UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
Commission File No.
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
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(Zip Code) |
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(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each Class |
Trading Symbol |
Name of exchange on which registered |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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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.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
The registrant had
AMERICAN OUTDOOR BRANDS, INC.
Quarterly Report on Form 10-Q
For the Three and Six Months Ended October 31, 2024 and 2023
TABLE OF CONTENTS
Accumax®, BOG®, BUBBA®, Caldwell®, Deadshot®, Deathgrip®, Delta Series®, Don’t Be Outdoorsy – Be Outdoors®, E-MAX®, Engineered for the Unknown®, F.A.T. Wrench®, Fieldpod®, Frankford Arsenal®, Golden Rod®, Hooyman®, Imperial®, Intellidropper®, Lead Sled®, Lockdown®, Lockdown Puck®, Mag Charger®, MEAT! Your Maker®, Old Timer®, Schrade®, Sharpfinger®, Tipton®, Grilla®, Grilla Grills®, Uncle Henry®, Unmatched Accuracy at the Bench and in the Field®, ust®, Wheeler®, XLA Bipod®, Your Land. Your Legacy®, Crimson Trace®, Lasergrips®, Laserguard®, LaserLyte®, Lasersaddle®, Lightguard®, and Rail Master® are some of the registered U.S. trademarks of our company or one of our subsidiaries. AOB Products Company™, Dock and Unlock ™, From Niche to Known™, MEAT!™, Secure Your Lifestyle™, The Ultimate Lifestyle™, and Water to Plate™ are some of the unregistered trademarks of our company or one of our subsidiaries. Trademarks licensed to us by Smith & Wesson Brands, Inc. in connection with the manufacture, distribution, marketing, advertising, promotion, merchandising, shipping, and sale of certain licensed accessory product categories include M&P®, Performance Center®, Smith & Wesson®, and T/C®, among others. This report also may contain trademarks and trade names of other companies.
Statement Regarding Forward-Looking Information
The statements contained in this Quarterly Report on Form 10-Q that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical facts contained or incorporated herein by reference in this Quarterly Report on Form 10-Q, 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,” “suggests,” “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 Quarterly Report on Form 10-Q include statements regarding the following:
A number of factors could cause our actual results to differ materially from those indicated by the forward-looking statements. Such factors include, among others, the following:
All forward-looking statements included herein, or in our Annual Report on Form 10-K, are based on information available to us as of their respective dates and speak only as of such dates. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. The forward-looking statements contained in or incorporated by reference into this Quarterly Report on Form 10-Q, or in our Annual Report on Form 10-K, reflect our views as of the date of these reports about future events and are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause our actual results, performance, or achievements to differ significantly from those expressed or implied in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, performance, or achievements.
We are subject to the informational requirements of the Exchange Act, and we file or furnish reports, proxy statements, and other information with the SEC. Such reports and other information we file with the SEC are available free of charge at https://ir.aob.com/financial-information/sec-filings as soon as practicable after such reports are available on the SEC’s website at sec.gov. The SEC’s website contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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As of: |
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October 31, 2024 |
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April 30, 2024 |
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(In thousands, except par value and share data) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Accounts receivable, net of allowance for credit losses of $ |
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Inventories |
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Prepaid expenses and other current assets |
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Income tax receivable |
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Total current assets |
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Property, plant, and equipment, net |
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Intangible assets, net |
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Right-of-use assets |
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Other assets |
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Total assets |
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$ |
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$ |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
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$ |
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Accrued expenses |
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Accrued payroll and incentives |
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Lease liabilities, current |
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Total current liabilities |
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Lease liabilities, net of current portion |
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Total liabilities |
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(Note 11) |
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Equity: |
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Preferred stock, $ |
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Common stock, $ |
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Additional paid in capital |
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Retained deficit |
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( |
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Treasury stock, at cost ( |
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( |
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( |
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Total equity |
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Total liabilities and equity |
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$ |
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$ |
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See accompanying notes to unaudited condensed consolidated financial statements.
