• Net Sales
$41.6
Million
• GAAP Gross Margin
45.4%
• Traditional Channel Sales
$25.1
Million
•
E-Commerce Channel Sales $16.5 Million
•
International Net Sales $4.4
Million – Up 21%
COLUMBIA, Mo., Sept. 5,
2024 /PRNewswire/ -- American Outdoor Brands,
Inc. (NASDAQ Global Select: AOUT), an innovation company that
provides product solutions for outdoor enthusiasts, today announced
financial results for the first quarter of fiscal 2025 ended
July 31, 2024.
First Quarter Fiscal 2025 Financial Highlights
- Quarterly net sales were $41.6
million, a decrease of $1.8
million, or 4.1%, compared with net sales of $43.4 million for the prior year.
- Quarterly gross margin was 45.4%, consistent with quarterly
gross margin of 45.4% for the comparable quarter last year.
Non-GAAP gross margin for the quarter was 46.0%. For a detailed
reconciliation, see the schedules that follow in this release.
- Quarterly GAAP net loss was $2.4
million, or ($0.18) per
diluted share, compared with a GAAP net loss of $4.1 million, or ($0.31) per diluted share, last year.
- Quarterly non-GAAP net income was $748,000 or $0.06
per diluted share, compared with non-GAAP net income of
$98,000, or $0.01 per diluted share, last year. GAAP to
non-GAAP adjustments for net income exclude acquired intangible
amortization, stock compensation, non-recurring inventory reserve
costs, technology implementation, and other costs. For a detailed
reconciliation, see the schedules that follow in this release.
- Quarterly Adjusted EBITDAS was $2.0
million, or 4.8% of net sales, compared with Adjusted
EBITDAS of $1.1 million, or 2.6% of
net sales, for the prior year. For a detailed reconciliation, see
the schedules that follow in this release.
Brian Murphy, President and Chief
Executive Officer, said, "Net sales results for our first quarter
came in as expected, declining slightly year-over-year, driven by a
combination of order timing and recent trends in certain consumer
markets. Nevertheless, I am pleased with our performance,
which included a significant increase of more than 76% in Adjusted
EBITDAS, and reflected a consumer preference for innovative
products from our popular brands in Outdoor Lifestyle and Shooting
Sports categories. New product innovation and expanded
distribution opportunities are core to our long-term growth
strategy, and both played a key role in our first quarter
results.
"Innovation allows us to forge strong relationships with our
consumers and retailers and expand our access to new markets.
New products launched within the past 24 months generated 23% of
our net sales in the first quarter. In Outdoor Lifestyle, new
products from our BOG and BUBBA brands, including our Smart Fish
Scale, delivered strong hunting and fishing performance and helped
to largely offset softness in outdoor cooking and rugged
outdoor. In Shooting Sports, new products from our Caldwell
Claymore family, including our Solo and PullPup clay target
throwers, drove strength in shooting accessories and helped
partially offset weakness in personal protection products, which is
reflective of recent trends in that market. We believe our
consumer is resilient, and with innovation as our growth engine, we
are excited about the new products we have in store and the future
growth they can fuel.
"Expanded distribution opportunities are also a key part of our
growth strategy and during the quarter we remained focused on
ensuring our brands are increasingly accessible to a broad audience
of consumers, both domestically and internationally.
Accordingly, our efforts to introduce more of our brands to
Canadian consumers helped deliver international net sales of
$4.4 million, comprising over 10% of
our net sales in the quarter and representing growth of over
21%. These results demonstrate the tremendous potential the
international market holds for our brands," concluded Murphy.
Andrew Fulmer, Chief Financial
Officer, said, "Our balance sheet remained strong in the first
quarter, and we continued to demonstrate disciplined capital
management. We ended the quarter with $23.5 million in cash and no debt after
replenishing our inventories in preparation for the fall hunting
and holiday seasons, and after repurchasing our common stock during
the quarter. We remain excited about the opportunities that
lie ahead for fiscal 2025 and beyond. While we
anticipate that headwinds in the Shooting Sports category may
continue, we believe that our initiatives to drive channel
expansion, combined with our robust new product pipeline, will help
deliver growth in our Outdoor Lifestyle category. Therefore,
we continue to believe that we remain well positioned to deliver
growth in both net sales and profitability in fiscal 2025."
