COLUMBIA, Mo., July 15, 2021 /PRNewswire/ -- American
Outdoor Brands, Inc. (NASDAQ Global Select: AOUT), an industry
leading provider of products and accessories for rugged outdoor
enthusiasts, today announced financial results for the fourth
quarter and full year fiscal 2021 ended April 30, 2021.
Fourth Quarter Fiscal 2021 Financial Highlights
- Quarterly net sales were $64.5
million, an increase of $21.4
million, or 49.6%, over net sales of $43.1 million for the comparable quarter last
year, reflecting increases in both e-commerce and traditional sales
channels.
- Quarterly gross margin was 44.4%, even with gross margin of
44.4% for the comparable quarter last year.
- Quarterly net income was $1.2
million, or $0.09 per diluted
share, compared with a net loss $90.7
million, or ($6.49) per
diluted share, for the comparable quarter last year. In the
fourth quarter of last year, the company expected to be negatively
impacted by several factors related to the COVID-19 pandemic, which
constituted a triggering event that required the company to take a
$98.9 million non-cash goodwill
impairment charge.
- Quarterly non-GAAP net income was $4.9
million, or $0.34 per diluted
share, compared with a non-GAAP net loss of $123,000, or ($0.01) per diluted share, for the comparable
quarter last year. GAAP to non-GAAP adjustments for net
income exclude a non-cash impairment of goodwill in the prior year,
acquired intangible amortization, stock compensation, transition
costs, COVID-19 expenses, and other costs. For a detailed
reconciliation, see the schedules that follow in this release.
- Quarterly Adjusted EBITDAS was $7.0
million, or 10.8% of net sales, compared with $3.1 million, or 7.3% of net sales, for the
comparable quarter last year. For a detailed reconciliation,
see the schedules that follow in this release.
Full Year Fiscal 2021 Financial Highlights
- Full year net sales were $276.7
million, an increase of $109.3
million, or 65.3%, over net sales of $167.4 million for the prior year, reflecting
increases in both e-commerce and traditional sales channels.
- Full year gross margin was 45.8%, an increase of 340 basis
points, over gross margin of 42.4% for the comparable quarter last
year.
- Full year net income was $18.4
million, or $1.29 per diluted
share, compared with a net loss $96.2
million, or ($6.88) per
diluted share, last year. Last year, the company recorded a
$98.9 million non-cash goodwill
impairment charge.
- Full year non-GAAP net income was $33.0
million, or $2.32 per diluted
share, compared with a non-GAAP net income of $3.2 million, or $0.23 per diluted share, for the prior year. GAAP
to non-GAAP adjustments for net income exclude a non-cash
impairment of goodwill in the prior year, acquired intangible
amortization, stock compensation, transition costs, COVID-19
expenses, and other costs. For a detailed reconciliation, see
the schedules that follow in this release.
- Full year Adjusted EBITDAS was $47.3
million, or 17.1% of net sales, compared with $12.3 million, or 7.3% of net sales, for the
prior year. For a detailed reconciliation, see the schedules
that follow in this release.
Brian Murphy, President and CEO,
said, "Fiscal 2021 was a historic year for our company. With the
completion of our spin-off in August
2020, we became an independent public company dedicated to
building authentic, lifestyle brands that help consumers make the
most out of the moments that matter. We believe that sharing
our passion for creating brands and products that allow people to
pursue their outdoor adventures was especially timely, as consumers
increasingly looked to outdoor activities, such as fishing,
hunting, shooting sports, camping, and hiking, in response to
travel restrictions and social distancing, and as they continued to
demonstrate an increased interest in self-protection. Some
people turned to these activities for the very first time, and
others for the first time in a long time. Regardless, we are
pleased and proud that so many of them took our brands along on
their journey. We are also extremely proud of our employees,
whose loyalty, hard work, and dedication helped us to establish our
new company, service our customers with continuity, and deliver
outstanding results, despite a year of unprecedented uncertainty
driven by the pandemic. We thank you."