5
AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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For the Three Months ended October 31, |
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For the Six Months ended October 31, |
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2024 |
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2023 |
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2024 |
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2023 |
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(In thousands, except per share data) |
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Net sales |
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$ |
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$ |
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$ |
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$ |
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Cost of sales |
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Gross profit |
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Operating expenses: |
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Research and development |
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Selling, marketing, and distribution |
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General and administrative |
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Total operating expenses |
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Operating income/(loss) |
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( |
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Other (expense)/income, net: |
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Other income, net |
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Interest income/(expense), net |
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( |
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Total other income, net |
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Income/(loss) from operations before income taxes |
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Income tax expense/(benefit) |
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( |
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Net income/(loss) |
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$ |
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$ |
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$ |
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$ |
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Net income/(loss) per share: |
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Basic |
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$ |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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$ |
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$ |
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Weighted average number of common shares |
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Basic |
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Diluted |
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See accompanying notes to unaudited condensed consolidated financial statements.
6
AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
(In thousands)
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Common Stock |
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Additional |
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Treasury Stock |
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For the three months ended October 31, 2024 and 2023 |
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Shares |
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Amount |
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Paid-In |
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Retained |
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Shares |
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Amount |
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Total |
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Balance at July 31, 2023 |
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$ |
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$ |
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$ |
( |
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$ |
( |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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— |
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Stock-based compensation |
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— |
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— |
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— |
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— |
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— |
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Shares issued under employee stock |
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— |
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— |
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— |
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Issuance of common stock under |
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— |
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( |
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— |
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— |
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— |
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( |
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Repurchase of treasury stock |
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— |
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— |
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— |
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— |
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( |
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( |
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Balance at October 31, 2023 |
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$ |
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$ |
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$ |
( |
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$ |
( |
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$ |
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Balance at July 31, 2024 |
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$ |
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$ |
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$ |
( |
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$ |
( |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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— |
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Stock-based compensation |
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— |
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— |
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— |
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— |
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— |
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Shares issued under employee stock |
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— |
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— |
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— |
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— |
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Issuance of common stock under |
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— |
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( |
) |
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— |
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— |
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— |
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( |
) |
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Repurchase of treasury stock |
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— |
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— |
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— |
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— |
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( |
) |
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( |
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Balance at October 31, 2024 |
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$ |
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$ |
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$ |
( |
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$ |
( |
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$ |
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Common Stock |
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Additional |
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Treasury Stock |
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For the six months ended October 31, 2024 and 2023 |
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Shares |
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Amount |
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Paid-In |
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Retained |
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Shares |
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Amount |
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Total |
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Balance at April 30, 2023 |
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$ |
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$ |
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$ |
( |
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$ |
( |
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$ |
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Net loss |
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— |
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— |
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— |
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( |
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— |
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— |
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( |
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Stock-based compensation |
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— |
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— |
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— |
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— |
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— |
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Shares issued under employee stock |
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— |
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— |
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— |
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— |
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Issuance of common stock under |
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( |
) |
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— |
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— |
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— |
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( |
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Repurchase of treasury stock |
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— |
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— |
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— |
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— |
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( |
) |
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( |
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Balance at October 31, 2023 |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
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$ |
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Balance at April 30, 2024 |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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— |
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Stock-based compensation |
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— |
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— |
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— |
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— |
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— |
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Shares issued under employee stock |
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— |
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— |
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— |
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— |
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Issuance of common stock under |
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— |
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( |
) |
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— |
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— |
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— |
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( |
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Repurchase of treasury stock |
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— |
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— |
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— |
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— |
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( |
) |
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( |
) |
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Balance at October 31, 2024 |
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$ |
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$ |
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$ |
( |
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$ |
( |
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$ |
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See accompanying notes to unaudited condensed consolidated financial statements.
