SPRINGFIELD, Mass.,
June 20, 2018 /PRNewswire/ --
American Outdoor Brands Corporation (NASDAQ Global Select:
AOBC), one of the world's leading providers of firearms and quality
products for the shooting, hunting, and rugged outdoor enthusiast,
today announced financial results for the fourth quarter and full
year fiscal 2018, ended April 30,
2018.
Please note: As of the time of this press release, the SEC EDGAR
system is currently unavailable. We will post our Form 10-K on our
company website at www.aob.com, under the Investor Relations
tab.
Fourth Quarter Fiscal 2018 Financial Highlights
- Quarterly net sales were $172.0
million compared with $229.2
million for the fourth quarter last year, a decrease of
24.9%.
- Gross margin for the quarter was 33.4% compared with 39.6% for
the fourth quarter last year.
- Quarterly GAAP net income was $7.7
million, or $0.14 per diluted
share, compared with $27.7 million,
or $0.50 per diluted share, for the
comparable quarter last year.
- Quarterly non-GAAP net income was $13.3
million, or $0.24 per diluted
share, compared with $31.8 million,
or $0.57 per diluted share, for the
comparable quarter last year. GAAP to non-GAAP adjustments to net
income exclude a number of acquisition-related costs, certain
product recall related costs, and other costs. For a detailed
reconciliation, see the schedules that follow in this release.
- Quarterly non-GAAP Adjusted EBITDAS was $33.4 million, or 19.4% of net sales, compared
with $60.5 million, or 26.4% of net
sales, for the comparable quarter last year.
Full Year Fiscal 2018 Financial Highlights
- Full year net sales were $606.9
million compared with $903.2
million a year ago, a decrease of 32.8%.
- Full year gross margin was 32.3% compared with 41.5% last
year.
- Full year GAAP net income was $20.1
million, or $0.37 per diluted
share, compared with $127.9 million,
or $2.25 per diluted share, last
year.
- Full year non-GAAP net income was $25.1
million, or $0.46 per diluted
share, compared with $146.5 million,
or $2.58 per diluted share last
year.
- Full year non-GAAP Adjusted EBITDAS was $89.5 million, or 14.7% of net sales, compared
with $266.3 million, or 29.5% of net
sales, last year.
James Debney, American Outdoor
Brands Corporation President and Chief Executive Officer,
commented, "Fiscal 2018 was a year characterized by lower consumer
demand for firearms, heightened levels of inventory in the consumer
channel, and a host of aggressive, industry-wide promotions.
Despite those challenges, we achieved a number of accomplishments
in the year that marked important progress toward our long-term
strategy of being the leading provider of quality products for the
shooting, hunting, and rugged outdoor enthusiast."
"In our Firearms segment, we added several exciting products to
our next generation M&P 2.0 polymer pistol platform, which we
launched in the prior fiscal year. In fact, new products –
which we define as products launched within the last twelve months
-- accounted for 29% of our firearms revenue in fiscal 2018, and
strong adoption rates across our growing M&P family helped us
retain our leadership position in the consumer market for
handguns. During the year we also made significant progress
on market penetration with our T/C Compass bolt action hunting
rifle. Finally, we expanded our firearms segment
inorganically with the acquisition of Gemtech, a provider of high
quality suppressors and accessories for the consumer, law
enforcement, and military markets, providing us access to new
technology for use in our future new product development
processes."
