American Outdoor Brands Corporation Reports Fourth Quarter and Full Year Fiscal 2018 Financial Results

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June 20, 2018 at 4:10 PM EDT

American Outdoor Brands Corporation Reports Fourth Quarter and Full Year Fiscal 2018 Financial Results

SPRINGFIELD, Mass., June 20, 2018 /PRNewswire/ -- American Outdoor Brands Corporation (NASDAQ Global Select: AOBC), one of the world's leading providers of firearms and quality products for the shooting, hunting, and rugged outdoor enthusiast, today announced financial results for the fourth quarter and full year fiscal 2018, ended April 30, 2018.

American Outdoor Brands Corporation logo unveiled December 13, 2016.

Please note: As of the time of this press release, the SEC EDGAR system is currently unavailable. We will post our Form 10-K on our company website at www.aob.com, under the Investor Relations tab.

Fourth Quarter Fiscal 2018 Financial Highlights

  • Quarterly net sales were $172.0 million compared with $229.2 million for the fourth quarter last year, a decrease of 24.9%.
  • Gross margin for the quarter was 33.4% compared with 39.6% for the fourth quarter last year. 
  • Quarterly GAAP net income was $7.7 million, or $0.14 per diluted share, compared with $27.7 million, or $0.50 per diluted share, for the comparable quarter last year.
  • Quarterly non-GAAP net income was $13.3 million, or $0.24 per diluted share, compared with $31.8 million, or $0.57 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments to net income exclude a number of acquisition-related costs, certain product recall related costs, and other costs. For a detailed reconciliation, see the schedules that follow in this release.
  • Quarterly non-GAAP Adjusted EBITDAS was $33.4 million, or 19.4% of net sales, compared with $60.5 million, or 26.4% of net sales, for the comparable quarter last year.

Full Year Fiscal 2018 Financial Highlights

  • Full year net sales were $606.9 million compared with $903.2 million a year ago, a decrease of 32.8%.
  • Full year gross margin was 32.3% compared with 41.5% last year. 
  • Full year GAAP net income was $20.1 million, or $0.37 per diluted share, compared with $127.9 million, or $2.25 per diluted share, last year.
  • Full year non-GAAP net income was $25.1 million, or $0.46 per diluted share, compared with $146.5 million, or $2.58 per diluted share last year.
  • Full year non-GAAP Adjusted EBITDAS was $89.5 million, or 14.7% of net sales, compared with $266.3 million, or 29.5% of net sales, last year.

James Debney, American Outdoor Brands Corporation President and Chief Executive Officer, commented, "Fiscal 2018 was a year characterized by lower consumer demand for firearms, heightened levels of inventory in the consumer channel, and a host of aggressive, industry-wide promotions. Despite those challenges, we achieved a number of accomplishments in the year that marked important progress toward our long-term strategy of being the leading provider of quality products for the shooting, hunting, and rugged outdoor enthusiast."

"In our Firearms segment, we added several exciting products to our next generation M&P 2.0 polymer pistol platform, which we launched in the prior fiscal year.  In fact, new products – which we define as products launched within the last twelve months -- accounted for 29% of our firearms revenue in fiscal 2018, and strong adoption rates across our growing M&P family helped us retain our leadership position in the consumer market for handguns.  During the year we also made significant progress on market penetration with our T/C Compass bolt action hunting rifle. Finally, we  expanded our firearms segment inorganically with the acquisition of Gemtech, a provider of high quality suppressors and accessories for the consumer, law enforcement, and military markets, providing us access to new technology for use in our future new product development processes." 

"Our Outdoor Products & Accessories segment generated 26% of our total revenue in fiscal 2018 compared to just 14% in fiscal 2017. Our Outdoor Products and Accessories Division launched nearly 150 new products across categories including: shooting, cutlery, tools, and survival products.  Our Electro-Optics Division, Crimson Trace, also launched several new products in fiscal 2018, and entered the large and diverse flashlight category.  We were very pleased with the organic growth we achieved in the Outdoor Products & Accessories segment, given that it was a challenging year for the outdoor retail industry overall.  In addition, our new product launches – namely handheld flashlights in our Outdoor Products and Accessories Division and firearm-mounted lights from our Electro-Optics Division -- demonstrate that we have the ability to enter new markets organically with multiple brands.  In fiscal 2018, we supplemented organic growth with revenue from acquisitions, including the acquisition of the popular Bubba Blade fishing tool brand.  Both of our acquisitions in fiscal 2018 helped us expand into new markets that resonate with our core firearms consumers, many of whom also have a passion for the rugged outdoors," Debney concluded.

