UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
|
||||
|
||||
(Address of Principal Executive Offices) |
|
(Zip Code) |
||
Registrant’s Telephone Number, Including Area Code: |
|
(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:
Securities registered pursuant to Section 12(b) of the Act:
|
|
Trading |
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
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 7.01 Regulation FD Disclosure.
We are furnishing this Current Report on Form 8-K in connection with the disclosure of information, in the form of the textual information from a PowerPoint presentation to be given at meetings with investors and analysts. This information may be amended or updated at any time and from time to time through another Form 8-K, a later company filing, or other means.
The information in this Current Report on Form 8-K (including the exhibit) is furnished pursuant to Item 7.01 and shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. This Current Report on Form 8-K will not be deemed an admission as to the materiality of any information in the Report that is required to be disclosed solely by Regulation FD.
We do not have, and expressly disclaim, any obligation to release publicly any updates or any changes in our expectations or any change in events, conditions, or circumstances on which any forward-looking statement is based.
The text included with this Report on Form 8-K is available on our website located at www.aob.com, although we reserve the right to discontinue that availability at any time.
Item 9.01 Financial Statements and Exhibits.
(d) |
Exhibits. |
||
Exhibit Number |
|
|
Description |
99.1 |
|
|
|
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 thereunto duly authorized.
|
|
|
AMERICAN OUTDOOR BRANDS, INC. |
|
|
|
|
Date: |
September 8, 2022 |
By: |
/s/ H. Andrew Fulmer |
|
|
|
H. Andrew Fulmer |
Exhibit 99.1
INVESTOR PRESENTATION September 2022 NASDAQ: AOUT
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Certainstatementscontainedinthispresentationmaybedeemedtobeforward-lookingstatementsunderfederalsecuritieslaws,andweintendthatsuchforward-lookingstatementsbesubjecttothesafeharborcreatedthereby.Allstatementsotherthanstatementsofhistoricalfactscontainedorincorporatedhereinbyreferenceinthispresentation,includingstatementsregardingourfutureoperatingresults,futurefinancialposition,businessstrategy,objectives,goals,plans,prospects,markets,andplansandobjectivesforfutureoperations,areforward-lookingstatements.Insomecases,youcanidentifyforward-lookingstatementsbytermssuchas“anticipates,” “believes,”“estimates,”“expects,”“intends,”“suggests,”“targets,”“contemplates,”“projects,”“predicts,”“may,”“might,”“plan,”“would,”“should,”“could,”“may,”“can,” “potential,”“continue,”“objective,”orthenegativeofthoseterms,orsimilarexpressionsintendedtoidentifyforward-lookingstatements.However,notallforward-lookingstatementscontaintheseidentifyingwords.Wecautionthatthesestatementsarequalifiedbyimportantrisks,uncertainties,andotherfactorsthatcouldcauseactualresultstodiffermateriallyfromthosereflectedbysuchforward-lookingstatements.Suchfactorsinclude,amongothers,potentialdisruptionsinoursuppliers’abilitytosourcetherawmaterialsnecessaryfortheproductionofourproducts,disruptionsanddelaysinthemanufactureofourproducts,anddifficultiesencounteredbyretailersandothercomponentsofthedistributionchannelforourproductsincludingdeliveryofproductstemmingfromportcongestionandrelatedtransportationchallenges;lowerlevelsofconsumerspendingingeneralandspecifictoourproductsorproductcategories;ourabilitytointroducenewproductsthataresuccessfulinthemarketplace; interruptionsofourarrangementswiththird-partycontractmanufacturersandfreightcarriersthatdisruptourabilitytofillourcustomers’orders;increasesincostsordecreasesinavailabilityoffinishedproducts,productcomponents,andrawmaterials;ourabilitytomaintainorstrengthenourbrandrecognitionandreputation;theabilitytoforecastdemandforourproductsaccurately;ourabilitytocontinuetoexpandoure-commercebusiness;ourabilitytocompeteinahighlycompetitivemarket;ourdependenceonlargecustomers;ourabilitytoattractandretaintalent;anincreaseofemphasisonprivatelabelproductsbyourcustomers;pricingpressuresbyourcustomers;ourabilitytocollectouraccountsreceivable;thepotentialforproductrecalls,productliability,andotherclaimsorlawsuitsagainstus;ourabilitytoprotectourintellectualproperty;inventorylevels,bothinternallyandinthedistributionchannel,inexcessofdemand;ourabilitytoidentifyacquisitioncandidates,tocompleteacquisitionsofpotentialacquisitioncandidates,tointegrateacquiredbusinesseswithourbusiness,toachievesuccesswithacquiredcompanies,andtorealizethebenefitsofacquisitionsinamannerconsistentwithourexpectations;theperformanceandsecurityofourinformationsystems;ourabilitytocomplywithanyapplicableforeignlawsorregulationsandtheeffectofincreasedprotectivetariffs;economic,social,political,legislative,andregulatoryfactors;thepotentialforincreasedregulationoffirearmsandfirearms-relatedproducts;theeffectofpoliticalpressuresonfirearmlawsandregulations;thepotentialimpactonourbusinessandoperationsfromtheresultsoffederal,state,andlocalelectionsandthepoliciesthatmaybeimplementedasaresultthereof;ourabilitytorealizetheanticipatedbenefitsofbeingaseparate,publiccompany;futureinvestmentsforcapitalexpenditures,liquidityandanticipatedcashneedsandavailability;thepotentialforimpairmentcharges;estimatedamortizationexpenseofintangibleassetsforfutureperiods;actionsofsocialoreconomicactiviststhatcould,directlyorindirectly,haveanadverseeffectonourbusiness;disruptionscausedbysocialunrest,includingrelatedprotestsordisturbances;ourassessmentoffactorsrelatingtothevaluationofassetsacquiredandliabilitiesassumedinacquisitions,thetimingforsuchevaluations,andthepotentialadjustmentinsuchevaluations;and,otherfactorsdetailedfromtimetotimeinourreportsfiledwiththeSecuritiesandExchangeCommission,includingourAnnualReportonForm10-KforthefiscalyearendedApril30,2022.
Q1 FY23 Highlights
American Outdoor Brands (NASDAQ: AOUT) Disciplined execution of LONG-TERM value creation strategy 1 2 3 ORGANIC GROWTH M&A RETURN CAPITAL TO SHAREHOLDERS PATH TO $400M+ SEEK TARGETS THAT MEET OUR IDEAL CRITERIA SHARE REPURCHASE PROGRAM Q1 FY23 Achievements - Net sales growth of over 31% vs. pre-COVID Q1 FY20- 3-Yr CAGR of 9.6% - e-commerce growth of 23.7% vs. Q1 FY22 - MEAT! Your Maker: 169% growth vs. Q1 FY22 - Outdoor Lifestyle: 53% of net sales/Shooting Sports: 47% of net sales - Grilla Grills acquisition outperforming prior year - Aligns with ‘Dock & Unlock’ ™ Strategy - Grilla facilities consolidation underway (MI & TX) - DTC-only Brands (MEAT! + Grilla) were over 15% Net Sales in Q1 FY23- $15M Stock Buyback Program – completed March 2022
American Outdoor Brands (NASDAQ: AOUT) Sustained growth compared to pre-pandemic levels Demonstrated Net Sales Growth $25 $20 $15 $10 $5 $- $15.1 54% Growth $23.3 $18.1 $20.4 13% Growth Q1 FY20 Q1 FY23 Q1 FY20 Q1 FY23 Outdoor Lifestyle Shooting Sports Mix Shift Toward Outdoor Lifestyle Outdoor Lifestyle Net Sales - Q1 FY23 vs Q1 FY22: -8.3% - Q1 FY23 vs Q1 FY20 (pre-pandemic): +54.2% Expected to represent a majority of sales in near-term and be major growth driver of business going forward Growth supported by: Fishing (BUBBA) Land management (Hooyman) Meat processing (MEAT! Your Maker) Outdoor cooking (Grilla) Shooting Sports Net Sales - Q1 FY23 vs Q1 FY22: -42.4% - Q1 FY23 vs Q1 FY20 (pre-pandemic): +12.6% Growth opportunity in shooting sports focused on expanding into large, stable categories including: Shotgun sports (Caldwell) Reloading (Frankford Arsenal) Optics (Crimson Trace) Hand Tools (Wheeler) Security Solutions (Lockdown) Outdoor Lifestyle41.8% Shooting Sports 58.2% Q1 FY22 Net Sales Outdoor Lifestyle 53.3% Shooting Sports 46.7% Q1 FY23 Net Sales