"Our Outdoor Products & Accessories segment generated 26% of
our total revenue in fiscal 2018 compared to just 14% in fiscal
2017. Our Outdoor Products and Accessories Division launched
nearly 150 new products across categories including: shooting,
cutlery, tools, and survival products. Our Electro-Optics
Division, Crimson Trace, also launched several new products in
fiscal 2018, and entered the large and diverse flashlight
category. We were very pleased with the organic growth we
achieved in the Outdoor Products & Accessories segment, given
that it was a challenging year for the outdoor retail industry
overall. In addition, our new product launches – namely
handheld flashlights in our Outdoor Products and Accessories
Division and firearm-mounted lights from our Electro-Optics
Division -- demonstrate that we have the ability to enter new
markets organically with multiple brands. In fiscal 2018, we
supplemented organic growth with revenue from acquisitions,
including the acquisition of the popular Bubba Blade fishing tool brand. Both of
our acquisitions in fiscal 2018 helped us expand into new markets
that resonate with our core firearms consumers, many of whom also
have a passion for the rugged outdoors," Debney concluded.
Jeff Buchanan, Executive Vice
President, Chief Financial Officer, and Chief Administrative
Officer, commented, "The strength of our balance sheet in fiscal
2018 supported a number of initiatives throughout the year,
including two acquisitions designed to facilitate our strategic
growth, and the refinancing of our Senior Notes at their existing
interest rate with an extended maturity. During the year, we had a
peak balance of $125 million
outstanding on our revolving line of credit, which we have since
repaid in full, leaving available to us the entire capacity, which
is expandable up to $500
million. We had strong free cash flow in our
fourth quarter of $61.2 million, and
ended the year with net debt of $138.8
million. In fiscal 2019, we expect to continue employing the
strength of our balance sheet to fuel additional growth
opportunities, both organic and inorganic."
Financial Outlook
AMERICAN OUTDOOR
BRANDS CORPORATION
|
NET SALES AND
EARNINGS PER SHARE GUIDANCE, INCLUDING GAAP TO NON-GAAP
RECONCILIATION
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Range for the
Three Months Ending July 31, 2018
|
|
Range for the Year
Ending April 30, 2019
|
Net sales (in
thousands)
|
$ 130,000
|
|
$ 140,000
|
|
$ 570,000
|
|
$ 600,000
|
|
|
|
|
|
|
|
|
GAAP income per share
- diluted
|
$
0.03
|
|
$
0.07
|
|
$
0.12
|
|
$
0.22
|
Amortization of
acquired intangible assets
|
0.10
|
|
0.10
|
|
0.39
|
|
0.39
|
Inventory step-up
expense
|
—
|
|
—
|
|
0.01
|
|
0.01
|
Tax effect of
non-GAAP adjustments
|
(0.03)
|
|
(0.03)
|
|
(0.12)
|
|
(0.12)
|
Non-GAAP income per
share - diluted
|
$
0.10
|
|
$
0.14
|
|
$
0.40
|
|
$
0.50
|
Conference Call and Webcast
The company will host a conference call and webcast today,
June 20, 2018, to discuss its fourth
quarter and full year fiscal 2018 financial and operational
results. Speakers on the conference call will include James Debney, President and Chief Executive
Officer, and Jeffrey D. Buchanan,
Executive Vice President, Chief Financial Officer, and Chief
Administrative Officer. The conference call may include
forward-looking statements. The conference call and webcast will
begin at 5:00 p.m. Eastern Time
(2:00 p.m. Pacific Time). Those
interested in listening to the conference call via telephone may
call directly at (844) 309-6568 and reference conference
identification number 5995055. No RSVP is necessary.
The conference call audio webcast can also be accessed live and for
replay on the company's website at www.aob.com, under the Investor
Relations section. The company will maintain an audio replay of
this conference call on its website for a period of time after the
call. No other audio replay will be available.
