aout-8k_20201215.htm
false 0001808997 0001808997 2020-12-15 2020-12-15

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 15, 2020

 

American Outdoor Brands, Inc.

(Exact Name of Registrant as Specified in Charter)

 

 

Delaware

 

001-39366

 

84-4630928

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

 

 

 

 

1800 North Route Z

Columbia, Missouri

 

 

 

 

65202

(Address of principal executive offices)

 

 

 

(Zip Code)

(800) 338-9585

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, Par Value $0.001 per Share

 

AOUT

 

Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 §CRF 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    

 

 

 

 


 

 

Item 2.02.Results of Operations and Financial Condition.

On December 15, 2020, American Outdoor Brands, Inc. issued a press release reporting its financial results for the fiscal quarter ended October 31, 2020. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

 

Item 9.01.Financial Statements and Exhibits.

 

(d)Exhibits.

 

Exhibit

Number

 

Description

 

 

 

99.1

 

Press release from the Registrant, dated December 15, 2020, reporting American Outdoor Brand, Inc.’s financial results for the fiscal quarter ended October 31, 2020.

 

 

 

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 


 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

AMERICAN OUTDOOR BRANDS, INC.

 

 

 

 

Date: December 15, 2020

By:

 

/s/ H. Andrew Fulmer

 

 

 

 

H. Andrew Fulmer

 

 

 

 

Executive Vice President, Chief Financial

Officer, and Treasurer

 

 

 

aout-ex991_33.htm

 

Exhibit 99.1

 

1800 N Route Z

Columbia, MO  65202

(800) 338-9585

NASDAQ: AOUT

 

 

 

 

 

 

Contact:  

Liz Sharp, VP, Investor Relations

lsharp@aob.com

(573) 303-4620

American Outdoor Brands, Inc. Reports

Second Quarter Fiscal 2021 Financial Results

 

    Net Sales $79.1 Million (+65.7%)

    E-commerce Channel Sales +213.4% -- Traditional Channel Sales +34.3%

    Gross Margin 46.9% (+690 Basis Points)

    GAAP EPS $0.52 / Non-GAAP EPS $0.77

    Company Increases FY2021 Guidance

 

COLUMBIA, Mo., December 15, 2020 – American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT), an industry leading provider of products and accessories for rugged outdoor enthusiasts, today announced financial results for the second quarter fiscal 2021, ended October 31, 2020.

 

Second Quarter Fiscal 2021 Financial Highlights

 

Quarterly net sales were $79.1 million, an increase of $31.4 million, or 65.7%, over net sales of $47.7 million for the comparable quarter last year, driven primarily by increases in both e-commerce and traditional sales channels.

 

Quarterly gross margin was 46.9%, an increase of 690 basis points, over gross margin of 40.0% for the comparable quarter last year.

 

Quarterly net income was $7.3 million, or $0.52 per diluted share, compared with a net loss of $393,000, or ($0.03) per diluted share, for the comparable quarter last year.

 

Quarterly non-GAAP net income was $11.0 million, or $0.77 per diluted share, compared with a non-GAAP net income of $2.8 million, or $0.20 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for net income exclude costs related to acquired intangible amortization, stock compensation, transition costs, COVID-19 expenses, and other costs.

 

Quarterly Adjusted EBITDAS was $15.8 million, or 19.9% of net sales, compared with $5.6 million, or 11.7% of net sales, for the comparable quarter last year.

 

Brian Murphy, President and CEO, said, “We believe our second quarter financial performance demonstrates the diversity and innovation of our brand portfolio as it continues to capture the attention of consumers.  As a result, we delivered net sales growth of over 65%, and gross margins expanded by 690 basis points to nearly 47% in the quarter.  We believe we’re witnessing a new foundational level of consumer participation in outdoor activities, an interest towards personal protection, and an interest in adjacent home-based hobbies that surround outdoor adventure, creating meaningful, long-


 

 

1800 N Route Z

Columbia, MO  65202

(800) 338-9585

NASDAQ: AOUT

 

 

 

 

 

 

term growth potential for our business well beyond 2020.  Continued entry into new, larger addressable markets through our ‘Dock & UnlockTM strategy has begun to bear fruit as our brands progress along their transition from ‘Niche to KnownTM’.

