定的該股票的公平市價。此外，我們預計在交割後立即支付稅款、交易費用和其他慣常的交割相關付款後剩餘的現金，償還所有債務，向股東支付約 7.5 億美元，並以現金將 Revelyst 資本化至 250 美元百萬美元將以股票回購或一次性特別股利的形式返還給Revelyst股東。

Please refer to Slide 9 in the slide deck provided. Prior to the stockholder vote, all free cash flow will be used to pay down debt as we are unable, under applicable securities laws, to repurchase shares while the stockholder vote for our Sporting Products sale is pending. After the stockholder vote is complete and before closing, we will have the option to evaluate whether a share repurchase program would be appropriate.

請參閱提供的幻燈片中的幻燈片 9。在股東投票之前，所有自由現金流將用於償還債務，因為根據適用的證券法，當股東對我們的體育產品銷售的投票尚未進行時，我們無法回購股票。股東投票完成後、交割前，我們將可以選擇評估股票回購計畫是否適當。

The transaction is subject to approval of our stockholders, receipt of necessary regulatory approvals and other customary closing conditions. We expect to hold our stockholder vote in the March-April time frame of calendar year 2024. If we have not received regulatory approvals prior to the stockholder vote, the timing of closing will depend primarily upon receipt of necessary regulatory approvals.

該交易尚需獲得我們股東的批准、必要的監管批准和其他慣例成交條件。我們預計將在 2024 年 3 月至 4 月的時間範圍內舉行股東投票。如果我們在股東投票之前尚未獲得監管部門的批准，則交割時間將主要取決於是否獲得必要的監管部門批准。

Under the merger agreement, CSG is committed to take all actions necessary or advisable to obtain the necessary regulatory approvals and to pay a termination fee equal to $114.6 million if the transaction does not close due to failure to obtain the required regulatory approvals. We are excited about the future opportunities for both the Sporting Products business under CSG ownership and Revelyst under Eric's leadership, as we embark on our new strategic journey, including a new transformation program that Eric and Andy will cover in more detail shortly.

根據合併協議，CSG 承諾採取一切必要或建議的行動以獲得必要的監管批准，並在交易因未能獲得所需監管批准而未能完成的情況下支付相當於 1.146 億美元的終止費。我們對 CSG 旗下的體育用品業務和 Eric 領導下的 Revelyst 未來的機會感到興奮，因為我們踏上了新的戰略旅程，包括 Eric 和 Andy 很快將更詳細介紹的新轉型計劃。

I'd like to thank all of our employees for their hard work in shaping our company into what it has become today and for giving us confidence in the future success, both businesses will be able to achieve as separate companies.

我要感謝我們所有員工的辛勤工作，使我們的公司取得了今天的成就，並讓我們對未來的成功充滿信心，兩家公司將能夠作為獨立的公司取得成功。

Thank you, everyone. I will now hand the call over to Jason, who will discuss Sporting Products.

謝謝大家。我現在將把電話轉給傑森，他將討論體育產品。

Thank you, Gary, and good morning, everyone. We are at the midpoint of our fiscal year and are pleased with where we are currently standing, and we believe there are positive trends on the horizon.

謝謝你，加里，大家早安。我們正處於本財年的中期，對目前的狀況感到滿意，我們相信即將出現積極的趨勢。

Sales for the Sporting Products segment in the second quarter were $350 million, with segment adjusted EBITDA margins of 28%, which shows a strong product mix and is in line with our margin rate expectations. As Gary mentioned in his opening remarks, we believe the sale of Sporting Products to CSG is a great outcome for our stockholders, our business, our employees and our customers. A private, global strategic owner will allow us to grow the reach of our iconic American brands and expand our legacy of U.S. manufacturing support for the military and law enforcement customers and investments in conservation and our hunting and shooting heritage.

第二季體育用品部門的銷售額為 3.5 億美元，部門調整後 EBITDA 利潤率為 28%，這顯示出強大的產品組合，符合我們的利潤率預期。正如加里在開場白中提到的那樣，我們相信向 CSG 出售體育用品對於我們的股東、我們的業務、我們的員工和我們的客戶來說都是一個偉大的成果。私人全球戰略所有者將使我們能夠擴大我們標誌性美國品牌的影響力，並擴大我們對軍事和執法客戶的美國製造支援以及對保護和狩獵和射擊遺產的投資。

The leadership team is excited for our bright future, and I'm pleased to welcome Al Kerfeld as the Chief Financial Officer; Jeff Ehrich as our General Counsel and Corporate Secretary; and Mark Kowalski as Controller and Chief Accounting Officer. This team has 8 decades of combined experience and a great working knowledge of our business and the ammunition industry.

領導團隊對我們光明的未來感到興奮，我很高興歡迎 Al Kerfeld 擔任財務長； Jeff Ehrich 擔任我們的總法律顧問兼公司秘書；馬克·科瓦爾斯基 (Mark Kowalski) 擔任財務總監兼首席會計官。該團隊擁有 8 年的綜合經驗，對我們的業務和彈藥行業擁有豐富的工作知識。

While market conditions were more challenging in the second quarter, we see a higher baseline and participation rates remain very strong. NICS data continues to signal sustained gun purchases with now 50 straight months of firearms checks over $1 million. In September, this was 13% higher than 2019 and continues to show the industry has grown its user base. We have seen a return to seasonal buying patterns driving the consumer purchase cycle and continued participation from the 19 million new gun owners.

儘管第二季的市場狀況更具挑戰性，但我們看到更高的基準和參與率仍然非常強勁。 NICS 數據持續顯示槍枝購買量持續成長，目前槍枝檢查已連續 50 個月超過 100 萬美元。 9 月，這一數字比 2019 年高出 13%，繼續表明該行業的用戶基礎不斷擴大。我們看到季節性購買模式的回歸推動了消費者的購買週期，並且 1900 萬新槍支擁有者持續參與。

There has also been a significant recent increase in demand across several categories due to global unrest that we are monitoring. We continue to monitor point-of-sale and customer level inventory in this dynamic market.

由於我們正在監測的全球動盪，近期多個類別的需求也顯著增加。我們繼續監控這個動態市場中的銷售點和客戶級庫存。

To highlight some recent wins, we secured the Department of Homeland Security contracts for 5 years to provide the highest quality duty ammunition for both the U.S. Customs and Border Patrol and Immigrations and Customs Enforcement agencies. The CBP contract is our second largest ever and both agencies chose Federal's Tactical Bonded ammunition for their duty rifles. This supports their mission to protect our borders and preserve national security and public safety.

為了突出最近取得的一些成果，我們與國土安全部簽訂了為期 5 年的合同，為美國海關和邊境巡邏隊以及移民和海關執法機構提供最高品質的執勤彈藥。 CBP 合約是我們有史以來的第二大合同，兩個機構都為其執勤步槍選擇了聯邦戰術保稅彈藥。這支持了他們保護我們邊境、維護國家安全和公共安全的使命。

Our law enforcement team also secured a contract win with the Miami-Dade Police Department, the eighth largest department in the United States. The 3,500 member police force will use Speer 9-millimeter Gold Dot for their duty pistol and Federal .223 Tactical Bonded ammunition for the department's duty rifle. We are proud to provide the highest quality duty ammunition to law enforcement and federal agencies in the United States and globally. Our employees produce excellent products that many law enforcement agencies in the United States trust to protect and serve our communities.