Reconciliation of U.S. GAAP to Non-GAAP Financial
Measures
In this press release, certain non-GAAP financial measures,
including "non-GAAP net income," "Adjusted EBITDAS," and "free cash
flow" are presented. From time-to-time, the company considers and
uses these supplemental measures of operating performance in order
to provide the reader with an improved understanding of underlying
performance trends. The company believes it is useful for
itself and the reader to review, as applicable, both (1) GAAP
measures that include (i) amortization of acquired intangible
assets, (ii) transition costs, (iii) acquisition-related costs,
(iv) fair value inventory step-up and backlog expense, (v)
corporate rebranding expenses, (vi) debt extinguishment costs,
(vii) recall related expenses, (vii) the tax effect of non-GAAP
adjustments, (ix) net cash provided by operating activities, (x)
net cash used in investing activities, (xi) acquisition of
businesses, net of cash acquired, (xii) receipts from note
receivable, (xiii) interest expense (xiv) income tax expense, (xv)
depreciation and amortization, (xvi) stock-based compensation
expenses, (xvii) discontinued operations, (xviii) changes in
contingent consideration, and (xix) Tax Reform; and (2) the
non-GAAP measures that exclude such information. The company
presents these non-GAAP measures because it considers them an
important supplemental measure of its performance. The company's
definition of these adjusted financial measures may differ from
similarly named measures used by others. The company believes these
measures facilitate operating performance comparisons from period
to period by eliminating potential differences caused by the
existence and timing of certain expense items that would not
otherwise be apparent on a GAAP basis. These non-GAAP
measures have limitations as an analytical tool and should not be
considered in isolation or as a substitute for the company's GAAP
measures. The principal limitations of these measures are
that they do not reflect the company's actual expenses and may thus
have the effect of inflating its financial measures on a GAAP
basis.
About American Outdoor Brands Corporation
American Outdoor Brands Corporation (NASDAQ Global Select: AOBC) is
a provider of quality products for shooting, hunting, and rugged
outdoor enthusiasts in the global consumer and professional
markets. The Company reports two segments: Firearms and Outdoor
Products & Accessories. Firearms manufactures handgun long gun,
and suppressor products sold under the Smith & Wesson®,
M&P®, Thompson/Center Arms™, and Gemtech® brands as well as
provides forging, machining, and precision plastic injection
molding services. Outdoor Products & Accessories provides
shooting, hunting, and outdoor accessories, including reloading,
gunsmithing, and gun cleaning supplies, tree saws, vault
accessories, knives, laser sighting systems, tactical lighting
products, and survival and camping equipment. Brands in Outdoor
Products & Accessories include Smith & Wesson®, M&P®,
Thompson/Center Arms™, Crimson Trace®, Caldwell® Shooting Supplies,
Wheeler® Engineering, Tipton® Gun Cleaning Supplies, Frankford
Arsenal® Reloading Tools, Lockdown® Vault Accessories, Hooyman®
Premium Tree Saws, BOG POD®, Golden Rod® Moisture Control,
Schrade®, Old Timer®, Uncle Henry®, Imperial®, Bubba Blade®, and
UST®. For more information on American Outdoor Brands
Corporation, call (844) 363-5386 or log on to www.aob.com.
Safe Harbor Statement
Certain statements contained in
this press release may be deemed to be forward-looking statements
under federal securities laws, and we intend that such
forward-looking statements be subject to the safe-harbor created
thereby. Such forward-looking statements include, among
others, our long-term strategy of being the leading provider of
quality products for the shooting, hunting, and rugged outdoor
enthusiast market; our belief that the launch of new additions to
our M&P branded polymer pistol family helped us retain our
leadership position in the consumetr market for handguns; our
belief that the acquisition of Gemtech provided us access to new
technology for use in future new product development processes; our
belief that our strong balance sheet will provide us the
opportunity in fiscal 2019 for additional growth opportunities,
both organic and inorganic; and our expectations for net sales,
GAAP income per diluted share, acquisition-related costs,
amortization of acquired intangible assets, fair value inventory
step-up and backlog expense, tax effect of non-GAAP adjustments,
and non-GAAP income per diluted share for the first quarter of
fiscal 2019 and for fiscal 2019. We caution that these
statements are qualified by important risks, uncertainties and
other factors that could cause actual results to differ materially
from those reflected by such forward-looking statements. Such
factors include, among others, economic, social, political,
legislative, and regulatory factors; the potential for increased
regulation of firearms and firearm-related products; actions of
social activists that could have an adverse effect on our business;
the impact of lawsuits; the demand for our products; the state of
the U.S. economy in general and the firearm industry in particular;
general economic conditions and consumer spending patterns; our
competitive environment; the supply, availability and costs of raw
materials and components; speculation surrounding fears of
terrorism and crime; our anticipated growth and growth
opportunities; our ability to increase demand for our products in
various markets, including consumer, law enforcement, and military
channels, domestically and internationally; our penetration rates
in new and existing markets; our strategies; our ability to
maintain and enhance brand recognition and reputation; risks
associated with the establishment of our new 630,000 square foot
national distribution center; our ability to introduce new
products; the success of new products; our ability to expand our
markets; our ability to integrate acquired businesses in a
successful manner; the general growth of our outdoor products and
accessories business; the potential for cancellation of orders from
our backlog; and other risks detailed from time to time in our
reports filed with the SEC, including our Annual Report on Form
10-K for the fiscal year ended April 30,
2018.