7
AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
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For the Six Months Ended October 31, |
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2024 |
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2023 |
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(In thousands) |
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Cash flows from operating activities: |
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Net income/(loss) |
$ |
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$ |
( |
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Adjustments to reconcile net income/(loss) to net cash used in |
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Depreciation and amortization |
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Loss on sale/disposition of assets |
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— |
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Provision for credit losses on accounts receivable |
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Stock-based compensation expense |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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( |
) |
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( |
) |
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Inventories |
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( |
) |
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( |
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Prepaid expenses and other current assets |
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Income tax receivable |
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( |
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Accounts payable |
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Accrued payroll and incentives |
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( |
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Right of use assets |
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Accrued expenses |
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Other assets |
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Lease liabilities |
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( |
) |
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( |
) |
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Other non-current liabilities |
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— |
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( |
) |
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Net cash used in operating activities |
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( |
) |
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( |
) |
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Cash flows from investing activities: |
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|
||
Payments to acquire patents and software |
|
( |
) |
|
|
( |
) |
|
Proceeds from sale of property and equipment |
|
— |
|
|
|
|
|
|
Payments to acquire property and equipment |
|
( |
) |
|
|
( |
) |
|
Net cash used in investing activities |
|
( |
) |
|
|
( |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
Payments on notes and loans payable |
|
— |
|
|
|
( |
) |
|
Payments to acquire treasury stock |
|
( |
) |
|
|
( |
) |
|
Proceeds from exercise of options to acquire common stock, |
|
|
|
|
|
|
||
Payment of employee withholding tax related to restricted |
|
( |
) |
|
|
( |
) |
|
Net cash used in financing activities |
|
( |
) |
|
|
( |
) |
|
Net decrease in cash and cash equivalents |
|
( |
) |
|
|
( |
) |
|
Cash and cash equivalents, beginning of period |
|
|
|
|
|
|
||
Cash and cash equivalents, end of period |
$ |
|
|
$ |
|
|
||
Supplemental disclosure of cash flow information |
|
|
|
|
|
|
||
Cash paid for: |
|
|
|
|
|
|
||
Interest |
$ |
|
|
$ |
|
|
||
Income taxes (net of refunds) |
$ |
|
|
$ |
( |
) |
|
|
See accompanying notes to unaudited condensed consolidated financial statements.
8
AMERICAN OUTDOORS BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
(1) Organization:
American Outdoor Brands, Inc. and its wholly owned Subsidiaries (our “company,” “we,” “us,” or “our”) is an innovation company that provides product solutions for outdoor enthusiasts, including hunting, fishing, camping, shooting, outdoor cooking, and personal security and personal defense products. We conceive, design, source, and sell our outdoor lifestyle products, including premium sportsman knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; outdoor cooking products; and camping, survival, and emergency preparedness products. We conceive, design, produce or source, and sell our shooting sports accessories, such as rests, vaults, and other related accessories; electro-optical devices, including hunting optics, firearm aiming devices, flashlights, and laser grips; and reloading, gunsmithing, and firearm cleaning supplies. We develop and market all our products as well as assemble some of our electro-optics products at our facility in Columbia, Missouri. We also contract for the manufacture and assembly of most of our products with third parties located in Asia.
We focus on our brands and the establishment of product categories in which we believe our brands will resonate strongly with the activities and passions of consumers and enable us to capture an increasing share of our overall addressable markets. Our owned brands include BOG, BUBBA, Caldwell, Crimson Trace, Frankford Arsenal, Grilla Grills, or Grilla, Hooyman, Imperial, LaserLyte, Lockdown, MEAT! Your Maker, Old Timer, Schrade, Tipton, Uncle Henry, ust, and Wheeler, and we license additional brands for use in association with certain products we sell, including M&P, Smith & Wesson, Performance Center by Smith & Wesson, and Thompson/Center. In focusing on the growth of our brands, our marketing, product development, and e-commerce teams focus on supporting our
(2) Basis of Presentation:
Interim Financial Information
Our unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the SEC for interim reporting. As permitted under those rules, certain disclosures and other financial information that normally are required by accounting principles generally accepted in the United States ("GAAP") have been condensed or omitted. Our accounting policies are described in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for our fiscal year ended April 30, 2024. We are responsible for the condensed consolidated financial statements included in this report, which are unaudited but, in our opinion, include all adjustments necessary for a fair presentation of our condensed consolidated balance sheet as of October 31, 2024, our condensed consolidated statement of operations for the three and six months ended October 31, 2024 and 2023, and our condensed consolidated statement of cash flows for the six months ended October 31, 2024 and 2023. The consolidated balance sheet as of April 30, 2024 was derived from audited financial statements.
