Clarus Corporation (NASDAQ: CLAR) (“Clarus” and/or the “Company”),
a global company focused on the outdoor and consumer enthusiast
markets, reported financial results for the fourth quarter and full
year ended December 31, 2022.
Fourth Quarter 2022 Financial Summary vs. Same
Year‐Ago Quarter
- Sales of $104.2 million compared to $118.2 million.
- Gross margin was 34.6% compared to 36.1%.
- Net loss of $81.6 million, or $(2.20) per diluted share,
compared to net income of $14.0 million, or $0.36 per diluted
share. Net loss in Q4 2022 included a non-cash impairment charge of
$92.3 million in the Adventure segment.
- Adjusted net income before non‐cash items of $7.3 million, or
$0.20 per diluted share, compared to $17.4 million, or $0.45 per
diluted share.
- Adjusted EBITDA of $10.6 million with an adjusted EBITDA margin
of 10.2% compared to $20.0 million with an adjusted EBITDA margin
of 16.9%.
2022 Financial Summary vs. 2021
- Sales increased 19% to $448.1 million compared to $375.8
million.
- Gross margin was 36.5% compared to 36.4%; adjusted gross margin
was 36.5% compared to 37.7%.
- Net loss was $69.8 million, or $(1.88) per diluted share,
compared to net income of $26.1 million, or $0.73 per diluted
share. Net loss in 2022 included the $92.3 million non-cash
impairment expense in the Adventure segment.
- Adjusted net income before non‐cash items was $45.3 million, or
$1.22 per diluted share, compared to $52.5 million, or $1.47 per
diluted share.
- Adjusted EBITDA of $63.0 million with an adjusted EBITDA margin
of 14.1% compared to $61.5 million with an adjusted EBITDA margin
of 16.4%.
Management Commentary
“While 2022 will go down as one of our most
challenging years given various macroeconomic headwinds, our brands
were largely resilient, and our team was nimble and tenacious,”
said Clarus President John Walbrecht. “As the challenges set-in, we
acted quickly by pivoting to areas of our business experiencing
less headwinds, and we prioritized expense reductions, free cash
flow generation, and debt reduction.
“Our areas of focus were Precision Sports, as
well markets outside of North American wholesale in our Outdoor
segment. The results were evident as we drove a record fourth
quarter in Precision Sports with sales growth of 10%. In Outdoor,
our focus on Europe and our International Global Distributor
(“IGD”) markets, which did not experience the magnitude of
headwinds as North America, allowed us to drive constant currency
growth in the fourth quarter of 15% in Europe and 7% in our IGD
market. Our continued focus on apparel and our direct-to-consumer
business in our Outdoor segment also helped to offset broader
headwinds, growing 15% and 19% in the fourth quarter,
respectively.
“The pivot towards liquidity improvement was
also apparent during the fourth quarter. Our focus on reducing
working capital and lowering costs allowed us to generate $30
million in free cash flow which we used to bring our leverage to
the bottom end of our 2x to 3x target.
“As we look ahead, we intend to execute on the
biggest opportunities within our existing segments and enhance our
operational performance. We also plan to focus on our core consumer
through community-centric investments in proven areas like our
direct-to-consumer business. We expect that these actions will
position us to return to sustainable profitable growth and, with
that, strong shareholder value creation.
“Finally, we are excited by the recent
announcement of Neil Fiske as the new President for Black Diamond.
He will be responsible for accelerating growth and lifting
profitability by capitalizing on attractive expansion opportunities
across various categories, channels, and regions.”
Fourth Quarter 2022 Financial
Results
Sales in the fourth quarter were $104.2 million
compared to $118.2 million in the same year‐ago quarter. The fourth
quarter of 2022 included revenue contribution of $3.8 million from
MAXTRAX, an acquisition completed on December 1, 2021. Organic
sales were down 11% in the quarter, MAXTRAX contributed 2% and
foreign currency exchange was a 3% headwind. Foreign currency
exchange was unfavorable to sales by $3.7 million in the fourth
quarter as the U.S. dollar continued to strengthen against the Euro
and Australia dollar.