 

Murphy added, “I want to especially thank our employees, who helped us deliver what we consider to be outstanding results this quarter while positioning us for a tremendous first year as a public company.  Their efforts, combined with our award-winning products, made it possible for customers to continue exploring their connection with the outdoors during these challenging times.”  

 

Andrew Fulmer, Chief Financial Officer, said, “We ended the quarter with cash of $33.9 million and no borrowings on our $50.0 million senior secured credit facility, which is expandable by an additional $15.0 million under certain conditions.  This means that we now have up to nearly $100.0 million in available capital to support organic growth and potential future acquisitions. We believe our Adjusted EBITDAS margin of nearly 20% in the quarter demonstrates that we have designed and built a highly leverageable platform, made possible by earlier investments in our e-commerce and logistics capabilities. These capabilities, combined with customer order activity, which remained strong in the quarter, have allowed us to increase our outlook for the balance of fiscal 2021.”

 

Outlook

 

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES

NET SALES, EARNINGS PER SHARE, and ADJUSTED EBITDAS GUIDANCE, INCLUDING GAAP TO NON-GAAP RECONCILIATION

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Range for the Year Ending April 30, 2021

 

 

Net sales (in thousands)

 

$

235,000

 

 

$

245,000

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income per share - diluted

 

$

0.52

 

 

$

0.70

 

 

Amortization of acquired intangible assets

 

 

1.13

 

 

 

1.13

 

 

Stock compensation

 

 

0.19

 

 

 

0.19

 

 

COVID-19 expenses

 

 

0.02

 

 

 

0.02

 

 

Transition costs

 

 

0.02

 

 

 

0.02

 

 

Related party interest income

 

 

(0.03

)

 

 

(0.03

)

 

Tax effect of non-GAAP adjustments

 

 

(0.36

)

 

 

(0.36

)

 

Non-GAAP income per share - diluted

 

$

1.49

 

 

$

1.67

 

 

Non-GAAP Adjusted EBITDAS (in thousands)

 

$

34,000

 

 

$

36,000

 

 

 

 

 

 

 

 

 

 

 

 

 

The company is not providing a quantitative reconciliation of Non-GAAP Adjusted EBITDAS guidance in reliance on the “unreasonable efforts” exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, the company does not provide a reconciliation of forward-looking Non-GAAP Adjusted EBITDAS to GAAP net income, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate projected GAAP net income may vary significantly based on actual events, including variations in acquired intangible asset amortization and stock compensation expense, the company is not able to forecast on a GAAP


 

 

1800 N Route Z

Columbia, MO  65202

(800) 338-9585

NASDAQ: AOUT

 

 

 

 

 

 

basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income at this time. The amounts of these deductions may be material and, therefore, could result in projected GAAP net income being materially less than is indicated by projected Non-GAAP Adjusted EBITDAS.

 

Conference Call and Webcast

The company will host a conference call and webcast today, December 15, 2020, to discuss its second quarter fiscal 2021 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) 570-1129 and reference conference identification number 8988032.  No RSVP is necessary.  The conference call audio webcast can also be accessed live on the company's website at www.aob.com, under the Investor Relations section.

 

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

In this press release, certain non-GAAP financial measures, including “non-GAAP net income,” “non-GAAP income per share diluted,” and “Adjusted EBITDAS” are presented. A reconciliation of these and other non-GAAP financial measures are contained at the end of this press release. A reconciliation of projected Non-GAAP income per share diluted is contained under the “Outlook” section 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) transition costs, (iv) COVID-19 expenses, (v) the tax effect of non-GAAP adjustments, (vi) income tax expense/(benefit), (vii) depreciation and amortization, and (viii) related party interest income; and (2) the non-GAAP measures that exclude such information. The company presents these non-GAAP measures because it considers them an important supplemental measure of its performance and believes the disclosure of such measures provides useful information to investors regarding the company’s financial condition and results of operations. The company’s definition of these adjusted financial measures may differ from similarly named measures used by others. The company believes these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis.  These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the company's GAAP measures.  The principal limitations of these measures are that they do not reflect the company's actual expenses and may thus have the effect of inflating its financial measures on a GAAP basis.

 

About American Outdoor Brands, Inc.

