8-K
false000180899700018089972023-06-282023-06-28

 

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): June 28, 2023

 

 

American Outdoor Brands, Inc.

(Exact name of Registrant as Specified in Its 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)

 

Registrant’s Telephone Number, Including Area Code: (800) 338-9585

 

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:

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

 

The 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 (§ 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 2.02 Results of Operations and Financial Condition.

On June 28, 2023, American Outdoor Brands, Inc. issued a press release reporting its financial results for the fiscal year ended April 30, 2023. 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 June 28, 2023, reporting American Outdoor Brand, Inc.’s financial results for the fiscal year ended April 30, 2023.

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:

June 28, 2023

By:

/s/ H. Andrew Fulmer

 

 

 

H. Andrew Fulmer
Executive Vice President, Chief Financial Officer, and Treasurer

 


EX-99.1

 

https://cdn.kscope.io/16cba64249d6e7eb0bcb2c057931f9e6-img70990840_0.jpg 

Exhibit 99.1

1800 N Route Z, Suite A

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 Fiscal 2023 Financial Results

FY23 Net Sales $191.2 Million
FY23 Gross Margin 46.1%
FY23 e-Commerce Sales $87.2 Million – Traditional Sales $104.0 Million
FY23 Operating Cash Flow of $30.7 Million

COLUMBIA, Mo., June 28, 2023 – 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 2023 ended April 30, 2023.

Full Year Fiscal 2023 Financial Highlights

Full year net sales were $191.2 million, a decrease of $56.3 million, or 22.8%, compared with net sales of $247.5 million for the prior year. Compared with pre-COVID levels in fiscal 2020, total net sales grew 14.2%, while e-commerce sales grew 60.6% and traditional channel net sales declined by 8.0%.
Full year gross margin was 46.1%, a decrease of 10 basis points, from gross margin of 46.2% for the prior year.
Full year GAAP net loss was $12.0 million, or $0.90 per diluted share, compared with a GAAP net loss of $64.9 million, or $4.66 per diluted share, last year. The net loss last year included a $67.8 million non-cash goodwill impairment charge.
Full year non-GAAP net income was $6.6 million, or $0.48 per diluted share, compared with non-GAAP net income of $24.7 million, or $1.77 per diluted share, for the prior year. GAAP to non-GAAP adjustments for net income exclude a non-cash impairment of goodwill, acquired intangible amortization, stock compensation, and other costs. For a detailed reconciliation, see the schedules that follow in this release.
Full year Adjusted EBITDAS was $12.8 million, or 6.7% of net sales, compared with Adjusted EBITDAS of $35.0 million, or 14.2% of net sales, for the prior year. For a detailed reconciliation, see the schedules that follow in this release.

 

 


 

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1800 N Route Z, Suite A

Columbia, MO 65202

 (800) 338-9585

NASDAQ: AOUT

 

 

Fourth Quarter Fiscal 2023 Financial Highlights

Quarterly net sales were $42.2 million, a decrease of $3.7 million, or 8.0%, compared with net sales of $45.9 million for the comparable quarter last year. Compared with pre-COVID levels in fiscal 2020, quarterly net sales declined 2.0%, while e-commerce sales grew 0.7% and traditional channel net sales declined by 4.3%.
Quarterly gross margin was 45.2%, an increase of 140 basis points, compared with quarterly gross margin of 43.8% for the comparable quarter last year.
Quarterly GAAP net loss was $3.8 million, or $0.29 per diluted share, compared with a GAAP net loss of $76.7 million, or $5.71 per diluted share, for the comparable quarter last year. The quarterly net loss last year included a $67.8 million non-cash goodwill impairment charge.
Quarterly non-GAAP net income was $793,000, or $0.06 per diluted share, compared with non-GAAP net income of $1.9 million, or $0.14 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for net income exclude a non-cash impairment of goodwill, acquired intangible amortization, stock compensation, and other costs. For a detailed reconciliation, see the schedules that follow in this release.
Quarterly Adjusted EBITDAS was $1.8 million, or 4.3% of net sales, compared with $3.2 million, or 7.0% of net sales, for the comparable quarter last year. For a detailed reconciliation, see the schedules that follow in this release.

Brian Murphy, President and Chief Executive Officer, said, “Fiscal 2023 marked our second full year as an independent public company dedicated to building authentic, lifestyle brands that help consumers make the most out of the moments that matter. I am proud of the achievements we made in fiscal 2023, especially given the uncertain macroeconomic environment that the year presented. On a three-year basis, we delivered net sales growth of more than 14% over our pre-pandemic levels, reflecting strength in our e-commerce channel, and driven primarily by growth of almost 34% in our outdoor lifestyle category, which consists of products related to hunting, fishing, camping, and rugged outdoor activities.”