Contact: Liz Sharp, VP
Investor Relations
American Outdoor Brands Corporation
(413) 747-6284
lsharp@aob.com
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
As
of:
|
|
April 30,
2018
|
|
April 30,
2017
|
|
(In thousands, except
par value and share data)
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
48,860
|
|
$
61,549
|
Accounts receivable,
net of allowance for doubtful accounts of $1,824 on April 30,
2018 and $598 on April 30, 2017
|
56,676
|
|
108,444
|
Inventories
|
153,353
|
|
131,682
|
Prepaid expenses and
other current assets
|
6,893
|
|
6,123
|
Income tax
receivable
|
4,582
|
|
10,643
|
Total current
assets
|
270,364
|
|
318,441
|
Property,
plant, and equipment, net
|
159,125
|
|
149,685
|
Intangibles,
net
|
112,760
|
|
141,317
|
Goodwill
|
191,287
|
|
169,017
|
Other
assets
|
11,524
|
|
9,576
|
|
$
745,060
|
|
$
788,036
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
33,617
|
|
$
53,447
|
Accrued
expenses
|
41,632
|
|
51,686
|
Accrued payroll and
incentives
|
10,514
|
|
21,174
|
Accrued income
taxes
|
513
|
|
726
|
Accrued profit
sharing
|
1,283
|
|
13,004
|
Accrued
warranty
|
6,823
|
|
4,908
|
Current portion of
notes and loans payable
|
6,300
|
|
6,300
|
Total current
liabilities
|
100,682
|
|
151,245
|
Deferred income
taxes
|
12,895
|
|
25,620
|
Notes and loans
payable, net of current portion
|
180,304
|
|
210,657
|
Other
non-current liabilities
|
29,031
|
|
7,352
|
Total
liabilities
|
322,912
|
|
394,874
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$.001 par value, 20,000,000 shares authorized, no shares
issued or outstanding
|
—
|
|
—
|
Common stock,
$.001 par value, 100,000,000 shares authorized,
72,433,705 shares issued and 54,266,843 shares outstanding on April
30, 2018 and 72,017,288 shares issued and 53,850,426 shares
outstanding on April 30, 2017
|
72
|
|
72
|
Additional paid-in
capital
|
253,616
|
|
245,865
|
Retained
earnings
|
389,146
|
|
369,164
|
Accumulated other
comprehensive income
|
1,689
|
|
436
|
Treasury stock, at
cost (18,166,862 shares on April 30, 2018 and April 30,
2017)
|
(222,375)
|
|
(222,375)
|
Total stockholders'
equity
|
422,148
|
|
393,162
|
|
$
745,060
|
|
$
788,036
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
|
April 30, 2018
(Unaudited)
|
|
April 30, 2017
(Unaudited)
|
|
April 30,
2018
|
|
April 30,
2017
|
|
|
(In thousands, except
per share data)
|
Net sales
|
|
$
172,026
|
|
$
229,186
|
|
$
606,850
|
|
$
903,188
|
Cost of
sales
|
|
114,622
|
|
138,400
|
|
411,098
|
|
527,916
|
Gross
profit
|
|
57,404
|
|
90,786
|
|
195,752
|
|
375,272
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
2,682