Net sales grew more than 65% and represented products from
across the company's four brand lanes – Marksman, Defender,
Harvester, and Adventurer. "While our brands clearly aligned well
with strong consumer participation trends in personal protection
and the outdoor lifestyle activities we serve, we also believe that
our 'Dock & UnlockTM' strategy, designed to provide
entry into new and larger addressable markets, helped drive our
strong results. We believe fiscal 2021 ushered in a new era
for the outdoor industry, one that welcomed many new participants
who, we believe, will continue to explore the outdoors in the
future. We are poised to build upon our foundation as
we set our sights on future growth and take our brands from 'Niche
to KnownTM'," concluded Murphy.
Andrew Fulmer, Chief Financial
Officer, said, "Our financial results for fiscal 2021, which
represents our first year as an independent public company, are a
success by any measure. We have established a business
structure that not only drove product innovation and record net
sales, but one that allowed us to generate strong profits as we
continued to build a balance sheet capable of supporting our future
growth initiatives. Our Adjusted EBITDAS of $47.3 million for fiscal 2021, represented growth
of nearly 300% versus the prior year, and reflected the benefit of
investments we initiated in our e-commerce and logistics
capabilities long before our spin-off. We generated free cash
flow of over $29.0 million in fiscal
2021, and ended the year with cash of $60.8
million and no borrowings on our $50.0 million senior secured credit facility,
which is expandable by an additional $15.0
million under certain conditions. This means that we
now have over $125.0 million in
available capital to support our organic growth and potential
future acquisitions. Lastly, we are providing our
guidance for fiscal 2022, which began May 1,
2021."
Outlook
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
|
NET SALES,
EARNINGS PER SHARE, and ADJUSTED EBITDAS GUIDANCE, INCLUDING GAAP
TO NON-GAAP RECONCILIATION
(Unaudited)
|
|
|
|
|
|
Range for the Year
Ending April 30, 2022
|
|
Net sales (in
thousands)
|
|
$
|
280,000
|
|
|
$
|
295,000
|
|
|
|
|
|
|
|
|
|
|
GAAP income per share
- diluted
|
|
$
|
1.00
|
|
|
$
|
1.24
|
|
Amortization of
acquired intangible assets
|
|
|
0.96
|
|
|
|
0.96
|
|
Stock
compensation
|
|
|
0.21
|
|
|
|
0.21
|
|
Transition
costs
|
|
|
0.19
|
|
|
|
0.19
|
|
Tax effect of non-GAAP
adjustments
|
|
|
(0.34)
|
|
|
|
(0.34)
|
|
Non-GAAP income per
share - diluted
|
|
$
|
2.02
|
|
|
$
|
2.26
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDAS (in thousands)
|
|
$
|
42,000
|
|
|
$
|
47,000
|
|
|
|
|
|
|
|
|
|
|
The Company is not providing a quantitative reconciliation of
non-GAAP Adjusted EBITDAS guidance in reliance on the "unreasonable
efforts" exception for forward-looking non-GAAP measures set forth
in SEC rules because certain financial information, the probable
significance of which cannot be determined, is not available and
cannot be reasonably estimated without unreasonable effort and
expense. In this regard, the Company does not provide a
reconciliation of forward-looking non-GAAP Adjusted EBITDAS to GAAP
net income due to the inherent difficulty in forecasting and
quantifying certain amounts that are necessary for such
reconciliation. Because certain deductions for non-GAAP exclusions
used to calculate projected GAAP net income may vary significantly
based on actual events, including variations in acquired intangible
asset amortization and stock compensation expense, the Company is
not able to forecast on a GAAP basis with reasonable certainty all
deductions needed in order to provide a GAAP calculation of
projected net income at this time. The amounts of these deductions
may be material and, therefore, could result in projected GAAP net
income being materially less than is indicated by projected
non-GAAP Adjusted EBITDAS.
We define free cash flow as operating cash flow, which was
$33.3 million in fiscal 2021, less
cash flows from investing activities, which were $4.2 million in fiscal 2021.
Conference Call and Webcast
The Company will host a
conference call and webcast today, July 15,
2021, to discuss its fourth quarter and full year fiscal
2021 financial and operational results. Speakers on the conference
call will include Brian Murphy,
President and Chief Executive Officer, and Andrew Fulmer, Chief Financial Officer. The
conference call may include forward-looking statements and a
discussion of non-GAAP financial measures. 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 (833) 570-1129 and reference conference
identification number 8556447. No RSVP is necessary.
