(XPOF) 2024 Q1 法說會逐字稿

Greetings, and welcome to the exponential Fitness First Quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press and then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, everyone, at makeup from Investor Relations. Keith, you may begin.

您好，歡迎參加指數級健身 2024 年第一季財報電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行簡短的問答環節。如果有人在會議期間需要接線員協助，請按電話鍵盤上的 ，然後按零。提醒一下，本次會議正在錄製中。現在我很高興向大家介紹投資者關係化妝會上的主持人。基思，你可以開始了。

Thank you, operator. Good afternoon, and thank you all for joining our conference call to discuss exponential Fitness First Quarter 2024 financial results. I am joined by Anthony Geisler, Chief Executive Officer; Sarah Luna, President; and John Malone, Chief Financial Officer.

謝謝你，接線生。下午好，感謝大家參加我們的電話會議，討論指數健身 2024 年第一季的財務表現。執行長安東尼·蓋斯勒 (Anthony Geisler) 也出席了會議；莎拉‧盧納，總裁；和財務長約翰·馬龍。

A recording of this call will be posted on the Investors section of our website at investor dot exponential.com. We remind you that during this conference call, we will make certain forward looking statements including discussions of our business outlook and financial projections. These are forward-looking statements based on management's current expectations and involve risks and uncertainties that could cause actual results to differ materially from such expectations.

本次電話會議的錄音將發佈在我們網站的投資者部分：investor dotexponential.com。我們提醒您，在本次電話會議中，我們將做出某些前瞻性聲明，包括討論我們的業務前景和財務預測。這些是基於管理階層目前預期的前瞻性陳述，涉及可能導致實際結果與此類預期有重大差異的風險和不確定性。

For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligation to update the information provided on today's call. In addition, we will be discussing certain non-GAAP financial measures in this conference call. We use non-GAAP measures because we believe they provide useful information about our operating performance it should be considered by investors in conjunction with the GAAP measures that we provide. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release that was issued earlier today prior to this call.

有關這些風險和不確定性的更詳細描述，請參閱我們最近和隨後向 SEC 提交的文件。我們沒有義務更新今天電話會議中提供的資訊。此外，我們將在本次電話會議中討論某些非公認會計準則財務措施。我們使用非公認會計準則衡量標準是因為我們相信它們提供了有關我們經營業績的有用信息，投資者應將其與我們提供的公認會計準則衡量標準結合起來考慮。這些非公認會計準則衡量標準與可比較公認會計準則衡量標準的調節包含在今天稍早在本次電話會議之前發布的收益報告中。

Please also note that all numbers reported in today's prepared remarks refer to global figures unless otherwise noted. I will now turn the call over to Anthony guys are Chief Executive Officer of exponential fitness.

另請注意，除非另有說明，今天準備好的評論中報告的所有數字均指全球數據。我現在將把電話轉給安東尼，他們是指數健身公司的執行長。

Thanks, Avery. Thank you all for joining us this afternoon. After closing 2023 with solid momentum, we've had a strong start to 2024 with adjusted EBITDA margins expanding to 38% of revenue, fueled by continued growth in our studio footprint and leaner operating expenses as of the end of Q1, we had 3,156 studios operating globally with 6,365 licenses sold across our portfolio in the first quarter we have completed the acquisition of Vindora and are on plan with the integration activities, as Darren will speak to shortly. We are very encouraged with the initial demand for the indoor franchises.

謝謝，艾弗里。感謝大家今天下午加入我們。在以強勁勢頭結束2023 年之後，我們在2024 年有了一個強勁的開局，調整後的EBITDA 利潤率擴大到收入的38%，這得益於我們工作室規模的持續增長和截至第一季末營運費用的精簡，我們擁有3,156 個工作室我們在全球範圍內運營，第一季我們的產品組合售出了6,365 個許可證，我們已經完成了對Vindora 的收購，並正在計劃進行整合活動，達倫很快就會談到這一點。我們對室內特許經營權的最初需求感到非常鼓舞。

We have already sold almost 40 licenses since we started selling the door in March. And we are particularly encouraged to see the strong demand coming from both existing and new franchisee groups during the quarter, total members in North America grew 17% year over year to 783,000, while our total visits increased 18% to a total of 14.9 million in studio visits for Q1.

自 3 月開始銷售該門以來，我們已經售出了近 40 個許可證。我們尤其受到鼓舞的是，本季現有和新加盟商團體的強勁需求，北美會員總數同比增長 17%，達到 783,000 人，而我們的總訪問量增長 18%，達到 1,490 萬人次。工作室參觀。

This drove North American system-wide sales to over $400 million in the quarter, an increase of 25% over the first quarter of 2023, North American run rate. Average unit volumes of $596,000 in the first quarter increased 9% from $547,000 in the prior year period, while same-store sales increased 9% for Q1, same-store sales for studios older than 36 months came in at 10%, primarily due to continued growth in our scaled brands.

這推動本季北美全系統銷售額超過 4 億美元，比 2023 年第一季北美運行率成長 25%。第一季的平均單位銷售量為 596,000 美元，比去年同期的 547,000 美元增長 9%，而第一季同店銷售額增長 9%，超過 36 個月的工作室同店銷售額增長 10%，這主要是由於我們規模化品牌的持續成長。

During the first quarter, net revenues totaled $79.5 million, an increase of 12% year over year. Adjusted EBITDA totaled $29.8 million or 38% of revenue, up 30% from $22.9 million or 32% of revenue in the first quarter of 2023. As we discussed previously, optimizing growth in existing studios drives profitability in our asset-light, highly leverageable franchising model. In addition, along with our transition studio strategy shift complete, we remain firmly on track to reach our targeted 40% adjusted EBITDA margins this year and growing to 45% by 2026.

第一季淨收入總計 7,950 萬美元，年增 12%。調整後EBITDA 總計2,980 萬美元，佔營收的38%，比2023 年第一季的2,290 萬美元，佔營收的32% 成長了30%。我們輕資產、高槓桿特許經營的獲利能力模型。此外，隨著我們過渡工作室策略轉變的完成，我們仍然堅定地朝著今年實現 40% 調整後 EBITDA 利潤率的目標邁進，到 2026 年將增長到 45%。

Let's now discuss another key growth driver the increase of our franchise studio base. We ended the quarter with 3,156 global Open Studios, opening 111 gross new studios during Q1 with 85 in North America and 26 in international markets.

現在讓我們討論另一個關鍵的成長動力，即我們特許經營工作室基礎的增加。本季結束時，我們在全球開設了 3,156 個開放工作室，第一季總共開設了 111 個新工作室，其中 85 個位於北美，26 個位於國際市場。

As mentioned on our last call and in line with typical seasonality cadence, we expect openings to be more back-end weighted with a gradual increase in each quarter of 2024. We currently have over 400 North American leases and LOIs signed for studios not yet open, which will result in new studios in the coming quarters.

正如我們在上次電話會議中提到的，根據典型的季節性節奏，我們預計空缺職位將更加註重後端權重，並在2024 年每個季度逐漸增加。簽署了400 多個北美租賃和意向書，這將在未來幾季建立新的工作室。

We sold 173 licenses globally in the first quarter and our pipeline remains robust with almost 2,000 licenses sold and contractually obligated to open in North America, plus an additional over 1,000 master franchise agreement obligations. We also continue to expand our overall TAM along with a growing addressable market for our brands.

第一季度，我們在全球銷售了 173 個許可證，我們的管道仍然強勁，已售出近 2,000 個許可證，並按合約規定必須在北美開業，另外還有 1,000 多個主特許經營協議義務。我們也繼續擴大我們的整體 TAM，以及我們品牌不斷成長的潛在市場。

The acquisition of WinDoor has increased our access to the broader health and wellness market. Flexion's latest analysis illustrates our current TAM in the United States alone is at approximately 8,400 studios Clarkson estimates room for an additional over 800 club PLN locations in the United States in the door is now included at over 1,000 potential locations.

收購 WinDoor 增加了我們進入更廣泛的健康和保健市場的機會。 Flexion 的最新分析表明，我們目前僅在美國就有約 8,400 個工作室。

As exponential continues to grow. We continue to focus on optimization of our portfolio of brands and remain open to opportunities to both acquire and divest brands that align with the desired long-term growth trajectories of our business. At this time, we are not including any further locations for AKT. or Roadhouse, and the 8,400 location TAM estimate and Stride has been removed from TAM also following us divesture in the first quarter.

隨著指數持續成長。我們繼續專注於優化我們的品牌組合，並對收購和剝離符合我們業務預期長期成長軌蹟的品牌保持開放的態度。目前，我們不包括 AKT 的任何其他地點。或 Roadhouse，TAM 估計的 8,400 個地點和 Stride 也已在第一季度剝離 us 後從 TAM 中刪除。

Turning to our international expansion efforts. At the end of the first quarter, we have over 1,000 studios obligated to open under master franchise agreements. In April, we opened our 400 international studio. We are starting to build a significant presence in select international markets, which will help drive consumer awareness and economies of scale.

轉向我們的國際擴張努力。截至第一季末，我們有超過 1,000 個工作室有義務根據主特許經營協議開業。 4 月，我們開設了 400 人的國際工作室。我們開始在選定的國際市場上建立重要的影響力，這將有助於提高消費者意識和規模經濟。

For example, we have over 220 studios in Australia and Japan. We now have 50 club party studios open, same master franchisee who is overseeing development of those 50 locations has an additional 115 club Pilates locations to be developed in Japan, 130 locations to be developed across our cycle bar rumble and AKT. brands in Japan as well as development rights in Singapore. Our recently hired International President and team have been focused on supporting our existing master franchise relationships while continuing to seek out new markets for our brands expansion.

例如，我們在澳洲和日本擁有超過 220 個工作室。我們現在有50 個開放的俱樂部派對工作室，負責監督這50 個地點開發的同一主特許經營商還在日本開發了另外115 個普拉提俱樂部地點，在我們的Rumble 和AKT 自行車酒吧中開發了130 個地點。日本的品牌以及新加坡的開發權。我們最近聘請的國際總裁和團隊一直致力於支持我們現有的主特許經營關係，同時繼續為我們的品牌擴張尋找新市場。

In the first quarter alone, our master franchisees sold 53 new sub franchise licenses. Our international business made up 31% of license sales and 23% of new openings in the first quarter.

僅在第一季度，我們的主特許經營商就售出了 53 個新的子特許經營許可證。我們的國際業務佔第一季授權銷售額的 31% 和新開幕的 23%。

I'd also like to mention how pleased we are to have recently completed our first Board meeting with our newest director, Jeffrey Lawrence. Jeff brings decades of leadership experience in some of the most well-known consumer brands. In addition to his deep financial acumen and track record of value creation. He brings expertise in executing franchise expansions on a global scale.

我還想提一下，我們非常高興最近與新任董事 Jeffrey Lawrence 一起完成了第一次董事會會議。傑夫在一些最著名的消費品牌中擁有數十年的領導經驗。除了他深厚的財務敏銳度和價值創造記錄之外。他帶來了在全球範圍內執行特許經營擴張的專業知識。

Jeff previously served as Executive Vice President and Chief Financial Officer at Domino's Pizza, where he supported the brand through its technological transformation and global expansion, and he currently serves on the Board of Shake Shack. We expect he will be a great asset to exponentially as we continue expanding globally, and I look forward to working with him on our strategic initiatives moving forward.

Jeff 先前曾擔任 Domino's Pizza 的執行副總裁兼財務長，透過技術轉型和全球擴張為該品牌提供支持，目前他是 Shake Shack 的董事會成員。我們預計，隨著我們繼續在全球擴張，他將成為我們的寶貴資產，我期待與他合作，推動我們的策略舉措向前發展。

In summary, exponential had another strong quarter as we execute against our four key growth drivers, selling franchises, opening studios, increasing AUVs and optimizing SG&A.

總而言之，隨著我們執行四個關鍵成長動力，即出售特許經營權、開設工作室、增加 AUV 和優化 SG&A，Exponential 迎來了一個強勁的季度。

And with that, I'll pass the call on to Sarah.

這樣，我會將電話轉給莎拉。

Thank you, Anthony. Our studios are critical part of our members' routines and their continued interest in our brands, as demonstrated by our first quarter total visits and total actively paying members in North America with a strong growth in both metrics, both overall and at a per studio level, total actively paying members and total visits both grew by 18% year over year.

謝謝你，安東尼。我們的工作室是會員日常活動的重要組成部分，也是他們對我們品牌持續興趣的重要組成部分，第一季北美的總訪問量和活躍付費會員總數就證明了這一點，這兩個指標無論是整體還是每個工作室層面都出現了強勁增長，活躍付費會員總數和總訪問量均同比增長 18%。

Average active members per studio and average studio visits per member also increased, while membership freezes remained low, declining year over year, running a portfolio of consumer facing brands. It is imperative that we keep the consumers interest front of mind and ensure our offerings and class formats remain relevant to what members are looking for. Changing a class format to one that better aligns with our members' interest is one way we can produce a meaningful positive change in AUV. We introduced a new strength focused class format ad cycle bar in January, which has been received very positively on average cycle buyers that adopted this class format witnessed a strong increase in AUVs during Q1.

每個工作室的平均活躍會員和每位會員的平均工作室訪問量也有所增加，而會員凍結率仍然很低，逐年下降，經營面向消費者的品牌組合。我們必須將消費者的利益放在首位，並確保我們的產品和課程形式與會員的需求保持相關性。將課程形式更改為更符合會員興趣的課程形式是我們可以在 AUV 中產生有意義的積極變化的一種方式。我們在一月份推出了一種新的以強度為重點的類別格式廣告週期欄，採用這種類別格式的平均週期買家受到了非常積極的歡迎，見證了第一季 AUV 的強勁增長。

Similarly, Pure Barre CDOs that have adopted the new strength training class format define have exhibited strong increases. We are also excited about the growth prospects of our newest brands. Pandora exponential is now approved to sell in Dora in 44 states, and we have launched the brand across major broker networks as Anthony mentioned since beginning to sell the brand in March of this year, we've already sold almost 40 licenses in Q1.

同樣，採用新的肌力訓練課程定義的 Pure Barre CDO 也表現出強勁的成長。我們也對我們最新品牌的成長前景感到興奮。 Pandoraexponential 現已獲准在44 個州的Dora 銷售，正如Anthony 所提到的，自今年3 月開始銷售該品牌以來，我們已經在主要經紀商網絡上推出了該品牌，我們在第一季度已售出近40 個許可證。

We put a WinDoor specific team in place that is ready to lead the charge for growth in addition to growing the number of WinDoor locations, we also have several initiatives underway to improve service and product offerings as well as the overall customer experience to ultimately drive higher AOVs and unit level profitability. Our existing WinDoor locations have seen month-over-month gross revenue increases every month since our January acquisition. We are currently expanding hormone replacement therapy or HRT and testosterone replacement therapy or TRT across lend or a studio base.

我們組建了一支 WinDoor 特定團隊，準備好領導成長，除了增加 WinDoor 門市數量外，我們還採取了多項舉措來改善服務和產品供應以及整體客戶體驗，最終推動更高水平的發展AOV 和單位級別的盈利能力。自 1 月收購以來，我們現有的 WinDoor 門市的總收入每月都在逐月增加。我們目前正在跨貸款或工作室基地擴展荷爾蒙替代療法或 HRT 和睪固酮替代療法或 TRT。

HRT. is a medical treatment used to balance and supplement hormone levels in the body, which can involve replacing hormones that the body is no longer producing adequately or adding hormones to address specific health concerns. Trt is used primarily to address symptoms of low testosterone levels in men, aplindore offers HRT. and TRT. services through recurring memberships, subject to prescription provided by a licensed medical professional.

荷爾蒙替代療法。是一種用於平衡和補充體內荷爾蒙水平的醫療方法，其中可能涉及替換身體不再充分產生的荷爾蒙或添加荷爾蒙以解決特定的健康問題。 TRT 主要用於解決男性睪固酮水平低下的症狀，aplindore 提供 HRT。和 TRT。透過定期會員資格獲得服務，並須遵守有執照的醫療專業人員提供的處方。

Finally, we are in the process of constructing a mobile app and upgrading Lindorff website to improve our members' experience, enhance marketing and accelerate lead generation.

最後，我們正在建立行動應用程式並升級 Lindorff 網站，以改善會員體驗、加強行銷並加速潛在客戶開發。

I'll now turn the call over to John to discuss our quarterly financial results in more detail. John?

我現在將把電話轉給約翰，更詳細地討論我們的季度財務表現。約翰？

Thanks, Sarah, and thank you to everyone for joining the call. First quarter North America systemwide sales of $401.1 million were up 25% year over year. The growth in North American system-wide sales was driven by the 9% same-store sales within our existing base of Open Studios that continue to acquire new members as well as new studio openings.

謝謝莎拉，也感謝大家加入這通通話。第一季北美全系統銷售額為 4.011 億美元，較去年同期成長 25%。北美全系統銷售額的成長是由我們現有開放工作室基地內 9% 的同店銷售額推動的，這些工作室不斷吸引新會員以及開設新工作室。

Further, 96% of the system-wide sales growth came from volume for new members, which has remained consistent with historical performance and 4% coming from price. We are still anticipating same-store sales will normalize to mid to high single digit percentages in 2024 on a consolidated basis, revenue for the quarter was $79.5 million, up 12% year over year. 73% of revenue for the quarter was recurring, which we define it as including all revenue streams except for franchise territory fee revenues and equipment revenues.

此外，全系統銷售成長的 96% 來自新會員銷量，與歷史業績保持一致，4% 來自價格。我們仍預期 2024 年同店銷售額將正常化至中高個位數百分比，該季度營收為 7,950 萬美元，年增 12%。本季 73% 的收入是經常性收入，我們將其定義為包括特許經營區域費收入和設備收入之外的所有收入流。

Given these materially occur upfront before our studio opens, all five of the components that make up our revenue grew during the quarter franchise revenue was $41.8 million, up 27% year over year. This growth was primarily driven by an increase in royalty revenue as system-wide sales reached all-time highs. In addition, an increase in franchise territory fee revenue was due to accelerated revenue recognition on terminated licenses, including those from the stride brand equivalent revenue was $13.9 million, up 6% year over year.

鑑於這些實質上是在我們工作室開業之前發生的，構成我們收入的所有五個組成部分在本季度特許經營收入均實現增長，達到 4180 萬美元，同比增長 27%。這一成長主要是由於全系統銷售額達到歷史新高而導致特許權使用費收入增加。此外，特許經營區域費收入的增加是由於終止許可的收入確認加快，其中來自Stride品牌的收入為1,390萬美元，同比增長6%。

This increase in equipment revenue is the result of a higher mix of equipment intensive brands, which have a higher price point compared to the same period prior year. Merchandise revenue was $8.2 million, up 14% year over year. The increase during the quarter was primarily driven by a higher number of operating studios and inventory purchases by existing studios to address the demand for retail as consumer foot traffic has grown compared to the prior year.

設備收入的成長是設備密集品牌組合增加的結果，這些品牌的價格比去年同期更高。商品收入為 820 萬美元，年增 14%。本季的成長主要是由於營運工作室數量增加以及現有工作室為滿足零售需求而購買的庫存，因為與前一年相比，消費者人流有所增長。

Franchise marketing fund revenue of $7.8 million was up 26% year over year, primarily due to continued growth in system-wide sales from a higher number of operating studios in North America.

特許經營行銷基金收入為 780 萬美元，年增 26%，主要是由於北美營運工作室數量增加導致全系統銷售額持續成長。

Lastly, other service revenue, which includes sales generated from company owned transition studios, rebates from processing studio system, wide sales, B2B partnerships, Pax path and X plus amongst other items, was $7.9 million, down 30% from the prior year period. The decline in the period was primarily due to our strategic move away from company owned transition studios last year, resulting in a lower other service revenues. Importantly, the savings related to the studio operating expenses exceeded the decline in revenue resulting in improved EBITDA margins.

最後，其他服務收入為790 萬美元，其中包括公司擁有的過渡工作室產生的銷售額、處理工作室系統的回扣、廣泛銷售、B2B 合作夥伴關係、Pax path 和X plus 等項目，為790 萬美元，較上年同期下降30%。這段時期的下降主要是由於我們去年策略性地放棄了公司擁有的過渡工作室，導致其他服務收入下降。重要的是，與工作室營運費用相關的節省超過了收入的下降，從而提高了 EBITDA 利潤率。

Turning to our operating expenses, cost of product revenue were $14.4 million, up 3% year over year. The increase was primarily driven by a higher volume of equipment installations for new studio openings and a higher mix of equipment intensive brands in the period as well as increased cost of goods sold on higher merchandise revenues.

說到我們的營運費用，產品收入成本為 1,440 萬美元，年增 3%。這一增長主要是由於新工作室開業的設備安裝增加、設備密集型品牌組合增加，以及商品收入增加導致銷售成本增加。

Cost of franchise and service revenue were $5.1 million, up 27% year over year. The increase was driven by higher franchise sales commissions that were accelerated from terminated licenses, including those from the Stride brand, selling, general and administrative expenses of $37.2 million were up 7% year over year. The increase in SG&A was primarily associated with restructuring costs from settling leases on company owned transitioned studios where we have ceased operations.

特許經營成本和服務收入為 510 萬美元，年增 27%。這一增長是由於特許經營銷售佣金增加而導致的，特許經營銷售佣金因終止許可證而加速，其中包括 Stride 品牌的許可證，銷售、一般和管理費用為 3720 萬美元，同比增長 7%。 SG&A 的增加主要與我們已停止營運的公司擁有的轉型工作室的租賃解決重組成本有關。

As previously discussed, we have shifted our strategy on company-owned transition Studios, which will decrease run-rate SG&A expenses and improve EBITDA margins. A number of Company owned transition studios have declined from 86 at the end of the first quarter of 2023. So only one city or remaining as of the end of the first quarter of 2024 with some of these studios having been refranchised to new owners and some having been closed permanently, the net operating losses associated with the company on transition studios have been materially eliminated for the non operating lease liabilities that are being treated as one-time restructuring. We are planning to enter settlement agreements with landlords by the end of the year. The investments we are making to streamline operations back to a pure franchise model will optimize forward-looking SG&A expenses, resulting in enhanced margin levels.

