• Net Sales
$53.4 Million – Up
5.0%
• Gross Margin
42.7%
• Traditional Channel Sales
$28.5 Million – Up
8.1%
• E-Commerce
Channel Sales $24.9 Million – Up
1.6%
COLUMBIA, Mo., March 7,
2024 /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 third quarter of fiscal 2024
ended January 31, 2024.
Third Quarter Fiscal 2024 Financial Highlights
- Quarterly net sales were $53.4
million, an increase of $2.5
million, or 5.0%, compared with net sales of $50.9 million for the comparable quarter last
year. Traditional channel net sales increased 8.1%, while
e-commerce net sales increased 1.6%. Compared with pre-COVID levels
in fiscal 2020, quarterly net sales increased 23.3%.
- Quarterly gross margin was 42.7%, a decrease of 440 basis
points, compared with quarterly gross margin of 47.1% for the
comparable quarter last year. Gross margin in the quarter was
impacted by the amortization in the second half of fiscal 2024 of
tariff and freight costs stemming from higher inventory purchases
that occurred in the first half of fiscal 2024.
- Quarterly GAAP net loss was $2.9
million, or ($0.23) per
diluted share, compared with GAAP net loss of $2.9 million, or ($0.21) per diluted share, for the comparable
quarter last year.
- Quarterly non-GAAP net income was $1.0
million, or $0.08 per diluted
share, compared with non-GAAP net income of $1.7 million, or $0.13 per diluted share, for the comparable
quarter last year. GAAP to non-GAAP adjustments for net income
exclude acquired intangible amortization, stock compensation,
technology implementation, and other costs. For a detailed
reconciliation, see the schedules that follow in this release.
- Quarterly non-GAAP Adjusted EBITDAS was $2.4 million, or 4.4% of net sales, compared with
$3.3 million, or 6.4% of net sales,
for the comparable quarter last year. For a detailed
reconciliation, see the schedules that follow in this release.
Brian Murphy, President and Chief
Executive Officer, said, "We delivered a solid quarter, and I am
very pleased with our results, which included top line sales
growth, disciplined capital management, and the unveiling of
several strategically important product introductions that we
believe expand our brands' runway for growth. I believe our
results demonstrate our ability to remain focused on our long-term
growth strategy, while successfully navigating the near-term
environment. We delivered net sales growth of 5%, a result
that came in ahead of our expectations and was supported by our
diverse portfolio, evidenced by stronger sales across a number of
brands within our Shooting Sports and Outdoor Lifestyle categories,
which both delivered net sales growth. In addition, our
e-Commerce and Traditional channels experienced net sales growth in
the quarter."
"Innovation, fueled by our Dock & Unlock™ process, is core
to our long-term strategy, and new products launched within the
past two years generated over 22% of our third quarter net
sales. During the quarter, we launched a number of internally
developed new products under our Caldwell, Grilla, and Hooyman brands. I
believe these products are the tip of the iceberg, as we execute
against a robust new product pipeline that extends well into the
next five years, providing us with a long-term competitive
advantage, and uniquely positioning our brands to expand market
share, enter new product categories and markets, and broaden
distribution."
Andrew Fulmer, Chief Financial
Officer, said, "In the third quarter of fiscal 2024, we delivered
net sales growth, we strengthened our balance sheet, we lowered
product inventories both internally and within the channel, and we
continued to return cash to stockholders through our share
repurchase program. At the same time, we finalized the lease
expansion at our Columbia,
Missouri headquarters and distribution facility, providing
us with capacity for future growth. We ended the quarter with
$15.9 million in cash and no debt,
after repurchasing approximately $1.8
million of our common stock."
"We believe our brands remain well positioned to capitalize on
positive, long-term consumer outdoor participation trends. As
a result, we continue to believe that our net sales for fiscal 2024
could exceed fiscal 2023 net sales by as much as 3.5%," concluded
Fulmer.