Sales in the Outdoor segment were $55.3 million,
or $57.7 million on a constant currency basis, compared to $65.1
million in the year ago quarter. The decline primarily reflected
inventory destocking trends at the Company’s key North American
retail accounts, which were partially offset by growth in the
direct-to-consumer channels and European and IGD markets. Precision
Sport sales increased 10% to $30.3 million, reflecting continued
strong demand and market share gains. Sales in the Adventure
segment were $18.5 million, reflecting lower consumer demand given
the challenging economic environment and constraints on new vehicle
deliveries which impacted new product sales in both Australia and
North America.
Gross margin in the fourth quarter was 34.6%
compared to 36.1% in the year‐ago quarter due to higher freight
costs and unfavorable foreign currency exchange movement. Higher
freight costs negatively impacted gross margin by 90 basis points
and foreign currency exchange had a 220-basis points impact.
Selling, general and administrative expenses in
the fourth quarter were $33.1 million compared to $32.6 million in
the same year‐ago quarter. The inclusion of MAXTRAX and higher rent
and selling expenses at the Adventure segment were nearly offset by
lower non-cash stock-based compensation for performance awards at
the corporate level.
Net loss in the fourth quarter was $81.6
million, or $(2.20) per diluted share, compared to net income of
$14.0 million, or $0.36 per diluted share, in the prior year
quarter. Net loss in the fourth quarter of 2022 included a non-cash
impairment charge of $92.3 million in the Adventure segment due to
the decline in the Company’s stock price and lower sales and
profitability in the segment compared to expectations.
Adjusted net income before non-cash items in the
fourth quarter, which excludes non‐cash items and transaction
costs, was $7.3 million, or $0.20 per diluted share, compared to
$17.4 million, or $0.45 per diluted share, in the same year‐ago
quarter.
Adjusted EBITDA in the fourth quarter was $10.6
million, or an adjusted EBITDA margin of 10.2%, compared to $20.0
million, or an adjusted EBITDA margin of 16.9%, in the same
year‐ago quarter. The decline in adjusted EBITDA was driven by
lower sales in the Adventure segment, as well as unfavorable
movements in foreign currency exchange rates and higher freight
costs.
Net cash provided by operating activities for
the three months ended December 31, 2022, was $32.4 million
compared to $16.8 million in the prior year quarter. Capital
expenditures in the fourth quarter of 2022 were $2.0 million
compared to $11.8 million in the prior year quarter, which included
$9.5 million for the purchase of the existing Barnes facility in
Mona, Utah. Free cash flow for the fourth quarter of 2022 was $30.3
million compared to $5.0 million in the prior year quarter due to
collection of accounts receivable and reduced inventory levels
compared to September 30, 2022.
Liquidity at December 31, 2022 vs. December 31,
2021
- Cash and cash equivalents totaled $12.1 million compared to
$19.5 million.
- Total debt of $139.0 million compared to $141.5 million.
- The Company’s credit facility matures in April of 2027 and
bears interest at a variable rate that was approximately 6.3% at
December 31, 2022.
- Remaining access to approximately $98 million on the Company’s
revolving line of credit.
- Net debt leverage ratio of 2.0x compared to 2.0x
Full Year 2022 Financial
Results
Sales in 2022 increased 19% to a record $448.1 million compared
to $375.8 million in 2021. The increase includes revenue
contribution of $77.0 million from Rhino-Rack, an acquisition
completed on July 1, 2021, and $15.9 million from MAXTRAX, an
acquisition completed on December 1, 2021. Full year 2022 sales
increased 1% on a proforma basis compared to 2021. Full year 2022
sales were negatively impacted by unfavorable foreign currency
exchange movements of nearly $9 million compared to 2021.
From a segment perspective, Outdoor sales were up 1% to $222.3
million compared to 2021, Precision Sport sales were up 21% to
$132.9 million and Adventure sales were $92.9 million.
Gross margin in 2022 improved to 36.5% compared to 36.4% in 2021
primarily due to the fair value inventory adjustment from the 2021
acquisitions not repeating in 2022, partially offset by unfavorable
foreign currency exchange and higher freight costs. Adjusted gross
margin in 2022 was 36.5% compared to 37.7% in the year-ago
quarter.