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) GRILLA: EXCLUSIVE “TURN-KEY” OUTDOOR COOKING ECOSYSTEM Wifi Pellet Grills Gas Grills Griddles / Flat Tops All Major Outdoor Cooking Platforms Offered … ... Designed with an Ecosystem in Mind … “I have a [Silverback] and Primate. I got the 3-piece kitchen but need to buy the corner and an additional 31-inch cabinet.” –Facebook Post from Grilla Customer (July 2022) Kamado Grills Pellet Smokers
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) DTC-ONLY BRANDS DELIVERED OVER 15% OF Q1 NET SALES … All Sold Direct-to-Consumer… … While Leveraging Complementary AOB Brand Audiences “I’m a big fan of meat your maker! High quality products like Grilla! Y’all need to jump on this deal.” –Facebook Post from Grilla Customer (May 2022)
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) ~$1.8B* Potential $100M+ 1. Rapidly growing, “sticky” audience 2. Disruptive new product pipeline 3. Recurring revenue base growth 4. Untapped distribution ~$761M* CY 21 $15M GRILLA: OPPORTUNITY TO BECOME $100M+ REVENUE BRAND * Trailing twelve-month net sales based on public company filings.
“Building authentic, lifestyle brands that help consumers make the most out of the moments that matter.”
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) AMERICAN OUTDOOR BRANDS .Large, passion-driven industry .Favorable macro trends(fishing, hunting, personal protection, shooting sports, camping, hiking, and outdoor cooking) .Diverse portfolio of 21 early-stage consumer brands .Innovative “Dock & Unlock”™formulafuels brand growth .Leverageable modeldrives profitability .Strong balance sheetsupports organic growth & acquisitions
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) AMERICAN OUTDOOR BRANDS, INC. AT A GLANCE TTM Net Sales $230.4 million Growth Target $400M+ TTM Gross Profit Margin 45.3% Target Adj. EBITDAS Margin % Mid-to High-teens TTM Adjusted EBITDAS $26.9 million, or 11.7% Headquarters Columbia, Missouri Net Debt $2.5 million Fiscal Year End April 30 Net Debt / Adj. EBITDAS ~0.1x Employee Count 315* •HQ & Distribution: Columbia, MO •Additional Offices: MA (Admin), OR (Mfg), China (WFOE) •Spinoff: August 2020 •NASDAQ Global Select: AOUT *At April 30, 2022
Hunting Fishing Camping Hiking Paddling Archery Shooting LARGE, PASSION-DRIVENINDUSTRY a) Basedon a2017 reportissuedbythe Outdoor IndustryAssociation.
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) FAVORABLE OUTDOOR ACTIVITY MACRO TRENDS OUTDOOR PARTICIPATION TRENDS >50% of the U.S. Participates in Outdoor Recreational Activities ~9M Number of first-time camper households in 2021 (KOA) 14M New entrants per NSSF: 2020: 40% of 21M Adj NICS 2021: 30% of 18M Adj NICS ~1M More hunters in 2020. The NSSF has indicated that hunting license sales have grown 7.5% vs. 2019. This could mean 1M new hunters entered the market in 2020 ~3M More fishing licenses sold nationwide in 2020 than 2019, a 14% increase, according to the Recreational Boating and Fishing Foundation Source:Outdoor Industry Association report published August 2022 # of Participants (Millions) % of US population # of Participants (Millions) % of US population
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) DIVERSE PORTFOLIO OF 21 EARLY-STAGE CONSUMER BRANDS Note:American Outdoor Brands, Inc. licenses the brands Smith & Wesson® Accessories; M&P® Accessories; Thompson/Center Arms™Accessories; and Performance Center® Accessories, all of which are owned by Smith & Wesson Brands, Inc. and are exclusively licensed to American Outdoor Brands, Inc..
