• Net Sales
$60.2 Million – Up 4.0%
Y/Y
• Gross Margin 48.0% – Up 230 Basis
Points
• GAAP Net Income $3.1 Million or $0.24 Per Diluted Share
•
Non-GAAP Net Income $4.9 Million or
$0.37 Per Diluted
Share
• Non-GAAP Adjusted EBITDAS of
$7.5 Million, Up
42.9%
• Traditional Channel Net Sales Up
4.3% – E-Commerce Channel
Net Sales Up 3.5%
• Domestic Channel Net
Sales Up 3.4% – International Net Sales
Up 14.8%
• Company Increases FY25 Outlook,
Establishes FY26 Net Sales Outlook
COLUMBIA, Mo., Dec. 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 second quarter of fiscal 2025 ended October 31, 2024.
Second Quarter Fiscal 2025 Financial Highlights
- Quarterly net sales were $60.2
million, an increase of $2.3
million, or 4.0%, compared with net sales of $57.9 million for the prior year.
- Quarterly gross margin was 48.0%, compared with quarterly gross
margin of 45.7% for the comparable quarter last year.
- Quarterly GAAP net income was $3.1
million, or $0.24 per diluted
share, compared with a GAAP net income of $77,000, or $0.01
per diluted share, last year.
- Quarterly non-GAAP net income was $4.9
million, or $0.37 per diluted
share, compared with non-GAAP net income of $3.3 million, or $0.25 per diluted share, last year. GAAP to
non-GAAP adjustments for net income exclude acquired intangible
amortization, stock compensation, technology implementation,
emerging growth status transition costs, and other costs. For a
detailed reconciliation, see the schedules that follow in this
release.
- Quarterly non-GAAP Adjusted EBITDAS was $7.5 million, or 12.4% of net sales, compared
with Adjusted EBITDAS of $5.2
million, or 9.0% 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, "Our second quarter results came in ahead
of our expectations, supported by growth in our Outdoor Lifestyle
category of 5.4%, and growth in our Shooting Sports category of
1.9%. All sales channels delivered year-over-year growth in
the second quarter, including our traditional and e-commerce
channels, as well as our domestic and international channels.
In addition, we delivered a significant increase of roughly 43% in
Adjusted EBITDAS. We believe these results demonstrate the
success of our long-term strategy to leverage our innovation
advantage to broaden our distribution opportunities, expand
consumer and retailer awareness of our brands, and strengthen our
margins.
"In our Outdoor Lifestyle category, products from our BOG, MEAT!
Your Maker, and Grilla brands delivered strong hunting, meat
processing, and outdoor cooking performance. In Shooting
Sports, products from our Caldwell Claymore family and our Tipton
brand drove strength in shooting accessories that more than offset
weakness in personal protection products.
"As we have indicated previously, our new product pipeline is
extremely robust, and our teams have finalized plans for a
significant number of very exciting new products from a number of
our brands that will debut publicly at SHOT Show in January
2025. We had the opportunity to preview many of these new
products with our retailers during the second quarter, a time when
many retailers are planning their assortments for the coming
year. The reception was overwhelmingly positive, and
retailers provided us with strong, early order indications;
commitments for expanded shelf space; and a degree of visibility
that extends beyond fiscal 2025."
Andrew Fulmer, Chief Financial
Officer, said, "We continued to demonstrate disciplined capital
management in the second quarter, building inventory to support
customer order strength, and repurchasing roughly $1.0 million of our common stock. We ended
the quarter with $14.2 million in
cash and no debt. We remain excited about the opportunities
that lie ahead for fiscal 2025 and beyond, particularly given our
strong second quarter results, combined with feedback from
retailers on order plans related to our upcoming new product
launches. As a result, we are increasing our guidance for
fiscal 2025, and providing our initial net sales outlook for fiscal
2026, which begins May 1,
2025."