The results reported in these condensed consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year.
9
AMERICAN OUTDOORS BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
Revenue Recognition
We recognize revenue for the sale of our products at the point in time when the control of ownership has transferred to the customer. The transfer of control typically occurs at a point in time based on consideration of when the customer has (i) a payment obligation, (ii) physical possession of goods has been received, (iii) legal title to goods has passed, (iv) risks and rewards of ownership of goods has passed to the customer, and (v) the customer has accepted the goods. The timing of revenue recognition occurs either on shipment or delivery of goods based on contractual terms with the customer, as this is when transfer of control occurs and the customer accepts the product, has title and significant risks and rewards of ownership of the product, and physical possession of the product has been transferred. Revenue recorded excludes sales tax charged to retail customers as we are considered a pass-through conduit for collecting and remitting sales taxes.
The duration of contractual arrangements with customers in our wholesale channels is typically less than one year. Payment terms with customers are typically between
We have elected to treat all shipping and handling activities as fulfillment costs and recognize the costs as distribution expenses at the time we recognize the related revenue. Shipping and handling costs billed to customers are included in net sales.
We sponsor direct-to-consumer customer loyalty programs. Customers earn rewards from qualifying purchases or activities. We defer revenue for a portion of the transaction price from product sales to customers that earn loyalty points.
The amount of revenue we recognize reflects the expected consideration to be received for providing the goods or services to customers, which includes estimates for variable consideration. Variable consideration includes allowances for trade term discounts, sales volume incentives, chargebacks, and product returns. Estimates of variable consideration are determined at contract inception and are constrained to the extent that inclusion of such variable consideration could result in a significant reversal of cumulative revenue in future periods. We apply the portfolio approach as a practical expedient and utilize the expected value method in determining estimates of variable consideration, based on evaluations of specific product and customer circumstances, historical and anticipated trends, and current economic conditions. We have co-op advertising program expense, which we record within advertising expense, in recognition of a distinct service that we receive from our customers at the retail level.
Disaggregation of Revenue
The following table sets forth certain information regarding trade channel net sales for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
e-commerce channels net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
% |
||||
Traditional channels net sales |
|
|
|
|
|
|
|
|
|
|
|
% |
||||
Total net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
% |
||||
Our e-commerce channels include net sales from customers that do not traditionally operate a physical brick-and-mortar store, but generate the majority of their revenue from consumer purchases at their retail websites. Our e-commerce channels also include our direct-to-consumer sales. Our traditional channels include customers that operate primarily out of physical brick and mortar stores and generate the large majority of their revenue from consumer purchases at their brick-and-mortar locations.
We sell our products worldwide.