Jeff Buchanan, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, commented, "The strength of our balance sheet in fiscal 2018 supported a number of initiatives throughout the year, including two acquisitions designed to facilitate our strategic growth, and the refinancing of our Senior Notes at their existing interest rate with an extended maturity. During the year, we had a peak balance of $125 million outstanding on our revolving line of credit, which we have since repaid in full, leaving available to us the entire capacity, which is expandable up to $500 million.   We had strong free cash flow in our fourth quarter of $61.2 million, and ended the year with net debt of $138.8 million. In fiscal 2019, we expect to continue employing the strength of our balance sheet to fuel additional growth opportunities, both organic and inorganic."

Financial Outlook

AMERICAN OUTDOOR BRANDS CORPORATION

NET SALES AND EARNINGS PER SHARE GUIDANCE, INCLUDING GAAP TO NON-GAAP RECONCILIATION
(Unaudited)

               
 

Range for the Three Months Ending July 31, 2018

 

Range for the Year Ending April 30, 2019

Net sales (in thousands)

$ 130,000

 

$ 140,000

 

$ 570,000

 

$ 600,000

               

GAAP income per share - diluted

$        0.03

 

$        0.07

 

$        0.12

 

$        0.22

Amortization of acquired intangible assets

0.10

 

0.10

 

0.39

 

0.39

Inventory step-up expense

 

 

0.01

 

0.01

Tax effect of non-GAAP adjustments

(0.03)

 

(0.03)

 

(0.12)

 

(0.12)

Non-GAAP income per share - diluted

$        0.10

 

$        0.14

 

$        0.40

 

$        0.50

Conference Call and Webcast
The company will host a conference call and webcast today, June 20, 2018, to discuss its fourth quarter and full year fiscal 2018 financial and operational results. Speakers on the conference call will include James Debney, President and Chief Executive Officer, and Jeffrey D. Buchanan, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer. The conference call may include forward-looking statements. 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) 309-6568 and reference conference identification number 5995055.  No RSVP is necessary.  The conference call audio webcast can also be accessed live and for replay on the company's website at www.aob.com, under the Investor Relations section. The company will maintain an audio replay of this conference call on its website for a period of time after the call. No other audio replay will be available.