“Innovation is our core strength and a key element in our long-term growth strategy. We believe our innovation machine is robust, and new products launched in the past two years generated over 25% of our full year net sales, which is consistent with prior years. Our Dock & Unlock™ process fuels that innovation, and we unveiled a host of new products across our brand portfolio during the year. Several of those products have won industry awards; many incorporate features that are ‘cross pollinated’ from across our brand lanes; most incorporate proprietary features; and all of them, taken together, advance our strategy to enter new product categories and expand our product lines and distribution channels. An example of this ‘cross pollination’ is our new BUBBA tournament-grade Pro Series Smart Fish Scale (SFS) and accompanying app, our first entry into the large, underserved, ‘catch and release’ market, and a product that, we believe, has the ability to reinvent the way anglers pursue their sport.”

 

 


 

https://cdn.kscope.io/16cba64249d6e7eb0bcb2c057931f9e6-img70990840_1.jpg 

1800 N Route Z, Suite A

Columbia, MO 65202

 (800) 338-9585

NASDAQ: AOUT

 

 

“In fiscal 2023, we completed several strategic objectives, including the implementation of a new ERP system with the successful go-live of Microsoft D365; the establishment of a new analytics platform with the launch of Microsoft Power BI; the consolidation of our facilities in Oregon, Texas, and Michigan into our Missouri facility; and the finalization of a full lease takeover at our Missouri facility slated for January 2024, which will provide increased distribution capacity for long-term organic and inorganic growth. By maintaining a clear focus on our long-term objectives and making several meaningful strategic investments, we believe we have positioned our company well for the future.”

Andrew Fulmer, Chief Financial Officer, said, “In Fiscal 2023, we strengthened our balance sheet, generated significant operating cash flow, remained disciplined with cost control, invested in our long-term growth, and demonstrated effective capital deployment, all while navigating market challenges with consumer demand and cautious retailer inventory management. With robust operating cash flow in the year of $30.7 million, including an inventory reduction of $21.9 million, we paid down $20.0 million on our line of credit and repurchased over $3.5 million of our stock. We ended the year with a cash balance of $22.0 million and only $5.0 million outstanding on our line of credit, yielding a net negative debt position and up to $92.0 million in available capital.”

Turning to our outlook, we believe that our brands remain well positioned to capitalize on positive, long-term consumer outdoor participation trends. As a result, we believe that our net sales for fiscal 2024 could exceed fiscal 2023 net sales by as much as 3.5%. We also believe our solid financial position enables us to continue executing on our long-term strategic plan as we invest in our business, return capital to stockholders, and address the exciting growth opportunities we have identified for our company,” concluded Fulmer.

Conference Call and Webcast

The Company will host a conference call and webcast today, June 28, 2023, to discuss its fourth quarter and full year fiscal 2023 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) 630-1956 and ask to join the American Outdoor Brands call. No RSVP is necessary. The conference call audio webcast can also be accessed live on the Company's website at www.aob.com, under the Investor Relations section.

 

 


 

https://cdn.kscope.io/16cba64249d6e7eb0bcb2c057931f9e6-img70990840_1.jpg 

1800 N Route Z, Suite A

Columbia, MO 65202

 (800) 338-9585

NASDAQ: AOUT

 

 

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

In this press release, certain non-GAAP financial measures, including “non-GAAP net income and “Adjusted EBITDAS” are presented. A reconciliation of these and other non-GAAP financial measures are contained at the end of this press release. From time-to-time, the Company considers and uses these non-GAAP financial measures as supplemental measures of operating performance in order to provide the reader with an improved understanding of underlying performance trends. The Company believes it is useful for itself and the reader to review, as applicable, both (1) GAAP measures that include (i) amortization of acquired intangible assets, (ii) goodwill impairment, (iii) stock compensation, (iv) facility consolidation costs, (v) technology implementation, (vi) acquisition costs, (vii) stockholder cooperation agreement costs, (viii) fair value inventory step-up, (ix) amortization of acquired intangible assets, (x) income tax adjustments, (xi) interest expense, (xii) income tax benefit/expense, and (xiii) depreciation and amortization; and (2) the non-GAAP measures that exclude such information. The Company presents these non-GAAP measures because it considers them an important supplemental measure of its performance and believes the disclosure of such measures provides useful information to investors regarding the Company’s financial condition and results of operations. The Company’s definition of these adjusted financial measures may differ from similarly named measures used by others. The Company believes these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company's GAAP measures. The principal limitations of these measures are that they do not reflect the Company's actual expenses and may thus have the effect of inflating its financial measures on a GAAP basis.