|
|
2,623
|
|
11,361
|
|
10,238
|
Selling and
marketing
|
|
12,595
|
|
12,565
|
|
55,805
|
|
49,338
|
General and
administrative
|
|
25,712
|
|
30,545
|
|
101,538
|
|
115,757
|
Total operating
expenses
|
|
40,989
|
|
45,733
|
|
168,704
|
|
175,333
|
Operating
income
|
|
16,415
|
|
45,053
|
|
27,048
|
|
199,939
|
Other
(expense)/income, net:
|
|
|
|
|
|
|
|
|
Other
(expense)/income, net
|
|
355
|
|
(14)
|
|
1,737
|
|
(52)
|
Interest expense,
net
|
|
(2,815)
|
|
(2,455)
|
|
(11,168)
|
|
(8,581)
|
Total other
(expense)/income, net
|
|
(2,460)
|
|
(2,469)
|
|
(9,431)
|
|
(8,633)
|
Income from
operations before income taxes
|
|
13,955
|
|
42,584
|
|
17,617
|
|
191,306
|
Income tax
(benefit)/expense
|
|
6,291
|
|
14,890
|
|
(2,511)
|
|
63,452
|
Net income
|
|
7,664
|
|
27,694
|
|
20,128
|
|
127,854
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.14
|
|
$
0.50
|
|
$
0.37
|
|
$
2.29
|
Diluted
|
|
$
0.14
|
|
$
0.50
|
|
$
0.37
|
|
$
2.25
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
54,174
|
|
55,070
|
|
54,061
|
|
55,930
|
Diluted
|
|
54,658
|
|
55,851
|
|
54,834
|
|
56,891
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
For the Years
Ended
|
|
April 30,
2018
|
|
April 30,
2017
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
20,128
|
|
$
127,854
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
52,075
|
|
50,213
|
Loss on
sale/disposition of assets
|
44
|
|
99
|
Provision for losses
on accounts receivable
|
991
|
|
1,546
|
Impairment of
long-lived tangible assets
|
282
|
|
—
|
Deferred income
taxes
|
(8,775)
|
|
(7,840)
|
Change in fair value
of contingent consideration
|
(1,640)
|
|
—
|
Stock-based
compensation expense
|
7,815
|
|
8,590
|
Changes in operating
assets and liabilities (net effect of acquisitions):
|
|
|
|
Accounts
receivable
|
51,380
|
|
(40,709)
|
Inventories
|
(16,971)
|
|
(22,171)
|
Prepaid expenses and
other current assets
|
514
|
|
(1,619)
|
Income
taxes
|
5,848
|
|
(13,745)
|
Accounts
payable
|
(20,998)
|
|
1,233
|
Accrued payroll and
incentives
|
(10,754)
|
|
988
|
Accrued profit
sharing
|
(11,721)
|
|
1,545
|
Accrued
expenses
|
(8,424)
|
|
21,238
|
Accrued
warranty
|
1,915
|
|
(1,415)
|
Other
assets
|
(417)
|
|
1,029
|
Other non-current
liabilities
|
351
|
|
(3,260)
|
Net cash provided by
operating activities
|
61,643
|
|
123,576
|
Cash flows from
investing activities:
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
(23,120)
|
|
(211,069)
|
Refunds on machinery
and equipment
|
—
|
|
2,776
|
Receipts from note
receivable
|
—
|
|
65
|
Payments to acquire
patents and software
|
(560)
|
|
(638)
|
Proceeds from sale of
