aout-8k_20210715.htm
false 0001808997 0001808997 2021-07-15 2021-07-15

 

 

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): July 15, 2021

 

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, Suite A

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 July 15, 2021, American Outdoor Brands, Inc. issued a press release reporting its financial results for the fiscal year ended April 30, 2021. 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 July 15, 2021, reporting American Outdoor Brand, Inc.’s financial results for the fiscal year ended April 30, 2021.

 

 

 

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: July 15, 2021

By:

 

/s/ H. Andrew Fulmer

 

 

 

 

H. Andrew Fulmer

 

 

 

 

Executive Vice President, Chief Financial

Officer, and Treasurer

 

 

 

aout-ex991_6.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

Fourth Quarter and Full Year Fiscal 2021 Financial Results

 

    Full Year Net Sales $276.7 Million (+65.3%)

    Full Year E-commerce Channel Sales +100.2% -- Traditional Channel Sales +48.6%

    Full Year Gross Margin 45.8% (+340 Basis Points)

    Full Year GAAP EPS $1.29 / Non-GAAP EPS $2.32

 

COLUMBIA, Mo., July 15, 2021 – 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 fourth quarter and full year fiscal 2021 ended April 30, 2021.

 

Fourth Quarter Fiscal 2021 Financial Highlights

 

Quarterly net sales were $64.5 million, an increase of $21.4 million, or 49.6%, over net sales of $43.1 million for the comparable quarter last year, reflecting increases in both e-commerce and traditional sales channels.

 

Quarterly gross margin was 44.4%, even with gross margin of 44.4% for the comparable quarter last year.  

 

Quarterly net income was $1.2 million, or $0.09 per diluted share, compared with a net loss $90.7 million, or ($6.49) per diluted share, for the comparable quarter last year.  In the fourth quarter of last year, the company expected to be negatively impacted by several factors related to the COVID-19 pandemic, which constituted a triggering event that required the company to take a $98.9 million non-cash goodwill impairment charge.

 

 

Quarterly non-GAAP net income was $4.9 million, or $0.34 per diluted share, compared with a non-GAAP net loss of $123,000, or ($0.01) per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for net income exclude a non-cash impairment of goodwill in the prior year, acquired intangible amortization, stock compensation, transition costs, COVID-19 expenses, and other costs. For a detailed reconciliation, see the schedules that follow in this release.

 

 

Quarterly Adjusted EBITDAS was $7.0 million, or 10.8% of net sales, compared with $3.1 million, or 7.3% of net sales, for the comparable quarter last year.  For a detailed reconciliation, see the schedules that follow in this release.

 

Full Year Fiscal 2021 Financial Highlights

 

Full year net sales were $276.7 million, an increase of $109.3 million, or 65.3%, over net sales of $167.4 million for the prior year, reflecting increases in both e-commerce and traditional sales channels.


1800 N Route Z

Columbia, MO 65202

(800) 338-9585

NASDAQ: AOUT

 

 

Full year gross margin was 45.8%, an increase of 340 basis points, over gross margin of 42.4% for the comparable quarter last year.

 

 

Full year net income was $18.4 million, or $1.29 per diluted share, compared with a net loss $96.2 million, or ($6.88) per diluted share, last year.  Last year, the company recorded a $98.9 million non-cash goodwill impairment charge.

 

Full year non-GAAP net income was $33.0 million, or $2.32 per diluted share, compared with a non-GAAP net income of $3.2 million, or $0.23 per diluted share, for the prior year. GAAP to non-GAAP adjustments for net income exclude a non-cash impairment of goodwill in the prior year, acquired intangible amortization, stock compensation, transition costs, COVID-19 expenses, and other costs.  For a detailed reconciliation, see the schedules that follow in this release.

 

Full year Adjusted EBITDAS was $47.3 million, or 17.1% of net sales, compared with $12.3 million, or 7.3% of net sales, for the prior year.  For a detailed reconciliation, see the schedules that follow in this release.

 

Brian Murphy, President and CEO, said, “Fiscal 2021 was a historic year for our company. With the completion of our spin-off in August 2020, we became an independent public company dedicated to building authentic, lifestyle brands that help consumers make the most out of the moments that matter.  We believe that sharing our passion for creating brands and products that allow people to pursue their outdoor adventures was especially timely, as consumers increasingly looked to outdoor activities, such as fishing, hunting, shooting sports, camping, and hiking, in response to travel restrictions and social distancing, and as they continued to demonstrate an increased interest in self-protection.  Some people turned to these activities for the very first time, and others for the first time in a long time. Regardless, we are pleased and proud that so many of them took our brands along on their journey.  We are also extremely proud of our employees, whose loyalty, hard work, and dedication helped us to establish our new company, service our customers with continuity, and deliver outstanding results, despite a year of unprecedented uncertainty driven by the pandemic.  We thank you.”