我們的執法團隊也贏得了與美國第八大部門邁阿密戴德警察局的合約。 3,500 名警察部隊成員的執勤手槍將使用 Speer 9 毫米金點手槍，執勤步槍將使用 Federal .223 戰術保稅彈藥。我們很自豪能夠為美國和全球的執法部門和聯邦機構提供最優質的執勤彈藥。我們的員工生產優質的產品，美國許多執法機構相信這些產品可以保護和服務我們的社區。

As we work toward the closing of the sale to CSG, the team will continue to focus on making the best ammunition in America and delivering on our goals. We believe our diverse customer base and multi-brand strategy will allow us to compete for additional market share, expand our presence into new markets, improve the financial performance of Remington and continue to deliver mid-20% segment adjusted EBITDA margins. I have full confidence that with the best team in the ammunition business, we will continue to perform at the highest level. We look forward to working towards closing the sale to CSG in the calendar year 2024.

當我們努力完成對 CSG 的銷售時，團隊將繼續專注於製造美國最好的彈藥並實現我們的目標。我們相信，多元化的客戶群和多品牌策略將使我們能夠爭奪額外的市場份額，將我們的業務擴展到新市場，提高雷明頓的財務業績，並繼續提供20% 的細分調整後EBITDA利潤率。我完全相信，憑藉彈藥行業最優秀的團隊，我們將繼續保持最高水準。我們期待在 2024 年完成對 CSG 的銷售。

Thank you. Eric?

謝謝。艾瑞克？

Thanks, Jason, and good morning, everyone. During my first 10 weeks, I have visited multiple Revelyst locations on a look listen learn tour. I had the chance to meet and hear from a large number of our employees who are eager to share their pride and excitement about the future of our company. I left feeling energized as I saw a tremendous amount of potential and a lot to be excited about at this company, which we have recently named Revelyst. At Revelyst, we are a collective of category-defining maker brands, transcending the boundaries of precision, performance and protection. We exist to inspire and equip the ambitious to achieve their greatest experiences in the places they love. We are excited for you all to join us in our pursuit to redefine what is humanly possible outdoors.

謝謝傑森，大家早安。在我的前 10 週內，我透過「看、聽、學」之旅參觀了多個 Revelyst 地點。我有機會見到並聽取了我們眾多員工的意見，他們渴望分享他們對公司未來的自豪和興奮。我離開時感到精力充沛，因為我看到了這家公司的巨大潛力和許多令人興奮的事情，我們最近將其命名為 Revelyst。在 Revelyst，我們是一個定義類別的製造商品牌的集體，超越了精確度、性能和保護的界限。我們的存在是為了激勵和裝備那些雄心勃勃的人，在他們熱愛的地方實現他們最偉大的經歷。我們很高興大家能加入我們，共同追求重新定義人類戶外活動的可能性。

As I mentioned, I was thrilled to meet so many of the proud and talented employees we have to lead us into the future. As previously announced, Andy Keegan, currently Vice President and Interim CFO of Vista Outdoor plans to join Revelyst as CFO. Andy's work as interim CFO, has given me and the Board high confidence in his ability to serve in this position.

正如我所提到的，我很高興見到這麼多自豪且才華橫溢的員工，我們必須帶領我們走向未來。正如先前宣布的那樣，Vista Outdoor 現任副總裁兼臨時財務長 Andy Keegan 計劃加入 Revelyst 擔任財務長。安迪作為臨時財務長的工作使我和董事會對他擔任這一職位的能力充滿信心。

In addition, we announced the hiring of our General Counsel, Jung Choi. Jung has over 15 years of diverse legal experience and expertise, most recently serving as the General Counsel and Corporate Secretary for Boxed, a publicly traded e-commerce grocery platform. I am eager to partner with Andy, Jung and the rest of the leadership team in leading Revelyst during this transformational period in our company's history and support the work that we are doing to advance our mission of creating the best and largest house of outdoor brands.

此外，我們也宣布聘任總法律顧問 Jung Choi。 Jung 擁有超過 15 年的多元化法律經驗和專業知識，最近擔任上市電子商務雜貨平台 Boxed 的總法律顧問和公司秘書。我渴望與 Andy、Jung 和其他領導團隊合作，在我們公司歷史上的這個轉型時期領導 Revelyst，並支持我們正在進行的工作，以推進我們創建最好、最大的戶外品牌之家的使命。

As I was able to reflect on what I saw and learned from my tour, a few things became very clear to me. First, we have one of the most passionate workforces in the industry. Second, a big part of the reason for their passion is that our company is comprised of a collection of many of the world's most iconic outdoor brands. Third, what I observed and heard in several ways from our team, was that these powerful brands and assets have not yet been harnessed and elevated to achieve their true potential.

當我能夠反思我在旅行中所看到和學到的東西時，有些事情對我來說變得非常清晰。首先，我們擁有業內最熱情的員工團隊之一。其次，他們如此熱情的一個重要原因是我們公司由許多世界上最具代表性的戶外品牌組成。第三，我從我們的團隊中透過多種方式觀察和聽到的是，這些強大的品牌和資產尚未被利用和提升，以實現其真正的潛力。

While our fully formed strategy for Revelyst will evolve and expand over the coming months, a few key pillars of that game plan are already clear, and we will act on them with urgency. As such, we are kicking off a new program today called GEAR Up, inspired by our future stock ticker GEAR, this transformation program will focus on 3 elements. Those elements are simplifying the business model, delivering increased efficiency and profitability from that simplified structure, and reinvesting in our highest potential brands to accelerate their growth and transformation.

雖然我們完整的 Revelyst 策略將在未來幾個月內不斷發展和擴展，但遊戲計畫的一些關鍵支柱已經明確，我們將立即採取行動。因此，我們今天啟動了一項名為 GEAR Up 的新計劃，受到我們未來股票代碼 GEAR 的啟發，該轉型計劃將重點關注 3 個要素。這些要素正在簡化業務模式，透過簡化的結構提高效率和獲利能力，並對我們最具潛力的品牌進行再投資，以加速其成長和轉型。

In the current structure, the business has become increasingly complex over time, with multiple acquisitions causing brands to become independent of one another and creating inefficiencies across the entire company. Through a simplified structure, Revelyst can become an integrated house of iconic high-performing outdoor brands that work together as one cohesive unit to form a globally branded company.

在目前的結構中，隨著時間的推移，業務變得越來越複雜，多次收購導致品牌彼此獨立，並導致整個公司效率低下。透過簡化的結構，Revelyst 可以成為一個由標誌性高性能戶外品牌組成的綜合公司，這些品牌作為一個有凝聚力的整體共同組成一家全球品牌公司。

We will leverage shared learnings and centers of empowerment across the company to drive efficiency through strong execution, while embarking on a global omnichannel growth strategy that marries our imagination with innovation to create products that unlock wildly human experiences.

我們將利用整個公司的共享學習和授權中心，透過強大的執行力來提高效率，同時著手實施全球全通路成長策略，將我們的想像力與創新結合起來，創造出能夠解鎖人類豐富體驗的產品。

Our first action toward achieving our goal of simplification within the GEAR Up initiative is to reorganize the business to create 3 distinct platforms and drive success. The platforms will be: one, Precision Sports and Technology, which will consist of Foresight Sports and Bushnell Golf, our highest EBITDA margin and highest growth potential business, which will be led by Jon Watters and Scott Werbelow, Co-Presidents of Precision Sports and Technology; two, Adventure Sports, which will be comprised of Fox, Bell, Giro, CamelBak, QuietKat and more, our largest segment with the most well-renowned brands, which will be led by Jeff McGuane, President of Adventure Sports; and three, Outdoor Performance, which will include Bushnell, Primos, Simms, Camp Chef, Stone Glacier and more, a group with market leadership in hiking, camping, fishing and hunting.