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Fillet knives, fishing rods, fishing tools, kitchen cutlery, apparel Grills, smokers, outdoor kitchens, pellets, & accessories Folding, fixed-blade knives Folding & fixed-blade knives, multi-tools, adventure equipment Tents, sleeping bags, mattress pads, camping tools and accessories Hunting rests, ground blinds, chairs, game cameras Land management: rakes, shovels, pruning tools, tree saws Meat grinders, slicers, dehydrators Folding, fixed-blade, & fillet knives Hunting bags & protective cases, binoculars, hunting accessories Folding, fixed-blade, & hunting knives Range Gear: Shooting rests, targets, hearing & eye protection Reloading equipment Gun vises, cleaning supplies Gunsmithing and other tools Scopes, lasers, red dot sights Laser training devices Vault organization, logic-enabled vault doors and security monitoring, cable locks Folding & fixed-blade knives, tools, protective gun cases Gun cases and cleaning kits Folding & fixed-blade knives, tools, protective gun cases, parts kits TWO CATEGORIES: OUTDOOR LIFESTYLE & SHOOTING SPORTS Adventurer Outdoor Lifestyle Shooting Sports Harvester Marksman Defender Illustrative Products Note:American Outdoor Brands, Inc. licenses the brands Smith & Wesson® Accessories; M&P® Accessories; Thompson/Center Arms™Accessories; and Performance Center® Accessories, all of which are owned by Smith & Wesson Brands, Inc. and are exclusively licensed to American Outdoor Brands, Inc..
American Outdoor Brands (NASDAQ: AOUT) strong presence in traditional and e-comm channels National Retailers Home, Farm, Automotive Distributors & Buying Groups OEM Traditional Channels $129.1M 56% E-commerce Channels $101.3M 44% (Q1 FY23 TTM Net Sales = $230.4 Million) Online Retailers DTC Websites Note: Customers shown are for illustrative purposes
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Brand A x AOB Dock (Strategy + Resources) = Brand A + 8 Unlocked Potential THE “DOCK AND UNLOCK”TM FORMULA Adventurer Harvester Marksman Defender .Using our "Dock and Unlock”TMformula, we leverage our brand lanes to reframe our brands’ growth potential .Thereby creating “Permission to Play"in new product categories and establishing entrance into wholly new, large addressable markets .Resulting in a family of brands with significant runway for growth, TAKING
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) “DOCK & UNLOCK”TMCASE STUDY Our Brand Lane structure and product development capabilities allow us to create wholly new brands that have the potential todeliver strong, incremental, organic growth. FY19 FY20 FY21 FY22 MEAT! Concept Developed internally Brand Launched $1M in Net Sales Black Friday Net Sales ~$900K 164.1% Net Sales Growth TTMFY23 vs TTMFY22 Net Sales –100% DTC TTM July Net Sales $7.8M FY23
American Outdoor Brands (NASDAQ: AOUT) “DOCK & UNLOCK”TM CASE STUDY BUBBA TM After repositioning the brand from “Bubba Blade” to “BUBBA,” we unlocked the brand’s “Permission to Play“ potential, accessing a wider audience, and expanding beyond the original saltwater fillet knife category into a multitude of diverse “water to plate” lifestyle products. NEW Upcoming in FY23: BUBBA Electric Fish Scale (EFS) Scan to learn more 4.4x FY22 net sales growth compared to first year of acquisition* *TTM August 2018 FILLET ELECTRIC FILLET RODS STORAGE KITCHEN SERIES TACKLE MANAGEMENT APPAREL LANDING Original Niche: Fillet Knives
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) BRAND “PERMISSION TO PLAY” DRIVES GROWTH POTENTIAL Growth Opportunities ‘Docked’ Brand Lifestyle Supported(“Moments that Matter”) New Distribution Expand Market Share New Categories New Consumer Markets In the Wild In the Wild At the Campsite Water to Plate In the Backyard On the Land At the Ranch On the Hunt On the Hunt On the Hunt Field to Table Adventurer Harvester Marksman Defender ‘Docked’ Brand Lifestyle Supported(“Moments that Matter”) New Distribution Expand Market Share New Categories New Consumer Markets At the Range In the Shop In the Shop At the Bench For Peace of Mind For Heritage For Heritage For Heritage For Protection For Training Growth Opportunities