 

Net sales grew more than 65% and represented products from across the company’s four brand lanes – Marksman, Defender, Harvester, and Adventurer. “While our brands clearly aligned well with strong consumer participation trends in personal protection and the outdoor lifestyle activities we serve, we also believe that our ‘Dock & UnlockTM’ strategy, designed to provide entry into new and larger addressable markets, helped drive our strong results.  We believe fiscal 2021 ushered in a new era for the outdoor industry, one that welcomed many new participants who, we believe, will continue to explore the outdoors in the future.   We are poised to build upon our foundation as we set our sights on future growth and take our brands from ‘Niche to KnownTM’,” concluded Murphy.

 

Andrew Fulmer, Chief Financial Officer, said, “Our financial results for fiscal 2021, which represents our first year as an independent public company, are a success by any measure.  We have established a business structure that not only drove product innovation and record net sales, but one that allowed us to generate strong profits as we continued to build a balance sheet capable of supporting our future growth initiatives.  Our Adjusted EBITDAS of $47.3 million for fiscal 2021, represented growth of nearly 300% versus the prior year, and reflected the benefit of investments we initiated in our e-commerce and logistics capabilities long before our spin-off.  We generated free cash flow of over $29.0 million in fiscal 2021, and ended the year with cash of $60.8 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 over $125.0 million in available capital to support our organic growth and potential future acquisitions.   Lastly, we are providing our guidance for fiscal 2022, which began May 1, 2021.”

 


1800 N Route Z

Columbia, MO 65202

(800) 338-9585

NASDAQ: AOUT

 

 

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, 2022

 

Net sales (in thousands)

 

$

280,000

 

 

$

295,000

 

 

 

 

 

 

 

 

 

 

GAAP income per share - diluted

 

$

1.00

 

 

$

1.24

 

Amortization of acquired intangible assets

 

 

0.96

 

 

 

0.96

 

Stock compensation

 

 

0.21

 

 

 

0.21

 

Transition costs

 

 

0.19

 

 

 

0.19

 

Tax effect of non-GAAP adjustments

 

 

(0.34

)

 

 

(0.34

)

Non-GAAP income per share - diluted

 

$

2.02

 

 

$

2.26

 

 

 

 

 

 

 

 

 

 

Non-GAAP Adjusted EBITDAS (in thousands)

 

$

42,000

 

 

$

47,000

 

 

 

 

 

 

 

 

 

 

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 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.  

 

We define free cash flow as operating cash flow, which was $33.3 million in fiscal 2021, less cash flows from investing activities, which were $4.2 million in fiscal 2021.

 

Conference Call and Webcast

The Company will host a conference call and webcast today, July 15, 2021, to discuss its fourth quarter and full year 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 8556447.  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,” “Adjusted EBITDAS,” and “free cash flow” 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 and free cash flow are 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


1800 N Route Z

Columbia, MO 65202

(800) 338-9585

NASDAQ: AOUT

 

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) goodwill impairment, (vi) product recall, (vii) the tax effect of non-GAAP adjustments, (viii) interest expense, (ix) income tax expense/(benefit), (x) depreciation and amortization, and (xi) 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 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 dedication to building authentic, lifestyle brands that help consumers make the most out of the moments that matter; our belief that sharing our passion for creating brands and products that allow people to pursue their outdoor adventures was especially timely, as consumers increasingly looked to outdoor activities, such as fishing, hunting, shooting sports, camping, and hiking, in response to travel restrictions and social distancing, and as they continued to demonstrate an increased interest in self-protection; our belief that our ‘Dock & Unlock’ strategy, designed to provide entry into new and larger addressable markets, helped drive our strong results; our belief that 2021 ushered in a new era for the outdoor industry, one that welcomed many new participants who will continue to explore the outdoors in the future; our belief that we are poised to build upon our foundation as we set our sights on future growth and taking our brands from ‘Niche to Known’; our belief that we have established a business structure that not only drove product innovation and record net sales, but one that allowed us to generate strong profits as we continued to build a balance sheet capable of supporting our future growth initiatives; the potential for future acquisitions; and our guidance for fiscal 2022. 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