為了實現 GEAR Up 計劃中的簡化目標，我們的第一個行動是重組業務，創建 3 個不同的平台並推動成功。這些平台將是：一是Precision Sports and Technology，其中包括Foresight Sports 和Bushnell Golf，這是我們EBITDA 利潤率最高、成長潛力最大的業務，由Precision Sports 和Scott Werbelow 聯合總裁Jon Watters 和Scott Werbelow 領導。技術技術;二是Adventure Sports，將由Fox、Bell、Giro、CamelBak、QuietKat等組成，是我們最大的細分市場，擁有最知名的品牌，由Adventure Sports總裁Jeff McGuane領導；第三是戶外表演，包括 Bushnell、Primos、Simms、Camp Chef、Stone Glacier 等，這些公司在遠足、露營、釣魚和狩獵領域處於市場領先地位。

In addition, with our Blackhawk brand, we also serve our military, first responders and law enforcement professionals around the world with pride. This group will be led by Jordan Judd, President of Outdoor Performance.

此外，透過我們的 Blackhawk 品牌，我們也自豪地為世界各地的軍隊、急救人員和執法專業人員提供服務。該小組將由戶外表演總裁喬丹·賈德 (Jordan Judd) 領導。

This simplified structure will allow us to kick off a significant efficiency program within the GEAR Up framework that is being actioned immediately. We expect that this effort will streamline our operations and unlock profitability improvements and cost savings beginning in Q4 fiscal year 2024, with an estimated $100 million of realized annual cost savings by fiscal year 2027. These net savings are in addition to the $50 million cost restructuring program announced in April 2023, with about $25 million of those early savings specifically related to Revelyst, for a total of $125 million in cost improvements on a run rate basis.

這種簡化的結構將使我們能夠在 GEAR Up 框架內啟動一項重要的效率計劃，並立即採取行動。我們預計，這項工作將簡化我們的運營，並從2024 財年第四季開始實現盈利能力提高和成本節約，到2027 財年預計每年可實現1 億美元的成本節約。這些淨節約是在5000萬美元的成本重組之外的。該計劃於 2023 年 4 月宣布，其中約 2500 萬美元的早期節省專門與 Revelyst 相關，按運行率計算，總共節省了 1.25 億美元的成本。

Enabled by our simplified structure and powered by a recently signed deal with a leading consulting partner, this new initiative will maximize efficiency through consolidation of our current real estate footprint as well as within our back-office technology stack, supply chain and organizational structure. In the next several weeks and months, we will start our investor road shows, attend conferences and host an Investor Day in the spring of 2024 to provide more details on our strategic plan. We are taking decisive action at this time to position us well ahead of the separation and set us up for a strong start to fiscal year 2025.

在我們簡化的結構以及最近與領先諮詢合作夥伴簽署的協議的支持下，這項新舉措將透過整合我們目前的房地產足跡以及我們的後台技術堆疊、供應鏈和組織結構來最大限度地提高效率。在接下來的幾週和幾個月內，我們將開始投資者路演、參加會議並在 2024 年春季舉辦投資者日活動，以提供有關我們策略計劃的更多詳細資訊。我們此時正在採取果斷行動，以便在分拆之前提前做好準備，並為 2025 財年的良好開局做好準備。

As reflected in our guidance, we are working hard to clear high-priced inventory to ensure that our products are front and center with our channel partners during the holiday season. We intend to utilize strategic promotions to work through the high-priced inventory and continue driving market share gains across categories, regardless of external market factors. We are building momentum from the ground up and expect sequential margin improvements from Q3 to Q4, finishing the fiscal year strong.

正如我們的指導方針所反映的那樣，我們正在努力清理高價庫存，以確保我們的產品在節日期間成為通路合作夥伴的首選產品。無論外部市場因素如何，我​​們打算利用策略促銷來清理高價庫存，並繼續推動跨類別市場份額的成長。我們正在從頭開始建立動力，預計第三季到第四季的利潤率將連續改善，從而強勁地結束本財年。

Through our efforts in the back half of fiscal year 2024, our inventory will be rightsized, our restructuring program will begin taking hold and other strategic growth initiatives across the company will fuel organic top line growth, reversing the declines experienced over the past few quarters, carrying us into fiscal year 2025 with momentum.

透過我們在 2024 財年下半年的努力，我們的庫存將得到調整，我們的重組計劃將開始實施，整個公司的其他戰略增長舉措將推動有機收入增長，扭轉過去幾個季度經歷的下滑，帶領我們充滿動力地進入2025 財年。

Lastly, in the near term, I am excited to announce the first ever Revelyst Lyst that showcases select great products that our teams have built in time for the holidays. These products range across our brands. From Foresight Sports, we have the all-new Foresight Falcon to shave strokes off your game with the best launch monitor and simulator technology on the market. Our Bushnell live camera with True Target and onX integration lets you see live video of the wildlife you manage, the spots you scout and the property you protect.

最後，在短期內，我很高興地宣布推出有史以來第一個 Revelyst Lyst，它展示了我們團隊為假期及時打造的精選優質產品。這些產品涵蓋我們的品牌。 Foresight Sports 推出了全新的 Foresight Falcon，可利用市場上最好的發射監視器和模擬器技術來減少您的比賽次數。我們的 Bushnell 即時攝影機配備 True Target 和 onX 整合功能，讓您可以看到您管理的野生動物、您偵察的地點和您保護的財產的即時視訊。

From our QuietKat electric bikes, we offer the all-new QuietKat Lynx to take you from the trails to around the town. From Simms Fishing Products, we have the all-new Challenger 7-inch deck boot, a purpose-built fishing footwear that's extremely versatile around and off the water. And from Giro, just in time for the skiing season, we offer the all-new Owen Spherical helmet, built for moments on the mountain with modern styling, premium innovations and all-day comfort.

我們的 QuietKat 電動自行車提供全新 QuietKat Lynx，可帶您從小徑到城鎮各處。 Simms Fishing Products 推出了全新 Challenger 7 吋甲板靴，這是一款專門設計的釣魚鞋，在水上和水下用途極為廣泛。在 Giro 上，恰逢滑雪季節，我們推出了全新的 Owen 球形頭盔，專為在山上度過的時刻而打造，具有現代風格、優質創新和全天舒適感。

This is just a short list highlighting the culture of innovation we have. You will be able to find the full Revelyst Lyst across all of our social channels and our website, revelyst.com, along with the unique stories behind each product.

這只是一個簡短的清單，突顯了我們的創新文化。您將能夠在我們所有的社交管道和網站 revelyst.com 上找到完整的 Revelyst Lyst，以及每個產品背後的獨特故事。

In closing, our future at Revelyst is bright. While we have hard work to do, our future value creation will come from streamlining and efficiency savings, brand building, incredible consumer-focused innovation, an expanded international footprint, doubling down on our own D2C business and expanding our technology and gaming investments, particularly within the Precision Sports and Technology area. We look forward to sharing more of those plans in the months ahead as we work towards our Investor Day being rescheduled for spring 2024.

最後，我們在 Revelyst 的未來是光明的。雖然我們還有艱苦的工作要做，但我們未來的價值創造將來自精簡和效率節約、品牌建設、令人難以置信的以消費者為中心的創新、擴大的國際足跡、加倍我們自己的D2C 業務以及擴大我們的技術和遊戲投資，特別是在精準運動和技術領域。我們期待在未來幾個月分享更多這些計劃，並努力將投資者日重新安排在 2024 年春季。

I'll now hand it over to Andy to provide a financial update for the quarter. Andy, over to you.

我現在將把它交給安迪，以提供本季的財務更新。安迪，交給你了。

Thank you, Eric, and hello, everyone. My comments today will focus on adjusted results compared to the prior year period, unless otherwise noted, which are presented using non-GAAP financial measures. In the appendix of the slide presentation, we've included reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. For additional information regarding forward-looking statements and non-GAAP financial measures, please refer to Page 30 of the slide presentation.