Conference Call and Webcast
The Company will host a
conference call and webcast today, September
5, 2024, to discuss its first quarter fiscal 2025 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
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)
technology implementation, (iv) non-recurring inventory reserve
adjustment, (v) emerging growth status transition costs, (vi)
income tax adjustments, (vii) interest (income)/expense, (viii)
income tax expense, and (xi) 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
innovation company that provides product solutions for outdoor
enthusiasts, including hunting, fishing, camping, shooting,
outdoor cooking, and personal security and personal defense
products. The Company produces innovative, high quality
products under brands including BOG®; BUBBA®;
Caldwell®; Crimson
Trace®; Frankford Arsenal®; Grilla
Grills®; Hooyman®; Imperial®;
LaserLyte®; Lockdown®; MEAT!TM;
Old Timer®; Schrade®; Tipton®; Uncle Henry®;
ust®; and Wheeler®. For more
information about all the brands and products from American Outdoor
Brands, Inc., visit 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 in the success of the core to our
long-term growth strategy of new product innovation and expanded
distribution opportunities; our belief in the resilience of
consumer and the future growth in sales of our new products; our
belief that our initiatives to drive channel expansion, combined
with our robust new product pipeline, will deliver growth in our
Outdoor Lifestyle category; and our belief that we remain well
positioned to deliver growth in both net sales and profitability in
fiscal 2025. 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, 2024.
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
As
of:
|
|
July 31,
2024
(Unaudited)
|
|
April 30,
2024
|
|
(In thousands, except
par value and share data)
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
23,463
|
|
$
29,698
|
Accounts receivable,
net of allowance for credit losses of $114 on July 31, 2024
and $133 on April 30, 2024
|
26,346
|
|
25,728
|
Inventories
|
106,710
|
|
93,315
|
Prepaid expenses and
other current assets
|
5,585
|
|
6,410
|
Income tax
receivable
|
245
|
|
223
|
Total current
assets
|
162,349
|
|
155,374
|
Property, plant, and
equipment, net
|
10,992
|
|
11,038
|
Intangible assets,
net
|
37,930
|
|
40,217
|
Right-of-use
assets
|
33,165
|
|
33,564
|
Other assets
|
354
|
|
404
|
Total
assets
|
$
244,790
|
|
$
240,597
|
LIABILITIES
AND EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
18,118
|
|
$
14,198
|
Accrued
expenses
|
11,725
|
|
9,687
|
Accrued payroll and
incentives
|
4,923
|
|
4,167
|
Lease liabilities,
current
|
1,359
|
|
1,331
|
Total current
liabilities
|
36,125
|
|
29,383
|
Lease liabilities, net
of current portion
|
32,951
|
|
33,289
|
Total
liabilities
|
69,076
|
|
62,672
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Preferred stock,
$0.001 par value, 20,000,000 shares authorized, no
shares issued or outstanding on July 31, 2024 and
April 30, 2024
|
—
|
|
—
|
Common stock,
$0.001 par value, 100,000,000 shares authorized,
14,820,494 shares
issued and 12,875,062 shares outstanding on July 31,
2024 and 14,701,280
shares issued and 12,797,865 shares outstanding on
April 30, 2024
|
15
|
|
15
|
Additional paid in
capital
|
277,642
|
|
277,107
|
Retained
deficit
|
(76,988)
|
|
(74,623)
|
Treasury stock, at cost
(1,945,432 shares on July 31, 2024 and
1,903,415 shares on April 30, 2024)
|
(24,955)
|
|
(24,574)
|
Total
equity
|
175,714
|
|
177,925
|
Total liabilities and
equity
|
$
244,790
|
|
$
240,597
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
For the Three Months
Ended July 31,
|
|
|
2024
|
|
2023
|
|
|
(Unaudited)
|
Net
sales
|
|
$
41,643
|
|
$
43,445
|
Cost of
sales
|
|
22,717
|
|
23,726
|
Gross profit
|
|
18,926
|
|
19,719
|
Operating
expenses:
|
|
|
|
|
Research and
development
|
|
1,674
|
|
1,599
|
Selling, marketing, and
distribution
|
|
11,383
|
|
12,054
|
General and
administrative
|
|
8,443
|
|
10,151
|
Total operating
expenses
|
|
21,500
|
|
23,804
|
Operating
loss
|
|
(2,574)
|
|
(4,085)
|
Other (expense)/income,
net:
|
|
|
|
|
Other income,
net
|
|
83
|
|
39
|
Interest
income/(expense), net
|
|
148
|
|
(12)
|
Total other
(expense)/income, net