Selling, general and administrative expenses in 2022 were $135.0
million compared to $105.5 million in 2021. The increase was
primarily due to the inclusion of Rhino-Rack and MAXTRAX for the
full year along with higher costs related to payroll and stock
compensation expense at the corporate level and higher investment
in the retail and direct to consumer initiatives in the Outdoor
segment.
Net loss in 2022 was $69.8 million, or $(1.88) per diluted
share, compared to net income of $26.1 million, or $0.73 per
diluted share, in the prior year. Net loss in 2022 included the
$92.3 million non-cash impairment charge in the Adventure segment
discussed above.
Adjusted net income before non‐cash items in
2022, which excludes non‐cash items and transaction costs, was
$45.3 million, or $1.22 per diluted share, compared to an adjusted
net income before non‐cash items of $52.5 million, or $1.47 per
diluted share, in 2021.
Adjusted EBITDA in 2022 was $63.0 million, or an
adjusted EBITDA margin of 14.1%, compared to $61.5 million, or an
adjusted EBITDA margin of 16.4%, in 2021.
Net cash provided by operating activities for the year ended
December 31, 2022, was $14.6 million compared to $(0.3) million in
2021. Capital expenditures in 2022 were $8.2 million compared to
$17.4 million in the prior year. Free cash flow for the year ended
December 31, 2022, was $6.4 million compared to $(17.7) million in
the same year‐ago period. This increase is primarily due to lower
capital expenditures in 2022.
2023 Outlook
The Company expects fiscal year 2023 sales of
approximately $420 million and adjusted EBITDA of approximately $60
million, or an adjusted EBITDA margin of 14.3%. In addition,
capital expenditures are expected to range between $7 - $8 million
and free cash flow is expected to range between $35 - $40 million
for the full year 2023. Implicit in these expectations is caution
and conservatism considering the challenging macro environment,
higher interest rates, and the uncertain impact these challenges
might have on the consumer.
Net Operating Loss (NOL)
The Company estimates that it has available net
operating loss (the “NOLs”) carryforwards for U.S. federal income
tax purposes of approximately $17.7 million, which includes $1.8
million of U.S. federal NOL carryforwards that expire on December
31, 2023. The Company’s common stock is subject to a rights
agreement dated February 7, 2008, that is intended to limit
the number of 5% or more owners and therefore reduce the risk of a
possible change of ownership under Section 382 of the Internal
Revenue Code of 1986, as amended. Any such change of ownership
under these rules would limit or eliminate the ability of the
Company to use its existing NOLs for federal income tax purposes.
However, there is no guaranty that the Company will be able fully
utilize the NOLs to offset current and future earnings or that the
rights agreement will achieve the objective of preserving the value
of the NOLs.
Conference Call
The Company will hold a conference call today at
5:00 p.m. Eastern time to discuss its fourth quarter 2022
results.
Date: Monday, February 27, 2023Time: 5:00 p.m. Eastern time
(3:00 p.m. Mountain time) Registration Link:
https://register.vevent.com/register/BIb931aede3576408897b50ed55fa33007
To access the call by phone, please register via
the live call registration link above and you will be provided with
dial-in instructions and details. If you have any difficulty
connecting with the conference call, please contact Gateway Group
at 1-949-574-3860.
The conference call will be broadcast live and available for
replay here and on the Company’s website at www.claruscorp.com.
A replay of the conference call will be available after 7:00
p.m. Eastern Time on the same day through February 27, 2024.
About Clarus Corporation
Headquartered in Salt Lake City, Utah, Clarus
Corporation is a global leading designer, developer, manufacturer
and distributor of best-in-class outdoor equipment and lifestyle
products focused on the outdoor and consumer enthusiast markets.
Our mission is to identify, acquire and grow outdoor “super fan”
brands through our unique “innovate and accelerate” strategy. We
define a “super fan” brand as a brand that creates the world’s
pre-eminent, performance-defining product that the best-in-class
user cannot live without. Each of our brands has a long history of
continuous product innovation for core and everyday users alike.