About American Outdoor Brands, Inc.

American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT) is an industry leading provider of outdoor products and accessories, including hunting, fishing, camping, shooting, outdoor cooking, and personal security and defense products, for rugged outdoor enthusiasts. The Company produces innovative, top quality products under its brands BOG®; BUBBA®; Caldwell®; Crimson Trace®; Frankford Arsenal®; Grilla Grills®; Hooyman®; Imperial®; LaserLyte®; Lockdown®; MEAT!; Old Timer®; Schrade®; Tipton®; Uncle Henry®; ust®; and Wheeler®. For more information about all the brands and products from American Outdoor Brands, Inc., visit www.aob.com.

 

 

 


 

https://cdn.kscope.io/16cba64249d6e7eb0bcb2c057931f9e6-img70990840_1.jpg 

1800 N Route Z, Suite A

Columbia, MO 65202

 (800) 338-9585

NASDAQ: AOUT

 

 

Safe Harbor Statement

Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. All statements other than statements of historical facts contained or incorporated herein by reference in this press release, including statements regarding our future operating results, future financial position, business strategy, objectives, goals, plans, prospects, markets, and plans and objectives for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “targets,” “contemplates,” “projects,” “predicts,” “may,” “might,” “plan,” “would,” “should,” “could,” “may,” “can,” “potential,” “continue,” “objective,” or the negative of those terms, or similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. Specific forward-looking statements in this press release include our belief that innovation is our core strength and the key element in our long-term growth strategy; our belief that our innovation machine is robust; our belief that our Dock & Unlock process fuels our innovation; our strategy to enter new product categories and expand our product lines and distribution channels; our belief that the Pro Series Smart Fish Scale has the ability to reinvent the way anglers pursue their sport; our belief that the full lease takeover at our Missouri headquarter will provide capacity for long-term organic and inorganic growth; our belief that by maintaining a clear focus on our long-term objectives and making several meaningful strategic investments, we have positioned our company well for the future; our belief that our brands remain well-positioned to capitalize on positive, long-term consumer outdoor participation trends; our belief that our net sales for fiscal 2024 could exceed pre-pandemic fiscal 2020 net sales by as much as 20%; and our belief that our solid financial position enables us to continue executing on our long-term strategic plan as we invest in our business, return capital to stockholders, and address the exciting growth opportunities we have identified for our company. We caution that these statements are qualified by important risks, uncertainties, and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, potential disruptions in our ability to source the materials necessary for the production of our products, disruptions and delays in the manufacture of our products, and difficulties encountered by retailers and other components of the distribution channel for our products; economic, social, political, legislative, and regulatory factors; lawsuits and their effect on us; inventory levels, both internally and in the distribution channel, in excess of demand; natural disasters, pandemics, seasonality, news events, political events, and consumer tastes; future investments for capital expenditures; future products and product development; the features, quality, and performance of our products; the success of our strategies and marketing programs; our market share and factors that affect our market share; liquidity and anticipated cash needs and availability; the supply, availability, and costs of materials and components 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, 2023.

 

 

 


 

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1800 N Route Z, Suite A

Columbia, MO 65202

 (800) 338-9585

NASDAQ: AOUT

 

 

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

 

As of:

 

 

April 30, 2023

 

 

April 30, 2022

 

 

(In thousands, except par value and share data)

 

ASSETS

 

 Current assets:

 

 

 

 

 

Cash and cash equivalents

$

21,950

 

 

$

19,521

 

Accounts receivable, net of allowance for credit losses of $125
   on April 30, 2023 and $129 on April 30, 2022

 

26,846

 

 

 

28,879

 

Inventories

 

99,734

 

 

 

121,683

 

Prepaid expenses and other current assets

 

7,839

 

 

 

8,491

 

Income tax receivable

 

1,251

 

 

 

1,231

 

      Total current assets

 

157,620

 

 

 

179,805

 

Property, plant, and equipment, net

 

9,488

 

 

 

10,621

 

Intangible assets, net

 

52,021

 

 

 

63,194

 

Right-of-use assets

 

24,198

 

 

 

23,884

 

Other assets

 

260

 

 

 

336

 