American Outdoor Brands (NASDAQ: AOUT) Leverageable model drives profitability net sales & Gross Margin $177.4 FY 47.1% FY2019 $167.4 42.2% FY2020 65% Growth 48% Growth $276.7 45.8% FY2021 $247.5 46.2% FY2022 Q1 FY23 net sales +32% vs. Q1 FY20 (pre-pandemic) Significant sales growth within e-commerce channel – long-term growth expected to continue through leveraging brand lane platforms "Dock & Unlock”TM strategy allows for expansion into new product categories providing AOUT’s young brands with significant runway for growth Long-term gross margins supported by new product launches, stabilized from tariff impacts – Q1 FY23 gross margin impacted by volume and freight costs Q1 Update $60.8 47.7% Q1 FY22 $43.7 43.6% Q1 FY23 Adj. EBITDAS & adj. ebitdas Margin $23.6 13.3% FY2019 $12.3 7.3% FY2020 $47.3 17.1% FY2021 $35.0 14.2% FY2022 Leverage of fixed G&A costs, brand lanes and e-commerce investments expected to yield significant EBITDAS contribution as the business scales Long-term Adj. EBITDAS target margin – mid to high teens Q1 Update $9.6 15.7% Q1 FY22 $1.4 3.2% Q1 FY23 Note: US$ in millions. Fiscal year ended April 30. Adjusted EBITDAS is defined as GAAP net income/(loss) before interest, taxes, depreciation, amortization, goodwill impairment, and stock compensation expense and excludes certain items we consider non-routine. See slide 26 for a reconciliation of Adjusted EBITDAS. Financials for FY2019 include activity for the period subsequent to the acquisition of LaserLyte. Financials for FY2022 include activity for the period subsequent to the acquisition of Grilla Grills.
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) LONG-TERM FINANCIAL TARGETS Net Sales(1) Adjusted EBITDAS Capital Expenditures .Expand market share .New product categories .New consumer markets .New distribution .High level of operating leverage from existing brand lane platform .Adjusted EBITDAS margins expected to increase with net sales growth .Long-term will primarily be maintenance capex related to product tooling Long-Term Drivers Note:Long-term financial targets per AOUT Management's estimates is based on information available to Management at the time presented and is subject to change in the future especially in light of the difficulty in assessing and predicting with precision any market dynamics and changes which are beyond Management's knowledge and control. Please see also reference to other factors thatcould change Management's estimates in the Legal Safe Harbor on Slide 2 of this presentation. Long-Term Path to $400M+ Mid to highteens % N/A
Significant liquidity (up to ~$72M available capital) .$75M asset-based revolving credit facility, expandable by $15M .Virtually zero net debt .Strong annual free cash flow generation .Dry powder available for strategic acquisitions BALANCE SHEET AS OF JULY 31, 2022 AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) STRONG BALANCE SHEET SUPPORTS ORGANIC GROWTH & ACQUISITIONS IDEAL ACQUISITION CRITERIA .“Dock & Unlock”TMFriendly via Brand Lane Structure .“Niche to Known”TMOpportunity (Runway for Growth) .Large, Addressable Markets .Low Complexity .Further Diversifies Supply Chain Assets ($M) Cash$17.5Other Current Assets156.4 Intangibles60.7 PP&E10.4 Other Assets25.8 Total Assets$270.7Liabilities & Equity ($M) Current Liabilities$28.6Bank Debt19.6 Other Liabilities24.8 Total Liabilities$72.9Stockholders' Equity$197.8Total Liabilities & Equity$270.7
Appendix Follows
American Outdoor Brands (NASDAQ: AOUT) Experienced Leadership BRIAN D. MURPHY President & Chief Executive Officer Lead execution of AOUT’s “Dock & Unlock”TM strategy as part of expansion into new outdoor product categories and markets Experienced leader with ability to motivate teams, build and run business operations, and apply transactional and industry experience Significant M&A and financial experience with publicly traded companies H. ANDREW FULMER, CPA Chief Financial Officer Extensive financial experience with the company, and played key role in the development and execution of the company’s long-term acquisition strategy Led the company’s strategic planning process and developed procedures for acquisition-related financial modeling, due diligence, internal controls, and integration