Conference Call and Webcast
The Company will host a
conference call and webcast today, March 7,
2024, to discuss its third quarter fiscal 2024 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) 630-1956 and ask to join the American Outdoor Brands
call. 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" and "Adjusted EBITDAS"
are presented. A reconciliation of these and other non-GAAP
financial measures are contained at the end 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) facility
consolidation costs, (iv) technology implementation, (v)
acquisition costs, (vi) stockholder cooperation agreement costs,
(vii) income tax adjustments, (viii) interest expense, (ix) income
tax expense, and (x) depreciation and amortization; 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, outdoor cooking, and
personal security and defense products, for rugged outdoor
enthusiasts. The Company produces innovative, top quality
products under its brands BOG®; BUBBA®; Caldwell®; Crimson Trace®;
Frankford Arsenal®; Grilla Grills®; Hooyman®; Imperial®;
LaserLyte®; Lockdown®; MEAT!; Old Timer®; Schrade®; Tipton®; Uncle
Henry®; ust®; and Wheeler®. 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 belief that our results demonstrate our
ability to remain focused on our long-term growth strategy, while
successfully navigating the near-term environment; our belief that
our new product pipeline helps us secure a long-term sustainable
competitive advantage, and uniquely positions our brands to expand
market share, enter new product categories and markets, and broaden
distribution; our belief that our brands remain well
positioned to capitalize on positive, long-term consumer outdoor
participation trends; and our continued belief that our net sales
for fiscal 2024 could exceed fiscal 2023 net sales by as much as
3.5%. 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,
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, 2023.
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
As
of:
|
|
January
31,2024
|
|
April 30,
2023
|
|
(Unaudited)
|
|
|
|
(In thousands, except
par value and share data)
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
15,890
|
|
$ 21,950
|
Accounts receivable,
net of allowance for credit losses of $133 on January 31, 2024
and $125 on April 30, 2023
|
27,220
|
|
26,846
|
Inventories
|
100,016
|
|
99,734
|
Prepaid expenses and
other current assets
|
6,564
|
|
7,839
|
Income tax
receivable
|
246
|
|
1,251
|
Total current
assets
|
149,936
|
|
157,620
|
Property, plant, and
equipment, net
|
11,437
|
|
9,488
|
Intangible assets,
net
|
43,273
|
|
52,021
|
Right-of-use
assets
|
33,978
|
|
24,198
|
Other assets
|
455
|
|
260
|
Total
assets
|
$ 239,079
|
|
$
243,587
|
LIABILITIES
AND EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
9,245
|
|
$ 11,544
|
Accrued
expenses
|
9,445
|
|
8,741
|
Accrued payroll and
incentives
|
3,018
|
|
1,813
|
Lease liabilities,
current
|
1,303
|
|
904
|
Total current
liabilities
|
23,011
|
|
23,002
|
Notes and loans
payable
|
—
|
|
4,623
|
Lease liabilities, net
of current portion
|
33,642
|
|
24,064
|
Other non-current
liabilities
|
—
|
|
34
|
Total
liabilities
|
56,653
|
|
51,723
|
Commitments and
contingencies
|
|
|
|
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,
14,627,170 shares
issued and 12,778,097 shares outstanding on January
31, 2024 and 14,447,149
shares issued and 13,233,151 shares outstanding on
April 30, 2023
|
15
|
|
14
|
Additional paid in
capital
|
275,841
|
|
272,784
|
Retained
deficit
|
(69,321)
|
|
(62,375)
|
Treasury stock, at cost
(1,849,073 shares on January 31, 2024 and
1,213,998 shares on April 30, 2023)
|
(24,109)
|
|
(18,559)
|
Total
equity
|
182,426
|
|
191,864
|
Total liabilities and
equity
|
$
239,079
|
|
$
243,587
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
For the Three Months
Ended January 31,
|
|