The Company’s products are principally sold globally under the
Black Diamond®, Rhino-Rack®, MAXTRAX®, Sierra®, and Barnes® brand
names through outdoor specialty and online retailers, our own
websites, distributors, and original equipment manufacturers. Our
portfolio of iconic brands is well-positioned for sustainable,
long-term growth underpinned by powerful industry trends across the
outdoor and adventure sport end markets. For additional
information, please visit www.claruscorp.com or the brand websites
at www.blackdiamondequipment.com, www.rhinorack.com,
www.maxtrax.com.au, www.sierrabullets.com, www.barnesbullets.com,
www.pieps.com, or www.goclimbon.com.
Use of Non‐GAAP Measures
The Company reports its financial results in
accordance with U.S. generally accepted accounting principles
(“GAAP”). This press release contains the non-GAAP measures: (i)
adjusted gross margin and adjusted gross profit, (ii) net income
before non-cash items and related income per diluted share, and
adjusted net income before non-cash items and related income per
diluted share, (iii) earnings before interest, taxes, other income
or expense, depreciation and amortization (“EBITDA”), EBITDA
margin, adjusted EBITDA, and adjusted EBTIDA margin, and (iv) free
cash flow (defined as net cash provided by operating activities
less capital expenditures). The Company believes that the
presentation of certain non-GAAP measures, i.e.: (i) adjusted gross
margin and adjusted gross profit, (ii) net income before non-cash
items and related income per diluted share, and adjusted net income
before non-cash items and related income per diluted share, (iii)
EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin,
and (iv) free cash flow, provide useful information for the
understanding of its ongoing operations and enables investors to
focus on period- over-period operating performance, and thereby
enhances the user's overall understanding of the Company's current
financial performance relative to past performance and provides,
along with the nearest GAAP measures, a baseline for modeling
future earnings expectations. Non-GAAP measures are reconciled to
comparable GAAP financial measures within this press release. The
Company cautions that non-GAAP measures should be considered in
addition to, but not as a substitute for, the Company's reported
GAAP results. Additionally, the Company notes that there can be no
assurance that the above referenced non-GAAP financial measures are
comparable to similarly titled financial measures used by other
publicly traded companies.
Forward-Looking Statements
Please note that in this press release we may
use words such as “appears,” “anticipates,” “believes,” “plans,”
“expects,” “intends,” “future,” and similar expressions which
constitute forward-looking statements within the meaning of the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are made based on our
expectations and beliefs concerning future events impacting the
Company and therefore involve a number of risks and uncertainties.
We caution that forward-looking statements are not guarantees and
that actual results could differ materially from those expressed or
implied in the forward-looking statements. Potential risks and
uncertainties that could cause the actual results of operations or
financial condition of the Company to differ materially from those
expressed or implied by forward-looking statements in this release,
include, but are not limited to, those risks and uncertainties more
fully described from time to time in the Company's public reports
filed with the Securities and Exchange Commission, including under
the section titled “Risk Factors” in the Company's Annual Report on
Form 10-K, and/or Quarterly Reports on Form 10-Q, as well as in the
Company’s Current Reports on Form 8-K. All forward-looking
statements included in this press release are based upon
information available to the Company as of the date of this press
release and speak only as of the date hereof. We assume no
obligation to update any forward-looking statements to reflect
events or circumstances after the date of this press release.