如同先前所討論的，我們已經改變了公司自有過渡工作室的策略，這將降低運行率 SG&A 費用並提高 EBITDA 利潤率。公司擁有的過渡工作室數量已從2023 年第一季末的86 個減少。還有一些工作室已被重新特許經營。我們計劃在今年年底前與房東簽訂和解協議。我們為簡化營運而回歸純粹的特許經營模式而進行的投資將優化前瞻性的銷售、管理及行政費用，從而提高利潤水準。

Depreciation and amortization expenses was $4.4 million, an increase of 6% from the prior year period. Marketing fund expenses were $6.5 million, up 30% year over year, driven by increased spending because of higher franchise marketing fund revenue. As a reminder, each of our franchise locations contributes 2% of sales to our marketing fund.

折舊和攤提費用為 440 萬美元，比上年同期增加 6%。行銷基金支出為 650 萬美元，年增 30%，這是由於特許經營行銷基金收入增加而導致支出增加。提醒一下，我們的每個特許經營店都會向我們的行銷基金貢獻銷售額的 2%。

Therefore, as the number of studios and system-wide sales grow our marketing fund increases. Since we are obligated to spend marketing funds, an increase in marketing fund revenue will always translate into increase in marketing fund expenses over time.

因此，隨著工作室數量和全系統銷售額的成長，我們的行銷資金也會增加。由於我們有義務花費行銷資金，隨著時間的推移，行銷資金收入的增加總是會轉化為行銷資金支出的增加。

Acquisition and transaction expenses were $4.5 million, down 71% from the first quarter of 2023. As I have noted on prior earnings calls, this includes the contingent consideration activity, which is related to the rumble acquisition earnout and is driven by the share price. At quarter end. We mark-to-market the earn out each quarter and accrue for the earn out. We recorded a net loss of $4.4 million in the first quarter or a loss of $0.30 per basic share compared to a net loss of $15 million or a loss of $1.38 per basic share in the prior year period.

收購和交易費用為450 萬美元，比2023 年第一季下降71%。 。季度末。我們將每季的盈餘以市價計價，並累計獲利。我們第一季的淨虧損為 440 萬美元，即每股基本股虧損 0.30 美元，而去年同期淨虧損為 1,500 萬美元，即每股基本股虧損 1.38 美元。

Improved net loss was a result of $5.6 million of higher overall profitability at $11.2 million decrease in non-cash contingent consideration, primarily related to the Remmele acquisition and a $2.1 million decrease in noncash equity-based compensation expense, offset by an $8.1 million increase in restructuring costs from our company owned transitions studio and $0.3 million increase in loss on brand divestiture. We continue to believe that adjusted net income is a more useful way to measure the performance of our business.

淨虧損改善是由於非現金或有對價減少1,120 萬美元，整體盈利能力提高560 萬美元，主要與Remmele 收購有關，以及非現金股權補償費用減少210 萬美元，但被非現金或有對價增加810 萬美元所抵銷。我們仍然相信調整後的淨利潤是衡量我們業務績效的更有用的方法。

Our reconciliation of net income to adjusted net income is provided in our earnings press release. Adjusted net income for the first quarter was $9.1 million, which excludes the $4.5 million in acquisition and transaction expenses, primarily related to the non-cash contingent consideration for the Russell acquisition $0.6 million related to the first quarter remeasurement of the company's tax receivable agreement, $0.3 million related to the loss on divestiture of Stride and the $8.1 million restructuring and related charges.

我們的收益新聞稿中提供了淨利潤與調整後淨利潤的調節表。第一季調整後淨利為910 萬美元，其中不包括450 萬美元的收購和交易費用，主要與Russell 收購的非現金或有對價60 萬美元有關，與第一季重新計量公司應收稅款協議有關， 30 萬美元與 Stride 剝離損失以及 810 萬美元重組及相關費用有關。

This results in adjusted net earnings of $0.15 per basic share on a share count of 31.1 million shares of Class A. common stock after adjusting for income attributable to noncontrolling interest and dividends on preferred shares, adjusted EBITDA was $29.8 million in the first quarter, up 30% compared to $22.9 million in the prior year period. Adjusted EBITDA margin grew to approximately 38% in the first quarter compared to 32% in the prior year. Period.

這導致 3,110 萬股 A​​ 類普通股的調整後淨利潤為每股基本股 0.15 美元，在調整非控股權益和優先股股息的收入後，第一季調整後 EBITDA 為 2,980 萬美元，年成長與去年同期的2,290 萬美元相比，成長了30%。第一季調整後 EBITDA 利潤率增至約 38%，而去年同期為 32%。時期。

As Anthony mentioned, we have positioned the Company for higher margins and increased operating leverage going forward, and we continue to expect margins to reach 40% this year, an attractive element of our franchise business model is the ability to generate substantial free cash flow. During Q1, our unlevered free cash flow conversion exceeded 90% of adjusted EBITDA as we require minimal capital expenditures to grow the business.

正如安東尼所提到的，我們已將公司定位為更高的利潤率並提高未來的營運槓桿，我們仍然預計今年的利潤率將達到40%，我們的特許經營業務模式的一個有吸引力的要素是能夠產生大量的自由現金流。在第一季度，我們的無槓桿自由現金流轉換超過了調整後 EBITDA 的 90%，因為我們需要最少的資本支出來發展業務。

It is worth mentioning that the Company has approximately $160 million in federal and state net tax loss carryforwards that will result in a minimal cash tax burden for the coming years. Our anticipated interest expense in 2024 will be approximately $45 million, assuming no additional debt paydown and we assume negligible working capital impacts on our cash flow.

值得一提的是，該公司擁有約 1.6 億美元的聯邦和州淨稅收損失結轉，這將導致未來幾年的現金稅負最小化。假設沒有額外的債務償還，並且我們假設營運資金對現金流的影響可以忽略不計，我們預計 2024 年的利息支出約為 4500 萬美元。

For the full year, we would expect levered adjusted EBITDA cash flow conversion of over 60%, excluding any effects for preferred dividends and onetime restructuring and will convert over 70% in the coming years. We will continue to prioritize cash usage on settling leases from our transition studios as we make progress on settling these leases, we will assess when the appropriate time will be to begin executing on our stock repurchase program.

就全年而言，我們預計槓桿調整後的 EBITDA 現金流轉換率將超過 60%（不包括優先股股息和一次性重組的任何影響），並將在未來幾年轉換超過 70%。隨著我們在解決這些租賃方面取得進展，我們將繼續優先考慮現金使用以解決過渡工作室的租賃，我們將評估何時開始執行我們的股票回購計畫的適當時間。

Turning to the balance sheet. As of March 31, 2024, cash, cash equivalents and restricted cash were $27.2 million, down from $28.1 million as of March 31, 2023. Material cash usage in the period included the $8.5 billion acquisition of WinDoor and the previously discussed $4.5 million restructuring lease settlement. Total long-term debt was $331.4 million as of March 31, 2024, compared to $266.7 million as of March 31, 2023. The increase in total long-term debt is primarily due to the repurchase and immediate retirement of approximately 2.6 million shares under our accelerated share repurchase program in Q3 and Q4 of 2023.

轉向資產負債表。截至2024 年3 月31 日，現金、現金等價物和限制性現金為2,720 萬美元，低於截至2023 年3 月31 日的2,810 萬美元。的450 萬美元重組租賃沉降。截至2024 年3 月31 日，長期債務總額為3.314 億美元，而截至2023 年3 月31 日，長期債務總額為2.667 億美元。股股票。

Let's now discuss our outlook for 2024. Based on current business conditions and our expectations as of the date of this call, we are reiterating guidance for the current year as follows. We expect 2024 global new studio openings to be in the range of 540 to 560. This range is in line with prior year studio holdings, we project North America systemwide sales to range from $1.705 billion to $1.715 billion or 22% increase at the midpoint from the prior year and the highest North America systemwide sales in our history. Total 2024 revenue is expected to be between $340 million to $350 million, an 8% year-over-year increase at the midpoint of our guided range.

現在讓我們討論我們對 2024 年的展望。我們預計2024 年全球新開設的工作室數量將在540 至560 家之間。間，也就是2020 年的中位數成長22%。預計 2024 年總收入將在 3.4 億美元至 3.5 億美元之間，年增 8%，處於我們指導範圍的中位數。

Adjusted EBITDA is expected to range from $136 million to $140 million, a 31% year-over-year increase at the midpoint of our guided range. This range translates into roughly 40% adjusted EBITDA margin at the midpoint, we anticipate revenue adjusted EBITDA and new studio openings will gradually increase throughout the year, similar to the ramps in 2023, and we continue to anticipate same-store sales will normalize to a high single digit by the fourth quarter. We expect total SG&A to range from $135 million to $140 million range for $110 million to $115 million range when excluding the one-time lease restructuring charges and under $100 million when Further excluding stock-based costs in terms of capital expenditure, we anticipate approximately $9 million to $11 million for the year or approximately 3% of revenue at the midpoint.

調整後 EBITDA 預計在 1.36 億美元至 1.4 億美元之間，年增 31%，處於我們指引範圍的中點。該範圍相當於中點調整後 EBITDA 利潤率約 40%，我們預計全年收入調整後 EBITDA 和新工作室開業將逐漸增加，與 2023 年的增幅類似，並且我們繼續預計同店銷售額將正常化至到第四季就達到了個位數的高點。我們預期SG&A 總額在1.35 億美元至1.4 億美元之間，排除一次性租賃重組費用時，SG&A 總額在1.1 億美元至1.15 億美元之間，如果進一步排除資本支出方面的股票成本，我們預計SG&A 總額將在1 億美元以下，我們預計約為9 美元。

Going forward, capital expenditure will be primarily focused on the integration of Vindora and maintenance on other technology investments to support our digital offerings. For the full year, our tax rate is expected to be mid to high single digits share count for purposes of earnings per share calculation to be $31.5 million and $1.9 million in quarterly dividends to be paid related to our convertible preferred stock. A full explanation of our share count calculation and associated pro forma EPS and adjusted EPS calculation can be found in the tables at the back of our earnings press release as well as our corporate structure and capitalization FAQ on our investor website.

展望未來，資本支出將主要集中在 Vindora 的整合和其他技術投資的維護上，以支援我們的數位產品。就全年而言，我們的稅率預計為中高個位數，以每股收益計算為 3,150 萬美元，並支付與我們的可轉換優先股相關的季度股息 190 萬美元。有關我們的股數計算以及相關預期每股盈餘和調整後每股盈餘計算的完整說明，請參閱我們的收益新聞稿後面的表格以及我們投資者網站上的公司結構和資本常見問題解答。

This concludes today's prepared remarks. Thank you all for your time today. We will now open the call for any questions.

今天準備好的發言到此結束。感謝大家今天抽出時間。我們現在將打開電話詢問任何問題。

Operator?