For the Nine Months
Ended January 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
(Unaudited)
|
Net
sales
|
|
$
53,425
|
|
$
50,894
|
|
$
154,801
|
|
$
149,006
|
Cost of
sales
|
|
30,591
|
|
26,905
|
|
85,758
|
|
80,015
|
Gross profit
|
|
22,834
|
|
23,989
|
|
69,043
|
|
68,991
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
1,792
|
|
1,575
|
|
5,065
|
|
4,887
|
Selling, marketing, and
distribution
|
|
14,464
|
|
14,522
|
|
41,933
|
|
40,226
|
General and
administrative
|
|
9,461
|
|
10,893
|
|
29,035
|
|
32,575
|
Total operating
expenses
|
|
25,717
|
|
26,990
|
|
76,033
|
|
77,688
|
Operating
loss
|
|
(2,883)
|
|
(3,001)
|
|
(6,990)
|
|
(8,697)
|
Other income,
net:
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
51
|
|
226
|
|
143
|
|
1,052
|
Interest expense,
net
|
|
(65)
|
|
(213)
|
|
(71)
|
|
(641)
|
Total other
(expense)/income, net
|
|
(14)
|
|
13
|
|
72
|
|
411
|
Loss from operations
before income taxes
|
|
(2,897)
|
|
(2,988)
|
|
(6,918)
|
|
(8,286)
|
Income tax
expense/(benefit)
|
|
13
|
|
(125)
|
|
28
|
|
(98)
|
Net
loss
|
|
$
(2,910)
|
|
$
(2,863)
|
|
$
(6,946)
|
|
$
(8,188)
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.23)
|
|
$
(0.21)
|
|
$
(0.53)
|
|
$
(0.61)
|
Diluted
|
|
$
(0.23)
|
|
$
(0.21)
|
|
$
(0.53)
|
|
$
(0.61)
|
Weighted average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
12,883
|
|
13,331
|
|
13,030
|
|
13,413
|
Diluted
|
|
12,883
|
|
13,331
|
|
13,030
|
|
13,413
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
For the Nine Months
Ended January 31,
|
|
2024
|
|
2023
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(6,946)
|
|
$
(8,188)
|
Adjustments to
reconcile net loss to net cash provided by
operating activities:
|
|
|
|
Depreciation and
amortization
|
11,919
|
|
12,556
|
Loss on
sale/disposition of assets
|
7
|
|
94
|
Provision for credit
losses on accounts receivable
|
9
|
|
12
|
Stock-based
compensation expense
|
3,071
|
|
2,900
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(383)
|
|
3,725
|
Inventories
|
(282)
|
|
16,171
|
Accounts
payable
|
(2,034)
|
|
(2,767)
|
Accrued
liabilities
|
1,909
|
|
1,236
|
Other
|
2,553
|
|
(1,476)
|
Net cash provided by
operating activities
|
9,823
|
|
24,263
|
Cash flows from
investing activities:
|
|
|
|
Payments to acquire
patents and software
|
(1,180)
|
|
(3,036)
|
Proceeds from sale of
property and equipment
|
131
|
|
30
|
Payments to acquire
property and equipment
|
(4,271)
|
|
(1,225)
|
Net cash used in investing
activities
|
(5,320)
|
|
(4,231)
|
Cash flows from
financing activities:
|
|
|
|
Payments on notes and
loans payable
|
(5,000)
|
|
(15,170)
|
Payments to acquire
treasury stock
|
(5,550)
|
|
(2,568)
|
Cash paid for debt
issuance costs
|
—
|
|
(88)
|
Proceeds from exercise
of options to acquire common stock,
including employee stock purchase plan
|
339
|
|
287
|
Payment of employee
withholding tax related to restricted stock units
|
(352)
|
|
(304)
|
Net cash used in financing
activities
|
(10,563)
|
|
(17,843)
|
Net (decrease)/increase
in cash and cash equivalents
|
(6,060)
|
|
2,189
|
Cash and cash
equivalents, beginning of period
|
21,950
|
|
19,521
|
Cash and cash
equivalents, end of period
|
$
15,890
|
|
$
21,710
|
Supplemental disclosure
of cash flow information
|
|
|
|
Cash paid
for:
|
|
|
|
Interest
|
$
254
|
|
$
597
|
Income taxes (net of
refunds)
|
$
(979)
|
|
$
86
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL
MEASURES
(In thousands, except per share data)
(Unaudited)
|
|
|
For the Three Months
Ended January 31,
|
|
For the Nine Months
Ended January 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
22,834
|
|
$
23,989
|
|
$ 69,043
|
|
$ 68,991
|
|
Facility consolidation
costs
|
—
|
|
198
|
|
—
|
|
356
|
|
Non-GAAP gross
profit
|
$
22,834
|
|
$
24,187
|
|
$ 69,043
|
|
$ 69,347
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
25,717
|
|
$
26,990
|
|
$ 76,033
|
|