American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT) is an industry leading provider of outdoor products and accessories, including hunting, fishing, camping, shooting, and personal security and defense products, for rugged outdoor enthusiasts.  The company produces innovative, top quality products under the brands Caldwell®; Crimson Trace®; Wheeler®; Tipton®; Frankford Arsenal®; Lockdown®; BOG®; Hooyman®; Smith & Wesson® Accessories; M&P® Accessories; Thompson/Center Arms™ Accessories; Performance Center® Accessories; Schrade®; Old Timer®; Uncle Henry®; Imperial®; BUBBA®; UST®; LaserLyte®; and MEAT!.   For more information about all the brands and products from American Outdoor Brands, Inc., visit www.aob.com.

 

Safe Harbor Statement

Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe-harbor created thereby. All statements other than statements of historical facts contained or incorporated herein by reference in this press release, including statements regarding our future operating results, future financial position, business strategy, objectives, goals, plans, prospects, markets, and plans and


 

 

1800 N Route Z

Columbia, MO  65202

(800) 338-9585

NASDAQ: AOUT

 

 

 

 

 

 

objectives for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “targets,” “contemplates,” “projects,” “predicts,” “may,” “might,” “plan,” “would,” “should,” “could,” “may,” “can,” “potential,” “continue,” “objective,” or the negative of those terms, or similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. Specific forward-looking statements in this press release include our belief that our second quarter financial performance demonstrates the diversity and innovation of our brand portfolio as it continues to capture the attention of consumers; our belief that we are witnessing a new foundational level of consumer participation in outdoor activities, interest towards personal protection, as well as adjacent home-based hobbies that surround outdoor adventure, creating meaningful, long-term growth potential for our business well beyond 2020; our vision that our ‘Dock & Unlock’ strategy has begun to bear fruit as our brands progress along their transition from ‘Niche to Known’; our belief that our employees helped us deliver what we consider to be outstanding results this quarter while positioning us for a tremendous first year as a public company; and our belief that our Adjusted EBITDAS margin of nearly 20% in the quarter demonstrates that we have designed and built a highly leverageable platform, made possible by earlier investments in our e-commerce and logistics capabilities. 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, the effects of the COVID-19, pandemic, including 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; recently issued accounting standards on our consolidated financial statements; failure to realize the anticipated benefits from being a public company separate from Smith & Wesson, Inc.; our assessment of factors relating to the valuation of assets acquired and liabilities assumed in acquisitions, the timing for such evaluations, and the potential adjustment in such evaluations; assessments that we make about determining segments and reporting units; estimated amortization expense of intangible assets for future periods; the potential for impairment charges; 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; the impact of the Tax Cuts and Jobs Act, or Tax Reform, on our operating results, including our belief that Tax Reform will be a benefit to us and reduce our effective tax rate; the integration of our acquisitions, including the quality and strength of their products and their effect on our overall financial performance; the effect of political pressures on firearm laws and regulations; 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; actions of social activists that could have an adverse effect on our business; 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, or the SEC, including our Information Statement on Form 10 for the fiscal year ended April 30, 2020, filed with the SEC on July 1, 2020, as amended by Amendment No. 1 filed on July 13, 2020.

 

Forward-looking statements included in this press release speak only as of the date of this press release. The company does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date of this press release except as may be required by the federal securities laws.


 

 

1800 N Route Z

Columbia, MO  65202

(800) 338-9585

NASDAQ: AOUT

 

 

 

 

 

 

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES

 

 

CONSOLIDATED AND COMBINED BALANCE SHEETS

 

 

(Unaudited)

 

 

 

 

 

 

As of:

 

October 31, 2020

 

 

April 30, 2020

 

 

 

(In thousands, except per share data)

 

 

ASSETS

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

33,880

 

 

$

234

 

 

Accounts receivable, net of allowance for credit losses of $408 on

   October 31, 2020 and $448 on April 30, 2020

 

57,971

 

 

 

35,096

 

 

Inventories

 

73,575

 

 

 

59,999

 

 

Prepaid expenses and other current assets

 

2,842

 

 

 

3,244

 

 

Income tax receivable

 

 

 

 

104

 

 

Total current assets

 

168,268

 

 

 

98,677

 

 

Property, plant, and equipment, net

 

10,230

 

 

 

9,677

 

 

Intangibles assets, net

 

61,588

 

 

 

69,152

 