操作員？

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue, you may press star then two, if you would like to remove your question from the queue. So participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

謝謝。我們現在將進行問答環節。如果您想提問，請按電話鍵盤上的星號一。確認音將表示您的線路已在問題佇列中，如果您想要從佇列中刪除您的問題，可以按星號然後按兩顆。因此使用揚聲器設備的與會者可能需要在按星號鍵之前拿起聽筒。

Your first question comes from John Heinbockel from Guggenheim Partners. Please go ahead.

你的第一個問題來自古根漢合夥人公司的約翰·海因博克爾。請繼續。

John, what I wanted to start with money. You talked about the free cash flow conversion rate, but maybe talking about the dollar amount, right. So I think the IDM might have been $60 million or $65 million of free cash flow dollars in '24. Is that about the right number? And then I sort of suggested your commentary that the that will be focused on debt reduction with no buyback this year, right? Or are minimal buybacks?

約翰，我想從錢開始。您談到了自由現金流轉換率，但也許談論的是美元金額，對吧。因此，我認為 2024 年 IDM 的自由現金流可能為 6,000 萬美元或 6,500 萬美元。這個數字合適嗎？然後我建議你發表評論，今年將重點放在債務削減，不進行回購，對嗎？還是最低限度的回購？

And then what's your what's the latest thought on timing of possibly a financing? Is that do you think that's very late this year or not likely at all.

那麼您對可能的融資時機的最新想法是什麼？您是否認為今年已經很晚了或根本不可能？

A couple of questions there. So the first part about the cash production, yes, the so the cash generation this year is going to be at around that $65 million range, the use of cash. And then again, this is pre restructuring, right, that the intent of how we deploy that cash is going to be to address the lease liabilities first and foremost on the transition studios. As far as the stock repurchase, there is the opportunity for us to do some of the repurchasing in the second half of the year as we talked about in the last earnings call, but we want to prioritize getting rid of the lease liabilities First in regards to a refinancing. We did get an extension done earlier this year, higher throughout 2026. We are continuing to monitor and look at interest rates to look at opportunities for us to get a refinancing done that would allow us to take advantage of lower interest rates as they start to set in. Obviously, with some of the more recent announcements, it seems like they're kind of holding flat, but we are looking at opportunities and where we could potentially draw down on the interest rate and get up more of a long-term fixed our financing in place will at a much cheaper cost.

有幾個問題。關於現金生產的第一部分，是的，今年的現金生產量將在 6500 萬美元左右，即現金的使用。再說一次，這是重組前的事情，對吧，我們如何部署現金的目的將是首先解決過渡工作室的租賃負債。就股票回購而言，正如我們在上次財報電話會議中談到的那樣，我們有機會在下半年進行一些回購，但我們希望優先考慮擺脫租賃負債進行再融資。我們確實在今年稍早完成了延期，2026 年全年的利率更高。利率。

And then maybe secondly, in France, on the right, if you think about the 1,000 locations that Buxton has for Lindorff I mean, how do you?

其次，在法國，在右邊，如果你想想巴克斯頓為 Lindorff 開設的 1,000 個地點，我的意思是，你覺得怎麼樣？

Yes, I'm just sort of curious how you think that stages. I know you sold 40 and you've got to you got to sell them, right? They'll be front-loaded selling and then you'll open them later. But how do you think that plays out right over the next two to three years? And I guess would you does that cannibalize all our franchisee interest in opening other brands. Do you think I know it just because it expands the TAM, there's no cannibalization on selling other licenses now there's definitely no cannibalization on selling other licenses.

是的，我只是有點好奇你是如何看待這個階段的。我知道你賣了 40 個，你必須賣掉它們，對嗎？它們會提前銷售，然後您稍後再打開它們。但您認為在未來兩到三年內會如何？我想您會這樣做，從而蠶食我們所有特許經營商開設其他品牌的興趣。您認為我知道這一點只是因為它擴展了 TAM，現在出售其他許可證不會造成任何蠶食，而銷售其他許可證絕對不會造成蠶食。

And the majority of our franchise sales come from about 500 plus franchise sales brokers. We have independents across the country and they're generating new lead flow of people that are not in the exponential system and there are people that can be looking at well, anything franchised kind of across the country. So there's definitely no cannibalization in there. Buxton has a high level of integrity and what they do and they do their TAM work.

我們的大部分特許經營銷售來自約 500 多名特許經營銷售經紀人。我們在全國各地都有獨立人士，他們正在產生不在指數系統中的新的領先人群，並且有人可以很好地關注全國各地的任何特許經營類型。所以那裡絕對不存在蠶食。 Buxton 具有高度的誠信以及他們所做的事情和他們的 TAM 工作。

And so, you know, we tend to see the numbers be very conservative with them. For instance, original club Claudius was just a bit short of 1,000 in total. And today we've got about 50% more than that. And even presold right with 1,000 already open. And so what we find is that for very constructive in the beginning on how many we sell where we sell them and as we get those stores out and get them open. We see a UV.s will be stable and increase that we're willing to release more and more TAM.

所以，你知道，我們傾向於看到他們的數字非常保守。例如原來的克勞狄烏斯俱樂部，總共只有不到一千人。今天我們的數量比這個多了大約 50%。甚至已經預售了 1,000 個。因此，我們發現，一開始我們在銷售地點以及我們將這些商店撤出並重新開業時，對於我們銷售多少產品非常有建設性。我們看到 UV.s 將會穩定並增加，因此我們願意釋放越來越多的 TAM。

So if you look at kind of club plot is now several years later. Supplies TAM continues to increase by about 100-ish or sell new units every year on the TAM. So we expect the call applies TAM will get 2,000 Foxtons comment to us when they ran the cohorts for Lindorff based on the L&R current membership and they were synonymous with stretch lab and club Pilates. So on. We expect that we will see the TAM of Lindorff head to those numbers, which will be somewhere in the 1,500 to 2,000 range over time, provided that we get out, we get the stores open, but the 40 close to 40 you're seeing today that are sold, you'll start to see those open. Some of those opened in Q4. Most likely of this year. I'm so that private that you would see.

所以如果你看看俱樂部的情節，現在已經是幾年後的事了。 TAM 的供應繼續增加約 100 左右，或每年在 TAM 上銷售新的單位。因此，我們預計，當 TAM 根據 L&R 當前會員資格為 Lindorff 管理隊列時，TAM 將收到 2,000 名 Foxton 的評論，他們是伸展實驗室和普拉提俱樂部的代名詞。很快。我們預計 Lindorff 的 TAM 會達到這些數字，隨著時間的推移，這個數字將在 1,500 到 2,000 之間，前提是我們出去，我們讓商店開門，但你看到的 40 家接近 40 家今天，那些已售出的商品，您將開始看到那些正在開盤的商品。其中一些在第四季度開業。最有可能的是今年。我如此的私密，你會看到的。

Thank you.

謝謝。

Your next question comes from Megan Alexander from Morgan Stanley. Please go ahead.

您的下一個問題來自摩根士丹利的梅根亞歷山大。請繼續。

Hey, good afternoon and thanks for taking our question. Wanted to ask about the comp a little bit. You talked about a low double digit type expectation when you guided in February. So were you running low double digit and the comp decelerate over the balance of the quarter or were you expecting the comp to accelerate and it did? And I guess, can you just give us a little bit more color over the cadence of that comp during the quarter and maybe what drove the downside versus your expectations?

嘿，下午好，感謝您提出我們的問題。想詢問一下有關補償的問題。您在二月份指導時談到了較低的兩位數類型期望。那麼，您的業績是否處於兩位數的低位，並且在本季度的剩餘時間裡，公司業績增速放緩，或者您是否預計業績增速會加速，而事實確實如此？我想，您能給我們更多關於本季度該比較的節奏的信息嗎？

Yes, I can jump in on that one. So for studios that were over 36 months of maturity. We did see double digit same-store sales comp and the majority at 9% or the system at 9%. It was a little bit lower than what we were aiming for. We mentioned on our Q4 call that we expected this number to normalize from the 2023 mid 10s growth rate to double digit and I'm sorry to the low double and high single growth rates in 2024. But really what we saw in Q1 was we had a great quarter from a KPI standpoint. So visitations and membership trends were higher, freezes were low, but we did see a pull forward in packages sold in Q4, primarily and in such lab as well as Pure Barre who had really successful Black Friday promotions. So we did see a little bit of pull forward that will start to normalize over the next quarter or so.

是的，我可以加入其中。對於成熟期超過 36 個月的工作室也是如此。我們確實看到了兩位數的同店銷售比例，大多數為 9%，或係統為 9%。這比我們的目標低一點。我們在第四季的電話會議上提到，我們預計這一數字將從2023 年10 年代中期的成長率正常化到兩位數，我對2024 年的低雙倍成長率和高單倍成長率感到抱歉。因此，訪問量和會員趨勢較高，凍結率較低，但我們確實看到第四季度銷售的套餐有所增長，主要是在此類實驗室以及在黑色星期五促銷活動中取得了成功的Pure Barre中。因此，我們確實看到了一些推動，並將在下個季度左右開始正常化。

Okay. And then John, I think you talked about normalizing still to that high single digit type level by the end of the year. I mean, depending on your definition, 9% could be high single digit. So has your expectation for two to four to changed at all on the comp? And how should we think about maybe can you talk a little bit about the exit rate? And how should we think about 2Q?

好的。然後約翰，我想你談到了到今年年底仍將正常化到高個位數類型的水平。我的意思是，根據你的定義，9% 可能是高個位數。那麼你對比賽中兩到四名球員的期望有沒有改變呢？我們該如何考慮也許你可以談談退出率？我們該如何看待第二季度？

Yes. I think when you look at the key from Q1 to Q2, how to think about it, I think what the assumption that you're using right now based off of the information, as you'll probably see something similar to Q1 in Q2, it will stay flat. And in the assumption of using again, the it really comes down to the packages that were sold in Q4 between pure of our instruments live when those people either react or if they join as members and then that will be kind of a because of the size and scale that will be an influencer in Q2. I do believe for the full year that you're still looking in the mid to high single digits by Q4. But the overall year, I still believe it's going to be a high single digit same store sales comp.

是的。我認為當你查看從 Q1 到 Q2 的關鍵時，如何思考它，我認為你現在基於資訊使用的假設是什麼，因為你可能會在 Q2 中看到與 Q1 類似的東西，它會保持平坦。假設再次使用，這實際上取決於第四季度在我們的純樂器之間出售的套餐，當這些人做出反應或作為會員加入時，這將是一種由於規模的原因和規模將成為第二季度的影響因素。我確實相信，到第四季度，全年業績仍將保持在中高個位數。但整體而言，我仍然相信同店銷售額將達到高個位數。

Got it. Thank you.

知道了。謝謝。

And the next question comes from Ryan Meyers from Lake Street Capital Markets. Please go ahead.

下一個問題來自 Lake Street Capital Markets 的 Ryan Meyers。請繼續。

Hey, guys. Thanks for taking my questions on first one for me. I know, Anthony, you talked about adding strength into cycle bar and pure bar on that drove sort of a view during the quarter. Just wondering what kind of optionality you guys have to do that within other brands?