$ 77,688
|
|
Amortization of
acquired intangible assets
|
(2,960)
|
|
(3,074)
|
|
(8,881)
|
|
(9,224)
|
|
Stock
compensation
|
(1,133)
|
|
(1,065)
|
|
(3,071)
|
|
(2,900)
|
|
Facility consolidation
costs
|
—
|
|
(350)
|
|
—
|
|
(484)
|
|
Technology
implementation
|
(106)
|
|
(543)
|
|
(465)
|
|
(1,585)
|
|
Acquisition
costs
|
—
|
|
—
|
|
—
|
|
(47)
|
|
Stockholder cooperation
agreement costs
|
—
|
|
—
|
|
—
|
|
(1,177)
|
|
Other
|
—
|
|
—
|
|
(204)
|
|
—
|
|
Non-GAAP operating
expenses
|
$
21,518
|
|
$
21,958
|
|
$ 63,412
|
|
$ 62,271
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss
|
$
(2,883)
|
|
$
(3,001)
|
|
$
(6,990)
|
|
$
(8,697)
|
|
Amortization of
acquired intangible assets
|
2,960
|
|
3,074
|
|
8,881
|
|
9,224
|
|
Stock
compensation
|
1,133
|
|
1,065
|
|
3,071
|
|
2,900
|
|
Facility consolidation
costs
|
—
|
|
548
|
|
—
|
|
840
|
|
Technology
implementation
|
106
|
|
543
|
|
465
|
|
1,585
|
|
Acquisition
costs
|
—
|
|
—
|
|
—
|
|
47
|
|
Stockholder cooperation
agreement costs
|
—
|
|
—
|
|
—
|
|
1,177
|
|
Other
|
—
|
|
—
|
|
204
|
|
—
|
|
Non-GAAP operating
income
|
$
1,316
|
|
$ 2,229
|
|
$
5,631
|
|
$
7,076
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
(2,910)
|
|
$
(2,863)
|
|
$
(6,946)
|
|
$
(8,188)
|
|
Amortization of
acquired intangible assets
|
2,960
|
|
3,074
|
|
8,881
|
|
9,224
|
|
Stock
compensation
|
1,133
|
|
1,065
|
|
3,071
|
|
2,900
|
|
Facility consolidation
costs
|
—
|
|
548
|
|
—
|
|
840
|
|
Technology
implementation
|
106
|
|
543
|
|
465
|
|
1,585
|
|
Acquisition
costs
|
—
|
|
—
|
|
—
|
|
47
|
|
Stockholder cooperation
agreement costs
|
—
|
|
—
|
|
—
|
|
1,177
|
|
Other
|
—
|
|
—
|
|
204
|
|
—
|
|
Income tax
adjustments
|
(286)
|
|
(641)
|
|
(1,284)
|
|
(1,819)
|
|
Non-GAAP net
income
|
$
1,003
|
|
$
1,726
|
|
$
4,391
|
|
$
5,766
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share
- diluted
|
$
(0.23)
|
|
$
(0.21)
|
|
$
(0.53)
|
|
$
(0.61)
|
|
Amortization of
acquired intangible assets
|
0.22
|
|
0.23
|
|
0.66
|
|
0.69
|
|
Stock
compensation
|
0.09
|
|
0.08
|
|
0.23
|
|
0.22
|
|
Facility consolidation
costs
|
—
|
|
0.04
|
|
—
|
|
0.06
|
|
Technology
implementation
|
0.01
|
|
0.04
|
|
0.03
|
|
0.12
|
|
Acquisition
costs
|
—
|
|
—
|
|
—
|
|
—
|
|
Stockholder cooperation
agreement costs
|
—
|
|
—
|
|
—
|
|
0.09
|
|
Other
|
—
|
|
—
|
|
0.02
|
|
—
|
|
Income tax
adjustments
|
(0.02)
|
|
(0.05)
|
|
(0.10)
|
|
(0.14)
|
|
Non-GAAP net income per
share - diluted
|
$
0.08
|
(a)
|
$
0.13
|
|
$
0.33
|
(a)
|
$
0.42
|
(a)
|
|
|
|
|
|
|
|
|
|
(a) Non-GAAP net income
per share does not foot due to rounding.
|
|
|
|
|
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDAS
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended January 31,
|
|
For the Nine Months
Ended January 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
GAAP net
loss
|
$
|
(2,910)
|
|
$
|
(2,863)
|
|
$
|
(6,946)
|
|
$
|
(8,188)
|
Interest
expense
|
|
65
|
|
|
213
|
|
|
71
|
|
|
641
|
Income tax
expense/(benefit)
|
|
13
|
|
|
(125)
|
|
|
28
|
|
|
(98)
|
Depreciation and
amortization
|
|
3,968
|
|
|
3,894
|
|
|
11,848
|
|
|
12,115
|
Stock
compensation
|
|
1,133
|
|
|
1,065
|
|
|
3,071
|
|
|
2,900
|
Technology
implementation
|
|
106
|
|
|
543
|
|
|
465
|
|
|
1,585
|
Acquisition
costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
Facility consolidation
costs
|
|
—
|
|
|
548
|
|
|
—
|
|
|
840
|
Stockholder cooperation
agreement costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,177
|
Other
|
|
—
|
|
|
—
|
|
|
204
|
|
|
—
|
Non-GAAP Adjusted
EBITDAS
|
$
|
2,375
|
|
$
|
3,275
|
|
$
|
8,741
|
|
$
|
11,019
|
Contact:
Liz Sharp, VP, Investor
Relations
lsharp@aob.com
(573) 303-4620
View original content to download
multimedia:https://www.prnewswire.com/news-releases/american-outdoor-brands-inc-reports-third-quarter-fiscal-2024-financial-results-302083330.html
SOURCE American Outdoor Brands, Inc.