The conference call audio webcast can also be accessed live on the
Company's website at www.aob.com, under the Investor Relations
section.
Reconciliation of U.S. GAAP to Non-GAAP Financial
Measures
In this press release, certain non-GAAP financial
measures, including "non-GAAP net income," "non-GAAP income per
share diluted," "Adjusted EBITDAS," and "free cash flow" are
presented. A reconciliation of these and other non-GAAP financial
measures are contained at the end of this press release. A
reconciliation of projected non-GAAP income per share diluted and
free cash flow are contained under the "Outlook" section of this
press release. From time-to-time, the Company considers and uses
these non-GAAP financial measures as 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) stock compensation, (iii)
transition costs, (iv) COVID-19 expenses, (v) goodwill impairment,
(vi) product recall, (vii) the tax effect of non-GAAP adjustments,
(viii) interest expense, (ix) income tax expense/(benefit), (x)
depreciation and amortization, and (xi) related party interest
income; 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 and believes the disclosure of such measures provides
useful information to investors regarding the Company's financial
condition and results of operations. 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, Inc.
American Outdoor
Brands, Inc. (NASDAQ Global Select: AOUT) is an industry leading
provider of outdoor products and accessories, including hunting,
fishing, camping, shooting, and personal security and defense
products, for rugged outdoor enthusiasts. The company
produces innovative, top quality products under the brands
Caldwell®; Crimson Trace®; Wheeler®; Tipton®; Frankford Arsenal®;
Lockdown®; BOG®; Hooyman®; Smith & Wesson® Accessories;
M&P® Accessories; Thompson/Center Arms™ Accessories; Performance
Center® Accessories; Schrade®; Old Timer®; Uncle Henry®; Imperial®;
BUBBA®; UST®; LaserLyte®; and MEAT! For more
information about all the brands and products from American Outdoor
Brands, Inc., visit 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. All statements other than statements of historical facts
contained or incorporated herein by reference in this press
release, including statements regarding our future operating
results, future financial position, business strategy, objectives,
goals, plans, prospects, markets, and plans and objectives for
future operations, are forward-looking statements. In some cases,
you can identify forward-looking statements by terms such as
"anticipates," "believes," "estimates," "expects," "intends,"
"targets," "contemplates," "projects," "predicts," "may," "might,"
"plan," "would," "should," "could," "may," "can," "potential,"
"continue," "objective," or the negative of those terms, or similar
expressions intended to identify forward-looking statements.
However, not all forward-looking statements contain these
identifying words. Specific forward-looking statements in this
press release include our dedication to building authentic,
lifestyle brands that help consumers make the most out of the
moments that matter; our belief that sharing our passion for
creating brands and products that allow people to pursue their
outdoor adventures was especially timely, as consumers increasingly
looked to outdoor activities, such as fishing, hunting, shooting
sports, camping, and hiking, in response to travel restrictions and
social distancing, and as they continued to demonstrate an
increased interest in self-protection; our belief that our 'Dock
& Unlock' strategy, designed to provide entry into new and
larger addressable markets, helped drive our strong results; our
belief that 2021 ushered in a new era for the outdoor industry, one
that welcomed many new participants who will continue to explore
the outdoors in the future; our belief that we are poised to build
upon our foundation as we set our sights on future growth and
taking our brands from 'Niche to Known'; our belief that we have
established a business structure that not only drove product
innovation and record net sales, but one that allowed us to
generate strong profits as we continued to build a balance sheet
capable of supporting our future growth initiatives; the potential
for future acquisitions; and our guidance for fiscal 2022. 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, the effects of the
COVID-19, pandemic, including potential disruptions in our ability
to source the materials necessary for the production of our
products, disruptions and delays in the manufacture of our
products, and difficulties encountered by retailers and other
components of the distribution channel for our products; economic,
social, political, legislative, and regulatory factors; lawsuits
and their effect on us; inventory levels, both internally and in
the distribution channel, in excess of demand; natural disasters,
pandemics, seasonality, news events, political events, and consumer
tastes; future investments for capital expenditures; future
products and product development; the features, quality, and
performance of our products; the success of our strategies and
marketing programs; our market share and factors that affect our
market share; liquidity and anticipated cash needs and
availability; the supply, availability, and costs of materials and
components and related tariffs; our ability to maintain and enhance
brand recognition and reputation; risks associated with the
distribution of our products and overall availability of labor;
and, other factors detailed from time to time in our reports filed
with the Securities and Exchange Commission, including our Annual
Report on Form 10-K for the fiscal year ended April 30, 2021.