1800 N Route Z

Columbia, MO 65202

(800) 338-9585

NASDAQ: AOUT

 

channel for our products; economic, social, political, legislative, and regulatory factors; lawsuits and their effect on us; inventory levels, both internally and in the distribution channel, in excess of demand; natural disasters, pandemics, seasonality, news events, political events, and consumer tastes; future investments for capital expenditures; future products and product development; the features, quality, and performance of our products; the success of our strategies and marketing programs; our market share and factors that affect our market share; liquidity and anticipated cash needs and availability; the supply, availability, and costs of materials and components and related tariffs; our ability to maintain and enhance brand recognition and reputation; risks associated with the distribution of our products and overall availability of labor; and, other factors detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2021.

 

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

 

 

 

 

 

 

As of:

 

 

 

April 30, 2021

 

 

April 30, 2020

 

 

 

(In thousands, except share and per share data)

 

 

ASSETS

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

60,801

 

 

$

234

 

 

Accounts receivable, net of allowance for credit losses of $119 on April 30,

   2021 and $448 on April 30, 2020

 

42,261

 

 

 

35,096

 

 

Inventories

 

74,296

 

 

 

59,999

 

 

Prepaid expenses and other current assets

 

2,324

 

 

 

3,244

 

 

Income tax receivable

 

149

 

 

 

104

 

 

      Total current assets

 

179,831

 

 

 

98,677

 

 

Property, plant, and equipment, net

 

10,992

 

 

 

9,677

 

 

Intangible assets, net

 

53,643

 

 

 

69,152

 

 

Goodwill

 

64,315

 

 

 

64,315

 

 

Right-of-use assets

 

25,375

 

 

 

2,772

 

 

Deferred income taxes

 

6,683

 

 

 

3,580

 

 

Other assets

 

424

 

 

 

242

 

 

      Total assets

$

341,263

 

 

$

248,415

 

 

LIABILITIES AND EQUITY

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

$

16,021

 

 

$

8,936

 

 

Accrued expenses

 

9,843

 

 

 

7,655

 

 

Accrued payroll and incentives

 

6,774

 

 

 

3,249

 

 

Lease liabilities, current

 

1,771

 

 

 

1,324

 

 

Accrued profit sharing

 

1,933

 

 

 

217

 

 

   Total current liabilities

 

36,342

 

 

 

21,381

 

 

Lease liabilities, net of current portion

 

24,780

 

 

 

2,830

 

 

Other non-current liabilities

 

236

 

 

 

106

 

 

      Total liabilities

 

61,358

 

 

 

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, 14,059,440

   shares issued and outstanding on April 30, 2021

 

14

 

 

 

 

 

Former net parent company investment

 

 

 

 

224,098

 

 

Additional paid in capital

 

265,362

 

 

 

 

 

Retained earnings

 

14,529

 

 

 

 

 

      Total equity

 

279,905

 

 

 

224,098

 

 

      Total liabilities and equity

$

341,263

 

 

$

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 INCOME/(LOSS)

 

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended April 30,

 

 

For the Years Ended April 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(Unaudited)

 

 

 

 

Net sales

 

$

64,473

 

 

$

43,084

 

 

$

276,687

 

 

$

167,379

 

Cost of sales

 

 

35,821

 

 

 

23,942

 

 

 

149,859

 

 

 

96,363

 

Gross profit

 

 

28,652

 

 

 

19,142

 

 

 

126,828

 

 

 

71,016

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

737

 

 

 

1,125

 

 

 

5,378

 

 

 

4,995

 

Selling, marketing, and distribution

 

 

15,347

 

 

 

10,353

 

 

 

56,773

 

 

 

38,596

 

General and administrative

 

 

11,283

 

 

 

11,014

 

 

 

41,182

 

 

 

41,292

 

Goodwill impairment

 

 

 

 

 

98,929

 

 

 

 

 

 

98,929

 

Total operating expenses

 

 

27,367

 

 

 

121,421

 

 

 

103,333

 

 

 

183,812

 

Operating income/(loss)

 

 

1,285

 

 

 

(102,279

)

 

 

23,495

 

 

 

(112,796

)

Other income/(expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income/(expense), net

 

 

145

 

 

 

(21

)

 

 

497

 

 

 

(21

)

Interest (expense)/income, net

 

 

(41

)

 

 

1,325

 

 

 

300

 

 

 

4,963

 

Total other income/(expense), net

 

 