|
|
231
|
|
27
|
Loss from operations
before income taxes
|
|
(2,343)
|
|
(4,058)
|
Income tax
expense
|
|
22
|
|
55
|
Net
loss
|
|
$
(2,365)
|
|
$
(4,113)
|
Net loss per
share:
|
|
|
|
|
Basic
|
|
$
(0.18)
|
|
$
(0.31)
|
Diluted
|
|
$
(0.18)
|
|
$
(0.31)
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
For the Three Months
Ended July 31,
|
|
2024
|
|
2023
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(2,365)
|
|
$
(4,113)
|
Adjustments to
reconcile net loss to net cash provided by
operating activities:
|
|
|
|
Depreciation and
amortization
|
3,309
|
|
3,969
|
Provision for credit
losses on accounts receivable
|
(19)
|
|
6
|
Stock-based
compensation expense
|
932
|
|
932
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(599)
|
|
3,268
|
Inventories
|
(13,395)
|
|
(5,179)
|
Accounts
payable
|
4,073
|
|
4,115
|
Accrued
liabilities
|
2,794
|
|
2,122
|
Other
|
918
|
|
45
|
Net cash (used
in)/provided by operating activities
|
(4,352)
|
|
5,165
|
Cash flows from
investing activities:
|
|
|
|
Payments to acquire
patents and software
|
(261)
|
|
(267)
|
Payments to acquire
property and equipment
|
(844)
|
|
(569)
|
Net cash used in investing
activities
|
(1,105)
|
|
(836)
|
Cash flows from
financing activities:
|
|
|
|
Payments on notes and
loans payable
|
—
|
|
(5,000)
|
Payments to acquire
treasury stock
|
(381)
|
|
(2,268)
|
Payment of employee
withholding tax related to restricted stock units
|
(397)
|
|
(300)
|
Net cash used in financing
activities
|
(778)
|
|
(7,568)
|
Net increase in cash
and cash equivalents
|
(6,235)
|
|
(3,239)
|
Cash and cash
equivalents, beginning of period
|
29,698
|
|
21,950
|
Cash and cash
equivalents, end of period
|
$
23,463
|
|
$
18,711
|
Supplemental disclosure
of cash flow information
|
|
|
|
Cash paid
for:
|
|
|
|
Interest
|
$
42
|
|
$
117
|
Income taxes (net of
refunds)
|
$
36
|
|
$
13
|
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 July 31,
|
|
2024
|
|
2023
|
|
|
|
|
GAAP gross
profit
|
$
18,926
|
|
$
19,719
|
Non-recurring inventory
reserve adjustment
|
221
|
|
—
|
Non-GAAP gross
profit
|
$
19,147
|
|
$
19,719
|
|
|
|
|
GAAP operating
expenses
|
$
21,500
|
|
$
23,804
|
Amortization of
acquired intangible assets
|
(2,119)
|
|
(2,960)
|
Stock
compensation
|
(932)
|
|
(932)
|
Technology
implementation
|
—
|
|
(293)
|
Emerging growth status
transition costs
|
(42)
|
|
—
|
Non-GAAP operating
expenses
|
$
18,407
|
|
$
19,619
|
|
|
|
|
GAAP operating
loss
|
$
(2,574)
|
|
$
(4,085)
|
Amortization of
acquired intangible assets
|
2,119
|
|
2,960
|
Stock
compensation
|
932
|
|
932
|
Non-recurring inventory
reserve adjustment
|
221
|
|
—
|
Technology
implementation
|
—
|
|
293
|
Emerging growth status
transition costs
|
42
|
|
—
|
Non-GAAP operating
income
|
$
740
|
|
$
100
|
|
|
|
|
GAAP net
loss
|
$
(2,365)
|
|
$
(4,113)
|
Amortization of
acquired intangible assets
|
2,119
|
|
2,960
|
Stock
compensation
|
932
|
|
932
|
Non-recurring inventory
reserve adjustment
|
221
|
|
—
|
Technology
implementation
|
—
|
|
293
|
Emerging growth status
transition costs
|
42
|
|
—
|
Income tax
adjustments
|
(201)
|
|
26
|
Non-GAAP net
income
|
$
748
|
|
$
98
|
|
|
|
|
GAAP net loss per share
- diluted
|
$
(0.18)
|
|
$
(0.31)
|
Amortization of
acquired intangible assets
|
0.16
|
|
0.22
|
Stock
compensation
|
0.07
|
|
0.07
|
Non-recurring inventory
reserve adjustment
|
0.02
|
|
—
|
Technology
implementation
|
—
|
|
0.02
|
Emerging growth status
transition costs
|
—
|
|
—
|
Income tax
adjustments
|
(0.02)
|
|
—
|
Non-GAAP net income per
share - diluted (a)
|
$
0.06
|
|
$
0.01
|
|
|
|
|
(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 July 31,
|
|
|
2024
|
|
2023
|
GAAP net
loss
|
$
|
(2,365)
|
|
$
|
(4,113)
|
Interest
(income)/expense
|
|
(148)
|
|
|
12
|
Income tax
expense
|
|
22
|
|
|
55
|
Depreciation and
amortization
|
|
3,284
|
|
|
3,945
|
Stock
compensation
|
|
932
|
|
|
932
|
Technology
implementation
|
|
—
|
|
|
293
|
Non-recurring inventory
reserve adjustment
|
|
221
|
|
|
—
|
Emerging growth status
transition costs
|
|
42
|
|
|
—
|
Non-GAAP Adjusted
EBITDAS
|
$
|
1,988
|
|
$
|
1,124
|
Contact:
Liz Sharp, VP, Investor
Relations
lsharp@aob.com
(573) 303-4620
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SOURCE American Outdoor Brands, Inc.