Forward-looking statements included in this press release speak
only as of the date of this press release. The Company does not
undertake any obligation to update its forward-looking statements
to reflect events or circumstances after the date of this press
release except as may be required by the federal securities
laws.
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
|
|
CONSOLIDATED AND
COMBINED BALANCE SHEETS
|
|
|
|
|
|
|
As
of:
|
|
|
|
April 30,
2021
|
|
|
April 30,
2020
|
|
|
|
(In thousands, except
share and per share data)
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
60,801
|
|
|
$
|
234
|
|
|
Accounts receivable,
net of allowance for credit losses of $119 on April 30,
2021 and $448 on April 30,
2020
|
|
42,261
|
|
|
|
35,096
|
|
|
Inventories
|
|
74,296
|
|
|
|
59,999
|
|
|
Prepaid expenses and
other current assets
|
|
2,324
|
|
|
|
3,244
|
|
|
Income tax
receivable
|
|
149
|
|
|
|
104
|
|
|
Total current
assets
|
|
179,831
|
|
|
|
98,677
|
|
|
Property, plant,
and equipment, net
|
|
10,992
|
|
|
|
9,677
|
|
|
Intangible
assets, net
|
|
53,643
|
|
|
|
69,152
|
|
|
Goodwill
|
|
64,315
|
|
|
|
64,315
|
|
|
Right-of-use
assets
|
|
25,375
|
|
|
|
2,772
|
|
|
Deferred income
taxes
|
|
6,683
|
|
|
|
3,580
|
|
|
Other
assets
|
|
424
|
|
|
|
242
|
|
|
Total
assets
|
$
|
341,263
|
|
|
$
|
248,415
|
|
|
LIABILITIES AND
EQUITY
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
16,021
|
|
|
$
|
8,936
|
|
|
Accrued
expenses
|
|
9,843
|
|
|
|
7,655
|
|
|
Accrued payroll and
incentives
|
|
6,774
|
|
|
|
3,249
|
|
|
Lease liabilities,
current
|
|
1,771
|
|
|
|
1,324
|
|
|
Accrued profit
sharing
|
|
1,933
|
|
|
|
217
|
|
|
Total
current liabilities
|
|
36,342
|
|
|
|
21,381
|
|
|
Lease liabilities, net
of current portion
|
|
24,780
|
|
|
|
2,830
|
|
|
Other non-current
liabilities
|
|
236
|
|
|
|
106
|
|
|
Total
liabilities
|
|
61,358
|
|
|
|
24,317
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value, 20,000,000 shares authorized,
no shares issued or
outstanding
|
|
—
|
|
|
|
—
|
|
|
Common stock,
$0.001 par value, 100,000,000 shares authorized,
14,059,440 shares issued and
outstanding on April 30, 2021
|
|
14
|
|
|
|
—
|
|
|
Former net parent
company investment
|
|
—
|
|
|
|
224,098
|
|
|
Additional paid in
capital
|
|
265,362
|
|
|
|
—
|
|
|
Retained
earnings
|
|
14,529
|
|
|
|
—
|
|
|
Total
equity
|
|
279,905
|
|
|
|
224,098
|
|
|
Total liabilities and
equity
|
$
|
341,263
|
|
|
$
|
248,415
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED AND
COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME/(LOSS)
|
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended April 30,
|
|
|
For the Years
Ended April 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
|
Net sales
|
|
$
|
64,473
|
|
|
$
|
43,084
|
|
|
$
|
276,687
|
|
|
$
|
167,379
|
|
Cost of
sales
|
|
|
35,821
|
|
|
|
23,942
|
|
|
|
149,859
|
|
|
|
96,363
|
|
Gross
profit
|
|
|
28,652
|
|
|
|
19,142
|
|
|
|
126,828
|
|
|
|
71,016