property and equipment
|
6
|
|
—
|
Payments to acquire
property and equipment
|
(18,490)
|
|
(34,876)
|
Net cash used in
investing activities
|
(42,164)
|
|
(243,742)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from loans
and notes payable
|
150,000
|
|
100,000
|
Cash paid for debt
issuance costs
|
(158)
|
|
(525)
|
Payments on capital
lease obligation
|
(646)
|
|
(558)
|
Payments on notes and
loans payable
|
(181,300)
|
|
(56,300)
|
Proceeds from
Economic Development Incentive Program
|
—
|
|
101
|
Payments to acquire
treasury stock
|
—
|
|
(50,052)
|
Proceeds from
exercise of options to acquire common stock, including employee
stock purchase plan
|
2,213
|
|
2,442
|
Payment of employee
withholding tax related to restricted stock units
|
(2,277)
|
|
(4,672)
|
Net cash used in
financing activities
|
(32,168)
|
|
(9,564)
|
Net decrease in cash
and cash equivalents
|
(12,689)
|
|
(129,730)
|
Cash and cash
equivalents, beginning of period
|
61,549
|
|
191,279
|
Cash and cash
equivalents, end of period
|
$
48,860
|
|
$
61,549
|
Supplemental
disclosure of cash flow information
|
|
|
|
Cash paid
for:
|
|
|
|
Interest
|
$
10,624
|
|
$
7,650
|
Income
taxes
|
1,387
|
|
85,216
|
RECONCILIATION OF
GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
April 30,
2018
|
|
April 30,
2017
|
|
April 30,
2018
|
|
April 30,
2017
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
GAAP gross
profit
|
$ 57,404
|
|
33.4%
|
|
$ 90,786
|
|
39.6%
|
|
$ 195,752
|
|
32.3%
|
|
$ 375,272
|
|
41.5%
|
Diode
recall
|
1,666
|
|
1.0%
|
|
—
|
|
—
|
|
1,666
|
|
0.3%
|
|
—
|
|
—
|
Fair value inventory
step-up and backlog expense
|
272
|
|
0.2%
|
|
100
|
|
0.0%
|
|
500
|
|
0.1%
|
|
4,701
|
|
0.5%
|
Non-GAAP gross
profit
|
$ 59,342
|
|
34.5%
|
|
$ 90,886
|
|
39.7%
|
|
$ 197,918
|
|
32.6%
|
|
$ 379,973
|
|
42.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$ 40,989
|
|
23.8%
|
|
$ 45,733
|
|
20.0%
|
|
$ 168,704
|
|
27.8%
|
|
$ 175,333
|
|
19.4%
|
Amortization of
acquired intangible assets
|
(5,548)
|
|
-3.2%
|
|
(5,704)
|
|
-2.5%
|
|
(20,812)
|
|
-3.4%
|
|
(18,434)
|
|
-2.0%
|
Transition
costs
|
2
|
|
0.0%
|
|
(318)
|
|
-0.1%
|
|
(439)
|
|
-0.1%
|
|
(381)
|
|
0.0%
|
Discontinued
operations
|
—
|
|
—
|
|
(18)
|
|
0.0%
|
|
—
|
|
—
|
|
(86)
|
|
0.0%
|
Corporate rebranding
expenses
|
—
|
|
—
|
|
(13)
|
|
0.0%
|
|
—
|
|
—
|
|
(538)
|
|
-0.1%
|
Acquisition-related
costs
|
(14)
|
|
0.0%
|
|
(59)
|
|
0.0%
|
|
(769)
|
|
-0.1%
|
|
(3,844)
|
|
-0.4%
|
Non-GAAP operating
expenses
|
$ 35,429
|
|
20.6%
|
|
$ 39,621
|
|
17.3%
|
|
$ 146,684
|
|
24.2%
|
|
$ 152,050
|
|
16.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$ 16,415