      Total assets

$

243,587

 

 

$

277,840

 

LIABILITIES AND EQUITY

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

11,544

 

 

$

13,563

 

Accrued expenses

 

8,741

 

 

 

7,853

 

Accrued payroll, incentives, and profit sharing

 

1,813

 

 

 

3,786

 

Lease liabilities, current

 

904

 

 

 

1,803

 

      Total current liabilities

 

23,002

 

 

 

27,005

 

Notes and loans payable

 

4,623

 

 

 

24,697

 

Lease liabilities, net of current portion

 

24,064

 

 

 

23,076

 

Other non-current liabilities

 

34

 

 

 

31

 

      Total liabilities

 

51,723

 

 

 

74,809

 

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,
   14,447,149 shares issued and 13,233,151 shares outstanding on
   April 30, 2023 and 14,240,290 shares issued and 13,403,326
   outstanding on April 30, 2022

 

14

 

 

 

14

 

Additional paid in capital

 

272,784

 

 

 

268,393

 

Retained deficit

 

(62,375

)

 

 

(50,351

)

Treasury stock, at cost (1,213,998 shares on April 30, 2023
   and 836,964 shares on April 30, 2022)

 

(18,559

)

 

 

(15,025

)

      Total equity

 

191,864

 

 

 

203,031

 

      Total liabilities and equity

$

243,587

 

 

$

277,840

 

 

 

 

 

 

 

 

 

 


 

https://cdn.kscope.io/16cba64249d6e7eb0bcb2c057931f9e6-img70990840_1.jpg 

1800 N Route Z, Suite A

Columbia, MO 65202

 (800) 338-9585

NASDAQ: AOUT

 

 

 

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended April 30,

 

 

For the Years Ended April 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(Unaudited)

 

 

 

 

Net sales

 

$

42,203

 

 

$

45,893

 

 

$

191,209

 

 

$

247,526

 

Cost of sales

 

 

23,129

 

 

 

25,769

 

 

 

103,145

 

 

 

133,287

 

Gross profit

 

 

19,074

 

 

 

20,124

 

 

 

88,064

 

 

 

114,239

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

1,474

 

 

 

1,147

 

 

 

6,361

 

 

 

5,501

 

Selling, marketing, and distribution

 

 

11,565

 

 

 

11,677

 

 

 

51,791

 

 

 

56,168

 

General and administrative

 

 

10,038

 

 

 

10,224

 

 

 

42,612

 

 

 

41,244

 

Goodwill impairment

 

 

 

 

 

67,849

 

 

 

 

 

 

67,849

 

Total operating expenses

 

 

23,077

 

 

 

90,897

 

 

 

100,764

 

 

 

170,762

 

Operating loss

 

 

(4,003

)

 

 

(70,773

)

 

 

(12,700

)

 

 

(56,523

)

Other income, net:

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

136

 

 

 

306

 

 

 

1,188

 

 

 

1,311

 

Interest expense, net

 

 

(120

)

 

 

(157

)

 

 

(761

)

 

 

(324

)

Total other income, net

 

 

16

 

 

 

149

 

 

 

427

 

 

 

987

 

Loss from operations before income taxes

 

 

(3,987

)

 

 

(70,624

)

 

 

(12,273

)

 

 

(55,536

)

Income tax (benefit)/expense

 

 

(151

)

 

 

6,062

 

 

 

(249

)

 

 

9,344

 

Net loss

 

$

(3,836

)

 

$

(76,686

)

 

$

(12,024

)

 

$

(64,880

)

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.29

)

 

$

(5.71

)

 

$

(0.90

)

 

$

(4.66

)

Diluted

 

$

(0.29

)

 

$

(5.71

)

 

$

(0.90

)

 

$

(4.66

)

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

13,240

 

 

 

13,433

 

 

 

13,372

 

 

 

13,930

 

Diluted

 

 

13,240

 

 

 

13,433

 

 

 

13,372

 

 

 

13,930

 

 

 

 


 

https://cdn.kscope.io/16cba64249d6e7eb0bcb2c057931f9e6-img70990840_1.jpg 

1800 N Route Z, Suite A

Columbia, MO 65202

 (800) 338-9585

NASDAQ: AOUT

 

 

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

For the Years Ended April 30,

 

 

2023

 

 

2022

 

 

(In thousands)

 

Cash flows from operating activities:

 

 

 

 

 

Net loss

$

(12,024

)

 

$

(64,880

)

Adjustments to reconcile net income to net cash provided by/
   (used in) operating activities:

 

 

 

 

 

Depreciation and amortization

 

16,511

 

 

 

16,967

 

Loss on sale/disposition of assets

 

94

 

 

 

161

 

(Benefit from)/provision for credit losses on accounts receivable

 

(11

)

 

 

17

 

Goodwill impairment

 

 

 

 

67,849

 

Deferred income taxes

 

 

 

 

6,683

 

Stock-based compensation expense

 

4,050

 

 

 

2,812

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

2,044

 

 

 

8,591

 

Inventories

 

21,949

 

 

 

(41,431

)

Accounts payable

 

(1,308

)

 

 

(4,521

)

Accrued liabilities

 

(1,085

)

 

 

(7,061

)

Other

 

486

 

 

 

(3,140

)

     Net cash provided by/(used in) operating activities

 

30,706

 

 

 

(17,953

)

Cash flows from investing activities:

 

 

 

 

 

Acquisition of business

 

 

 

 

(27,000

)

Payments to acquire patents and software

 

(3,555

)

 

 

(3,191

)

Proceeds from sale of property and equipment

 

30

 

 

 

 

Payments to acquire property and equipment

 

(1,301

)

 

 

(3,397

)

     Net cash used in investing activities

 

(4,826

)

 

 

(33,588

)

Cash flows from financing activities:

 

 

 

 

 

Proceeds from loans and notes payable

 

 

 

 

25,170

 

Payments on notes and loans payable

 

(20,170

)

 

 

 

Payments to acquire treasury stock

 

(3,534

)

 

 

(15,025

)

Cash paid for debt issuance costs

 

(88

)

 

 

(103

)

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

 

656

 

 

 

875

 

Payment of employee withholding tax related to restricted stock units

 

(315

)

 

 

(656

)

     Net cash (used in)/provided by financing activities

 

(23,451

)

 

 

10,261

 

Net increase/(decrease) in cash and cash equivalents

 

2,429

 

 

 

(41,280

)

Cash and cash equivalents, beginning of period

 

19,521

 

 

 

60,801

 

Cash and cash equivalents, end of period

$

21,950

 

 

$

19,521

 

Supplemental disclosure of cash flow information

 

 

 

 

 

       Cash paid for:

 

 

 

 

 

Interest

$

761

 

 

$

125

 

Income taxes (net of refunds)

$

(73

)

 

$

3,819

 

 

 

 


 

https://cdn.kscope.io/16cba64249d6e7eb0bcb2c057931f9e6-img70990840_1.jpg 

1800 N Route Z, Suite A

Columbia, MO 65202

 (800) 338-9585

NASDAQ: AOUT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

 

For the Three Months Ended April 30,

 

 

For the Years Ended April 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

GAAP gross profit

$

19,074

 

 

$

20,124

 

 

$

88,064

 

 

$

114,239

 

 

Facility consolidation costs

 

 

 

 

 

 

 

356

 

 

 

 

 

Fair value inventory step-up

 

 

 

 

27

 

 

 

 

 

 

27

 

 

Non-GAAP gross profit

$

19,074

 

 

$

20,151

 

 

$

88,420

 

 

$

114,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

$

23,077

 

 

$

90,897

 

 

$

100,764

 

 

$

170,762

 

 

Amortization of acquired intangible assets

 

(3,074

)

 

 

(3,473

)

 

 

(12,298

)

 

 

(13,757

)

 

Goodwill impairment

 

 

 

 

(67,849

)

 

 

 

 

 

(67,849

)

 

Stock compensation

 

(1,150

)

 

 

(476

)

 

 

(4,050

)

 

 

(2,812

)

 

Facility consolidation costs

 

(26

)

 

 

 

 

 

(510

)

 

 

 

 

Technology implementation

 

(553

)

 

 

(329

)

 

 

(2,138

)

 

 

(1,948

)

 

Acquisition costs

 

 

 

 

(599

)

 

 

(47

)

 

 

(599

)

 

Stockholder cooperation agreement costs

 

 

 

 

 

 

 

(1,177

)

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

(40

)

 

Non-GAAP operating expenses

$

18,274

 

 

$

18,171

 

 

$

80,544

 

 

$

83,757

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating loss

$

(4,003

)

 

$

(70,773

)

 

$

(12,700

)

 

$

(56,523

)

 

Fair value inventory step-up

 

 

 

 

27

 

 

 

 

 

 

27

 

 

Amortization of acquired intangible assets

 

3,074

 

 

 

3,473

 

 

 

12,298

 