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
NET SALES,
EARNINGS/(LOSS) PER SHARE, and ADJUSTED EBITDAS GUIDANCE
(Unaudited)
|
|
|
|
|
|
|
|
Range for the Year
Ending April 30, 2025
|
Net sales (in
thousands)
|
|
$
205,000
|
|
$
210,000
|
GAAP loss per share -
diluted
|
|
$
(0.36)
|
|
$
(0.24)
|
Non-GAAP Adjusted
EBITDAS (in thousands)
|
|
$
13,500
|
|
$
15,000
|
|
|
|
|
|
|
|
Range for the Year
Ending April 30, 2026
|
Net sales (in
thousands)
|
|
$
220,000
|
|
$
230,000
|
Conference Call and Webcast
The Company will host a
conference call and webcast today, December
5, 2024, to discuss its second 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
(844) 481-2551 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 (ix) 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!™; 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 strong positive reception
of our new products by our retailers; our belief that our retailers
will place orders that align with their early order indications,
commitments for expanded shelf space, and additional visibility
that extends beyond fiscal 2025; our belief in the feedback from
retailers on order plans related to our upcoming new product
launches; and our expectations in achieving our guidance for fiscal
2025 and initial net sales outlook for fiscal 2026. 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; the potential for increased tariffs on our products,
including tariffs that may be imposed by the new presidential
administration; 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:
|
|
October 31,
2024
(Unaudited)
|
|
April 30,
2024
|
|
(In thousands, except
par value and share data)
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
14,223
|
|
$
29,698
|
Accounts receivable,
net of allowance for credit losses of $159 on October 31, 2024
and $133 on April 30, 2024
|
43,259
|
|
25,728
|
Inventories
|
111,566
|
|
93,315
|
Prepaid expenses and
other current assets
|
4,904
|
|
6,410
|
Income tax
receivable
|
270
|
|
223
|
Total current
assets
|
174,222
|
|
155,374
|
Property, plant, and
equipment, net
|
10,963
|
|
11,038
|
Intangible assets,
net
|
35,887
|
|
40,217
|
Right-of-use
assets
|
32,748
|
|
33,564
|
Other assets
|
305
|
|
404
|
Total
assets
|
$
254,125
|
|
$
240,597
|
LIABILITIES
AND EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
25,376
|
|
$
14,198
|
Accrued
expenses
|
12,718
|
|
9,687
|
Accrued payroll and
incentives
|
3,194
|
|
4,167
|
Lease liabilities,
current
|
1,353
|
|
1,331
|
Total current
liabilities
|
42,641
|
|
29,383
|
Lease liabilities, net
of current portion
|
32,630
|
|
33,289
|
Total
liabilities
|
75,271
|
|
62,672
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Preferred stock,
$0.001 par value, 20,000,000 shares authorized, no
shares issued or outstanding on October 31, 2024 and
April 30, 2024
|
—
|
|
—
|
Common stock,
$0.001 par value, 100,000,000 shares authorized,
14,889,594 shares
issued and 12,832,682 shares outstanding on October
31, 2024 and 14,701,280
shares issued and 12,797,865 shares outstanding on
April 30, 2024
|
15
|
|
15
|
Additional paid in
capital
|
278,677
|
|
277,107
|
Retained
deficit
|
(73,877)
|
|
(74,623)
|
Treasury stock, at cost
(2,056,912 shares on October 31, 2024 and
1,903,415 shares on April 30, 2024)
|
(25,961)
|
|
(24,574)
|
Total
equity
|
178,854
|
|
177,925
|
Total liabilities and
equity
|
$
254,125
|
|
$
240,597
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended October 31,
|
|
For the Six Months