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Domestic net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
% |
||||
International net sales |
|
|
|
|
|
|
|
|
|
|
|
% |
||||
Total net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
% |
||||
10
AMERICAN OUTDOORS BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
The following table sets forth certain information regarding net sales in our shooting sports and outdoor lifestyle categories for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Shooting sports net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
% |
||||
Outdoor lifestyle net sales |
|
|
|
|
|
|
|
|
|
|
|
% |
||||
Total net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
% |
||||
The following table sets forth certain information regarding trade channel net sales for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
|
||||
e-commerce channels net sales |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
|
- |
% |
|
||
Traditional channels net sales |
|
|
|
|
|
|
|
|
|
|
|
% |
|
||||
Total net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
% |
|
||||
The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
|
||||
Domestic net sales |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
|
- |
% |
|
||
International net sales |
|
|
|
|
|
|
|
|
|
|
|
% |
|
||||
Total net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
% |
|
||||
The following table sets forth certain information regarding net sales categories for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Shooting sports net sales |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
|
- |
% |
||
Outdoor lifestyle net sales |
|
|
|
|
|
|
|
|
|
|
|
% |
||||
Total net sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
% |
||||
Recently Issued Accounting Pronouncements
In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03), which requires disaggregation disclosures on an annual or interim basis, in the notes to the financial statements, of certain categories of expenses that are included in expense line items on the face of the statement of operations. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027 and should be applied prospectively, with the option to apply the standard retrospectively. We are currently evaluating the impact of adopting this ASU 2024-03 on our consolidated financial statements and disclosures.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which improves the transparency of income tax disclosures by requiring companies to (1) disclose consistent categories and greater disaggregation of information in the effective rate reconciliation and (2) provide information on income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, although early adoption is permitted. The guidance should be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating the impact of adopting this ASU 2023-09 on our consolidated financial statements and disclosures.
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which improves financial reporting by requiring disclosure of incremental segment information. The
11
AMERICAN OUTDOORS BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
new guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU 2023-07 on our consolidated financial statements and disclosures.
(3) Leases:
We lease real estate, as well as other equipment, under non-cancelable operating lease agreements. We recognize expenses under our operating lease assets and liabilities at the commencement date based on the present value of lease payments over the lease terms. Our leases do not provide an implicit interest rate. We use our incremental borrowing rate consistent with our revolving line of credit based on the information available at the lease commencement date in determining the discount rate for the present value of lease payments. Our lease agreements do not require material variable lease payments, residual value guarantees, or restrictive covenants. For operating leases, we recognize expense on a straight-line basis over the lease term. We record tenant improvement allowances as an offsetting adjustment included in our calculation of the respective right-of-use asset.
Many of our leases include renewal options that can extend the lease term. These renewal options are at our sole discretion and are reflected in the lease term when they are reasonably certain to be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term.
The amounts of assets and liabilities related to our operating leases as of October 31, 2024 and April 30, 2024 are as follows (in thousands):
|
|
October 31, 2024 |
|
|
April 30, 2024 |
|
||
Operating Leases |
|
|
|
|
|
|
||
Right-of-use assets |
|
$ |
|
|
$ |
|
||
Accumulated amortization |
|
|
( |
) |
|
|
( |
) |
Right-of-use assets, net |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Lease liabilities, current portion |
|
$ |
|
|
$ |
|
||
Lease liabilities, net of current portion |
|
|
|
|
|
|
||
Total operating lease liabilities |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
For the three and six months ended October 31, 2024, we recorded $
12