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
737
|
|
|
|
1,125
|
|
|
|
5,378
|
|
|
|
4,995
|
|
Selling, marketing,
and distribution
|
|
|
15,347
|
|
|
|
10,353
|
|
|
|
56,773
|
|
|
|
38,596
|
|
General and
administrative
|
|
|
11,283
|
|
|
|
11,014
|
|
|
|
41,182
|
|
|
|
41,292
|
|
Goodwill
impairment
|
|
|
—
|
|
|
|
98,929
|
|
|
|
—
|
|
|
|
98,929
|
|
Total operating
expenses
|
|
|
27,367
|
|
|
|
121,421
|
|
|
|
103,333
|
|
|
|
183,812
|
|
Operating
income/(loss)
|
|
|
1,285
|
|
|
|
(102,279)
|
|
|
|
23,495
|
|
|
|
(112,796)
|
|
Other
income/(expense), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expense), net
|
|
|
145
|
|
|
|
(21)
|
|
|
|
497
|
|
|
|
(21)
|
|
Interest
(expense)/income, net
|
|
|
(41)
|
|
|
|
1,325
|
|
|
|
300
|
|
|
|
4,963
|
|
Total other
income/(expense), net
|
|
|
104
|
|
|
|
1,304
|
|
|
|
797
|
|
|
|
4,942
|
|
Income/(loss) from
operations before income taxes
|
|
|
1,389
|
|
|
|
(100,975)
|
|
|
|
24,292
|
|
|
|
(107,854)
|
|
Income tax
expense/(benefit)
|
|
|
141
|
|
|
|
(10,300)
|
|
|
|
5,887
|
|
|
|
(11,653)
|
|
Net
income/(loss)/comprehensive income/(loss)
|
|
$
|
1,248
|
|
|
$
|
(90,675)
|
|
|
$
|
18,405
|
|
|
$
|
(96,201)
|
|
Net income/(loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
|
$
|
(6.49)
|
|
|
$
|
1.31
|
|
|
$
|
(6.88)
|
|
Diluted
|
|
$
|
0.09
|
|
|
$
|
(6.49)
|
|
|
$
|
1.29
|
|
|
$
|
(6.88)
|
|
Weighted average
number of common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,030
|
|
|
|
13,975
|
|
|
|
13,997
|
|
|
|
13,975
|
|
Diluted
|
|
|
14,287
|
|
|
|
13,975
|
|
|
|
14,225
|
|
|
|
13,975
|
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED AND
COMBINED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years
Ended April 30,
|
|
|
2021
|
|
|
2020
|
|
|
(In
thousands)
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net
income/(loss)
|
$
|
18,405
|
|
|
$
|
(96,201)
|
|
Adjustments to
reconcile net income/(loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
19,827
|
|
|
|
23,639
|
|
Loss on
sale/disposition of assets
|
|
107
|
|
|
|
819
|
|
Provision for losses
on accounts receivable
|
|
(48)
|
|
|
|
688
|
|
Impairment of
long-lived tangible assets
|
|
—
|
|
|
|
720
|
|
Goodwill
impairment
|
|
—
|
|
|
|
98,929
|
|
Deferred income
taxes
|
|
(3,103)
|
|
|
|
(12,499)
|
|
Stock-based
compensation expense
|
|
2,910
|
|
|
|
850
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(7,117)
|
|
|
|
(8,763)
|
|
Inventories
|
|
(14,297)
|
|
|
|
942
|
|
Accounts
payable
|
|
7,632
|
|
|
|
12
|
|
Accrued
liabilities
|
|
10,158
|
|
|
|
(24)
|
|
Other
|
|
(1,154)
|
|
|
|
(665)
|
|
Net cash provided by
operating activities
|
|
33,320
|
|
|
|
8,447
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Payments to acquire
patents and software
|
|
(558)
|
|
|
|
(383)
|
|
Payments to acquire
property and equipment
|
|
(3,623)
|
|
|
|
(1,480)
|
|
Net cash used in investing
activities
|
|
(4,181)
|
|
|
|
(1,863)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Net transfers