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
In this press release, certain non-GAAP financial measures, including "non-GAAP net income," "Adjusted EBITDAS," and "free cash flow" are presented. From time-to-time, the company considers and uses these 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) transition costs, (iii) acquisition-related costs, (iv) fair value inventory step-up and backlog expense, (v) corporate rebranding expenses, (vi) debt extinguishment costs, (vii) recall related expenses, (vii) the tax effect of non-GAAP adjustments, (ix) net cash provided by operating activities, (x) net cash used in investing activities, (xi) acquisition of businesses, net of cash acquired, (xii) receipts from note receivable, (xiii) interest expense (xiv) income tax expense, (xv) depreciation and amortization, (xvi) stock-based compensation expenses, (xvii) discontinued operations, (xviii) changes in contingent consideration, and (xix) Tax Reform; 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. 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 Corporation
American Outdoor Brands Corporation (NASDAQ Global Select: AOBC) is a provider of quality products for shooting, hunting, and rugged outdoor enthusiasts in the global consumer and professional markets. The Company reports two segments: Firearms and Outdoor Products & Accessories. Firearms manufactures handgun long gun, and suppressor products sold under the Smith & Wesson®, M&P®, Thompson/Center Arms™, and Gemtech® brands as well as provides forging, machining, and precision plastic injection molding services. Outdoor Products & Accessories provides shooting, hunting, and outdoor accessories, including reloading, gunsmithing, and gun cleaning supplies, tree saws, vault accessories, knives, laser sighting systems, tactical lighting products, and survival and camping equipment. Brands in Outdoor Products & Accessories include Smith & Wesson®, M&P®, Thompson/Center Arms™, Crimson Trace®, Caldwell® Shooting Supplies, Wheeler® Engineering, Tipton® Gun Cleaning Supplies, Frankford Arsenal® Reloading Tools, Lockdown® Vault Accessories, Hooyman® Premium Tree Saws, BOG POD®, Golden Rod® Moisture Control, Schrade®, Old Timer®, Uncle Henry®, Imperial®, Bubba Blade®, and UST®.  For more information on American Outdoor Brands Corporation, call (844) 363-5386 or log on to 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.  Such forward-looking statements include, among others, our long-term strategy of being the leading provider of quality products for the shooting, hunting, and rugged outdoor enthusiast market; our belief that the launch of new additions to our M&P branded polymer pistol family helped us retain our leadership position in the consumetr market for handguns; our belief that the acquisition of Gemtech provided us access to new technology for use in future new product development processes; our belief that our strong balance sheet will provide us the opportunity in fiscal 2019 for additional growth opportunities, both organic and inorganic; and our expectations for net sales, GAAP income per diluted share, acquisition-related costs, amortization of acquired intangible assets, fair value inventory step-up and backlog expense, tax effect of non-GAAP adjustments, and non-GAAP income per diluted share for the first quarter of fiscal 2019 and for fiscal 2019.  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, economic, social, political, legislative, and regulatory factors; the potential for increased regulation of firearms and firearm-related products; actions of social activists that could have an adverse effect on our business; the impact of lawsuits; the demand for our products; the state of the U.S. economy in general and the firearm industry in particular; general economic conditions and consumer spending patterns; our competitive environment; the supply, availability and costs of raw materials and components; speculation surrounding fears of terrorism and crime; our anticipated growth and growth opportunities; our ability to increase demand for our products in various markets, including consumer, law enforcement, and military channels, domestically and internationally; our penetration rates in new and existing markets; our strategies; our ability to maintain and enhance brand recognition and reputation; risks associated with the establishment of our new 630,000 square foot national distribution center; our ability to introduce new products; the success of new products; our ability to expand our markets; our ability to integrate acquired businesses in a successful manner; the general growth of our outdoor products and accessories business; the potential for cancellation of orders from our backlog; and other risks detailed from time to time in our reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2018.

Contact: Liz Sharp, VP Investor Relations
American Outdoor Brands Corporation
(413) 747-6284
lsharp@aob.com   

 

AMERICAN OUTDOOR BRANDS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 
 

As of:

 

April 30, 2018

 

April 30, 2017

 

(In thousands, except par value and share data)

 ASSETS

 Current assets:

     

Cash and cash equivalents

$     48,860

 

$     61,549

Accounts receivable, net of allowance for doubtful accounts of $1,824 on April 30, 2018 and $598 on April 30, 2017

56,676

 

108,444

Inventories

153,353

 

131,682

Prepaid expenses and other current assets

6,893

 

6,123

Income tax receivable 

4,582

 

10,643

Total current assets

270,364

 

318,441

 Property, plant, and equipment, net

159,125

 

149,685

 Intangibles, net

112,760

 

141,317

 Goodwill

191,287

 

169,017

 Other assets

11,524

 

9,576

 

$   745,060

 

$   788,036

 LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:

     

Accounts payable

$     33,617

 

$     53,447

Accrued expenses

41,632

 

51,686

Accrued payroll and incentives

10,514

 

21,174

Accrued income taxes

513

 

726

Accrued profit sharing

1,283

 

13,004

Accrued warranty

6,823

 

4,908

Current portion of notes and loans payable

6,300

 

6,300

Total current liabilities

100,682

 

151,245

 Deferred income taxes 

12,895

 

25,620

 Notes and loans payable, net of current portion

180,304

 

210,657

 Other non-current liabilities

29,031

 

7,352

Total liabilities

322,912

 

394,874

 Commitments and contingencies 

     

 Stockholders' equity:

     

Preferred stock, $.001 par value, 20,000,000 shares authorized, no shares issued or outstanding

 

Common stock, $.001 par value, 100,000,000 shares authorized, 72,433,705 shares issued and 54,266,843 shares outstanding on April 30, 2018 and 72,017,288 shares issued and 53,850,426 shares outstanding on April 30, 2017

72

 

72

Additional paid-in capital 

253,616

 

245,865

Retained earnings

389,146

 

369,164

Accumulated other comprehensive income

1,689

 

436

Treasury stock, at cost (18,166,862 shares on April 30, 2018 and April 30, 2017)

(222,375)

 

(222,375)

Total stockholders' equity

422,148

 

393,162

 

$   745,060

 

$   788,036

 