AMERICAN OUTDOORS BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
Future lease payments for all our operating leases for the remainder of fiscal 2025 and for succeeding fiscal years, as of October 31, 2024, are as follows (in thousands):
|
|
|
|
Operating |
|
|
2025 |
|
|
|
$ |
|
|
2026 |
|
|
|
|
|
|
2027 |
|
|
|
|
|
|
2028 |
|
|
|
|
|
|
2029 |
|
|
|
|
|
|
2030 |
|
|
|
|
|
|
Thereafter |
|
|
|
|
|
|
Total future lease payments |
|
|
|
|
|
|
Less amounts representing interest |
|
|
|
|
( |
) |
Present value of lease payments |
|
|
|
|
|
|
Less current maturities of lease liabilities |
|
|
|
|
( |
) |
Long-term maturities of lease liabilities |
|
|
|
$ |
|
|
The cash paid for amounts included in the measurement of liabilities and the operating cash flows was $
(4) Intangible Assets, net:
The following table summarizes intangible assets as of October 31, 2024 and April 30, 2024 (in thousands):
|
|
October 31, 2024 |
|
|
April 30, 2024 |
|
||||||||||||||||||
|
|
Gross |
|
|
|
|
|
|
|
|
Gross |
|
|
|
|
|
|
|
||||||
|
|
Carrying |
|
|
Accumulated |
|
|
Net Carrying |
|
|
Carrying |
|
|
Accumulated |
|
|
Net Carrying |
|
||||||
|
|
Amount |
|
|
Amortization |
|
|
Amount |
|
|
Amount |
|
|
Amortization |
|
|
Amount |
|
||||||
Customer relationships |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
Developed software and technology |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Patents, trademarks, and trade names |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Patents and software in development |
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||||
Total definite-lived intangible assets |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Indefinite-lived intangible assets |
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||||
Total intangible assets |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
We amortize intangible assets with determinable lives over a weighted-average period of approximately
13
AMERICAN OUTDOORS BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
Future expected amortization expense for the remainder of fiscal 2025 and for succeeding fiscal years, as of October 31, 2024, are as follows (in thousands):
Fiscal |
|
Amount |
|
|
2025 |
|
$ |
|
|
2026 |
|
|
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
2030 |
|
|
|
|
Thereafter |
|
|
|
|
Total |
|
$ |
|
|
(5) Fair Value Measurement:
We follow the provisions of ASC 820-10, Fair Value Measurements and Disclosures Topic, or ASC 820-10, for our financial assets and liabilities. ASC 820-10 provides a framework for measuring fair value under GAAP and requires expanded disclosures regarding fair value measurements. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value.
Financial assets and liabilities recorded on the accompanying condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:
Level 1 — Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access at the measurement date (examples include active exchange-traded equity securities, listed derivatives, and most U.S. Government and agency securities).
Our cash and cash equivalents, which are measured at fair value on a recurring basis, totaled $
Level 2 — Financial assets and liabilities whose values are based on quoted prices in markets in which trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 2 inputs include the following:
Level 3 — Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our assumptions about the assumptions a market participant would use in pricing the asset or liability.
We do
14
AMERICAN OUTDOORS BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
(6) Inventories:
The following table sets forth a summary of inventories, stated at lower of cost or net realizable value, as of October 31, 2024 and April 30, 2024 (in thousands):
|
|
October 31, 2024 |
|
|
April 30, 2024 |
|
||
Finished goods |
|
$ |
|
|
$ |
|
||
Finished parts |
|
|
|
|
|
|
||
Work in process |
|
|
|
|
|
|
||
Raw material |
|
|
|
|
|
|
||
Total inventories |
|
$ |
|
|
$ |
|
||
Certain of our suppliers in Asia require deposits to procure our inventory prior to beginning the manufacturing process. These deposits on our inventory vary by supplier and range from
(7) Debt:
On August 24, 2020, we entered into a financing arrangement consisting of a $
On March 25, 2022, we amended our secured loan and security agreement, or the Amended Loan and Security Agreement, increasing the revolving line of credit to $
As of October 31, 2024, we had
As of October 31, 2024, we have irrevocable standby letters of credit totaling $
(8) Equity:
Treasury Stock
On October 2, 2023, our Board of Directors authorized the repurchase of up to $
Earnings per Share
We compute diluted earnings per share by giving effect to all potentially dilutive stock awards that are outstanding. The computation of diluted earnings per share excludes the effect of the potential exercise of stock-based awards when the effect of the potential exercise would be anti-dilutive. All of our outstanding RSUs were included in the computation of diluted earnings per share for the three months ended October 31, 2024 and 2023.