謝謝你，埃里克，大家好。除非另有說明，我今天的評論將重點放在與去年同期相比的調整後結果，這些結果是使用非公認會計準則財務指標呈現的。在投影片簡報的附錄中，我們將這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標進行了調整。有關前瞻性陳述和非 GAAP 財務指標的更多信息，請參閱幻燈片簡報的第 30 頁。

Further, as a result of correspondence with SEC staff in connection with the separation of our Outdoor Products and Sporting Products businesses, adjusted results reflect a slightly different preparation than what was done previously and do not have an adjustment for certain retention payments.

此外，由於與 SEC 工作人員就我們的戶外產品和運動產品業務的分離進行了通信，調整後的結果反映了與之前所做的準備工作略有不同，並且沒有對某些保留付款進行調整。

Turning to Slide 22. For the second quarter, total sales decreased 13.4% to $677 million, in line with our recent earnings prerelease. Organic sales for the quarter were $646 million, down 17.4% driven by lower shipments across nearly all categories in Sporting Products and lower volume as channel partners continue to be cautious in purchasing due to inventory levels and short-term consumer pressures in the Outdoor Products businesses.

轉向投影片 22。第二季總銷售額下降 13.4% 至 6.77 億美元，與我們最近預發布的收益一致。本季有機銷售額為6.46 億美元，下降17.4%，原因是運動產品幾乎所有類別的出貨量均下降，而且由於庫存水平和戶外產品業務的短期消費者壓力，通路合作夥伴在採購方面繼續保持謹慎態度，導致銷量下降。

Gross profit was $209 million, and gross margin decreased 270 basis points to 30.9%. The decline was primarily due to lower volumes and price in our Sporting Products segment and decreased volumes in the organic Outdoor Products businesses, partially offset by acquisitions.

毛利為 2.09 億美元，毛利率下降 270 個基點至 30.9%。下降的主要原因是我們的運動產品部門的銷售和價格下降以及有機戶外產品業務的銷售下降，但部分被收購所抵消。

EBITDA in the quarter decreased 27.6% to $116 million and EBITDA margin was 17.2%, down 370 basis points. Organic EBITDA for the quarter was $114 million, a decrease of 29.2%. Organic EBITDA margin in Q2 was 17.6%, down 292 basis points. The decline was driven by lower gross profit in both segments, partially offset by decreased selling costs in Sporting Products and decreased selling, general and administrative expenses related to the organic businesses in Outdoor Products. Second quarter EPS decreased 42.5% to $0.96.

本季 EBITDA 下降 27.6%，至 1.16 億美元，EBITDA 利潤率為 17.2%，下降 370 個基點。該季度有機 EBITDA 為 1.14 億美元，下降 29.2%。第二季有機 EBITDA 利潤率為 17.6%，下降 292 個基點。下降的原因是兩個部門的毛利下降，但部分被體育產品銷售成本下降以及與戶外產品有機業務相關的銷售、一般和管理費用下降所抵消。第二季每股收益下降 42.5% 至 0.96 美元。

Turning to Slide 23, our balance sheet remains healthy. Year-to-date free cash flow was $116 million. Net debt decreased $27 million sequentially to $905 million and our net debt leverage ratio is now at 1.8x.

轉向投影片 23，我們的資產負債表依然健康。年初至今的自由現金流為 1.16 億美元。淨債務比上一季減少 2,700 萬美元，至 9.05 億美元，淨債務槓桿率目前為 1.8 倍。

Turning to our segment results on Slide 24. Within Outdoor Products, sales decreased 6.3% in Q2 to $327 million. Organic sales were down 15.2% to $296 million in Q2, driven primarily by lower volumes as channel partners continue to be cautious with purchasing due to inventory levels and as consumers are pressured by higher interest rates and other short-term factors affecting their purchases of consumer durable goods.

轉向幻燈片 24 上的部門業績。在戶外產品領域，第二季銷售額下降 6.3% 至 3.27 億美元。第二季度有機銷售額下降15.2%，至2.96 億美元，主要是由於銷量下降，因為通路合作夥伴因庫存水平而繼續對採購持謹慎態度，而且消費者受到利率上升和影響消費者購買的其他短期因素的壓力。耐用品。

Gross profit decreased 12% in Q2 to $94 million, due to lower volume from organic businesses, partially offset by acquisitions. Gross margin decreased 197 basis points to 28.6%. EBITDA in Q2 was $30 million, down 33% with an EBITDA margin of 9.3%, down 370 basis points. Organic EBITDA decreased 38.4% to $28 million, and organic EBITDA margin decreased to 9.4%, down 354 basis points. The decline in the quarter was primarily driven by decreased gross profit, partially offset by reduced selling, general and administrative costs related to organic business.

由於有機業務銷量下降，第二季毛利下降 12% 至 9,400 萬美元，但部分被收購所抵銷。毛利率下降 197 個基點至 28.6%。第二季 EBITDA 為 3,000 萬美元，下降 33%，EBITDA 利潤率為 9.3%，下降 370 個基點。有機 POITDA 下降 38.4%，至 2,800 萬美元，有機 EBITDA 利潤率下降 354 個基點，降至 9.4%。本季的下降主要是由於毛利下降，部分被與有機業務相關的銷售、一般和管理成本的減少所抵消。

For Sporting Products, sales in Q2 decreased 19.2% to $350 million, driven by lower shipments across nearly all categories as channel inventory has normalized, lower pricing and the previously announced termination of the Lake City contract at the beginning of the third fiscal quarter in the prior year. Gross profit decreased 27.6% in Q2 to $115 million driven by decreased volume and price. Gross margin decreased 382 basis points to 33%. EBITDA was $99 million, down 29.4%, primarily due to decreased gross profit, partially offset by lower selling costs. EBITDA margin was 28.3%, a decrease of 409 basis points.

對於體育用品，第二季度的銷售額下降了19.2%，至3.5 億美元，原因是渠道庫存正常化、定價降低以及之前宣佈在第三財季初終止Lake City 合同，導致幾乎所有類別的出貨量下降。去年。由於銷量和價格下降，第二季毛利下降 27.6% 至 1.15 億美元。毛利率下降 382 個基點至 33%。 EBITDA 為 9,900 萬美元，下降 29.4%，主要是由於毛利下降，但部分被銷售成本下降所抵銷。 EBITDA 利潤率為 28.3%，下降 409 個基點。

As Eric mentioned, our GEAR Up transformation program for Revelyst has been actioned immediately as we work to simplify and streamline our operations. We currently expect GEAR Up to start contributing limited cost savings in Q4 of fiscal 2024, contribute approximately $25 million to $30 million in realized cost savings in fiscal 2025, and we expect to unlock an estimated $100 million in realized annual cost savings in fiscal year 2027 as a result of this program. These savings are in addition to the $25 million related specifically to Revelyst as part of our $50 million cost restructuring program announced in April 2023, a total of an estimated $125 million of cost savings related to Revelyst on a run rate basis.