大家好。感謝您為我解答第一個問題。我知道，安東尼，您談到了在自行車酒吧和純酒吧中增加力量，這在本季度推動了某種觀點。只是想知道你們在其他品牌中擁有什麼樣的選擇權？

Well, I mean, some brands like BFT. obviously already have it. And so no, we don't we don't really need to drive that in the club PLN today. And so Tom, we'd be putting into those brands where it makes sense where it wasn't and which kind of drives really all that we have today. We already have strength training and brands like Roadhouse and things of that nature. So we won't be, of course, doing it, anything like that out the door or stretch lab or things of that nature. So that's where we are on that.

嗯，我的意思是，有些品牌像是 BFT。顯然已經有了。所以不，我們不需要，我們今天真的不需要在 PLN 俱樂部中推動這一點。所以湯姆，我們將把那些有意義的品牌投入到那些不有意義的品牌中，以及我們今天所擁有的真正的驅動器類型。我們已經有了力量訓練和 Roadhouse 之類的品牌。所以我們當然不會在戶外或拉伸實驗室或類似性質的事情上做這樣的事情。這就是我們目前的情況。

Got it. And then just wondering if you can talk about if you've seen any changes to the opening mix by brand as we progress throughout this year? And then maybe how you think about that into next year, especially now that we have the WinDoor acquisition.

知道了。然後想知道您是否可以談論隨著我們今年的進展，您是否看到按品牌劃分的開幕組合有任何變化？然後也許你會如何看待明年的事情，尤其是現在我們收購了 WinDoor。

Yes, I can take products in Q1. One of the largest openers was club Pilates. It's actually was the highest number of openings domestically for clinical studies in the last five quarters. So it was a little bit over-indexed in CP. and Q1. I think when you look at the overall mix in 2024 as we go through the quarters, you'll see about a third of the openings still being club Pilates, which is very similar to last year. And then as you move forward, yes, I will make up about 25% of the mix and then you'll get six has shown really strong performance from an AUV perspective lately.

是的，我可以在第一季購買產品。最大的開局之一是普拉提俱樂部。這其實是過去五個季度國內臨床研究空缺數量最多的一次。所以CP的索引有點高了。和 Q1。我認為，當您查看 2024 年各季度的整體組合時，您會發現大約三分之一的空缺仍然是普拉提俱樂部，這與去年非常相似。然後，當你繼續前進時，是的，我將組成大約 25% 的組合，然後你會得到 6 個最近從 AUV 角度來看表現出非常強勁的性能。

But also from an opening perspective, I think that will be in the 5% to 10% range of the total openings and then both rumble and VLT, I think we'll be in the 5% to 10% range for of this year. And then the balance is made up of the other brands. So when you look at it, a third club Pilates, maybe about 25% stretch lab and then between yoga, six rumble and BFT., about 5% to 10% of the total mix. So you're seeing kind of a concentration of the openings among those brands.

但同樣從開放的角度來看，我認為這將在總開放的 5% 到 10% 範圍內，然後隆隆聲和 VLT，我認為今年我們將在 5% 到 10% 的範圍內。然後其餘部分由其他品牌組成。所以當你看一下時，第三個俱樂部普拉提，可能大約佔 25% 伸展實驗室，然後是瑜珈、六重隆隆和 BFT，大約佔總組合的 5% 到 10%。所以你會看到這些品牌的職缺比較集中。

Got it, and thank you for taking my questions.

明白了，感謝您回答我的問題。

Your next question comes from Jonathan Komp from Baird. Please go ahead.

您的下一個問題來自貝爾德 (Baird) 的喬納森康普 (Jonathan Komp)。請繼續。

Yes, thank you. Good afternoon. John, if I could follow up just on the full year profit outlook. I know that the full year is for about 40% adjusted EBITDA margin. So could you maybe just share any more insights or any other color to call out as we think about the progression from mid mid 37% in Q1 to 40% for the year?

是的，謝謝。午安.約翰，我能否跟進全年利潤前景。我知道全年調整後 EBITDA 利潤率約為 40%。那麼，當我們考慮從第一季中期 37% 到今年 40% 的進展時，您能否分享更多見解或任何其他顏色來指出？

Yes, yes, it hasn't changed much from the first earnings call or I guess the last earnings call, the Q4 one of last year, we said mid to high 35% to 40% in Q1. It should get close to crossing 40%, if not crossing 40% in Q2. Our Q2 to Q3 will be relatively flat the summer months. Are you a little bit more if you look at the cadence of how 2023 performed, you'll see Q2 and Q3 will stay relatively flat and performance to each other. And then in Q4, we have a lot of lights or a lot of equipment installs that happened in Q4, which is a little bit margin dilutive being that you have a range in that 30% to 35% margin range.

是的，是的，與第一次財報電話會議相比，或者我猜最後一次財報電話會議，即去年第四季度的財報電話會議，情況沒有太大變化，我們說第一季的中高增長為35% 至40%。如果第二季沒有超過 40%，則應該接近 40%。我們的第二季到第三季夏季月份將相對穩定。如果你看一下 2023 年的表現節奏，你會發現第二季和第三季將保持相對平穩，並且表現彼此相似。然後在第四季度，我們在第四季度安裝了很多燈或很多設備，這有點稀釋利潤，因為你的利潤範圍在 30% 到 35% 之間。

So it has a little bit of a dilutive impact on top of our national conferences in the fourth quarter. So you'll see 38% in Q1, expect to see north of low 40% in Q2 and Q3. And then in Q4, it will be a little bit of pull back a little bit because of the convention and just the equipment installed dilution in the fourth quarter. And then when you roll into 2025, you'll see it be in the mid to low 40% range and climb from there over the next eight quarters as we we still are on track to achieving the 45% by 2026. So it will be a kind of a grind from here each quarter getting a one or 2% better yield from a cadence perspective.

因此，它對我們第四季度的全國會議產生了一點稀釋影響。因此，第一季您將看到 38%，預計第二季和第三季將超過 40%。然後在第四季度，由於慣例以及第四季度設備安裝的稀釋，它將略有回落。然後，當你進入 2025 年時，你會發現它處於 40% 的中低範圍，並在接下來的八個季度從那裡開始攀升，因為我們仍然有望在 2026 年實現 45%。節奏的角度來看，每季的收益率都會提高1% 或2%。

Okay, great. And then just one separate question, maybe for Anthony or Sarah. We noticed the SDD.s this year included at concept level monthly churn, which I believe was new. Just wanted to maybe follow up, but I don't know if you could share any color as we think about differences in churn by concept, maybe what drives that that or maybe as a follow-up, as you think about churn overall across the system, any comments on kind of what you're seeing or any trends positive or negative from a churn perspective?

好的，太好了。然後是一個單獨的問題，也許是問安東尼或莎拉的問題。我們注意到今年的 SDD.s 包含了概念層面的每月流失，我認為這是新的。只是想跟進，但我不知道您是否可以分享任何顏色，因為我們考慮了概念上的流失差異，也許是什麼驅動了這一點，或者也許作為後續行動，當您考慮整個行業的流失情況時系統，對您所看到的內容有什麼評論，或者從客戶流失的角度來看有什麼積極或消極的趨勢？

Yes, I'll take that. I'll take the lead on this one. The when you look at the brands, I mean, on average, you're seeing somewhere between 5% to 7% churn across the brands, some of those are really in the core brands. Where do you see that? And then what we typically look at churn from 12 months after 12 months, because that's really when the core customer is kind of attached to the brand or their location. In that case, you see attrition rates here in the low single percentage digits.

是的，我會接受的。我將在這件事上帶頭。當你觀察這些品牌時，我的意思是，平均而言，你會看到各個品牌的流失率在 5% 到 7% 之間，其中一些確實是核心品牌。你在哪裡看到的？然後，我們通常會觀察 12 個月後 12 個月的流失情況，因為這確實是核心客戶對品牌或其地點產生依戀的時候。在這種情況下，您會看到人員流失率處於較低的個位數。

You look at between 2% to 4%. When you look at it within 12 months, I mean you get your new year's resolution type people that come in and you get your vacation type people that are trying to get ready for summer months, wedding, those kinds of things. So you do see in that, let's call it, 5% to 7% churn on some of our more scaled brands. But when you look in the post 12 months, kind of core consumer at low single percentage digits on a monthly basis.

你看2%到4%之間。當你在 12 個月內查看時，我的意思是你會看到新年決心類型的人進來，你會得到假期類型的人，他們正在努力為夏季、婚禮等事情做好準備。所以你確實看到，我們的一些規模較大的品牌的流失率為 5% 到 7%。但當你觀察過去 12 個月的情況時，你會發現每個月的核心消費者比例較低。

And has that held stable over the last few quarters and into 2024 any any changes that you've noted?

從過去幾季到 2024 年，這種情況是否保持穩定？

Yes. When we look at the trends, you really haven't seen even since kind of post-COVID be the consumer kind of behaviors have been very stable, even from a free perspective and attrition perspective, it's been very consistent. So we haven't seen overall trade downs and what the consumers are spending. So if you look at a four pack a pack unlimited, what you are seeing is up there. We're getting more price on a on a pack. You do this in Q1 of 2024 versus Q1 of 2023. But the consumers and what their purchasing or their wallet spend has been up as we progress through the quarter.

是的。當我們觀察趨勢時，你真的沒有看到，即使在新冠疫情之後，消費者的行為也一直非常穩定，即使從自由的角度和消耗的角度來看，它也非常一致。因此，我們還沒有看到整體貿易下降以及消費者的支出。因此，如果您查看四包一包無限量的產品，您所看到的就在那裡。我們的套裝價格較高。您可以在 2024 年第一季與 2023 年第一季進行此操作。

So in essence, we're able to take a little bit more price as new members come on all members of trade out because utilization and capacity is less in the studios. We're getting more wallet share on the new consumers than we did a year ago, but very, very stable utilization and very stable kind of business patterns from the consumer.

因此，從本質上講，隨著新會員的加入，我們可以採取更高的價格，因為工作室的利用率和容量較少，所以所有會員都會被淘汰。與一年前相比，我們在新消費者身上獲得了更多的錢包份額，但消費者的使用率非常非常穩定，商業模式也非常穩定。

Okay. Thanks again, thank you.

好的。再次感謝，謝謝。

Your next question comes from Chris O'Cull from Stifel. Please go ahead.

您的下一個問題來自 Stifel 的 Chris O'Cull。請繼續。

Thanks. Good afternoon. John, just as a follow-up to an earlier comment, is the comp currently trending similar to the first quarter level? Or does it need to improve to get to that level.

謝謝。午安.約翰，就像之前評論的後續一樣，目前的比較趨勢是否與第一季的水平相似？或是否需要改進才能達到那個水準。

Froma 10 Q2 is what you're asking for?

您要的是 Froma 10 Q2 嗎？

Yes.

是的。

Yes, we haven't provided any like forward-looking Q2 comments. But the assumption that we're looking for is that Q2 will be similar to Q1 from a comp perspective. And then I still see the full year around that that high single digit. But I do expect as we roll into Q4, it will taper down to the mid to high singles.