 

Goodwill

 

64,315

 

 

 

64,315

 

 

Right-of-use assets

 

26,126

 

 

 

2,772

 

 

Deferred income taxes

 

4,360

 

 

 

3,580

 

 

Other assets

 

533

 

 

 

242

 

 

 

$

335,420

 

 

$

248,415

 

 

LIABILITIES AND EQUITY

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

$

19,944

 

 

$

8,936

 

 

Accrued expenses

 

11,842

 

 

 

7,655

 

 

Accrued payroll and incentives

 

4,444

 

 

 

3,249

 

 

Accrued income taxes

 

2,442

 

 

 

 

 

Lease liabilities, current

 

1,734

 

 

 

1,324

 

 

Accrued profit sharing

 

303

 

 

 

217

 

 

Total current liabilities

 

40,709

 

 

 

21,381

 

 

Lease liabilities, net of current portion

 

25,632

 

 

 

2,830

 

 

Other non-current liabilities

 

294

 

 

 

106

 

 

Total liabilities

 

66,635

 

 

 

24,317

 

 

Equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 20,000,000 shares authorized, no

   shares issued or outstanding

 

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized, 13,991,736

   shares issued and outstanding on October 31, 2020

 

14

 

 

 

 

 

Former net parent company investment

 

 

 

 

224,098

 

 

Additional paid in capital

 

263,519

 

 

 

 

 

Retained earnings

 

5,252

 

 

 

 

 

Total equity

 

268,785

 

 

 

224,098

 

 

 

$

335,420

 

 

$

248,415

 

 

 

 

 

 

 

 

 

 

 


 

 

1800 N Route Z

Columbia, MO  65202

(800) 338-9585

NASDAQ: AOUT

 

 

 

 

 

 

 

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES

 

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME

 

(Dollars in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended October 31,

 

 

For the Six Months  Ended October 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net sales

 

$

79,098

 

 

$

47,742

 

 

$

129,565

 

 

$

80,959

 

Cost of sales

 

 

42,025

 

 

 

28,651

 

 

 

68,762

 

 

 

48,201

 

Gross profit

 

 

37,073

 

 

 

19,091

 

 

 

60,803

 

 

 

32,758

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

1,932

 

 

 

1,193

 

 

 

3,162

 

 

 

2,525

 

Selling, marketing, and distribution

 

 

15,679

 

 

 

9,964

 

 

 

26,305

 

 

 

17,682

 

General and administrative

 

 

9,898

 

 

 

9,406

 

 

 

19,308

 

 

 

21,243

 

Total operating expenses

 

 

27,509

 

 

 

20,563

 

 

 

48,775

 

 

 

41,450

 

Operating income/(loss)

 

 

9,564

 

 

 

(1,472

)

 

 

12,028

 

 

 

(8,692

)

Other (expense)/income, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income/(expense), net

 

 

127

 

 

 

(5

)

 

 

211

 

 

 

(7

)

Interest income, net

 

 

56

 

 

 

1,178

 

 

 

392

 

 

 

2,116

 

Total other (expense)/income, net

 

 

183

 

 

 

1,173

 

 

 

603

 

 

 

2,109

 

Income/(loss) from operations before income taxes

 

 

9,747

 

 

 

(299

)

 

 

12,631

 

 

 

(6,583

)

Income tax expense/(benefit)

 

 

2,408

 

 

 

94

 

 

 

3,503

 

 

 

(1,204

)

Net income/(loss)/comprehensive income/(loss)

 

$

7,339

 

 

$

(393

)

 

$

9,128

 

 

$

(5,379

)

Net income/(loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.52

 

 

$

(0.03

)

 

$

0.65

 

 

$

(0.38

)

Diluted

 

$

0.52

 

 

$

(0.03

)

 

$

0.65

 

 

$

(0.38

)

Weighted average number of common shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

13,981

 

 

 

13,975

 

 

 

13,978

 

 

 

13,975

 

Diluted

 

 

14,155

 

 

 

13,975

 

 

 

14,125

 

 

 

13,975

 

 

 


 

 

1800 N Route Z

Columbia, MO  65202

(800) 338-9585

NASDAQ: AOUT

 

 

 

 

 

 

 

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES

 

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended October 31,

 

 

2020

 

 