正如 Eric 所提到的，我們的 Revelyst GEAR Up 轉型計畫已立即開始實施，我們致力於簡化和精簡我們的營運。我們目前預計GEAR Up 將在2024 財年第四季開始貢獻有限的成本節約，在2025 財年實現約2,500 萬至3,000 萬美元的已實現成本節約，我們預計在2027 財年實現約1 億美元的已實現年度成本節約作為該計劃的結果。作為我們在 2023 年 4 月宣布的 5000 萬美元成本重組計劃的一部分，這些節省不包括專門與 Revelyst 相關的 2500 萬美元，按運行率計算，與 Revelyst 相關的成本節省總計估計為 1.25 億美元。

In fiscal year 2025, we anticipate that the $25 million to $30 million of cost savings related to our GEAR Up program, contributions from our previously announced April 2023 cost restructuring program, as well as our previously communicated improvements in supply chain, freight and lower expected promotions will help as we aim to bring our Outdoor Products segment EBITDA margins to low double-digit levels or said differently, our stand-alone Revelyst business, including estimated stand-alone costs to high single-digit adjusted EBITDA margin. This would be approximately a 400 basis point improvement from fiscal year 2024.

在2025 財年，我們預計與我們的GEAR Up 計畫相關的成本將節省2,500 萬至3,000 萬美元，我們先前宣布的2023 年4 月成本重組計畫的貢獻，以及我們先前傳達的供應鏈、貨運和較低預期方面的改善促銷活動將有所幫助，因為我們的目標是將戶外產品部門的EBITDA 利潤率降至兩位數的低水平，或者換句話說，我們的獨立Revelyst 業務，包括估計的獨立成本，將調整後的EBITDA 利潤率提高到個位數的高水準。這將比 2024 財年提高約 400 個基點。

We expect that Revelyst adjusted EBITDA margin will be in the mid-teens, including estimated stand-alone costs by our fiscal year 2027, an estimated 1,000 basis point improvement over stand-alone fiscal 2024, with the $125 million of realized run rate cost savings being the primary driver of the increase from today's levels.

我們預計，Revelyst 調整後的 EBITDA 利潤率將達到 15% 左右，包括到 2027 財年的估計獨立成本，預計比 2024 財年的獨立成本提高 1,000 個基點，實現運行率成本節省 1.25 億美元是當今水平成長的主要驅動力。

We are reaffirming the full year 2024 guidance discussed on our conference call a few weeks ago. For the full fiscal year 2024, we expect sales of $2.725 billion to $2.825 billion, Sporting Products sales of $1.45 billion to $1.5 billion and Outdoor Product sales of $1.275 billion to $1.325 billion. Adjusted EBITDA margins between 15.5% and 16.25%, Sporting Products EBITDA margin range of 26.5% to 27.5% and Outdoor Products EBITDA margin range of 7.75% to 8.25%. Adjusted EPS in the range of $3.65 to $4.05 and effective tax rate of approximately 19.5%, and interest expense in the range of $55 million to $65 million and adjusted free cash flow between $265 million and $315 million.

我們重申幾週前在電話會議上討論的 2024 年全年指引。對於 2024 年整個財年，我們預計銷售額為 27.25 億美元至 28.25 億美元，運動產品銷售額為 14.5 億美元至 15 億美元，戶外產品銷售額為 12.75 億美元至 13.25 億美元。調整後的 EBITDA 利潤率範圍在 15.5% 至 16.25% 之間，體育產品 EBITDA 利潤率範圍在 26.5% 至 27.5% 之間，戶外產品 EBITDA 利潤率範圍在 7.75% 至 8.25% 之間。調整後每股收益為 3.65 至 4.05 美元，有效稅率約為 19.5%，利息支出為 5,500 萬至 6,500 萬美元，調整後自由現金流為 2.65 億至 3.15 億美元。

Diving deeper, although we do not provide quarterly guidance, we thought it would be prudent to give more color on our expectations for the remainder of the year. In the Sporting Products segment, Q2 sales were pressured by the market softening across categories. We believe that the current increased global unrest, along with the strong hunting season in Q3 and the start of an election season in Q4 will result in more favorable performance than in Q2. We see segment adjusted EBITDA margins in the mid-20% range for the rest of our fiscal year.

更深入地說，儘管我們不提供季度指引，但我們認為謹慎的做法是對今年剩餘時間的預期給予更多的說明。在運動產品領域，第二季的銷售受到各類別市場疲軟的壓力。我們認為，當前全球動盪加劇，加上第三季度狩獵季節的強勁以及第四季度選舉季節的開始，將導致比第二季度更有利的表現。我們預計本財年餘下時段調整後的 EBITDA 利潤率將在 20% 左右。

In Outdoor Products, as previously mentioned, high interest rates and other short-term factors have impacted consumer demand. We expect consumer demand to be slower for the rest of the calendar year 2023, resulting in channel partners remaining cautious and not increasing their purchasing behavior until calendar year 2024. This dynamic is causing slower-than-expected inventory sell-in, which coupled with promotional pressures as we work to sell through our high-priced inventory positions during the holiday season is driving down profitability in Q3. We expect sales to decline in the high single-digit range in Q3 versus the prior year period, returning to low single-digit growth in Q4 versus the prior year period.

在戶外用品方面，如前所述，高利率和其他短期因素影響了消費者的需求。我們預計 2023 年剩餘時間消費者需求將放緩，導致通路夥伴保持謹慎態度，直到 2024 年才會增加購買行為。這種動態導致庫存銷售速度慢於預期，再加上由於我們在假期期間努力銷售高價庫存，促銷壓力導致第三季的獲利能力下降。我們預計第三季銷售額將較去年同期出現高個位數下降，第四季將恢復到較去年同期較低的個位數成長。

The year-over-year growth in Q4 will be driven by exciting new product introductions in our golf business as well as more favorable purchasing patterns in our Action Sports businesses versus the prior year. Due to the increased promotional environment of the holiday season and moving through the higher priced inventory in Q3, we expect segment adjusted EBITDA margins to be in mid-single digits returning to high single digits in the fourth quarter as we reduce promotions and start to see the impact of our GEAR Up program readthrough.

第四季度的同比增長將由我們的高爾夫業務中令人興奮的新產品推出以及我們的極限運動業務中比上一年更有利的購買模式推動。由於假日季促銷環境的加強以及第三季庫存價格較高，我們預計，隨著我們減少促銷活動並開始看到，第四季度調整後的EBITDA 利潤率將達到中個位數，恢復到高個位數。我們的 GEAR Up 計劃通讀的影響。

With the expected improvement in Outdoor Products to end fiscal year 2024, which includes returning to organic growth and generating segment adjusted EBITDA margin in the high single digits in Q4 combined, with our GEAR Up profitability improvement program, we seek Revelyst adjusted EBITDA dollars on a stand-alone basis to double in fiscal year 2025. We are also still gaining market share in key categories, which positions us well for a strong start to fiscal year 2025 as we expect demand to return and channel partners to begin purchasing at normal rates again.

隨著戶外產品業務到2024 財年末的預期改善，包括恢復有機增長以及第四季度調整後的EBITDA 利潤率達到高個位數，再加上我們的GEAR Up 盈利能力改善計劃，我們尋求Revelyst 調整後的EBITDA 美元到2025 財年，我們的獨立基礎將翻倍。我們還在關鍵類別中獲得市場份額，這為我們在2025 財年的強勁開局奠定了良好的基礎，因為我們預計需求將回升，通路合作夥伴將再次開始以正常價格購買。

Thank you, everyone. Operator, please open up the line for questions.

謝謝大家。接線員，請開通提問線。

(Operator Instructions) We now have Matt Koranda of ROTH MKM.

（操作員指示）我們現在有 ROTH MKM 的 Matt Koranda。

Just first on the high-level sales dynamics involved with the Ammo business. Any potential for another buyer to emerge now that, that transaction is public? And then just could you maybe help us understand the next steps of CFIUS approval as it pertains to the transaction?