是的，我們尚未提供任何類似的第二季前瞻性評論。但我們正在尋找的假設是，從比較角度來看，第二季將與第一季相似。然後我仍然看到全年圍繞這個高個位數。但我確實預計，隨著我們進入第四季度，它將逐漸減少到中高單曲。

When you look at what comps were pre-COVID, the eight quarters pre-COVID, as went in a much more normal environment, they averaged 8% of the eight quarters prior to COVID. So that's kind of the assumption that I'm using going forward in my model is that they will even though they're at 9% and we're modeling 9% for Q2. I think getting back to that, let's call it 5% to 8% by Q4. Again, being somewhat conservative in the way I do. My modeling is the assumption on using.

當您查看新冠疫情之前的情況時，即新冠疫情之前的八個季度，就像在更正常的環境中一樣，您會發現，在新冠疫情之前的八個季度中，它們的平均比例為8% 。因此，我在模型中使用的假設是，即使他們的比例為 9%，而且我們為第二季建模為 9%，他們也會這樣做。我想回到這個主題，我們將其稱為第四季度的 5% 到 8%。再說一遍，我的做法有點保守。我的建模是使用的假設。

Okay. Yes, I was thinking more of like the current trend is the current trend currently at around the level you saw in the first quarter? Or do you are you expecting it to accelerate from this to get to that to get to that high single digit level.

好的。是的，我更多地想的是，目前的趨勢是否處於您在第一季看到的水平附近？或者你是否期望它從這個加速到那個高個位數水平。

Possible. We're looking at it. Obviously, the impacts of we've got WinDoor in the mix. We strive to the longer in the mix. We're opening a lot of stress lives and club Pilates last year. So they started to enter the comp this year as we as we go through the quarters, both in order to make the model work. I understand what you're asking.

可能的。我們正在研究它。顯然，我們已經將 WinDoor 納入其中。我們努力在混合中保持更長的時間。去年我們開設了很多壓力生活和普拉提俱樂部。因此，他們今年開始加入我們，就像我們經歷各個季度一樣，都是為了讓模型發揮作用。我明白你在問什麼。

Yes, you have to probably see a slight uptick in Q2 to get to that full year 9%. So it's probably a safe assumption but for conservatism, I think again, in my model, I'm looking at a Q2, Q1 to Q2. It's probably going to be in the same range in Q2 as it was in Q1 plus or minus 1%. So yes.

是的，您可能必須看到第二季度略有上升才能達到全年 9%。所以這可能是個安全的假設，但出於保守主義的考慮，我再次認為，在我的模型中，我正在考慮 Q2、Q1 到 Q2。第二季的範圍可能與第一季相同，上下浮動 1%。所以是的。

I think we noticed the run rate average unit volume essentially held flat on a sequential basis relative to the fourth quarter. Can you talk about what drove that dynamic?

我認為我們注意到，與第四季度相比，平均單位銷售的運行率基本上持平。您能談談是什麼推動了這種動態嗎？

Yes, that was what Sarah was was kind of mentioning is when you look at our Black Friday deals that were offered in Q4, Pure Barre and such lab had really strong AUVs in the fourth quarter. So they were in essence pulling in a lot of sales into the fourth quarter that you normally would have expected to get in Q1. So consumers attach to those promos from. So the sales for Q1 for Pure Barre interests are being a larger brand, weren't there in Q1 because they were already there in Q4. So we expect your visitation was really high. And that's that's what kind of led us to believe that when you look at these promotions, let's just say they did too well, but that's a good thing because you've brought in consumer sooner. So now it's a function of as these consumers visit the city, I was trying to get them converted into a membership. So you get the reoccurring revenue from the Black Friday promotion. So you're seeing a little bit of a flatness in Q4 to keep their Q1 from Q4, but it's based off of the promotions. Both brands, Club parties didn't do a lot of promotions where they saw a spike. It was pretty normal run rate activity. But in those other brands, they had a little bit more promo probably drove more package type volume, which impacted Q1 because it pulled into Q4.

是的，這就是 Sarah 提到的，當你查看我們在第四季度提供的黑色星期五優惠時，Pure Barre 和這樣的實驗室在第四季度的 AUV 非常強勁。因此，他們實質上在第四季度帶來了您通常預期在第一季獲得的大量銷售額。因此，消費者重視這些促銷活動。因此，Pure Barre 利益的第一季銷售額是一個更大的品牌，第一季沒有，因為它們在第四季度就已經存在了。所以我們預計您的訪問量非常高。這就是讓我們相信，當你看到這些促銷活動時，我們只能說它們做得太好了，但這是一件好事，因為你更快地吸引了消費者。所以現在，隨著這些消費者造訪這座城市，我試著讓他們成為會員。因此，您可以從黑色星期五促銷活動中獲得經常性收入。因此，您會看到第四季度的表現有些平穩，以保持第一季與第四季的持平，但這是基於促銷活動。這兩個品牌的俱樂部派對都沒有做很多促銷活動，因為他們看到了高峰。這是非常正常的運行率活動。但在其他品牌中，他們進行了更多的促銷活動，可能會推動更多的包裝類型銷售，這影響了第一季度，因為它進入了第四季度。

Okay. That's helpful. And then I think you mentioned books and added 800 club Pilates locations to the TAM. And I'm just curious what the main enablers of that expansion was in terms of either demographics or psychographics that you're capturing now?

好的。這很有幫助。然後我想您提到了書籍並向 TAM 添加了 800 個普拉提俱樂部地點。我只是好奇這種擴張的主要推動因素是什麼，從你現在捕捉到的人口統計或心理統計數據來看？

Yes. When we as I said earlier on the call for another question, when we look at original TAM on, we keep kind of cannibalization percentages from ourselves and other competitors, very low, as you've seen with that brand. As we've expanded over the last nine years, the AUVs climbed from to $250,000 to $1 million. So that means ultimately it was a little too conservative potentially to begin with, meaning we kept cannibalization very low and density of our core customer, very high in that surrounding area.

是的。正如我之前在另一個問題的電話會議中所說，當我們查看原始 TAM 時，我們將自己和其他競爭對手的同類蠶食百分比保持在非常低的水平，正如您在該品牌中看到的那樣。隨著我們在過去 9 年的不斷擴張，AUV 的價值從 25 萬美元攀升至 100 萬美元。因此，這意味著最終它可能有點過於保守，這意味著我們將蠶食率保持在非常低的水平，而我們的核心客戶的密度在該週邊地區非常高。

And so what we'll do is we'll start to release that by a point or two percentage point or two and see what the TAM does sell that additional TAM, a lot more stores open and make sure we're kind of properly doing it. And one of the designated and there is designed for certain AUV that was originally that browsers lane designed at [$605,000] of AUV and good outlets and obviously well above that at about $1 million. So we can play with a UV. potentially UV. of the store cannibalization and density, but we don't want to do that early on overselling area and, you know, see AUVs either be flat or go backward.

因此，我們要做的就是開始釋放一個或兩個百分點或兩個百分點，看看 TAM 會銷售哪些額外的 TAM，開設更多商店，並確保我們做得正確它。其中一個指定的和那裡是為某些 AUV 設計的，最初是瀏覽器通道設計的 AUV 和良好的出口 [605,000 美元]，顯然遠高於約 100 萬美元。這樣我們就可以玩UV了。潛在的紫外線。商店的蠶食和密度，但我們不想儘早在超售區域這樣做，你知道，看到 AUV 要么持平，要么倒退。

That makes sense.

這就說得通了。

That's helpful. Thanks, Kim.

這很有幫助。謝謝，金。

Your next question comes from Alex Paris from Bank of America. Please go ahead.

您的下一個問題來自美國銀行的 Alex Paris。請繼續。

Hi. Thanks for taking my questions here. I guess I wanted to follow up on the studio opening cadence for the year on. Should we expect sort of the same percent of openings in each quarter versus last year? And then how many net studio openings this year?

你好。感謝您在這裡提出我的問題。我想我想跟進今年工作室的開業節奏。我們是否應該預期每季的職缺百分比與去年相同？那麼今年有多少個網路工作室開幕呢？

So I think the gross number stayed the same as your expectation on net studio openings changed at all? Thank you.

所以我認為總人數保持不變，因為您對網路工作室開業的預期完全改變了？謝謝。

Yes. So we guided we guided 540 to 560 for the full year, which is right line with 2023 at the midpoint, the cadence is still at 45% in the first half, 55% in the second half. And from a kind of a cadence perspective. So you'll see Q1 being the lowest quarter, which was similar to Q1 of 23. It'll build in Q2, slightly building Q3. And then Q4, again, just like last year we saw a large volume of openings as people conceptually get open for the Neo the New Year from me and New Year's resolution standpoint, you typically see that in franchising and we expect to have that same phenomenon in 2024 and from a net and from a net perspective, we don't have a lot of historical trends on closures when you look at the number of closures in Q1 was just over a half a percent.

是的。所以我們指導全年指導540到560，這與2023年的中點是一致的，節奏仍然是上半年45%，下半年55%。從某種節奏的角度來看。因此，您會看到第一季是最低的季度，這與 23 個季度的第一季類似。然後是第四季度，就像去年一樣，我們看到了大量的空缺，因為人們在概念上為新的一年開放，從我和新年決心的角度來看，你通常會在特許經營中看到這一點，我們預計會出現同樣的現像到 2024 年，從淨值和淨值角度來看，當你看到第一季度的關閉數量剛剛超過 0.5% 時，我們沒有太多關於關閉的歷史趨勢。

So cumulatively, as you build through the year, when you look at franchising, we're still kind of of the mindset that the 3% to 5% on the high end is kind of a normal range. We've modeled 3% into the way we did our guidance by 3% to 5% is how we're thinking about it. Q1 on a pro rata basis is favorably ahead of schedule, meaning lower closures than we when we spend that assumption so we'll continue to drive the business support franchisees and getting studios open and healthy studios that are struggling, improve AUV. So they don't cause So and 550 is the midpoint 45%, first half, 55% second half and think of closures at around 3% for the full year.

因此，累積起來，隨著​​這一年的發展，當你考慮特許經營時，我們仍然認為高端的 3% 到 5% 是一個正常範圍。我們將 3% 建模為我們的指導方式，3% 到 5% 是我們的想法。按比例計算，第一季明顯提前，這意味著關閉率比我們假設時要低，因此我們將繼續推動業務支援特許經營商，讓工作室開放，讓陷入困境的健康工作室提高 AUV。所以他們不會導致 So 和 550 是中點 45%，上半年，下半年 55%，並認為全年關閉在 3% 左右。

And from a dollars perspective, obviously, the cohort of the AUV of cohorts are closing is totally different than the cohort of AUVs that are opening. So you can't really model them on a one for one KPI. net unit basis in the model you'll be.

從美元的角度來看，顯然，正在關閉的 AUV 群體與正在開放的 AUV 群體完全不同。因此，您無法真正根據一對一的 KPI 對它們進行建模。您將使用的模型中的淨單位基礎。

That makes a lot of sense. And then can you just remind us on sort of the financial implications of the wind-down of the transition studios, like what is the net savings expectation that you're expecting for the year? And is that sort of coming in line with how you're thinking about it three months ago?