from/(to) former Parent
|
|
31,485
|
|
|
|
(6,512)
|
|
Cash paid for debt
issuance costs
|
|
(410)
|
|
|
|
—
|
|
Proceeds from exercise
of options to acquire common stock, including employee stock purchase plan
|
|
386
|
|
|
|
—
|
|
Payment of employee
withholding tax related to restricted stock units
|
|
(33)
|
|
|
|
—
|
|
Net cash provided by/(used
in) financing activities
|
|
31,428
|
|
|
|
(6,512)
|
|
Net increase in cash
and cash equivalents
|
|
60,567
|
|
|
|
72
|
|
Cash and cash
equivalents, beginning of period
|
|
234
|
|
|
|
162
|
|
Cash and cash
equivalents, end of period
|
$
|
60,801
|
|
|
$
|
234
|
|
Supplemental
disclosure of cash flow information
|
|
|
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
|
|
|
Interest
|
$
|
111
|
|
|
$
|
—
|
|
Income
taxes
|
$
|
7,951
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF
GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL
MEASURES
(Dollars in
thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended April 30,
|
|
|
For the Years
Ended April 30,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
28,652
|
|
|
$
|
19,142
|
|
|
$
|
126,828
|
|
|
$
|
71,016
|
|
Transition
costs
|
|
—
|
|
|
|
—
|
|
|
|
127
|
|
|
|
872
|
|
Product
recall
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(180)
|
|
Non-GAAP gross
profit
|
$
|
28,652
|
|
|
$
|
19,142
|
|
|
$
|
126,955
|
|
|
$
|
71,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
|
27,367
|
|
|
$
|
121,421
|
|
|
$
|
103,333
|
|
|
$
|
183,812
|
|
Amortization of
acquired intangible assets
|
|
(4,068)
|
|
|
|
(4,857)
|
|
|
|
(16,304)
|
|
|
|
(18,868)
|
|
Goodwill
impairment
|
|
—
|
|
|
|
(98,929)
|
|
|
|
—
|
|
|
|
(98,929)
|
|
Stock
compensation
|
|
(810)
|
|
|
|
(482)
|
|
|
|
(2,910)
|
|
|
|
(850)
|
|
Transition
costs
|
|
—
|
|
|
|
(8)
|
|
|
|
(137)
|
|
|
|
(708)
|
|
COVID-19
expenses
|
|
—
|
|
|
|
(299)
|
|
|
|
(223)
|
|
|
|
(299)
|
|
Other
|
|
—
|
|
|
|
—
|
|
|
|
(125)
|
|
|
|
—
|
|
Non-GAAP operating
expenses
|
$
|
22,489
|
|
|
$
|
16,846
|
|
|
$
|
83,634
|
|
|
$
|
64,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income/(loss)
|
$
|
1,285
|
|
|
$
|
(102,279)
|
|
|
$
|
23,495
|
|
|
$
|
(112,796)
|
|
Amortization of
acquired intangible assets
|
|
4,068
|
|
|
|
4,857
|
|
|
|
16,304
|
|
|
|
18,868
|
|
Goodwill
impairment
|
|
—
|
|
|
|
98,929
|
|
|
|
—
|
|
|
|
98,929
|
|
Stock
compensation
|
|
810
|
|
|
|
482
|
|
|
|
2,910
|
|
|
|
850
|
|
Transition
costs
|
|
—
|
|
|
|
8
|
|
|
|
264
|
|
|
|
1,580
|
|
COVID-19
expenses
|
|
—
|
|
|
|
299
|
|
|
|
223
|
|
|
|
299
|
|
Product
recall
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(180)
|
|
Other
|
|
—
|
|
|
|
—
|
|
|
|
125
|
|
|
|
—
|
|
Non-GAAP operating
income
|
$
|
6,163
|
|
|
$
|
2,296
|
|
|
$
|
43,321
|
|
|
$
|
7,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss)
|
$
|
1,248
|
|
|
$
|
(90,675)
|
|
|
$
|
18,405
|
|
|
$
|
(96,201)
|
|
Amortization of
acquired intangible assets
|
|
4,068
|
|
|
|
4,857
|
|
|
|
16,304
|
|
|
|
18,868
|
|
Goodwill