2019

 

 

(In thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income/(loss)

$

9,128

 

 

$

(5,379

)

Adjustments to reconcile net income/(loss) to net cash provided

   by/(used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

10,459

 

 

 

12,156

 

Provision for losses on notes and accounts receivable

 

174

 

 

 

610

 

Deferred income taxes

 

(780

)

 

 

 

Stock-based compensation expense

 

1,196

 

 

 

666

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(23,049

)

 

 

(5,925

)

Inventories

 

(13,576

)

 

 

(4,553

)

Accounts payable

 

11,716

 

 

 

(455

)

Accrued liabilities

 

8,197

 

 

 

894

 

Other

 

991

 

 

 

72

 

Net cash provided by/(used in) operating activities

 

4,456

 

 

 

(1,914

)

Cash flows from investing activities:

 

 

 

 

 

 

 

Payments to acquire patents and software

 

(378

)

 

 

(110

)

Payments to acquire property and equipment

 

(1,728

)

 

 

(784

)

Net cash used in investing activities

 

(2,106

)

 

 

(894

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Net transfers from Parent

 

31,706

 

 

 

3,072

 

Cash paid for debt issuance costs

 

(410

)

 

 

 

Net cash provided by financing activities

$

31,296

 

 

$

3,072

 

Net increase in cash and cash equivalents

 

33,646

 

 

 

264

 

Cash and cash equivalents, beginning of period

 

234

 

 

 

162

 

Cash and cash equivalents, end of period

$

33,880

 

 

$

426

 

 

 

 

 

 

 

 

 

 



 

 

1800 N Route Z

Columbia, MO  65202

(800) 338-9585

NASDAQ: AOUT

 

 

 

 

 

 

 

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(Dollars in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended October 31,

 

 

For the Six Months Ended October 31,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

$

 

 

% of

Sales

 

 

$

 

 

% of

Sales

 

 

$

 

 

% of

Sales

 

 

$

 

 

% of

Sales

 

GAAP gross profit

$

37,073

 

 

 

46.9

%

 

$

19,091

 

 

 

40.0

%

 

$

60,803

 

 

 

46.9

%

 

$

32,758

 

 

 

40.5

%

Transition costs

 

 

 

 

0.0

%

 

 

252

 

 

 

0.5

%

 

 

127

 

 

 

0.1

%

 

 

872

 

 

 

1.1

%

Non-GAAP gross profit

$

37,073

 

 

 

46.9

%

 

$

19,343

 

 

 

40.5

%

 

$

60,930

 

 

 

47.0

%

 

$

33,630

 

 

 

41.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

$

27,509

 

 

 

34.8

%

 

$

20,563

 

 

 

43.1

%

 

$

48,775

 

 

 

37.6

%

 

$

41,450

 

 

 

51.2

%

Amortization of acquired intangible assets

 

(4,011

)

 

 

-5.1

%

 

 

(4,662

)

 

 

-9.8

%

 

 

(8,023

)

 

 

-6.2

%

 

 

(9,323

)

 

 

-11.5

%

Stock compensation

 

(899

)

 

 

-1.1

%

 

 

(352

)

 

 

-0.7

%

 

 

(1,196

)

 

 

-0.9

%

 

 

(666

)

 

 

-0.8

%

Transition costs

 

(13

)

 

 

0.0

%

 

 

(269

)

 

 

-0.6

%

 

 

(137

)

 

 

-0.1

%

 

 

(735

)

 

 

-0.9

%

COVID-19 expenses

 

 

 

 

0.0

%

 

 

 

 

 

0.0

%

 

 

(223

)

 

 

-0.2

%

 

 

 

 

 

0.0

%

Other

 

(125

)

 

 

-0.2

%

 

 

 

 

 

0.0

%

 

 

(125

)

 

 

-0.1

%

 

 

 

 

 

0.0

%

Non-GAAP operating expenses

$

22,461

 

 

 

28.4

%

 

$

15,280

 

 

 

32.0

%

 

$

39,071

 

 

 

30.2

%

 

$

30,726

 

 

 

38.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating income/(loss)

$

9,564

 

 

 

12.1

%

 

$

(1,472

)

 

 

-3.1

%

 

$

12,028

 

 

 

9.3

%

 

$

(8,692

)

 

 