這很有意義。然後您能否提醒我們過渡工作室關閉的財務影響，例如您預計今年的淨節省預期是多少？這符合你三個月前的想法嗎？

Yes, as far as if you pro forma 2023 and assume that there was no transition studios last year, your revenue would be about $25 million lighter. Your other service revenue line would be about $25 million lighter. Your SG&A on the normal flow of operating expenses would be about $37 million lower. So the net net EBITDA impact last year was around $12 million. So if you assume this year, you're kind of starting at $117 million as your starting point adjusted EBITDA and then building to 136 to 140 range that we guided industry to.

是的，如果您預計 2023 年並假設去年沒有過渡工作室，那麼您的收入將減少約 2500 萬美元。您的其他服務收入線將減少約 2500 萬美元。正常營運支出流程的 SG&A 將會減少約 3,700 萬美元。因此，去年的 EBITDA 淨影響約為 1,200 萬美元。因此，如果你假設今年，你的起點為 1.17 億美元，調整後的 EBITDA 為起點，然後達到我們引導產業達到的 136 至 140 範圍。

That's incredibly helpful Passave going forward key.

這是帕薩夫前進的關鍵，非常有幫助。

Your next question comes from Jeff Van Sinderen from B. Riley Securities. Please go ahead.

您的下一個問題來自 B. Riley Securities 的 Jeff Van Sinderen。請繼續。

So just to clarify on a movie. When you look at it comprehensively for the enterprise, does your guidance bake in NAV increase in Q2 and the remainder of the year? Or maybe what should we expect for the progression for the remainder of the year?

所以只是為了澄清一部電影。當您全面審視企業時，您的指導是否會導致第二季和今年剩餘時間的淨值增加？或者我們應該對今年剩餘時間的進展有何期待？

Yes. The model does assume that AUVs will continue to increase in 2024 on a quarterly basis as we look at Q1 and how we finished the quarter at that IL fives, kind of that mid or the high 570s, I do believe that as you kind of move into the later half of on 2024, you'll start to see us push into the higher ranges from an AUV perspective.

是的。該模型確實假設 AUV 將在 2024 年按季度繼續增加，因為我們看看第一季度以及我們如何以 IL 5 結束本季度，即 570 年代中或高，我確實相信，當你移動時到2024 年下半年，您將開始看到我們從AUV 的角度進入更高的範圍。

You know, trying to crossover into the $600,000 and driving our way towards $700,000. I don't believe you'll get to based off of the assets the brands we have today and in the mix, I don't think you'll cross $700,000 at this point in 2024. But I do think you'll starting to threaten towards the high our $600,000 as we progress through this year, a lot of the growth you got to remember is club Pilates has kind of been in that $900,000 to $1 million range.

你知道，我們正試圖跨越 60 萬美元，並朝著 70 萬美元前進。我不相信你會基於我們今天擁有的品牌資產和混合資產，我不認為你在 2024 年的這個時候會超過 70 萬美元。達到60 萬美元的高位，您必須記住，普拉提俱樂部的大部分成長都在90 萬美元到100 萬美元的範圍內。

Your stress lives. We opened a lot of stress lives last year. Those those studios get to 600 AUV very quickly as we open up more rumblings BFT.s. And now we have one doors that will start to show up in the later part of this Q4 kind of timeframe, albeit a very small sample set. But it is just US studios entering at high. These goals will continue to pull up the overall AUV brands like yoga fix, have done very well over the last couple of quarters. They've they've actually kind of accelerated a little bit from an earnings perspective. The AUV continues to grow there. We got really great response to peer of ours. So those AUVs, you're getting a lot of support in all the brands that are at scale doing fairly well. So your AUVs right now, as they sit today, they were relatively flat to Q4. But with the studios that will start entering the the the 6.3 or six months of and age, they enter the calculation probably midway through the year. They'll start pulling up the AUV because they're performing very well right out of the gate.

你的壓力依然存在。去年我們的生活充滿了壓力。當我們公開更多的 BFT.s 訊息時，這些工作室很快就會達到 600 AUV。現在我們有一扇門將在第四季的後期開始出現，儘管樣本集非常小。但只有美國電影公司高價進入。這些目標將繼續拉動整個 AUV 品牌，如 Yoga Fix，在過去幾季表現非常好。從獲利角度來看，他們實際上已經加速了一點。 AUV 在那裡繼續增長。我們得到了同行的熱烈反響。因此，對於那些 AUV，您將得到所有規模表現相當不錯的品牌的大力支持。因此，你們的 AUV 目前與第四季度相比相對持平。但隨著工作室將開始進入 6.3 或 6 個月的年齡，他們可能會在年中進入計算。他們將開始拉起 AUV，因為它們一開始就表現得非常好。

Okay. That's helpful. And then, of course, you sold 40 L&R licenses and I'm sure you're selling more as we speak on. Can you give us any more color around the sort of the trends in other our brands in terms of the composition of new licenses sold in Q1?

好的。這很有幫助。然後，當然，您售出了 40 個 L&R 許可證，而且我確信在我們談論時您會售出更多許可證。您能否就我們其他品牌在第一季度銷售的新許可證的構成方面的趨勢提供更多資訊？

Yes, of the 173 licenses sold in Q1, about 55% of one more club Pilates. So there was about 100 that we sold of club Pilates, again, overindexed in called Audis Lindorff as you mentioned. And then BFT., there was about 20 BFT.s that were sold in the first quarter. Stress lab had about 15 and Pure Barre. As we mentioned the performance in Pure Barre has led to new license sales. So we saw 11 new license sales in Pure Barre. The so the balance of the rest of the brands, but 173 licenses in Q1, it was about 55% of the top line is it's not a surprise given where the license sales are coming from because they're coming from brands that are performing very well with IV. So franchisees are very high. I'm motivated to buy more licenses and whether you're a new franchisee or the existing trying to expand your existing portfolio.

是的，在第一季售出的 173 個許可證中，約 55% 是另外一個普拉提俱樂部的許可證。因此，我們出售了大約 100 個普拉提俱樂部，正如您所提到的，Audis Lindorff 的指數過高。然後是 BFT.，第一季大約有 20 個 BFT. 被售出。壓力實驗室有大約 15 個和 Pure Barre。正如我們所提到的，Pure Barre 的表現帶來了新的授權銷售。因此，我們在 Pure Barre 中看到了 11 個新許可證銷售。其餘品牌的餘額，但第一季有 173 個許可，約佔總收入的 55%，考慮到許可銷售的來源，這並不奇怪，因為它們來自表現非常出色的品牌。所以加盟商的要求非常高。我有動力購買更多許可證，無論您是新的特許經營商還是試圖擴展現有產品組合的現有特許經營商。

Okay, great. Great to hear.

好的，太好了。很高興聽到。

I'll take the rest offline.

我會把剩下的部分離線。

Thank you, Keith. Your next question comes from Mark Warren Cheng from Evercore ISI. Please go ahead.

謝謝你，基斯。您的下一個問題來自 Evercore ISI 的 Mark Warren Cheng。請繼續。

And meanwhile, your line is now line, please correct about the guys.

同時，你的台詞現在已經上線了，請糾正這些傢伙。

Hi, John. Hi, Anthony. Q1. I just wanted to play, just wanted to follow up on your comment that you saw some pull forward of some of the Pure Barre and stretch leg stretch land packages in 4Q. So it sounds like you're talking about mismatch between when those numbers bought their packages and when they use them and the bottom earlier because the sales were so good. So if we look and said, yes, yes. So I just wanted to clarify if we look instead at instead of looking at revenues, if we just looked at visits or specialized materials or was that in line with what you expected three months ago?

你好，約翰。嗨，安東尼。 Q1.我只是想玩，只是想跟進您的評論，您看到第四季度的一些純巴雷和伸展腿伸展土地包有所推進。因此，聽起來您正在談論這些數字購買其套餐的時間和使用它們的時間與之前的底部之間的不匹配，因為銷售非常好。所以如果我們看後說，是的，是的。所以我只是想澄清一下，我們是否只看收入而不是看收入，是否只看訪問量或專門材料，或者這是否符合您三個月前的預期？

Yes, business were up in the first quarter. And that was one thing we are interested about because what we've heard on other earnings calls, people kept talking about weather. So we knew it wasn't weather because at the end of the day, visitation was really high. So people wouldn't come to your city or that they had to have. So when we look across on a national scale like we didn't see business fall off. We actually saw class offerings high. We saw visitations high when you look at Q2, one of 2024 versus Q1 of 2023 visitation was up 6% on average per studio. So you actually had more engagement from consumers in Q1. So it really and you don't lead you down the path that when you look at the individual brands, just pure bar and restaurant have had this kind of effect where we did see the sales in essence get pulled into into Q4 versus Q1. So it's a good thing because you got the revenue faster earlier that consumers are now using whatever they purchase with the expectation now that the franchisees have the opportunity to convert them to members and getting more onto that reoccurring membership from a growth perspective.

是的，第一季的業務有所成長。這是我們感興趣的一件事，因為我們在其他財報電話會議上聽到人們一直在談論天氣。所以我們知道這不是天氣原因，因為到了一天結束時，訪問量確實很高。所以人們不會來你的城市或他們不得不來。因此，當我們放眼全國範圍時，我們並沒有看到業務下滑。我們實際上看到課程的提供率很高。當你查看第二季度時，我們發現訪問量很高，其中每個工作室的訪問量平均比 2023 年第一季的 2024 年增長了 6%。所以實際上第一季消費者的參與度更高。因此，當您查看各個品牌時，您不會發現僅純粹的酒吧和餐廳就產生了這種效果，我們確實看到銷售實質上被拉入了第四季度而不是第一季度。所以這是一件好事，因為你可以更快地獲得收入，消費者現在可以使用他們購買的任何東西，並期望特許經營商有機會將他們轉變為會員，並從增長的角度更多地利用重複的會員資格。

Got you. And then my follow-up is on Vindora. It's great to see 40 licenses signed out of the gate here. Can you help us understand what normalized we expect normalized AOV to look like? I know those are open, and I appreciate you being here.

明白你了。然後我的後續行動是關於 Vindora。很高興看到 40 個許可證在這裡簽署。您能幫助我們了解我們期望的標準化 AOV 是什麼樣子嗎？我知道這些是開放的，我很感謝你來到這裡。

I mean, look there, I'm a these are close to 1 million box there about 980 and change. So we haven't really gotten our hands around or on to tack lead flow closing percentages, attrition, all the things that we do really well as a sales and marketing engine. So all that stuff just starting to get implemented and our teams are together starting to work together all that kind of type stuff. So I don't see I think we've really seen a I left really from us yet on ANA on stores.

我的意思是，看那裡，我有接近 100 萬個盒子，大約有 980 個零錢。因此，我們還沒有真正著手解決潛在客戶流量關閉百分比、人員流失以及我們作為銷售和行銷引擎所做的所有事情。因此，所有這些事情才剛開始實施，我們的團隊正在開始共同努力處理所有此類事情。所以我認為我們還沒有在全日空商店上看到我真正離開的東西。

But when we've kind of built that into the model itself. At this point, there's a lot of when we start nationally deploying this, there's a lot of learning curves as you put it into different markets right now, the assumption we've developed into our models, they perform very much like stress lab, which has been around that 600 KAUV. It's above the 500 that we designed from a unit economics perspective. But similar to stress that, that's how we've kind of modeled in their growth curve. We've always tended to lean on the conservative side, but the consumers are and the franchisees kind of map very similar to like our club Pilates kind of franchisees and members. So we'll see how they perform. But right now we're just assuming they get to $600,000. The existing portfolio that we had joined what we acquired as Anthony mentioned, they're just right under $1 million. So they just anything north of $600,000. It's upside for the business.