|
|
9.5%
|
|
$ 45,053
|
|
19.7%
|
|
$
27,048
|
|
4.5%
|
|
$ 199,939
|
|
22.1%
|
Fair value inventory
step-up and backlog expense
|
272
|
|
0.2%
|
|
100
|
|
0.0%
|
|
500
|
|
0.1%
|
|
4,701
|
|
0.5%
|
Diode
recall
|
1,666
|
|
1.0%
|
|
—
|
|
—
|
|
1,666
|
|
—
|
|
—
|
|
—
|
Amortization of
acquired intangible assets
|
5,548
|
|
3.2%
|
|
5,704
|
|
2.5%
|
|
20,812
|
|
3.4%
|
|
18,434
|
|
2.0%
|
Transition
costs
|
(2)
|
|
0.0%
|
|
318
|
|
0.1%
|
|
439
|
|
0.1%
|
|
381
|
|
0.0%
|
Discontinued
operations
|
—
|
|
—
|
|
18
|
|
0.0%
|
|
—
|
|
—
|
|
86
|
|
0.0%
|
Corporate rebranding
expenses
|
—
|
|
—
|
|
13
|
|
0.0%
|
|
—
|
|
—
|
|
538
|
|
0.1%
|
Acquisition-related
costs
|
14
|
|
0.0%
|
|
59
|
|
0.0%
|
|
769
|
|
0.1%
|
|
3,844
|
|
0.4%
|
Non-GAAP operating
income
|
$ 23,913
|
|
13.9%
|
|
$ 51,265
|
|
22.4%
|
|
$
51,234
|
|
8.4%
|
|
$ 227,923
|
|
25.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
7,664
|
|
4.5%
|
|
$ 27,694
|
|
12.1%
|
|
$
20,128
|
|
3.3%
|
|
$ 127,854
|
|
14.2%
|
Fair value inventory
step-up and backlog expense
|
272
|
|
0.2%
|
|
100
|
|
0.0%
|
|
500
|
|
0.1%
|
|
4,701
|
|
0.5%
|
Amortization of
acquired intangible assets
|
5,548
|
|
3.2%
|
|
5,704
|
|
2.5%
|
|
20,812
|
|
3.4%
|
|
18,434
|
|
2.0%
|
Debt extinguishment
costs
|
226
|
|
0.1%
|
|
—
|
|
—
|
|
226
|
|
—
|
|
—
|
|
—
|
Diode
recall
|
1,666
|
|
1.0%
|
|
—
|
|
—
|
|
1,666
|
|
0.3%
|
|
—
|
|
—
|
Transition
costs
|
(2)
|
|
0.0%
|
|
318
|
|
0.1%
|
|
439
|
|
0.1%
|
|
381
|
|
0.0%
|
Discontinued
operations
|
—
|
|
—
|
|
18
|
|
0.0%
|
|
—
|
|
—
|
|
86
|
|
0.0%
|
Corporate rebranding
expenses
|
—
|
|
—
|
|
13
|
|
0.0%
|
|
—
|
|
—
|
|
538
|
|
0.1%
|
Acquisition-related
costs
|
14
|
|
0.0%
|
|
59
|
|
0.0%
|
|
769
|
|
0.1%
|
|
3,844
|
|
0.4%
|
Change in contingent
consideration
|
(340)
|
|
-0.2%
|
|
—
|
|
—
|
|
(1,640)
|
|
-0.3%
|
|
—
|
|
—
|
Tax Reform
|
663
|
|
0.4%
|
|
—
|
|
—
|
|
(8,746)
|
|
-1.4%
|
|
—
|
|
—
|
Tax effect of
non-GAAP adjustments
|
(2,459)
|
|
-1.4%
|
|
(2,062)
|
|
-0.9%
|
|
(9,057)
|
|
-1.5%
|
|
(9,291)
|
|
-1.0%
|
Non-GAAP net
income
|
$ 13,252
|
|
7.7%
|
|
$ 31,844
|
|
13.9%
|
|
$
25,097
|
|
4.1%
|
|
$ 146,547
|
|
16.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per
share - diluted
|
$
0.14
|
|
|
|
$
0.50
|
|
|
|
$
0.37
|
|
|
|
$
2.25
|
|
|
Fair value inventory
step-up and backlog expense
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
|
|
0.08
|
|
|
Amortization of
acquired intangible assets
|
0.10
|
|
|
|
0.10
|
|
|
|
0.38
|
|
|
|
0.32
|
|
|
Debt extinguishment
costs
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Diode
recall
|
0.03
|
|
|
|
—
|
|
|
|
0.03
|