15
AMERICAN OUTDOORS BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended October 31, 2024 and 2023 (in thousands, except per share data):
|
For the Three Months Ended October 31, |
|
|||||||||||||||||||||||||
|
2024 |
|
|
2023 |
|
||||||||||||||||||||||
|
Net |
|
|
|
|
|
Per Share |
|
|
Net |
|
|
|
|
|
Per Share |
|
||||||||||
|
Income |
|
|
Shares |
|
|
Amount |
|
|
Income |
|
|
Shares |
|
|
Amount |
|
||||||||||
Basic earnings |
$ |
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
$ |
|
|
||||||
Effect of dilutive stock awards |
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
|
|
|
— |
|
||
Diluted earnings |
$ |
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
|
|
|
$ |
|
|
||||||
The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the six months ended October 31, 2024 and 2023 (in thousands, except per share data):
|
For the Six Months Ended October 31, |
|
|||||||||||||||||||||||||
|
2024 |
|
|
2023 |
|
||||||||||||||||||||||
|
Net |
|
|
|
|
|
Per Share |
|
|
Net |
|
|
|
|
|
Per Share |
|
||||||||||
|
Income |
|
|
Shares |
|
|
Amount |
|
|
Loss |
|
|
Shares |
|
|
Amount |
|
||||||||||
Basic earnings/(loss) |
$ |
|
|
|
|
|
|
$ |
|
|
|
$ |
|
( |
) |
|
|
|
|
$ |
|
( |
) |
||||
Effect of dilutive stock awards |
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
Diluted earnings/(loss) |
$ |
|
|
|
|
|
|
$ |
|
|
|
$ |
|
( |
) |
|
|
|
|
$ |
|
( |
) |
||||
Due to the loss from operations for the six months ended October 31, 2023, there are
Incentive Stock and Employee Stock Purchase Plans
We have a stock incentive plan, or 2020 Incentive Compensation Plan, under which we can grant new awards to our employees and directors.
We grant PSUs to our executive officers and certain other employees from time to time. At the time of grant, we calculate the fair value of our PSUs using the Monte-Carlo simulation.
|
|
For the Six Months Ended October 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Grant date fair market value |
|
|
|
|
|
|
||
American Outdoor Brands, Inc. |
|
$ |
|
|
$ |
|
||
Russell 2000 Index |
|
$ |
|
|
$ |
|
||
Volatility (a) |
|
|
|
|
|
|
||
American Outdoor Brands, Inc. |
|
|
% |
|
|
% |
||
Russell 2000 Index |
|
|
% |
|
|
% |
||
Correlation coefficient (b) |
|
|
|
|
|
|
||
Risk-free interest rate (c) |
|
|
% |
|
|
% |
||
Dividend yield (d) |
|
|
% |
|
|
% |
||
16
AMERICAN OUTDOORS BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
The PSUs vest, and the fair value of such PSUs will be recognized, over the corresponding
During the six months ended October 31, 2024, we granted an aggregate of
During the six months ended October 31, 2023, we granted an aggregate of
We recognized $
We include stock-based compensation expense in the cost of sales, sales and marketing, research and development, and general and administrative expenses.
A summary of activity for unvested RSUs and PSUs under our 2020 Incentive Compensation Plan for the six months ended October 31, 2024 and 2023 is as follows:
|
|
For the six Months Ended October 31, |
|
|
|||||||||||||
|
|
2024 |
|
|
2023 |
|
|
||||||||||
|
|
|
|
|
Weighted |
|
|
|
|
|
Weighted |
|
|
||||
|
|
Total # of |
|
|
Average |
|
|
Total # of |
|
|
Average |
|
|
||||
|
|
Restricted |
|
|
Grant Date |
|
|
Restricted |
|
|
Grant Date |
|
|
||||
|
|
Stock Units |
|
|
Fair Value |
|
|
Stock Units |
|
|
Fair Value |
|
|
||||
RSUs and PSUs outstanding, beginning of period |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
||||
Awarded |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Vested |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
||
Forfeited |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
||
RSUs and PSUs outstanding, end of period |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
||||
As of October 31, 2024, there was $
We have an employee stock purchase plan, or ESPP, which authorizes the sale of up to
17
AMERICAN OUTDOORS BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
guidelines. Our current ESPP will be implemented in a series of successive offering periods, each with a maximum duration of
We measure the cost of employee services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. We amortize the fair value of the award over the vesting period of the option. Under ESPP, fair value is determined at the beginning of the purchase period and amortized over the term of each exercise period.