impairment
|
|
—
|
|
|
|
98,929
|
|
|
|
—
|
|
|
|
98,929
|
|
Stock
compensation
|
|
810
|
|
|
|
482
|
|
|
|
2,910
|
|
|
|
850
|
|
Transition
costs
|
|
—
|
|
|
|
8
|
|
|
|
264
|
|
|
|
1,580
|
|
COVID-19
expenses
|
|
—
|
|
|
|
299
|
|
|
|
223
|
|
|
|
299
|
|
Related party interest
income
|
|
—
|
|
|
|
(1,325)
|
|
|
|
(424)
|
|
|
|
(4,963)
|
|
Product
recall
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(180)
|
|
Other
|
|
—
|
|
|
|
—
|
|
|
|
125
|
|
|
|
—
|
|
Tax effect of non-GAAP
adjustments
|
|
(1,220)
|
|
|
|
(12,698)
|
|
|
|
(4,851)
|
|
|
|
(15,974)
|
|
Non-GAAP net
income/(loss)
|
$
|
4,906
|
|
|
$
|
(123)
|
|
|
$
|
32,956
|
|
|
$
|
3,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss) per share - diluted
|
$
|
0.09
|
|
|
$
|
(6.49)
|
|
|
$
|
1.29
|
|
|
$
|
(6.88)
|
|
Amortization of
acquired intangible assets
|
|
0.28
|
|
|
|
0.35
|
|
|
|
1.15
|
|
|
|
1.35
|
|
Goodwill
impairment
|
|
—
|
|
|
|
7.08
|
|
|
|
—
|
|
|
|
7.08
|
|
Stock
compensation
|
|
0.06
|
|
|
|
0.03
|
|
|
|
0.20
|
|
|
|
0.06
|
|
Transition
costs
|
|
—
|
|
|
|
—
|
|
|
|
0.02
|
|
|
|
0.11
|
|
COVID-19
expenses
|
|
—
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.02
|
|
Related party interest
income
|
|
—
|
|
|
|
(0.09)
|
|
|
|
(0.03)
|
|
|
|
(0.36)
|
|
Product
recall
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.01)
|
|
Other
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
|
|
—
|
|
Tax effect of non-GAAP
adjustments
|
|
(0.09)
|
|
|
|
(0.91)
|
|
|
|
(0.34)
|
|
|
|
(1.14)
|
|
Non-GAAP net
income/(loss) per share - diluted
|
$
|
0.34
|
|
|
$
|
(0.01)
|
|
|
$
|
2.32
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
|
RECONCILIATION OF
GAAP NET INCOME/(LOSS) TO NON-GAAP ADJUSTED EBITDAS
(In
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended April 30,
|
|
|
For the
Years Ended April 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss)
|
$
|
|
1,248
|
|
|
$
|
(90,675)
|
|
|
$
|
18,405
|
|
|
$
|
(96,201)
|
|
Interest
expense
|
|
|
49
|
|
|
|
—
|
|
|
|
111
|
|
|
|
—
|
|
Income tax
expense/(benefit)
|
|
|
141
|
|
|
|
(10,300)
|
|
|
|
5,887
|
|
|
|
(11,653)
|
|
Depreciation and
amortization
|
|
|
4,715
|
|
|
|
5,708
|
|
|
|
19,827
|
|
|
|
23,639
|
|
Related party interest
income
|
|
|
—
|
|
|
|
(1,325)
|
|
|
|
(424)
|
|
|
|
(4,963)
|
|
Stock
compensation
|
|
|
810
|
|
|
|
482
|
|
|
|
2,910
|
|
|
|
850
|
|
Goodwill
impairment
|
|
|
—
|
|
|
|
98,929
|
|
|
|
—
|
|
|
|
98,929
|
|
Product
recall
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(180)
|
|
Transition
costs
|
|
|
—
|
|
|
|
8
|
|
|
|
264
|
|
|
|
1,580
|
|
COVID-19
costs
|
|
|
—
|
|
|
|
299
|
|
|
|
223
|
|
|
|
299
|
|
Other
|
|
|
—
|
|
|
|
—
|
|
|
|
125
|
|
|
|
—
|
|
Non-GAAP Adjusted
EBITDAS
|
$
|
|
6,963
|
|
|
$
|
3,126
|
|
|
$
|
47,328
|
|
|
$
|
12,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Liz Sharp, VP, Investor
Relations
lsharp@aob.com
(573) 303-4620
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SOURCE American Outdoor Brands, Inc.