AMERICAN OUTDOOR BRANDS CORPORATION AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF INCOME

                 
   

For the Three Months Ended

 

For the Years Ended

   

April 30, 2018 (Unaudited)

 

April 30, 2017 (Unaudited)

 

April 30, 2018

 

April 30, 2017

   

(In thousands, except per share data)

Net sales

 

$   172,026

 

$   229,186

 

$   606,850

 

$   903,188

Cost of sales

 

114,622

 

138,400

 

411,098

 

527,916

Gross profit

 

57,404

 

90,786

 

195,752

 

375,272

Operating expenses:

               

Research and development

 

2,682

 

2,623

 

11,361

 

10,238

Selling and marketing

 

12,595

 

12,565

 

55,805

 

49,338

General and administrative

 

25,712

 

30,545

 

101,538

 

115,757

Total operating expenses

 

40,989

 

45,733

 

168,704

 

175,333

Operating income

 

16,415

 

45,053

 

27,048

 

199,939

Other (expense)/income, net:

               

Other (expense)/income, net 

 

355

 

(14)

 

1,737

 

(52)

Interest expense, net

 

(2,815)

 

(2,455)

 

(11,168)

 

(8,581)

Total other (expense)/income, net

 

(2,460)

 

(2,469)

 

(9,431)

 

(8,633)

Income from operations before income taxes

 

13,955

 

42,584

 

17,617

 

191,306

Income tax (benefit)/expense

 

6,291

 

14,890

 

(2,511)

 

63,452

Net income

 

7,664

 

27,694

 

20,128

 

127,854

Net income per share:

               

Basic

 

$          0.14

 

$          0.50

 

$          0.37

 

$          2.29

Diluted

 

$          0.14

 

$          0.50

 

$          0.37

 

$          2.25

Weighted average number of common shares outstanding:

               

Basic

 

54,174

 

55,070

 

54,061

 

55,930

Diluted

 

54,658

 

55,851

 

54,834

 

56,891

 

AMERICAN OUTDOOR BRANDS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

       
 

For the Years Ended

 

April 30, 2018

 

April 30, 2017

 

(In thousands)

Cash flows from operating activities:

     

Net income

$        20,128

 

$      127,854

Adjustments to reconcile net income to net cash provided by operating activities:

     

Depreciation and amortization 

52,075

 

50,213

Loss on sale/disposition of assets

44

 

99

Provision for losses on accounts receivable

991

 

1,546

Impairment of long-lived tangible assets

282

 

Deferred income taxes

(8,775)

 

(7,840)

Change in fair value of contingent consideration

(1,640)

 

Stock-based compensation expense

7,815

 

8,590

Changes in operating assets and liabilities (net effect of acquisitions):

     

Accounts receivable

51,380

 

(40,709)

Inventories

(16,971)

 

(22,171)

Prepaid expenses and other current assets

514

 

(1,619)

Income taxes

5,848

 

(13,745)

Accounts payable

(20,998)

 

1,233

Accrued payroll and incentives

(10,754)

 

988

Accrued profit sharing

(11,721)

 

1,545

Accrued expenses

(8,424)

 

21,238

Accrued warranty

1,915

 

(1,415)

Other assets

(417)

 

1,029

Other non-current liabilities

351

 

(3,260)

Net cash provided by operating activities

61,643

 

123,576

Cash flows from investing activities:

     

Acquisition of businesses, net of cash acquired

(23,120)

 

(211,069)

Refunds on machinery and equipment

 

2,776

Receipts from note receivable

 

65

Payments to acquire patents and software

(560)

 

(638)

Proceeds from sale of property and equipment

6

 

Payments to acquire property and equipment

(18,490)

 

(34,876)

Net cash used in investing activities

(42,164)

 

(243,742)

Cash flows from financing activities:

     

Proceeds from loans and notes payable

150,000

 

100,000

Cash paid for debt issuance costs

(158)

 

(525)

Payments on capital lease obligation

(646)

 

(558)

Payments on notes and loans payable

(181,300)

 

(56,300)

Proceeds from Economic Development Incentive Program

 

101

Payments to acquire treasury stock

 

(50,052)

Proceeds from exercise of options to acquire common stock, including employee stock purchase plan

2,213

 

2,442

Payment of employee withholding tax related to restricted stock units

(2,277)

 

(4,672)

Net cash used in financing activities

(32,168)

 