首先是與彈藥業務相關的高層銷售動態。既然交易已公開，是否有可能出現另一個買家？那麼您能否協助我們了解 CFIUS 核准與交易相關的後續步驟？

Sure. Matt, this is Gary. As to speculating whether another buyer will come forward, that would be just speculation. It's always possible. We, as a Board and the company, are not allowed to go solicit buyers. But if a qualified bid comes forward, we do have the ability to evaluate such. With regards to CFIUS and other regulatory approvals, we expect to have all of those filed in the coming weeks. And from there, obviously, it will just proceed as they typically do through that process. We do have a shareholder vote that is required that we will anticipate in that March, April time frame, and that's kind of the process for the next steps.

當然。馬特，這是加里。至於猜測是否會有其他買家出面，那隻是猜測。這總是有可能的。身為董事會和公司，我們不可以去招攬買家。但如果有合格的投標出現，我們確實有能力對其進行評估。至於 CFIUS 和其他監管部門的批准，我們預計在未來幾週內提交所有申請。顯然，從那裡開始，事情就會像他們通常透過這個過程所做的那樣進行。我們確實需要進行股東投票，我們預計將在三月、四月的時間範圍內進行投票，這就是下一步的流程。

Okay. I appreciate that, Gary. And then maybe just for Jason, can you talk about the dynamic that's happening in the retail and distribution channels as it pertains to .223 and 5.56? I guess, we've been seeing some of that inventory clearing in recent weeks. What are you seeing in terms of inventory and pricing? And how does that feed into the commentary that you guys provided in terms of the more favorable performance for the next couple of quarters?

好的。我很感激，加里。然後，也許 Jason 可以談談零售和分銷管道中與 0.223 和 5.56 有關的動態嗎？我想，最近幾週我們已經看到了一些庫存清理情況。您對庫存和定價有何看法？這如何反映在你們對未來幾季更有利的業績的評論中？

Yes. Good question, Matt. So on the .223/5.56 specifically, we don't do a whole lot of that commercially anymore. Most of ours is tied to law enforcement and government contracts. What we've seen recently, and we'll say, in the last 4 weeks, we've certainly seen POS upticks significantly across broader categories. And we watch that daily, literally daily with our customers and then our wholesale partners. We watch their inventory daily, but we certainly have seen an uptick in the last 4 weeks across pretty much all categories.

是的。好問題，馬特。因此，特別是在 .223/5.56 上，我們不再做很多商業化的事情。我們的大部分工作都與執法和政府合約有關。我們最近看到的，我們會說，在過去 4 週內，我們確實看到了更廣泛類別的 POS 顯著上升。我們每天都在觀察這一點，實際上是每天與我們的客戶以及我們的批發合作夥伴一起觀察。我們每天都會關注他們的庫存，但我們確實看到過去 4 週幾乎所有類別的庫存都有所增加。

Got it. And then as it pertains to the near-term sort of guidance commentary that you provided, the more favorable performance, I guess, just help us unpack what that means. It sounds like higher revenue, and then you alluded to sort of mid-20% EBITDA margin in that segment, I guess that might be a little lower than where you were in the second quarter. So just help us kind of where are those?

知道了。然後，由於它涉及您提供的近期指導評論，我想更有利的表現只是幫助我們理解這意味著什麼。聽起來收入更高，然後您提到該細分市場的 EBITDA 利潤率為 20% 左右，我想這可能比第二季度的水平略低。那麼請幫我們看看那些在哪裡？

Yes. I think on the EBITDA front, we like what we see on the EBITDA front. We've always guided towards mid-20s in the back half of the year. There could be some favorability to that in the third and fourth quarter, if we see what market trends are. And if we can control mix a little bit and get more profitable items out there than we had assumed. So I think on the revenue side, we don't guide quarterly. I think it's going to look very similar to the first half. The second half will look very similar, and there is a chance that we don't see the degradation of the profitability that we had predicted in the first part of the year.

是的。我認為在 EBITDA 方面，我們喜歡 EBITDA 方面的情況。我們總是在今年下半年將目標導向約 20 歲。如果我們看看市場趨勢是什麼，第三季和第四季可能會出現一些有利的情況。如果我們能夠稍微控制一下混合，並獲得比我們想像的更有利可圖的產品。所以我認為在收入方面，我們不會按季度提供指導。我認為這看起來與上半場非常相似。下半年看起來非常相似，我們有可能不會看到今年上半年預測的獲利能力下降。

Okay. Got it. That's clear. And then on Revelyst, for Eric, maybe, just curious, are we committing to mid-teens stand-alone EBITDA margins for Revelyst still? And then is the GEAR Up program enough to get you there? I guess I'm curious how much of the $100 million of incremental cost savings in that program are related to sort of segment cost improvements versus corporate costs? If you could maybe just help us understand and unpack that program in a bit more detail on how it pertains to the long-term targets, that would be great.

好的。知道了。很清楚。然後在 Revelyst 上，對於 Eric 來說，也許只是好奇，我們是否仍致力於將 Revelyst 的獨立 EBITDA 利潤率維持在十幾歲左右？那麼 GEAR Up 計畫是否足以幫助您實現這個目標？我想我很好奇該計劃中 1 億美元的增量成本節省有多少與部門成本改進與公司成本相關？如果您能幫助我們更詳細地理解和解壓縮該計劃，並了解它如何與長期目標相關，那就太好了。

Sure. Matt, it's Eric. I'll provide some color, and then I'll turn it over to Andy to give a little bit of additional detail. But first and foremost, to your first question, you asked about our long-term guidance. And we do feel like the mid-teens long-term guidance is something that we are still committing to. And we'll continue to provide more detail on that over the coming months.

當然。馬特，這是埃里克。我將提供一些顏色，然後將其交給安迪提供一些額外的細節。但首先，對於你的第一個問題，你詢問了我們的長期指導。我們確實認為，我們仍然致力於為青少年提供長期指導。我們將在未來幾個月繼續提供更多細節。

With regards to the GEAR Up program, it's obviously something that we're very excited and committed to doing. It's a program that drives profitability improvements along with organic growth for Revelyst. And everything does ladder back to that $100 million in new cost savings and $25 million in cost savings from the March 2023 initiative. So we just want to make sure it's clear that, that's how we get to the $125 million in cost savings by fiscal year '27.We're on that with a great team and a world-class consulting organization.

對於 GEAR Up 計劃，我們顯然非常興奮並致力於做這件事。該計劃可推動 Revelyst 獲利能力的提高以及有機成長。一切確實會重新回到 1 億美元的新成本節省和 2023 年 3 月計劃帶來的 2500 萬美元的成本節省。因此，我們只是想確保清楚，這就是我們如何在 27 財年之前節省 1.25 億美元的成本。我們擁有一支優秀的團隊和世界一流的諮詢組織。

And just to give you some color before I pass it over to Andy, there's a lot of significant detail there that I think will build confidence for all of our stakeholders. When we look at simplifying the business model, we do feel really good about the 3 platforms that we announced this morning, and we've been working on now for the past several weeks, really going to that precision sports technology platform, which will be driven by Foresight and Bushnell Golf, the Adventure Sport platform, which will be driven by Fox, Bell, Giro, QuietKat and CamelBak and our Outdoor Performance group, which will be driven by Simms and Camp Chef, Bushnell, BLACKHAWK, Primos and more. And there's a lot of excitement about being able to really focus on those brands to grow.