Company Contacts:
John C. Walbrecht PresidentTel
1‐801‐993‐1344john.walbrecht@claruscorp.com
Michael J. YatesChief Financial OfficerTel
1‐801-993‐1304mike.yates@claruscorp.com
Investor Relations
Contact:
Gateway Group, Inc. Cody SlachTel
1‐949‐574‐3860CLAR@gatewayir.com
CLARUS CORPORATION |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(In thousands, except per share amounts) |
|
|
|
|
|
December 31, 2022 |
|
December 31, 2021 |
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash |
$ |
12,061 |
|
|
$ |
19,465 |
|
Accounts receivable, net |
|
66,553 |
|
|
|
66,180 |
|
Inventories |
|
147,072 |
|
|
|
129,354 |
|
Prepaid and other current assets |
|
9,899 |
|
|
|
11,831 |
|
Income tax receivable |
|
3,034 |
|
|
|
116 |
|
Total current assets |
|
238,619 |
|
|
|
226,946 |
|
|
|
|
|
|
|
Property and equipment, net |
|
43,010 |
|
|
|
42,826 |
|
Other intangible assets, net |
|
55,255 |
|
|
|
73,683 |
|
Indefinite-lived intangible assets |
|
82,901 |
|
|
|
128,271 |
|
Goodwill |
|
62,993 |
|
|
|
118,090 |
|
Deferred income taxes |
|
17,912 |
|
|
|
22,433 |
|
Other long-term assets |
|
17,455 |
|
|
|
19,578 |
|
Total assets |
$ |
518,145 |
|
|
$ |
631,827 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
27,052 |
|
|
$ |
31,488 |
|
Accrued liabilities |
|
25,170 |
|
|
|
27,473 |
|
Income tax payable |
|
421 |
|
|
|
4,437 |
|
Current portion of long-term debt |
|
11,952 |
|
|
|
9,585 |
|
Total current liabilities |
|
64,595 |
|
|
|
72,983 |
|
|
|
|
|
|
|
Long-term debt, net |
|
127,082 |
|
|
|
131,948 |
|
Deferred income taxes |
|
18,506 |
|
|
|
35,280 |
|
Other long-term liabilities |
|
15,854 |
|
|
|
21,448 |
|
Total liabilities |
|
226,037 |
|
|
|
261,659 |
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
Preferred stock, $0.0001 par value per share; 5,000 |
|
|
|
|
|
shares authorized; none issued |
|
- |
|
|
|
- |
|
Common stock, $0.0001 par value per share; 100,000 shares
authorized; |
|
|
|
|
|
41,637 and 41,105 issued and 37,048 and 37,094 outstanding,
respectively |
|
4 |
|
|
|
4 |
|
Additional paid in capital |
|
679,339 |
|
|
|
662,996 |
|
Accumulated deficit |
|
(336,843 |
) |
|
|
(263,342 |
) |
Treasury stock, at cost |
|
(32,707 |
) |
|
|
(24,440 |
) |
Accumulated other comprehensive loss |
|
(17,685 |
) |
|
|
(5,050 |
) |
Total stockholders' equity |
|
292,108 |
|
|
|
370,168 |
|
Total liabilities and stockholders' equity |
$ |
518,145 |
|
|
$ |
631,827 |
|
|
|
|
|
|
|
CLARUS CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited) |
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
|
Sales |
|
|
|
|
|
Domestic sales |
$ |
56,224 |
|
|
$ |
65,170 |
|
International sales |
|
47,958 |
|
|
|
53,013 |
|
Total sales |
|
104,182 |
|
|
|
118,183 |
|
|
|
|
|
|
|
Cost of goods sold |
|
68,124 |
|
|
|
75,501 |
|
Gross profit |
|
36,058 |
|
|
|
42,682 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Selling, general and administrative |
|
33,080 |
|
|
|
32,591 |
|
Transaction costs |
|
87 |
|
|
|
2,571 |
|
Contingent consideration benefit |
|
- |
|
|
|
(1,605 |
) |
Impairment of goodwill and indefinite-lived intangible assets |
|
92,311 |
|
|
|
- |
|
|
|
|
|
|
|
Total operating expenses |
|
125,478 |
|
|
|
33,557 |
|
|