 

 

13,757

 

 

Goodwill impairment

 

 

 

 

67,849

 

 

 

 

 

 

67,849

 

 

Stock compensation

 

1,150

 

 

 

476

 

 

 

4,050

 

 

 

2,812

 

 

Facility consolidation costs

 

26

 

 

 

 

 

 

866

 

 

 

 

 

Technology implementation

 

553

 

 

 

329

 

 

 

2,138

 

 

 

1,948

 

 

Acquisition costs

 

 

 

 

599

 

 

 

47

 

 

 

599

 

 

Stockholder cooperation agreement costs

 

 

 

 

 

 

 

1,177

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

40

 

 

Non-GAAP operating income

$

800

 

 

$

1,980

 

 

$

7,876

 

 

$

30,509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

$

(3,836

)

 

$

(76,686

)

 

$

(12,024

)

 

$

(64,880

)

 

Fair value inventory step-up

 

-

 

 

 

27

 

 

 

-

 

 

 

27

 

 

Amortization of acquired intangible assets

 

3,074

 

 

 

3,473

 

 

 

12,298

 

 

 

13,757

 

 

Goodwill impairment

 

-

 

 

 

67,849

 

 

 

-

 

 

 

67,849

 

 

Stock compensation

 

1,150

 

 

 

476

 

 

 

4,050

 

 

 

2,812

 

 

Facility consolidation costs

 

26

 

 

 

 

 

 

866

 

 

 

 

 

Technology implementation

 

553

 

 

 

329

 

 

 

2,138

 

 

 

1,948

 

 

Acquisition costs

 

-

 

 

 

599

 

 

 

47

 

 

 

599

 

 

Stockholder cooperation agreement costs

 

-

 

 

 

 

 

 

1,177

 

 

 

 

 

Other

 

-

 

 

 

 

 

 

-

 

 

 

40

 

 

Income tax adjustments

 

(174

)

 

 

5,805

 

 

 

(1,993

)

 

 

2,520

 

 

Non-GAAP net income

$

793

 

 

$

1,872

 

 

$

6,559

 

 

$

24,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss per share - diluted

$

(0.29

)

 

$

(5.71

)

 

$

(0.90

)

 

$

(4.66

)

 

Fair value inventory step-up

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

0.23

 

 

 

0.26

 

 

 

0.92

 

 

 

0.99

 

 

Goodwill impairment

 

 

 

 

5.05

 

 

 

 

 

 

4.87

 

 

Stock compensation

 

0.09

 

 

 

0.04

 

 

 

0.30

 

 

 

0.20

 

 

Facility consolidation costs

 

 

 

 

 

 

 

0.06

 

 

 

 

 

Technology implementation

 

0.04

 

 

 

0.02

 

 

 

0.16

 

 

 

0.14

 

 

Acquisition costs

 

 

 

 

0.04

 

 

 

 

 

 

0.04

 

 

Stockholder cooperation agreement costs

 

 

 

 

 

 

 

0.09

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

Income tax adjustments

 

(0.01

)

 

 

0.43

 

 

 

(0.15

)

 

 

0.18

 

 

Non-GAAP net income per share - diluted

$

0.06

 

 

$

0.14

 

(a)

$

0.48

 

 

$

1.77

 

(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 


 

https://cdn.kscope.io/16cba64249d6e7eb0bcb2c057931f9e6-img70990840_1.jpg 

1800 N Route Z, Suite A

Columbia, MO 65202

 (800) 338-9585

NASDAQ: AOUT

 

 

 

 

 

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES

 

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDAS
(In thousands)
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended April 30,

 

 

For the Years Ended April 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

GAAP net loss

$

 

(3,836

)

 

$

 

(76,686

)

 

$

 

(12,024

)

 

$

 

(64,880

)

Interest expense

 

 

120

 

 

 

 

157

 

 

 

 

761

 

 

 

 

324

 

Income tax (benefit)/expense

 

 

(151

)

 

 

 

6,062

 

 

 

 

(249

)

 

 

 

9,344

 

Depreciation and amortization

 

 

3,933

 

 

 

 

4,417

 

 

 

 

16,048

 

 

 

 

16,967

 

Stock compensation

 

 

1,150

 

 

 

 

476

 

 

 

 

4,050

 

 

 

 

2,812

 

Goodwill impairment

 

 

 

 

 

 

67,849

 

 

 

 

 

 

 

 

67,849

 

Technology implementation

 

 

553

 

 

 

 

329

 

 

 

 

2,138