104

 

 

 

1,304

 

 

 

797

 

 

 

4,942

 

Income/(loss) from operations before income taxes

 

 

1,389

 

 

 

(100,975

)

 

 

24,292

 

 

 

(107,854

)

Income tax expense/(benefit)

 

 

141

 

 

 

(10,300

)

 

 

5,887

 

 

 

(11,653

)

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

 

$

1,248

 

 

$

(90,675

)

 

$

18,405

 

 

$

(96,201

)

Net income/(loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.09

 

 

$

(6.49

)

 

$

1.31

 

 

$

(6.88

)

Diluted

 

$

0.09

 

 

$

(6.49

)

 

$

1.29

 

 

$

(6.88

)

Weighted average number of common shares

  outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

14,030

 

 

 

13,975

 

 

 

13,997

 

 

 

13,975

 

Diluted

 

 

14,287

 

 

 

13,975

 

 

 

14,225

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended April 30,

 

 

2021

 

 

2020

 

 

(In thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income/(loss)

$

18,405

 

 

$

(96,201

)

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

   by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

19,827

 

 

 

23,639

 

Loss on sale/disposition of assets

 

107

 

 

 

819

 

Provision for losses on accounts receivable

 

(48

)

 

 

688

 

Impairment of long-lived tangible assets

 

 

 

 

720

 

Goodwill impairment

 

 

 

 

98,929

 

Deferred income taxes

 

(3,103

)

 

 

(12,499

)

Stock-based compensation expense

 

2,910

 

 

 

850

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(7,117

)

 

 

(8,763

)

Inventories

 

(14,297

)

 

 

942

 

Accounts payable

 

7,632

 

 

 

12

 

Accrued liabilities

 

10,158

 

 

 

(24

)

Other

 

(1,154

)

 

 

(665

)

     Net cash provided by operating activities

 

33,320

 

 

 

8,447

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Payments to acquire patents and software

 

(558

)

 

 

(383

)

Payments to acquire property and equipment

 

(3,623

)

 

 

(1,480

)

     Net cash used in investing activities

 

(4,181

)

 

 

(1,863

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Net transfers from/(to) former Parent

 

31,485

 

 

 

(6,512

)

Cash paid for debt issuance costs

 

(410

)

 

 

 

Proceeds from exercise of options to acquire common stock,

   including employee stock purchase plan

 

386

 

 

 

 

Payment of employee withholding tax related to restricted

   stock units

 

(33

)

 

 

 

     Net cash provided by/(used in) financing activities

 

31,428

 

 

 

(6,512

)

Net increase in cash and cash equivalents

 

60,567

 

 

 

72

 

Cash and cash equivalents, beginning of period

 

234

 

 

 

162

 

Cash and cash equivalents, end of period

$

60,801

 

 

$

234

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

       Cash paid for:

 

 

 

 

 

 

 

Interest

$

111

 

 

$

 

Income taxes

$

7,951

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 


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 April 30,

 

 

For the Years Ended April 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

$

28,652

 

 

$

19,142

 

 

$

126,828

 

 

$

71,016

 

Transition costs

 

 

 

 

 

 

 

127

 

 

 

872

 

Product recall

 

 

 

 

 

 

 

 

 

 

(180

)

Non-GAAP gross profit

$

28,652

 

 

$

19,142

 

 

$

126,955

 

 

$

71,708

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

$

27,367

 

 

$

121,421

 

 

$

103,333

 

 

$

183,812

 

Amortization of acquired intangible assets

 

(4,068

)

 

 

(4,857

)

 

 

(16,304

)

 

 

(18,868

)

Goodwill impairment

 

 

 

 

(98,929

)

 

 

 

 

 

(98,929

)

Stock compensation

 

(810

)

 

 

(482

)

 

 

(2,910

)

 

 

(850

)

Transition costs

 

 

 

 

(8

)

 

 

(137

)

 

 

(708

)

COVID-19 expenses

 

 

 

 

(299

)

 

 

(223

)

 

 

(299

)

Other

 

 

 

 

 

 

 

(125

)

 

 

 

Non-GAAP operating expenses

$

22,489

 

 

$

16,846

 

 

$

83,634

 

 

$

64,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating income/(loss)

$

1,285

 

 

$

(102,279

)

 

$

23,495

 

 

$

(112,796

)

Amortization of acquired intangible assets

 

4,068

 

 

 

4,857

 

 

 

16,304

 

 

 

18,868

 

Goodwill impairment

 