|
|
|
|
|
Operating (loss) income |
|
(89,420 |
) |
|
|
9,125 |
|
|
|
|
|
|
|
Other (expense) income |
|
|
|
|
|
Interest expense, net |
|
(2,835 |
) |
|
|
(1,013 |
) |
Other, net |
|
806 |
|
|
|
(119 |
) |
|
|
|
|
|
|
Total other expense, net |
|
(2,029 |
) |
|
|
(1,132 |
) |
|
|
|
|
|
|
(Loss) income before income tax |
|
(91,449 |
) |
|
|
7,993 |
|
Income tax benefit |
|
(9,845 |
) |
|
|
(6,053 |
) |
Net (loss) income |
$ |
(81,604 |
) |
|
$ |
14,046 |
|
|
|
|
|
|
|
Net (loss) income per share: |
|
|
|
|
|
Basic |
$ |
(2.20 |
) |
|
$ |
0.39 |
|
Diluted |
|
(2.20 |
) |
|
|
0.36 |
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
Basic |
|
37,039 |
|
|
|
36,037 |
|
Diluted |
|
37,039 |
|
|
|
38,980 |
|
|
|
|
|
|
|
CLARUS CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited) |
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
Twelve Months Ended |
|
December 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
|
Sales |
|
|
|
|
|
Domestic sales |
$ |
238,144 |
|
|
$ |
225,878 |
|
International sales |
|
209,962 |
|
|
|
149,916 |
|
Total sales |
|
448,106 |
|
|
|
375,794 |
|
|
|
|
|
|
|
Cost of goods sold |
|
284,690 |
|
|
|
238,862 |
|
Gross profit |
|
163,416 |
|
|
|
136,932 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Selling, general and administrative |
|
135,039 |
|
|
|
105,494 |
|
Transaction costs |
|
2,967 |
|
|
|
11,843 |
|
Contingent consideration expense (benefit) |
|
493 |
|
|
|
(1,605 |
) |
Impairment of goodwill and indefinite-lived intangible assets |
|
92,311 |
|
|
|
- |
|
|
|
|
|
|
|
Total operating expenses |
|
230,810 |
|
|
|
115,732 |
|
|
|
|
|
|
|
Operating (loss) income |
|
(67,394 |
) |
|
|
21,200 |
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
Interest expense, net |
|
(7,895 |
) |
|
|
(2,939 |
) |
Other, net |
|
(1,842 |
) |
|
|
(4,382 |
) |
|
|
|
|
|
|
Total other expense, net |
|
(9,737 |
) |
|
|
(7,321 |
) |
|
|
|
|
|
|
(Loss) income before income tax |
|
(77,131 |
) |
|
|
13,879 |
|
Income tax benefit |
|
(7,351 |
) |
|
|
(12,214 |
) |
Net (loss) income |
$ |
(69,780 |
) |
|
$ |
26,093 |
|
|
|
|
|
|
|
Net (loss) income per share: |
|
|
|
|
|
Basic |
$ |
(1.88 |
) |
|
$ |
0.79 |
|
Diluted |
|
(1.88 |
) |
|
|
0.73 |
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
Basic |
|
37,201 |
|
|
|
33,136 |
|
Diluted |
|
37,201 |
|
|
|
35,686 |
|
|
|
|
|
|
|
CLARUS CORPORATION |
RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS
PROFIT |
AND ADJUSTED GROSS MARGIN |
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED |
|
|
|
|
|
|
December 31, 2022 |
|
|
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
Gross profit as reported |
|
$ |
36,058 |
|
|
Gross profit as reported |
|
|
42,682 |
|
Plus impact of inventory fair value adjustment |
|
|
- |
|
|
Plus impact of inventory fair value adjustment |
|
|
1,309 |
|
Adjusted gross profit |
|
$ |
36,058 |
|
|
Adjusted gross profit |
|
$ |
43,991 |
|
|
|
|
|
|
|
|
|
|
Gross margin as reported |
|
|
34.6% |
|
|
Gross margin as reported |
|
|
36.1% |
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin |
|
|
34.6% |
|
|
Adjusted gross margin |
|
|
37.2% |
|
|
|
|
|
|
|
|
|
|
TWELVE MONTHS ENDED |
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