-10.7

%

Amortization of acquired intangible assets

 

4,011

 

 

 

5.1

%

 

 

4,662

 

 

 

9.8

%

 

 

8,023

 

 

 

6.2

%

 

 

9,323

 

 

 

11.5

%

Stock compensation

 

899

 

 

 

1.1

%

 

 

352

 

 

 

0.7

%

 

 

1,196

 

 

 

0.9

%

 

 

666

 

 

 

0.8

%

Transition costs

 

13

 

 

 

0.0

%

 

 

521

 

 

 

1.1

%

 

 

264

 

 

 

0.2

%

 

 

1,607

 

 

 

2.0

%

COVID-19 expenses

 

 

 

 

0.0

%

 

 

 

 

 

0.0

%

 

 

223

 

 

 

0.2

%

 

 

 

 

 

0.0

%

Other

 

125

 

 

 

0.2

%

 

 

 

 

 

0.0

%

 

 

125

 

 

 

0.1

%

 

 

 

 

 

0.0

%

Non-GAAP operating income/(loss)

$

14,612

 

 

 

18.5

%

 

$

4,063

 

 

 

8.5

%

 

$

21,859

 

 

 

16.9

%

 

$

2,904

 

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income/(loss)

$

7,339

 

 

 

9.3

%

 

$

(393

)

 

 

-0.8

%

 

$

9,128

 

 

 

7.0

%

 

$

(5,379

)

 

 

-6.6

%

Amortization of acquired intangible assets

 

4,011

 

 

 

5.1

%

 

 

4,662

 

 

 

9.8

%

 

 

8,023

 

 

 

6.2

%

 

 

9,323

 

 

 

11.5

%

Stock compensation

 

899

 

 

 

1.1

%

 

 

352

 

 

 

0.7

%

 

 

1,196

 

 

 

0.9

%

 

 

666

 

 

 

0.8

%

Transition costs

 

13

 

 

 

0.0

%

 

 

521

 

 

 

1.1

%

 

 

264

 

 

 

0.2

%

 

 

1,607

 

 

 

2.0

%

COVID-19 expenses

 

 

 

 

0.0

%

 

 

 

 

 

0.0

%

 

 

223

 

 

 

0.2

%

 

 

 

 

 

0.0

%

Related party interest income

 

(88

)

 

 

-0.1

%

 

 

(1,178

)

 

 

-2.5

%

 

 

(424

)

 

 

-0.3

%

 

 

(2,117

)

 

 

-2.6

%

Other

 

125

 

 

 

0.2

%

 

 

 

 

 

0.0

%

 

 

125

 

 

 

0.1

%

 

 

 

 

 

0.0

%

Tax effect of non-GAAP adjustments

 

(1,338

)

 

 

-1.7

%

 

 

(1,176

)

 

 

-2.5

%

 

 

(2,540

)

 

 

-2.0

%

 

 

 

 

 

0.0

%

Non-GAAP net income/(loss)

$

10,961

 

 

 

13.9

%

 

$

2,788

 

 

 

5.8

%

 

$

15,995

 

 

 

12.3

%

 

$

4,100

 

 

 

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income/(loss) per share - diluted

$

0.52

 

 

 

 

 

 

$

(0.03

)

 

 

 

 

 

$

0.65

 

 

 

 

 

 

$

(0.38

)

 

 

 

 

Amortization of acquired intangible assets

 

0.28

 

 

 

 

 

 

 

0.33

 

 

 

 

 

 

 

0.57

 

 

 

 

 

 

 

0.67

 

 

 

 

 

Stock compensation

 

0.06

 

 

 

 

 

 

 

0.03

 

 

 

 

 

 

 

0.08

 

 

 

 

 

 

 

0.05

 

 

 

 

 

Transition costs

 

 

 

 

 

 

 

 

0.04

 

 

 

 

 

 

 

0.02

 

 

 

 

 

 

 

0.11

 

 

 

 

 

COVID-19 expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

Related party interest income

 

(0.01

)

 

 

 

 

 

 

(0.08

)

 

 

 

 

 

 

(0.03

)

 

 

 

 

 

 

(0.15

)

 

 

 

 

Other

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

Tax effect of non-GAAP adjustments

 

(0.09

)

 

 

 

 

 

 

(0.08

)