(9,564)

Net decrease in cash and cash equivalents

(12,689)

 

(129,730)

Cash and cash equivalents, beginning of period

61,549

 

191,279

Cash and cash equivalents, end of period

$        48,860

 

$        61,549

Supplemental disclosure of cash flow information

     

Cash paid for:

     

Interest

$        10,624

 

$          7,650

Income taxes

1,387

 

85,216

 

RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share data)
(Unaudited)

                               
 

For the Three Months Ended 

 

For the Years Ended

 

April 30, 2018

 

April 30, 2017

 

April 30, 2018

 

April 30, 2017

 

$

 

% of Sales

 

$

 

% of Sales

 

$

 

% of Sales

 

$

 

% of Sales

GAAP gross profit

$ 57,404

 

33.4%

 

$ 90,786

 

39.6%

 

$ 195,752

 

32.3%

 

$ 375,272

 

41.5%

Diode recall

1,666

 

1.0%

 

 

 

1,666

 

0.3%

 

 

Fair value inventory step-up and backlog expense

272

 

0.2%

 

100

 

0.0%

 

500

 

0.1%

 

4,701

 

0.5%

Non-GAAP gross profit

$ 59,342

 

34.5%

 

$ 90,886

 

39.7%

 

$ 197,918

 

32.6%

 

$ 379,973

 

42.1%

                               

GAAP operating expenses

$ 40,989

 

23.8%

 

$ 45,733

 

20.0%

 

$ 168,704

 

27.8%

 

$ 175,333

 

19.4%

Amortization of acquired intangible assets

(5,548)

 

-3.2%

 

(5,704)

 

-2.5%

 

(20,812)

 

-3.4%

 

(18,434)

 

-2.0%

Transition costs

2

 

0.0%

 

(318)

 

-0.1%

 

(439)

 

-0.1%

 

(381)

 

0.0%

Discontinued operations

 

 

(18)

 

0.0%

 

 

 

(86)

 

0.0%

Corporate rebranding expenses

 

 

(13)

 

0.0%

 

 

 

(538)

 

-0.1%

Acquisition-related costs

(14)

 

0.0%

 

(59)

 

0.0%

 

(769)

 

-0.1%

 

(3,844)

 

-0.4%

Non-GAAP operating expenses

$ 35,429

 

20.6%

 

$ 39,621

 

17.3%

 

$ 146,684

 

24.2%

 

$ 152,050

 

16.8%

                               

GAAP operating income

$ 16,415

 

9.5%

 

$ 45,053

 

19.7%

 

$   27,048

 

4.5%

 

$ 199,939

 

22.1%

Fair value inventory step-up and backlog expense

272

 

0.2%

 

100

 

0.0%

 

500

 

0.1%

 

4,701

 

0.5%

Diode recall

1,666

 

1.0%

 

 

 

1,666

 

 

 

Amortization of acquired intangible assets

5,548

 

3.2%

 

5,704

 

2.5%

 

20,812

 

3.4%

 

18,434

 

2.0%

Transition costs

(2)

 

0.0%

 

318

 

0.1%

 

439

 

0.1%

 

381

 

0.0%

Discontinued operations

 

 

18

 

0.0%

 

 

 

86

 

0.0%

Corporate rebranding expenses

 

 

13

 

0.0%

 

 

 

538

 

0.1%

Acquisition-related costs

14

 

0.0%

 

59

 

0.0%

 

769

 

0.1%

 

3,844

 

0.4%

Non-GAAP operating income

$ 23,913

 

13.9%

 

$ 51,265

 

22.4%

 

$   51,234

 

8.4%

 

$ 227,923

 

25.2%

                               

GAAP net income

$   7,664

 

4.5%

 

$ 27,694

 

12.1%

 

$   20,128

 

3.3%

 

$ 127,854

 

14.2%

Fair value inventory step-up and backlog expense

272

 

0.2%

 

100

 

0.0%

 

500

 

0.1%

 

4,701

 

0.5%

Amortization of acquired intangible assets

5,548

 

3.2%

 

5,704

 

2.5%

 

20,812

 

3.4%

 

18,434

 

2.0%

Debt extinguishment costs

226

 

0.1%

 

 

 

226

 

 

 

Diode recall

1,666

 

1.0%

 

 

 

1,666

 

0.3%

 

 

Transition costs

(2)

 

0.0%

 

318

 