|
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
Gross profit as reported |
|
$ |
163,416 |
|
|
Gross profit as reported |
|
|
136,932 |
|
Plus impact of inventory fair value adjustment |
|
|
269 |
|
|
Plus impact of inventory fair value adjustment |
|
|
4,769 |
|
Adjusted gross profit |
|
$ |
163,685 |
|
|
Adjusted gross profit |
|
$ |
141,701 |
|
|
|
|
|
|
|
|
|
|
Gross margin as reported |
|
|
36.5% |
|
|
Gross margin as reported |
|
|
36.4% |
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin |
|
|
36.5% |
|
|
Adjusted gross margin |
|
|
37.7% |
|
|
|
|
|
|
|
|
|
|
CLARUS CORPORATION |
RECONCILIATION FROM NET (LOSS) INCOME TO NET INCOME BEFORE
NON-CASH ITEMS, ADJUSTED |
NET INCOME BEFORE NON-CASH ITEMS AND RELATED EARNINGS PER
DILUTED SHARE |
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, 2022 |
|
Per DilutedShare |
|
December 31, 2021 |
|
Per DilutedShare |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(81,604 |
) |
|
$ |
(2.20 |
) |
|
$ |
14,046 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
3,586 |
|
|
|
0.10 |
|
|
|
3,863 |
|
|
|
0.10 |
|
Depreciation |
|
1,826 |
|
|
|
0.05 |
|
|
|
1,649 |
|
|
|
0.04 |
|
Amortization of debt issuance costs |
|
231 |
|
|
|
0.01 |
|
|
|
170 |
|
|
|
0.00 |
|
Stock-based compensation |
|
2,219 |
|
|
|
0.06 |
|
|
|
3,063 |
|
|
|
0.08 |
|
Inventory fair value of purchase accounting |
|
- |
|
|
|
- |
|
|
|
1,309 |
|
|
|
0.03 |
|
Impairment of goodwill and indefinite-lived intangible assets |
|
92,311 |
|
|
|
2.49 |
|
|
|
- |
|
|
|
- |
|
Income tax benefit |
|
(9,845 |
) |
|
|
(0.27 |
) |
|
|
(6,053 |
) |
|
|
(0.16 |
) |
Cash paid for income taxes |
|
(1,484 |
) |
|
|
(0.04 |
) |
|
|
(1,631 |
) |
|
|
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income before non-cash items |
$ |
7,240 |
|
|
$ |
0.20 |
|
|
$ |
16,416 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction costs |
|
87 |
|
|
|
0.00 |
|
|
|
2,571 |
|
|
|
0.07 |
|
Contingent consideration (benefit) |
|
- |
|
|
|
- |
|
|
|
(1,605 |
) |
|
|
(0.04 |
) |
State cash taxes on adjustments |
|
(2 |
) |
|
|
(0.00 |
) |
|
|
(21 |
) |
|
|
(0.00 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income before non-cash items |
$ |
7,325 |
|
|
$ |
0.20 |
|
|
$ |
17,361 |
|
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CLARUS CORPORATION |
RECONCILIATION FROM NET (LOSS) INCOME TO NET INCOME BEFORE
NON-CASH ITEMS, ADJUSTED |
NET INCOME BEFORE NON-CASH ITEMS AND RELATED EARNINGS PER
DILUTED SHARE |
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
December 31, 2022 |
|
Per DilutedShare |
|
December 31, 2021 |
|
Per DilutedShare |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(69,780 |
) |
|
$ |
(1.88 |
) |
|
$ |
26,093 |
|
|
$ |
0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
15,326 |
|
|
|
0.41 |
|
|
|
9,834 |
|
|
|
0.28 |
|
Depreciation |
|
7,626 |
|
|
|
0.20 |
|
|
|
5,985 |
|
|
|
0.17 |
|
Amortization of debt issuance costs |
|
824 |
|
|
|
0.02 |
|
|
|
505 |
|
|
|
0.01 |
|
Stock-based compensation |
|
11,361 |
|
|
|
0.31 |
|
|
|
9,477 |
|
|
|
0.27 |
|
Inventory fair value of purchase accounting |
|
269 |
|
|
|
0.01 |
|
|
|
4,769 |
|
|
|
0.13 |
|
Impairment of goodwill and indefinite-lived intangible assets |