在我將其傳遞給安迪之前，為了給您一些說明，其中有很多重要的細節，我認為這些細節將為我們所有利益相關者建立信心。當我們考慮簡化商業模式時，我們確實對今天早上宣布的 3 個平台感覺非常好，過去幾週我們一直在努力，真正走向精準運動技術平台，這將是由Foresight 和Bushnell Golf 推動，冒險運動平台將由Fox、Bell、Giro、QuietKat 和CamelBak 推動，而我們的戶外表演團隊將由Simms 和Camp Chef、Bushnell、BLACKHAWK、Primos 等推動。能夠真正專注於這些品牌的發展令人非常興奮。

And then secondly, we feel really good about delivering increased efficiency and profitability. There's some color to that initiative called GEAR Up, which is really the entirety of the transformation. With supply chain today, we have 9 DCs and domestic warehouses, and we see significant consolidation opportunity in the future. Today, we have 8 USA manufacturing sites, and we see opportunity for consolidation in the future, which will lead to cost savings there.

其次，我們對提高效率和獲利能力感到非常滿意。這項名為「GEAR Up」的舉措有一些色彩，它實際上是整個轉型的全部。憑藉今天的供應鏈，我們擁有 9 個配送中心和國內倉庫，我們看到未來有重大的整合機會。如今，我們在美國擁有 8 個製造基地，我們看到了未來整合的機會，這將節省那裡的成本。

On the real estate front, we have over 21 domestic locations today, and we expect some significant real estate consolidation. So that's just a little bit of color for how we're going to get there. But yes, we do feel good that those programs will lead to those improved margins over time.

在房地產方面，我們目前在國內擁有超過 21 個辦事處，我們預計會出現一些重大的房地產整合。所以這只是我們如何實現這一目標的一點點色彩。但是，是的，我們確實感到高興的是，隨著時間的推移，這些計劃將帶來利潤率的提高。

Andy, do you want to add any more to that?

安迪，你還想補充什麼嗎？

Yes. Matt, I think your point was a great one is that we want to be clear, the $100 million GEAR Up program is going to be fully related to Revelyst. So there isn't going to be only a part of that, that actually goes Revelyst. Unlike the previous program, which was split between the 2, this is going to be completely related to Revelyst. So that will get us a fairly significant way towards that mid-teens once fully implemented.

是的。馬特，我認為你的觀點很重要，那就是我們想要明確的是，價值 1 億美元的 GEAR Up 計畫將與 Revelyst 完全相關。因此，Revelyst 不會只是其中的一部分。與先前的專案（分為兩個專案）不同，這將與 Revelyst 完全相關。因此，一旦完全實施，這將為我們提供一個相當重要的方法來實現這一目標。

There will be a little bit more if we need to do, and I think some of that is going to be a lot of what Eric talked about is the growth in some of these very high-profit areas of golf and other areas with new products that are going to generate additional revenue will help close that gap as well. But this is going to be a significant component of us getting -- which is why we're confident in the mid-teens in the long run.

如果我們需要做的話，還會有更多的事情，我認為其中一些將是埃里克談到的許多高利潤領域的高爾夫和其他新產品領域的增長將產生額外收入的項目也將有助於縮小這一差距。但這將是我們成功的一個重要組成部分——這就是為什麼我們對長期的十幾歲左右的人充滿信心。

We now have Mark Smith of Lake Street Capital Markets.

現在我們請來了湖街資本市場公司的馬克史密斯。

It's Alex Sturnieks on the line for Mark Smith this morning. For my first question, for the Revelyst business, you guys mentioned simplifying the business model, reinvesting in high potential brands. Is there any consideration or discussion about the possibility of divesting certain brands within that Revelyst portfolio?

今天早上，亞歷克斯·斯圖尼克斯 (Alex Sturnieks) 接聽了馬克史密斯 (Mark Smith) 的電話。對於我的第一個問題，對於Revelyst業務，你們提到簡化商業模式，對高潛力品牌進行再投資。是否有關於剝離 Revelyst 產品組合中某些品牌的可能性的考慮或討論？

Alex, it's Eric. And thanks for the question. The answer is yes. As we think about focus, we're going to continue to give more information about how we're looking at our brands over the months ahead. But at a high level, we look at our power brands being things like Foresight and Bushnell Golf, Fox, Bell, Giro, Simms and Bushnell. And we're going to really focus a lot of our efforts on those things.

亞歷克斯，這是埃里克。謝謝你的提問。答案是肯定的。當我們考慮重點時，我們將在未來幾個月繼續提供更多有關我們如何看待我們的品牌的資訊。但從高層次來看，我們的強勢品牌包括 Foresight 和 Bushnell Golf、Fox、Bell、Giro、Simms 和 Bushnell。我們將真正將大量精力集中在這些事情上。

And as we focus intensely on our power brands, that will also mean that we're taking a look at all of the brands in our portfolio. And I would say that we're evaluating all of our assets, and we're open to licensing or divesting from noncore assets and brands in the future. And as we make more progress on that, we'll certainly be updating all stakeholders in our community.

當我們高度關注我們的強勢品牌時，這也意味著我們正在審視我們投資組合中的所有品牌。我想說的是，我們正在評估我們的所有資產，並且我們對未來的非核心資產和品牌的許可或剝離持開放態度。隨著我們在這方面取得更多進展，我們肯定會向社區中的所有利害關係人通報最新情況。

That's great. And then for my second question here, could you give your thoughts around the promotional environment. As we enter the holiday season, are you guys being a little more promotional than traditional levels? And then are you guys seeing retail partners getting overly promotional?

那太棒了。對於我的第二個問題，您能否談談對促銷環境的看法？當我們進入假期時，你們是否比傳統水平進行了更多的促銷？那麼你們是否看到零售合作夥伴進行過度促銷？

Yes. So I mean as we mentioned, the promotional level is going to be, I would say, more than historical as we are moving through inventories and our retailers and moving through inventories in this time period. So the high-priced inventory that we have on our balance sheet. We have made progress. Our Outdoor Products business was down about $20 million, a little bit over that in inventory here in the quarter, but we need to move through more of that. So you're going to see promotional environment more than typical in the third quarter, which is why we are expecting EBITDA margins to be a little bit lower in Q3 for the Revelyst side.

是的。所以我的意思是，正如我們所提到的，我想說，促銷水平將不僅僅是歷史水平，因為我們正在處理庫存和零售商，並在這段時間內處理庫存。所以我們的資產負債表上有高價庫存。我們已經取得了進展。我們的戶外產品業務減少了約 2000 萬美元，略高於本季的庫存，但我們需要解決更多問題。因此，您將在第三季看到比典型情況更多的促銷環境，這就是為什麼我們預計 Revelyst 方面的 EBITDA 利潤率在第三季會稍低一些。

And then that will return because those promotions will not continue past the holiday season. So it will come back in Q4, which is a little bit of a dip and bring it up, but it will move through the inventories and the retailers will have moved through it because we're partnering with them as well. And that will be -- will not continue into next year as the expectation. It will return more to a historic normal levels.

然後這種情況將會再次出現，因為這些促銷活動將不會在假期結束後繼續下去。因此，它將在第四季度回歸，略有下降並有所上升，但它將通過庫存轉移，零售商也會通過它，因為我們也與他們合作。這將不會像預期那樣持續到明年。它將恢復到歷史正常水平。

We now have Jim Chartier of Monness, Crespi, Hardt.

我們現在有 Monness、Crespi、Hardt 的 Jim Chartier。

Can you just tell us kind of what your expectation for stand-alone EBITDA for Revelyst is this year?

您能否告訴我們您對今年 Revelyst 的獨立 EBITDA 的期望是多少？

Yes. Stand-alone EBITDA -- so based on an 8% kind of midpoint for what we're guiding for the segment with just over $50 million of expected stand-alone cost, it's going to be in that 4.5-ish percent range is what you would expect for FY '24.

是的。獨立 EBITDA——因此，基於我們為該細分市場制定的預期獨立成本略高於 5000 萬美元的 8% 中點，它將處於 4.5% 左右的範圍內。預計 24 財年。

Okay. And then you mentioned in a press release thought to maybe double that next year. What's kind of the confidence in your ability to do that? And then in addition to the cost savings plan outlined, what would be the drivers behind that significant growth?