|
|
|
—
|
|
|
Transition
costs
|
—
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Discontinued
operations
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Corporate rebranding
expenses
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
|
Acquisition-related
costs
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
|
|
0.07
|
|
|
Change in contingent
consideration
|
(0.01)
|
|
|
|
—
|
|
|
|
(0.03)
|
|
|
|
—
|
|
|
Tax Reform
|
0.01
|
|
|
|
—
|
|
|
|
(0.16)
|
|
|
|
—
|
|
|
Tax effect of
non-GAAP adjustments
|
(0.04)
|
|
|
|
(0.04)
|
|
|
|
(0.17)
|
|
|
|
(0.16)
|
|
|
Non-GAAP net income
per share - diluted
|
$
0.24
|
(a)
|
|
$
0.57
|
|
|
|
$
0.46
|
(a)
|
|
$
2.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Non-GAAP net
income per share does not foot due to rounding.
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
RECONCILIATION OF
NET OPERATING CASH FLOW TO FREE CASH FLOW
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the
Years Ended
|
|
April 30,
2018
|
|
April 30,
2017
|
|
April 30,
2018
|
|
April 30,
2017
|
Net cash provided by
operating activities
|
$
65,865
|
|
$
14,052
|
|
$
61,643
|
|
$
123,576
|
Net cash used in
investing activities
|
(4,710)
|
|
(6,040)
|
|
(42,164)
|
|
(243,742)
|
Acquisition of
businesses, net of cash acquired
|
—
|
|
—
|
|
23,120
|
|
211,069
|
Receipts from note
receivable
|
—
|
|
(7)
|
|
—
|
|
(65)
|
Free cash
flow
|
$
61,155
|
|
$
8,005
|
|
$
42,599
|
|
$
90,838
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
|
April 30,
2018
|
|
April 30,
2017
|
|
April 30,
2018
|
|
April 30,
2017
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
$
7,664
|
|
$
27,694
|
|
$
20,128
|
|
$
127,854
|
Interest
expense
|
|
2,638
|
|
2,502
|
|
11,092
|
|
8,722
|
Income tax
(benefit)/expense
|
|
6,291
|
|
14,890
|
|
(2,511)
|
|
63,452
|
Depreciation and
amortization
|
|
12,922
|
|
12,680
|
|
50,970
|
|
48,142
|
Stock-based
compensation expense
|
|
2,054
|
|
2,208
|
|
7,816
|
|
8,590
|
Diode
Recall
|
|
1,666
|
|
—
|
|
1,666
|
|
—
|
Fair value inventory
step-up and backlog expense
|
|
272
|
|
100
|
|
500
|
|
4,701
|
Debt extinguishment
costs
|
|
226
|
|
—
|
|
226
|
|
—
|
Acquisition-related
costs
|
|
14
|
|
59
|
|
769
|
|
3,844
|
Transition
costs
|
|
(2)
|
|
318
|
|
439
|
|
381
|
Corporate rebranding
expenses
|
|
—
|
|
13
|
|
—
|
|
538
|
Discontinued
operations
|
|
—
|
|
18
|
|
—
|
|
86
|
Change in contingent
consideration
|
|
(340)
|
|
—
|
|
(1,640)
|
|
—
|
Non-GAAP Adjusted
EBITDAS
|
|
$
33,405
|
|
$
60,482
|
|
$
89,455
|
|
$
266,310
|
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SOURCE American Outdoor Brands Corporation