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Inthispresentation,certainnon-GAAPfinancialmeasures,including“non-GAAPnetincome,”“non-GAAPincomepersharediluted,”“AdjustedEBITDAS,”and“freecashflow”arepresented.Areconciliationoftheseandothernon-GAAPfinancialmeasuresarecontainedattheendofthispressrelease.Areconciliationofprojectednon-GAAPincomepersharedilutedandfreecashflowarecontainedunderthe“Outlook”sectionofthispressrelease.Fromtime-to-time,theCompanyconsidersandusesthesenon-GAAPfinancialmeasuresassupplementalmeasuresofoperatingperformanceinordertoprovidethereaderwithanimprovedunderstandingofunderlyingperformancetrends.TheCompanybelievesitisusefulforitselfandthereadertoreview,asapplicable,both(1)GAAPmeasuresthatinclude(i)amortizationofacquiredintangibleassets,(ii)stockcompensation,(iii)technologyimplementation,(iv)acquisitioncosts,(v)stockholdercooperationagreementcosts,(vi)incometaxadjustments, (vii)interestexpense,(viii)incometaxexpense,and(x)depreciationandamortization;and(2)thenon-GAAPmeasuresthatexcludesuchinformation.TheCompanypresentsthesenon-GAAPmeasuresbecauseitconsidersthemanimportantsupplementalmeasureofitsperformanceandbelievesthedisclosureofsuchmeasuresprovidesusefulinformationtoinvestorsregardingtheCompany’sfinancialconditionandresultsofoperations.TheCompany’sdefinitionoftheseadjustedfinancialmeasuresmaydifferfromsimilarlynamedmeasuresusedbyothers.TheCompanybelievesthesemeasuresfacilitateoperatingperformancecomparisonsfromperiodtoperiodbyeliminatingpotentialdifferencescausedbytheexistenceandtimingofcertainexpenseitemsthatwouldnototherwisebeapparentonaGAAPbasis.Thesenon-GAAPmeasureshavelimitationsasananalyticaltoolandshouldnotbeconsideredinisolationorasasubstitutefortheCompany'sGAAPmeasures.TheprincipallimitationsofthesemeasuresarethattheydonotreflecttheCompany'sactualexpensesandmaythushavetheeffectofinflatingitsfinancialmeasuresonaGAAPbasis. NON-GAAP FINANCIAL MEASURES
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Q1 NON-GAAPADJUSTED EBITDAS RECONCILIATION 2022GAAP net (loss)/income$(5,695)$3,457 Interest expense186 46 Income tax expense189 849 Depreciation and amortization4,162 4,179 Stock compensation714 752 Technology implementation769 272 Acquisition costs 47 — Shareholder cooperation agreement costs 1,010 — Non-GAAP Adjusted EBITDAS$1,382 $9,555 Adjusted EBITDAS Margin3.2%15.7% For the Three Months Ended July 31, (In thousands) (Unaudited)
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Q1 GAAPINCOME STATEMENT Net Sales $43,676 $60,768 Cost Of Sales 24,637 31,785 Gross Profit 19,039 28,983 Operating Expenses: Research and Development 1,756 1,521 Selling Marketing and distribution 11,780 13,200 General and administrative 11,064 10,039 total Operating Expenses:24,600 24,760 Operating (loss)/Income (5,561) 4,223 Other Income/(Expense),Net Other income Net 241 129 Interest Expense,Net (186) (46) Total other income,Net 55 83 (loss)/income from operations before income taxes 5,506 4,306 Income Tax expense 189 849 net (loss)/income $5,695 $3,457 Net (loss)/Income per Share Basic $0.42 $0.25 Diluted $0.42 $0.24 Weighted average number of common shares outstanding Basic 13,443 14,083 Diluted 13,443 14,301
AMERICAN OUTDOOR BRANDS (NASDAQ: AOUT) Q1 NON-GAAP INCOME STATEMENT Net Sales $ 43,676 $60,768 Cost of sales 24,637 31,785 Gross Profit 19,039 28,983 Research and Development 1,756 1,521 Selling Marketing and distribution 11,780 13,200 General and administrative 5449 5587 total Operating Expenses 18,985 30,308 Operating (loss)/Income 54 8675 Other Income/(Expense),Net Other income Net 241 129 Interest Expense,Net (186) (46) Total other income 55 83 loss)/income from operations before income taxes 109 8,758 Income Tax expense 25 1,962 Net (loss)/Income $84 $6,796 (loss)/Income per Share: Basic $0.01 $0.48 Diluted $0.01 $0.48 Weighted average number of common shares outstanding: Basic 13,443 14,083 Diluted 13,596 14,301
AMERICAN OUTDOOR BRANDS