0.1%

 

439

 

0.1%

 

381

 

0.0%

Discontinued operations

 

 

18

 

0.0%

 

 

 

86

 

0.0%

Corporate rebranding expenses

 

 

13

 

0.0%

 

 

 

538

 

0.1%

Acquisition-related costs

14

 

0.0%

 

59

 

0.0%

 

769

 

0.1%

 

3,844

 

0.4%

Change in contingent consideration

(340)

 

-0.2%

 

 

 

(1,640)

 

-0.3%

 

 

Tax Reform

663

 

0.4%

 

 

 

(8,746)

 

-1.4%

 

 

Tax effect of non-GAAP adjustments

(2,459)

 

-1.4%

 

(2,062)

 

-0.9%

 

(9,057)

 

-1.5%

 

(9,291)

 

-1.0%

Non-GAAP net income

$ 13,252

 

7.7%

 

$ 31,844

 

13.9%

 

$   25,097

 

4.1%

 

$ 146,547

 

16.2%

                               

GAAP net income per share - diluted

$      0.14

     

$      0.50

     

$        0.37

     

$        2.25

   

Fair value inventory step-up and backlog expense

     

     

0.01

     

0.08

   

Amortization of acquired intangible assets

0.10

     

0.10

     

0.38

     

0.32

   

Debt extinguishment costs

     

     

     

   

Diode recall

0.03

     

     

0.03

     

   

Transition costs

     

0.01

     

0.01

     

0.01

   

Discontinued operations

     

     

     

   

Corporate rebranding expenses

     

     

     

0.01

   

Acquisition-related costs

     

     

0.01

     

0.07

   

Change in contingent consideration

(0.01)

     

     

(0.03)

     

   

Tax Reform

0.01

     

     

(0.16)

     

   

Tax effect of non-GAAP adjustments

(0.04)

     

(0.04)

     

(0.17)

     

(0.16)

   

Non-GAAP net income per share - diluted

$      0.24

 (a) 

 

$      0.57

     

$        0.46

 (a) 

 

$        2.58

   
                               

(a) Non-GAAP net income per share does not foot due to rounding. 

 

AMERICAN OUTDOOR BRANDS CORPORATION AND SUBSIDIARIES

RECONCILIATION OF NET OPERATING CASH FLOW TO FREE CASH FLOW
(In thousands)
(Unaudited)

               
 

For the Three Months Ended

 

For the  Years Ended

 

April 30, 2018

 

April 30, 2017

 

April 30, 2018

 

April 30, 2017

Net cash provided by operating activities

$     65,865

 

$     14,052

 

$     61,643

 

$   123,576

Net cash used in investing activities

(4,710)

 

(6,040)

 

(42,164)

 

(243,742)

Acquisition of businesses, net of cash acquired

 

 

23,120

 

211,069

Receipts from note receivable

 

(7)

 

 

(65)

Free cash flow

$     61,155

 

$        8,005

 

$     42,599

 

$     90,838

 

AMERICAN OUTDOOR BRANDS CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS

(in thousands)

(Unaudited)

                 
 

For the Three Months Ended

 

For the Years Ended

   

April 30, 2018

 

April 30, 2017

 

April 30, 2018

 

April 30, 2017

                 

GAAP net income

 

$             7,664

 

$          27,694

 

$       20,128

 

$       127,854

Interest expense

 

2,638

 

2,502

 

11,092

 

8,722

Income tax (benefit)/expense

 

6,291

 

14,890

 

(2,511)

 

63,452

Depreciation and amortization

 

12,922

 

12,680

 

50,970

 

48,142

Stock-based compensation expense

 

2,054

 

2,208

 

7,816

 

8,590

Diode Recall

 

1,666

 

 

1,666

 

Fair value inventory step-up and backlog expense

 

272

 

100

 

500

 

4,701

Debt extinguishment costs

 

226

 

 

226

 

Acquisition-related costs

 

14

 

59

 

769

 

3,844

Transition costs

 

(2)

 

318

 

439

 

381

Corporate rebranding expenses

 

 

13

 

 

538

Discontinued operations

 

 

18

 

 

86

Change in contingent consideration

 

(340)

 

 

(1,640)

 

Non-GAAP Adjusted EBITDAS

 

$          33,405

 

$          60,482

 

$       89,455

 

$       266,310

 

 

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SOURCE American Outdoor Brands Corporation