 

 

 

98,929

 

 

 

 

 

 

98,929

 

Stock compensation

 

810

 

 

 

482

 

 

 

2,910

 

 

 

850

 

Transition costs

 

 

 

 

8

 

 

 

264

 

 

 

1,580

 

COVID-19 expenses

 

 

 

 

299

 

 

 

223

 

 

 

299

 

Product recall

 

 

 

 

 

 

 

 

 

 

(180

)

Other

 

 

 

 

 

 

 

125

 

 

 

 

Non-GAAP operating income

$

6,163

 

 

$

2,296

 

 

$

43,321

 

 

$

7,550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income/(loss)

$

1,248

 

 

$

(90,675

)

 

$

18,405

 

 

$

(96,201

)

Amortization of acquired intangible assets

 

4,068

 

 

 

4,857

 

 

 

16,304

 

 

 

18,868

 

Goodwill impairment

 

 

 

 

98,929

 

 

 

 

 

 

98,929

 

Stock compensation

 

810

 

 

 

482

 

 

 

2,910

 

 

 

850

 

Transition costs

 

 

 

 

8

 

 

 

264

 

 

 

1,580

 

COVID-19 expenses

 

 

 

 

299

 

 

 

223

 

 

 

299

 

Related party interest income

 

 

 

 

(1,325

)

 

 

(424

)

 

 

(4,963

)

Product recall

 

 

 

 

 

 

 

 

 

 

(180

)

Other

 

 

 

 

 

 

 

125

 

 

 

 

Tax effect of non-GAAP adjustments

 

(1,220

)

 

 

(12,698

)

 

 

(4,851

)

 

 

(15,974

)

Non-GAAP net income/(loss)

$

4,906

 

 

$

(123

)

 

$

32,956

 

 

$

3,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income/(loss) per share - diluted

$

0.09

 

 

$

(6.49

)

 

$

1.29

 

 

$

(6.88

)

Amortization of acquired intangible assets

 

0.28

 

 

 

0.35

 

 

 

1.15

 

 

 

1.35

 

Goodwill impairment

 

 

 

 

7.08

 

 

 

 

 

 

7.08

 

Stock compensation

 

0.06

 

 

 

0.03

 

 

 

0.20

 

 

 

0.06

 

Transition costs

 

 

 

 

 

 

 

0.02

 

 

 

0.11

 

COVID-19 expenses

 

 

 

 

0.02

 

 

 

0.02

 

 

 

0.02

 

Related party interest income

 

 

 

 

(0.09

)

 

 

(0.03

)

 

 

(0.36

)

Product recall

 

 

 

 

 

 

 

 

 

 

(0.01

)

Other

 

 

 

 

 

 

 

0.01

 

 

 

 

Tax effect of non-GAAP adjustments

 

(0.09

)

 

 

(0.91

)

 

 

(0.34

)

 

 

(1.14

)

Non-GAAP net income/(loss) per share - diluted

$

0.34

 

 

$

(0.01

)

 

$

2.32

 

 

$

0.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


1800 N Route Z

Columbia, MO 65202

(800) 338-9585

NASDAQ: AOUT

 

 

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 April 30,

 

 

For the Years  Ended April 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income/(loss)

$

 

1,248

 

 

$

(90,675

)

 

$

18,405

 

 

$

(96,201

)

Interest expense

 

 

49

 

 

 

 

 

 

111

 

 

 

 

Income tax expense/(benefit)

 

 

141

 

 

 

(10,300

)

 

 

5,887

 

 

 

(11,653

)

Depreciation and amortization

 

 

4,715

 

 

 

5,708

 

 

 

19,827

 

 

 

23,639

 

Related party interest income

 

 

 

 

 

(1,325

)

 

 

(424

)

 

 

(4,963

)

Stock compensation

 

 

810

 

 

 

482

 

 

 

2,910

 

 

 

850

 

Goodwill impairment

 

 

 

 

 

98,929

 

 

 

 

 

 

98,929

 

Product recall

 

 

 

 

 

 

 

 

 

 

 

(180

)

Transition costs

 

 

 

 

 

8

 

 

 

264

 

 

 

1,580

 

COVID-19 costs

 

 

 

 

 

299

 

 

 

223

 

 

 

299

 

Other

 

 

 

 

 

 

 

 

125

 

 

 

 

Non-GAAP Adjusted EBITDAS

$

 

6,963

 

 

$

3,126

 

 

$

47,328

 

 

$

12,300