Ended October 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
(Unaudited)
|
Net
sales
|
|
$
60,232
|
|
$
57,931
|
|
$
101,875
|
|
$
101,376
|
Cost of
sales
|
|
31,325
|
|
31,441
|
|
54,043
|
|
55,167
|
Gross profit
|
|
28,907
|
|
26,490
|
|
47,832
|
|
46,209
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
1,866
|
|
1,675
|
|
3,540
|
|
3,274
|
Selling, marketing, and
distribution
|
|
14,973
|
|
15,414
|
|
26,356
|
|
27,468
|
General and
administrative
|
|
8,998
|
|
9,423
|
|
17,439
|
|
19,573
|
Total operating
expenses
|
|
25,837
|
|
26,512
|
|
47,335
|
|
50,315
|
Operating
income/(loss)
|
|
3,070
|
|
(22)
|
|
497
|
|
(4,106)
|
Other (expense)/income,
net:
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
59
|
|
53
|
|
141
|
|
92
|
Interest
income/(expense), net
|
|
(6)
|
|
6
|
|
142
|
|
(7)
|
Total other
(expense)/income, net
|
|
53
|
|
59
|
|
283
|
|
85
|
Income/(loss) from
operations before income taxes
|
|
3,123
|
|
37
|
|
780
|
|
(4,021)
|
Income tax
expense/(benefit)
|
|
12
|
|
(40)
|
|
34
|
|
15
|
Net
income/(loss)
|
|
$
3,111
|
|
$
77
|
|
$
746
|
|
$
(4,036)
|
Net income/(loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.24
|
|
$
0.01
|
|
$
0.06
|
|
$
(0.31)
|
Diluted
|
|
$
0.24
|
|
$
0.01
|
|
$
0.06
|
|
$
(0.31)
|
Weighted average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
12,860
|
|
13,010
|
|
12,862
|
|
13,100
|
Diluted
|
|
13,145
|
|
13,256
|
|
13,211
|
|
13,100
|
AMERICAN OUTDOOR
BRANDS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
For the Six Months
Ended October 31,
|
|
2024
|
|
2023
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net
income/(loss)
|
$
746
|
|
$
(4,036)
|
Adjustments to
reconcile net income/(loss) to net cash used in
operating activities:
|
|
|
|
Depreciation and
amortization
|
6,626
|
|
7,927
|
Loss on
sale/disposition of assets
|
—
|
|
7
|
Provision for credit
losses on accounts receivable
|
25
|
|
6
|
Stock-based
compensation expense
|
1,798
|
|
1,938
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(17,556)
|
|
(13,607)
|
Inventories
|
(18,251)
|
|
(9,389)
|
Accounts
payable
|
10,578
|
|
6,331
|
Accrued
liabilities
|
1,421
|
|
4,649
|
Other
|
2,326
|
|
2,959
|
Net cash used in
operating activities
|
(12,287)
|
|
(3,215)
|
Cash flows from
investing activities:
|
|
|
|
Payments to acquire
patents and software
|
(665)
|
|
(761)
|
Proceeds from sale of
property and equipment
|
—
|
|
131
|
Payments to acquire
property and equipment
|
(908)
|
|
(951)
|
Net cash used in investing
activities
|
(1,573)
|
|
(1,581)
|
Cash flows from
financing activities:
|
|
|
|
Payments on notes and
loans payable
|
—
|
|
(5,000)
|
Payments to acquire
treasury stock
|
(1,387)
|
|
(3,762)
|
Proceeds from exercise
of options to acquire common stock,
including employee stock purchase plan
|
286
|
|
339
|
Payment of employee
withholding tax related to restricted stock units
|
(514)
|
|
(352)
|
Net cash used in financing
activities
|
(1,615)
|
|
(8,775)
|
Net increase in cash
and cash equivalents
|
(15,475)
|
|
(13,571)
|
Cash and cash
equivalents, beginning of period
|
29,698
|
|
21,950
|
Cash and cash
equivalents, end of period
|
$
14,223
|
|
$
8,379
|
Supplemental disclosure
of cash flow information
|
|
|
|
Cash paid
for:
|
|
|
|
Interest
|
$
105
|
|
$
196
|
Income taxes (net of
refunds)
|
$
72
|
|
$
(936)
|
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 October 31,
|
|
For the Six Months
Ended October 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$ 28,907
|
|
$ 26,490
|
|
$ 47,832