但是當我們將其建構到模型本身時。在這一點上，當我們開始在全國範圍內部署這一點時，當你現在將其放入不同的市場時，會有很多學習曲線，我們已經將其發展到我們的模型中，它們的表現非常像是壓力實驗室，這已經有 600 KAUV 左右了。它高於我們從單位經濟學角度設計的 500。但與強調的類似，這就是我們在其成長曲線中建模的方式。我們一直傾向於保守的一面，但消費者和特許經營商的地圖非常類似於我們普拉提俱樂部的特許經營商和會員。那麼我們將看看他們的表現如何。但現在我們只是假設他們達到 60 萬美元。正如安東尼所提到的，我們加入了我們收購的現有投資組合，它們的價值略低於 100 萬美元。所以他們只要超過 60 萬美元就可以了。這對企業來說是有好處的。

Thanks a lot.

多謝。

And the next question comes from Karin will smile from Piper Sandler. Please go ahead.

下一個問題來自卡琳（Karin），派珀·桑德勒（Piper Sandler）會微笑。請繼續。

Hey, good afternoon, guys. Thanks for taking the question on my first one is not to harp on this a pull forward of promotions too much, but I am curious when you laid out expectations a couple of months ago? Or did you already recognize that there was this pull forward? Or is this kind of a new realization? And then what's the historic you're talking about like a conversion of full-time members. What's the historic conversion you've seen with these types of promotions? And what gives you confidence that these people will end up converting.

嘿，下午好，夥計們。感謝您回答我的第一個問題，我不想多談促銷的提前，但我很好奇您幾個月前提出的期望是什麼？或者您已經意識到存在這種推動力？或者說這是一種新的認識？然後你所說的歷史性事件是什麼，例如全職會員的轉變。您在這些類型的促銷活動中看到的歷史性轉換是多少？是什麼讓你相信這些人最終會轉變。

From a from a I guess from a guidance perspective? No, I would say we did not anticipate it's hard to tell because when you look at every Q4 over the last couple of years, the promotions do very well and we've approached them differently year to year like we used to do more promotions and call Pilates. We really don't do that anymore because the demand is so high. You don't really need to as you're trying to fill capacity in brands and offer different things, you get different reactions. So in January and February did appear to us that meeting did not have all the aligner people kind of talking about whether we weren't we weren't seeing whether the issue. But then also on March, you saw on the AUV start to climb again, and we're like, Okay. So then we kind of look back at the data. And these two brands just really stood out from a performance perspective. The key there with promotions as you're getting people into your Studios is you have studios and fall in love with the product and again, the franchisees and add that to convert them. So we typically have seen Q4 and Q1 be our strongest quarters and then early on in Q2. So the jury's out as far as whether or not we'll see that same impact this year as we kind of come back into more of a normal environment since COVID. But again, the those brands have done really well. So we expect what a good percentage of these consumers will either re-up their package, if that's how they approach the business are convert to a member.

我想從指導的角度來看？不，我想說的是，我們沒有預料到這很難說，因為當你查看過去幾年的每個第四季度時，促銷活動都做得很好，而且我們每年都以不同的方式對待它們，就像我們以前做更多促銷活動一樣打電話給普拉提。我們真的不再這樣做了，因為需求太高了。你真的不需要這樣做，因為你試圖填補品牌的容量並提供不同的東西，你會得到不同的反應。因此，在一月和二月，我們確實發現會議上並沒有所有的矯正人員都在討論我們是否沒有看到這個問題。但同樣在三月份，你看到 AUV 再次開始爬升，我們就說，好吧。那我們回顧一下數據。從性能角度來看，這兩個品牌確實脫穎而出。當你讓人們進入你的工作室時，促銷的關鍵是你擁有工作室並愛上產品，再次愛上特許經營商並添加它來轉化他們。因此，我們通常會看到第四季度和第一季是我們最強勁的季度，然後是第二季的早期。因此，隨著我們今年恢復到新冠疫情以來的正常環境，我們是否會看到同樣的影響，目前還沒有定論。但同樣，這些品牌做得非常好。因此，我們預期這些消費者中有很大一部分會重新購買他們的套餐，如果他們是這樣處理業務並轉變為會員的。

Got it. Thank you. And then on WinDoor, can you just give us a little bit of color on where on the licenses well on that building and Michael, where you're expecting the new units to get bulk up, is it still more California are you starting to see interest in other states.

知道了。謝謝。然後在 WinDoor 上，您能否給我們一點關於該建築許可證上的位置的信息，邁克爾，您預計新單元將在哪裡增加，您開始看到的是更多的加利福尼亞州嗎？興趣。

We sold across I think it was six or seven ownership groups across six or seven different states.

我認為我們出售的是六、七個不同州的六、七個所有權集團。

So and it's starting to spread to the Midwest and the East Coast.

因此，它開始蔓延到中西部和東海岸。

Great.

偉大的。

Thank you.

謝謝。

Thank you.

謝謝。

Your next question comes from JP. Willem from Russ MKM. Please go ahead.

你的下一個問題來自JP。來自 Russ MKM 的威廉。請繼續。

Thanks for taking my questions, gentlemen, if I could first start, I believe, and you correct me if I'm wrong, I believe you're changing the online booking platform and maybe that's already underway. But could you just elaborate a bit on sort of how big of an IT challenge that is kind of what you're doing to prepare for that and prepare franchisees for that? And then just what the advantages are of switching?

感謝您提出我的問題，先生們，如果我可以先開始，我相信，如果我錯了，請您糾正我，我相信您正在改變在線預訂平台，也許這已經在進行中。但您能否詳細說明 IT 挑戰有多大，您正在為此做準備並為特許經營商做好準備嗎？那麼轉換的好處是什麼呢？

Yes, I can definitely speak to that. So we have we had an exclusive agreement with our point-of-sale vendor club ready. We are now out of that exclusive agreement and have the opportunity to go out to market for new RFPs. Really the club ready system is a booking. And from our point of sale management system, what we've done over the last couple of years is we've built all of our consumer facing applications and websites on top of the club ready infrastructure. So in terms of the transition, we won't be needing our customers to learn a new booking system or new application will actually lift our entire customer ecosystem and plug a new point-of-sale system underneath or behind that has done a lot a lot of work already to ensure that we're minimizing any sort of disruption that could occur. I think what you'll see is maybe some learning curve at the front desk or operationally at the studio level. But we've got about a minimum of 18 months runway to be able to select a good partner and put them some tests in place and then ultimately decide a go-forward pathway. And this would be for domestic operations. We are open to, of course, a global solution, but this is primary primarily focused on our domestic operations.

是的，我絕對可以這麼說。因此，我們已經與銷售點供應商俱樂部簽訂了獨家協議。我們現在已經解除了該獨家協議，並有機會進入市場尋求新的 RFP。實際上，俱樂部準備系統是預訂。從我們的銷售點管理系統來看，我們在過去幾年所做的就是在俱樂部就緒的基礎設施之上建立了所有面向消費者的應用程式和網站。因此，就過渡而言，我們不需要客戶學習新的預訂系統，或者新的應用程式實際上會提升我們的整個客戶生態系統，並在其之下或背後插入一個新的銷售點系統，這已經做了很多工作。我認為您可能會看到前台或工作室層面的一些學習曲線。但我們還有至少 18 個月的時間來選擇一個好的合作夥伴，並對他們進行一些測試，然後最終決定前進的道路。這將適用於國內業務。當然，我們對全球解決方案持開放態度，但這主要集中在我們的國內業務。

Great. That's very helpful. And then maybe just stepping back on in terms of trends, a high-level industry thought and maybe more geared towards you, Anthony, the Orange Theory merger of a few months ago. And I think just this last week, there were some potential rumors about it varies considering a sale. Is there any read through on this in terms of the boutique fitness industry and just any considerations regarding those news items?

偉大的。這非常有幫助。然後也許只是在趨勢方面退一步，一個高層的行業思想，也許更適合你，安東尼，幾個月前的橙色理論合併。我認為就在上週，有一些關於它的潛在謠言因考慮出售而有所不同。是否有關於精品健身行業的任何讀物以及對這些新聞的任何考慮？

No, I think they're kind of mutually exclusive. Dave and Chuck have been running self-esteem and Orange Theory for a long time. They're great operators with having run that business for a long time work zone, both of those for a while. And I think you can see publicly, right, they merged those together, I think took a $480 million whole business securitization out of there. So I'm I think they think to just merge those together because it's kind of left pocket, right pocket for work and but put together. So it fits more compelling and obviously Orange series, an amazing brand and Dave's great operator, and they could bring kind of him and Chuck together under like, really together under one roof. And I think they're looking for somebody to kind of run both of those as well. So I think that's totally separate from North Castle's own various for a while. Now they owned it pre COVID and then kind of came through COVID. And I think like any private equity firm, they're you know, they're looking to close out their fund and I'll see some upside from there, their acquisition. But other than that, Manoj, I think those are two, two separate kind of things happening on. But nothing nothing that I see really to read into those together.

不，我認為它們是相互排斥的。戴夫和查克長期以來一直在經營自尊和橙色理論。他們是出色的經營者，在很長一段時間的工作區域裡經營這項業務，而且都已經有一段時間了。我想你可以公開看到，對吧，他們將這些合併在一起，我認為他們從中拿走了 4.8 億美元的整個企業證券化。所以我認為他們認為將它們合併在一起，因為它是左口袋，右口袋用於工作，但放在一起。所以它更適合橙色系列，一個令人驚嘆的品牌和戴夫偉大的運營商，他們可以把他和查克帶到一起，真正在一起在一個屋簷下。我認為他們正在尋找一個人來管理這兩個專案。所以我認為這在一段時間內與 North Castle 自己的各種完全分開。現在他們在新冠疫情之前就擁有了它，然後又經歷了新冠疫情。我認為像任何私募股權公司一樣，他們正在尋求關閉他們的基金，我會看到他們的收購帶來的一些好處。但除此之外，Manoj，我認為這是兩種、兩種不同的事情正在發生。但我沒有看到任何真正可以一起解讀的內容。

Okay. Yes, fair enough. Thank you and best of luck on the forward.

好的。是的，很公平。謝謝你，祝你前進順利。

Thank you, Kim.

謝謝你，金。

There are no further questions at this time. I would now like to turn the floor, I'll let Anthony Geisler for closing remarks.

目前沒有其他問題。現在我想請安東尼·蓋斯勒致閉幕詞。

Thank you, everyone, for joining today's earnings call and for your support. We look forward to seeing many of you at upcoming investor conferences in May and June, and we'll speak to you again on our Q2 earnings call in August and Keith.

感謝大家參加今天的財報電話會議並給予支持。我們期待在即將舉行的 5 月和 6 月投資者會議上見到你們，我們將在 8 月和 Keith 的第二季財報電話會議上再次與你們交談。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。