|
92,311 |
|
|
|
2.48 |
|
|
|
- |
|
|
|
- |
|
Income tax benefit |
|
(7,351 |
) |
|
|
(0.20 |
) |
|
|
(12,214 |
) |
|
|
(0.34 |
) |
Cash paid for income taxes |
|
(8,639 |
) |
|
|
(0.23 |
) |
|
|
(1,984 |
) |
|
|
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income before non-cash items |
$ |
41,947 |
|
|
$ |
1.13 |
|
|
$ |
42,465 |
|
|
$ |
1.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction costs |
|
2,967 |
|
|
|
0.08 |
|
|
|
11,843 |
|
|
|
0.33 |
|
Contingent consideration (benefit) |
|
493 |
|
|
|
0.01 |
|
|
|
(1,605 |
) |
|
|
(0.04 |
) |
State cash taxes on adjustments |
|
(63 |
) |
|
|
(0.00 |
) |
|
|
(225 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income before non-cash items |
$ |
45,344 |
|
|
$ |
1.22 |
|
|
$ |
52,478 |
|
|
$ |
1.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CLARUS CORPORATION |
RECONCILIATION FROM NET (LOSS) INCOME TO EARNINGS BEFORE
INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), AND
ADJUSTED EBITDA |
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
Three Months Ended |
|
December 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(81,604 |
) |
|
$ |
14,046 |
|
|
|
|
|
|
|
Income tax benefit |
|
(9,845 |
) |
|
|
(6,053 |
) |
Other, net |
|
(806 |
) |
|
|
119 |
|
Interest expense, net |
|
2,835 |
|
|
|
1,013 |
|
|
|
|
|
|
|
Operating (loss) income |
|
(89,420 |
) |
|
|
9,125 |
|
|
|
|
|
|
|
Depreciation |
|
1,826 |
|
|
|
1,649 |
|
Amortization of intangibles |
|
3,586 |
|
|
|
3,863 |
|
|
|
|
|
|
|
EBITDA |
|
(84,008 |
) |
|
|
14,637 |
|
|
|
|
|
|
|
Transaction costs |
|
87 |
|
|
|
2,571 |
|
Contingent consideration benefit |
|
- |
|
|
|
(1,605 |
) |
Inventory fair value of purchase accounting |
|
- |
|
|
|
1,309 |
|
Impairment of goodwill and indefinite-lived intangible assets |
|
92,311 |
|
|
|
- |
|
Stock-based compensation |
|
2,219 |
|
|
|
3,063 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
10,609 |
|
|
$ |
19,975 |
|
|
|
|
|
|
|
CLARUS CORPORATION |
RECONCILIATION FROM NET (LOSS) INCOME TO EARNINGS BEFORE
INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), AND
ADJUSTED EBITDA |
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
Twelve Months Ended |
|
December 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(69,780 |
) |
|
$ |
26,093 |
|
|
|
|
|
|
|
Income tax benefit |
|
(7,351 |
) |
|
|
(12,214 |
) |
Other, net |
|
1,842 |
|
|
|
4,382 |
|
Interest expense, net |
|
7,895 |
|
|
|
2,939 |
|
|
|
|
|
|
|
Operating (loss) income |
|
(67,394 |
) |
|
|
21,200 |
|
|
|
|
|
|
|
Depreciation |
|
7,626 |
|
|
|
5,985 |
|
Amortization of intangibles |
|
15,326 |
|
|
|
9,834 |
|
|
|
|
|
|
|
EBITDA |
|
(44,442 |
) |
|
|
37,019 |
|
|
|
|
|
|
|
Transaction costs |
|
2,967 |
|
|
|
11,843 |
|
Contingent consideration expense (benefit) |
|
493 |
|
|
|
(1,605 |
) |
Inventory fair value of purchase accounting |
|
269 |
|
|
|
4,769 |
|
Impairment of goodwill and indefinite-lived intangible assets |
|
92,311 |
|
|
|
- |
|
Stock-based compensation |
|
11,361 |
|
|
|
9,477 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
62,959 |
|
|
$ |
61,503 |
|
|
|
|
|
|
|
Clarus (NASDAQ:CLAR)
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