好的。然後你在新聞稿中提到明年可能會增加一倍。您對自己有能力做到這一點有什麼信心？那麼，除了概述的成本節約計劃之外，這種顯著增長背後的驅動因素是什麼？

Yes. So there's a few things. I think we are -- I mean we said it, so we're certainly confident that we can accomplish this goal. I think you're right, the 25% to 30% is a big component of that or what we're doing with the project savings. Promotions that we just talked about as well, not having those repeated because we do expect promotions, but they're going to be at more historical normal levels and with inventory that is at the lower price than we expected. So those items between the promotions coming down to more normal and the supply that we already expected with freight reductions in those high-priced inventory items that we have moved through will give us the remaining amount of that difference from the $25 million to $30 million to the doubling that we're talking about.

是的。所以有幾件事。我認為我們——我的意思是我們說過，所以我們當然有信心能夠實現這一目標。我認為你是對的，25% 到 30% 是我們在專案節省中所做的一個重要部分。我們剛才也談到了促銷活動，不會重複這些促銷活動，因為我們確實預計會有促銷活動，但它們將處於歷史正常水平，並且庫存價格低於我們的預期。因此，促銷活動變得更加正常，以及我們已經預期的供應量和我們已經轉移的高價庫存商品的運費減少之間的那些商品，將為我們提供從 2500 萬美元到 3000 萬美元的剩餘差額。我們正在談論的加倍。

Okay. So you don't need any meaningful revenue growth next year to achieve that?

好的。那麼明年您不需要任何有意義的收入成長來實現這一目標嗎？

Revenue growth would not be the necessary. This is going to be more on the cost to get to that level. We do it, we will we'll evaluate the revenue and where we expect to grow. But given the new innovations and whatnot that we're working through and the fact that Q4 is going to start the organic growth, that will be a systems on the top basically of that.

收入成長並不是必要的。達到這一水準的成本將會更高。我們這樣做，我們將評估收入以及我們期望成長的地方。但考慮到新的創新以及我們正在努力的事情，以及第四季度將開始有機成長的事實，這將是一個基本上在此基礎上的系統。

Okay. And then any plans to reinvest any of the GEAR Up savings into parts of the business?

好的。那麼是否有計劃將 GEAR Up 節省的資金再投資到部分業務中？

The $100 million is the net that we would expect EBITDA to move by. We are fully expecting that we are going to be reinvesting. There will be portions of the savings that will be going into reinvestment, but that is the net number that we would expect our EBITDA, which is going to get us to that mid-teens long-term. But the reinvestment is a very important aspect for our business between marketing and the innovation of R&D to really grow this business and see that organic growth that we're fully expecting, that is going to be a key component of it. But we just want -- we're communicating the net to make it as easy as possible.

1 億美元是我們預期 EBITDA 變動的淨值。我們完全期待我們將進行再投資。部分節省的資金將用於再投資，但這是我們期望的 EBITDA 淨值，這將使我們長期達到十幾歲左右的水平。但再投資對於我們的行銷和研發創新業務來說是一個非常重要的方面，以真正發展這項業務，並看到我們完全期望的有機成長，這將成為其關鍵組成部分。但我們只是想讓——我們透過網路進行交流，讓一切變得盡可能簡單。

(Operator Instructions) We now have William Reuter of Bank of America.

（操作員指示）我們現在有美國銀行的 William Reuter。

I just have 2. The first is, now that you've had a little more time since the announcement of the divestiture, has there been any change in the plans with regard to repaying the bonds? Do you still plan to repay them before closing? And do you know if this is planned to be a call or a defeasance if you give that any more thoughts?

我只有2個。第一個問題，自從宣布剝離以來，你們已經有了更多的時間，償還債券的計劃是否有任何變化？您還打算在交易結束前還款嗎？如果你再想一想，你知道這是否是計劃中的一個電話或一次通姦嗎？

Thanks, Bill. That, so -- we have had a little time, as we said, the vote would be in the March -- kind of end of March, April time period. So it likely will be a redemption of the bonds, not a call on the make all premium. So that is still the expectation until then. We haven't had any other discussions on anything earlier than that being done at this point.

謝謝，比爾。那，所以 - 我們有一點時間，正如我們所說，投票將在三月 - 大約三月底，四月的時間段進行。因此，這很可能是債券的贖回，而不是贖回溢價。所以在那之前這仍然是期望。在此之前我們還沒有就任何其他事情進行過討論。

Great. And then in terms of the commentary about what's going on with Revelyst and inventory levels in your different channels. Is it just elevated inventory and destocking that's going on with regard to the kind of soft environment? Or how is sell-through of those products?

偉大的。然後是關於 Revelyst 的情況以及不同管道的庫存水準的評論。只是在軟環境下庫存增加和去庫存嗎？或是這些產品的銷售情況如何？

So no, POS is down a little, so it isn't just that inventory. POS is down. It's -- but the -- what we're seeing is beyond the POS being down the sell-in isn't even keeping up with the POS. So there is still a gap between those items. But POS is down, but it's slowing on how compared year-over-year that isn't as down as it previously was, but that's more that it started last year at this point in time. So we're just seeing that it's kind of stabilized at level. So it is continuing to be down on POS, which is why part of what promotional is going to be for Q3 to push through the inventory. We need to increase some of that POS, which is why the promotions are a little bit higher than they would be normally to drive that here in the holidays season.

所以不，POS 略有下降，所以不僅僅是庫存。 POS 已停機。但我們所看到的不僅僅是 POS 的下降，銷售甚至沒有跟上 POS 的步伐。所以這些項目之間仍有差距。但 POS 有所下降，但與去年同期相比，它正在放緩，雖然不像以前那樣下降，但比去年這個時間點開始的下降更多。所以我們只是看到它穩定在某個水平。因此，POS 銷售持續下降，這就是為什麼第三季促銷活動的一部分是為了推動庫存。我們需要增加一些 POS，這就是為什麼促銷活動比平常高一些，以推動假期季節的發展。

I guess one follow-up on that. The POS being down, how much of that do you think is being driven just by constrained consumer budgets versus changes in behavior that may be causing people to participate less in some of these activities post COVID?

我想對此有一個後續行動。 POS 出現故障，您認為這在多大程度上是由於消費者預算有限以及可能導致人們在新冠疫情後減少參與其中一些活動的行為變化造成的？

I think it's a mix on -- it certainly is a mix that there are constrained budgets, but the consumer in these discretionary type of activities is a little bit lighter, but I think they're making some decisions to do other items. The participation in general in the Outdoors is still high. We're still seeing solid participation in elevated levels above the pandemic time or pre-pandemic period. So long term, we're still confident that this is going to return to growth from where they have been here over the last few months or even years. But it is right now constrained on that. And it's hard for us to point exactly what's driving what, but there certainly is a mix of that.

我認為這是一個混合——當然是預算有限的混合，但消費者在這些可自由支配的類型的活動中稍微輕鬆一些，但我認為他們正在做出一些決定去做其他項目。整體來說，戶外活動的參與度仍然很高。我們仍然看到，在大流行期間或大流行前時期以上的高水平參與。從長遠來看，我們仍然有信心，這將恢復過去幾個月甚至幾年的成長。但現在僅限於此。我們很難準確指出是什麼在驅動什麼，但肯定是有多種因素共同作用的。

(Operator Instructions) I confirm we have had no further questions. So I would like to conclude the call here. Please have a lovely rest of your day.

（操作員說明）我確認我們沒有其他問題。我想在此結束這通通話。請度過愉快的一天。