|
|
$ 46,209
|
Non-recurring inventory
reserve adjustment
|
—
|
|
—
|
|
221
|
|
—
|
Non-GAAP gross
profit
|
$ 28,907
|
|
$
26,490
|
|
$ 48,053
|
|
$ 46,209
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
25,837
|
|
$
26,512
|
|
$ 47,335
|
|
$ 50,315
|
Amortization of
acquired intangible assets
|
(2,120)
|
|
(2,960)
|
|
(4,240)
|
|
(5,921)
|
Stock
compensation
|
(866)
|
|
(1,005)
|
|
(1,798)
|
|
(1,938)
|
Technology
implementation
|
—
|
|
(66)
|
|
—
|
|
(359)
|
Emerging growth status
transition costs
|
(121)
|
|
—
|
|
(163)
|
|
—
|
Other
|
(78)
|
|
(204)
|
|
(78)
|
|
(204)
|
Non-GAAP operating
expenses
|
$
22,652
|
|
$
22,277
|
|
$ 41,056
|
|
$ 41,893
|
|
|
|
|
|
|
|
|
GAAP operating
income/(loss)
|
$
3,070
|
|
$
(22)
|
|
$
497
|
|
$
(4,106)
|
Amortization of
acquired intangible assets
|
2,120
|
|
2,960
|
|
4,240
|
|
5,921
|
Stock
compensation
|
866
|
|
1,005
|
|
1,798
|
|
1,938
|
Non-recurring inventory
reserve adjustment
|
—
|
|
—
|
|
221
|
|
—
|
Technology
implementation
|
—
|
|
66
|
|
—
|
|
359
|
Emerging growth status
transition costs
|
121
|
|
—
|
|
163
|
|
—
|
Other
|
78
|
|
204
|
|
78
|
|
204
|
Non-GAAP operating
income
|
$
6,255
|
|
$
4,213
|
|
$
6,997
|
|
$
4,316
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss)
|
$
3,111
|
|
$
77
|
|
$
746
|
|
$
(4,036)
|
Amortization of
acquired intangible assets
|
2,120
|
|
2,960
|
|
4,240
|
|
5,921
|
Stock
compensation
|
866
|
|
1,005
|
|
1,798
|
|
1,938
|
Non-recurring inventory
reserve adjustment
|
—
|
|
—
|
|
221
|
|
—
|
Technology
implementation
|
—
|
|
66
|
|
—
|
|
359
|
Emerging growth status
transition costs
|
121
|
|
—
|
|
163
|
|
—
|
Other
|
78
|
|
204
|
|
78
|
|
204
|
Income tax
adjustments
|
(1,439)
|
|
(1,023)
|
|
(1,641)
|
|
(997)
|
Non-GAAP net
income
|
$
4,857
|
|
$
3,289
|
|
$
5,605
|
|
$
3,389
|
|
|
|
|
|
|
|
|
GAAP net income/(loss)
per share - diluted
|
$
0.24
|
|
$
0.01
|
|
$
0.06
|
|
$
(0.31)
|
Amortization of
acquired intangible assets
|
0.16
|
|
0.22
|
|
0.33
|
|
0.45
|
Stock
compensation
|
0.07
|
|
0.08
|
|
0.14
|
|
0.15
|
Non-recurring inventory
reserve adjustment
|
—
|
|
—
|
|
0.02
|
|
—
|
Technology
implementation
|
—
|
|
—
|
|
—
|
|
0.03
|
Emerging growth status
transition costs
|
0.01
|
|
—
|
|
0.01
|
|
—
|
Other
|
0.01
|
|
0.02
|
|
—
|
|
0.02
|
Income tax
adjustments
|
(0.11)
|
|
(0.08)
|
|
(0.13)
|
|
(0.08)
|
Non-GAAP net income per
share - diluted (a)
|
$
0.37
|
|
$
0.25
|
|
$
0.42
|
|
$
0.25
|
|
(a) Non-GAAP net income
per share does not foot due to rounding.
|
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 October 31,
|
|
For the Six Months
Ended October 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
GAAP net
income/(loss)
|
$
|
3,111
|
|
$
|
77
|
|
$
|
746
|
|
$
|
(4,036)
|
Interest
(income)/expense
|
|
6
|
|
|
(6)
|
|
|
(142)
|
|
|
7
|
Income tax
expense/(benefit)
|
|
12
|
|
|
(40)
|
|
|
34
|
|
|
15
|
Depreciation and
amortization
|
|
3,293
|
|
|
3,935
|
|
|
6,577
|
|
|
7,880
|
Stock
compensation
|
|
866
|
|
|
1,005
|
|
|
1,798
|
|
|
1,938
|
Technology
implementation
|
|
—
|
|
|
66
|
|
|
—
|
|
|
359
|
Non-recurring inventory
reserve adjustment
|
|
—
|
|
|
—
|
|
|
221
|
|
|
—
|
Emerging growth status
transition costs
|
|
121
|
|
|
—
|
|
|
163
|
|
|
—
|
Other
|
|
78
|
|
|
204
|
|
|
78
|
|
|
204
|
Non-GAAP Adjusted
EBITDAS
|
$
|
7,487
|
|
$
|
5,241
|
|
$
|
9,475
|
|
$
|
6,367
|
Contact:
Liz Sharp, VP, Investor
Relations
lsharp@aob.com
(573) 303-4620
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SOURCE American Outdoor Brands, Inc.