The following assumptions were used in valuing ESPP purchases under our ESPP during the six months ended October 31, 2024 and 2023:
|
|
For the Six Months Ended October 31, |
|||||||
|
|
2024 |
|
|
2023 |
|
|
||
Risk-free interest rate |
|
|
% |
|
|
|
|||
Expected term |
|
|
|
|
|
||||
Expected volatility |
|
|
% |
|
|
|
|||
Dividend yield |
|
|
% |
|
|
% |
|
||
(9) Accrued Expenses:
The following table sets forth other accrued expenses as of October 31, 2024 and April 30, 2024 (in thousands):
|
October 31, 2024 |
|
|
April 30, 2024 |
|
||
Accrued freight |
$ |
|
|
$ |
|
||
Accrued sales allowances |
|
|
|
|
|
||
Accrued warranty |
|
|
|
|
|
||
Accrued professional fees |
|
|
|
|
|
||
Accrued commissions |
|
|
|
|
|
||
Accrued taxes other than income |
|
|
|
|
|
||
Accrued employee benefits |
|
|
|
|
|
||
Accrued other |
|
|
|
|
|
||
Total accrued expenses |
$ |
|
|
$ |
|
||
(10) Income Taxes:
The income tax expense included in the condensed consolidated statements of operations is based upon the estimated effective tax rate for the year, adjusted for the impact of discrete items which are accounted for in the period in which they occur. We recorded income tax expense of $
18
AMERICAN OUTDOORS BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
(11) Commitments and Contingencies:
Litigation
From time to time, we are involved in lawsuits, claims, investigations, and proceedings, including those relating to product liability, intellectual property, commercial relationships, employment issues, and governmental matters, which arise in the ordinary course of business.
For the three and six months ended October 31, 2024 and 2023, we did not incur any material expenses in defense and administrative costs relative to product liability litigation. In addition, we did not incur any settlement fees related to product liability cases in those fiscal years.
Gain Contingency
In 2018, the United States imposed additional section 301 tariffs of up to
(12) Segment Reporting:
We have evaluated our operations under ASC 280-10-50-1 – Segment Reporting and have concluded that we are operating as
Our business includes our outdoor products and accessories products as well as our electro-optics products, which we develop, source, market, assemble, and distribute from our facility in Columbia, Missouri. We report operating costs based on the activities performed.
19
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
The following discussion and analysis of our financial condition and results of operations for the three and six months ended October 31, 2024 and 2023 should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for fiscal year ended April 30, 2024. This discussion and analysis should also be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in Item 1 of this Quarterly Report on Form 10-Q.
The following discussion and analysis includes forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and other factors that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements. Factors that could cause or contribute to these differences include those discussed above in “Statement Regarding Forward-Looking Information” in this Form 10-Q. In addition, this section sets forth key objectives and performance indicators used by us, as well as key industry data tracked by us.
The following discussion and analysis includes references to net sales of our products in shooting sports and outdoor lifestyle categories. Our shooting sports category includes net sales of shooting accessories and our products used for personal protection. Our outdoor lifestyle category includes net sales of our products used in hunting, fishing, camping, rugged outdoor activities, and outdoor cooking.
Second Quarter Fiscal 2025 Highlights
Our operating results for the three months ended October 31, 2024 included the following:
Our operating results for the six months ended October 31, 2024 included the following:
Results of Operations
Net Sales and Gross Profit
The following table sets forth certain information regarding consolidated net sales and gross profit for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Net sales |
|
$ |
60,232 |
|
|
$ |
57,931 |
|
|
$ |
2,301 |
|
|
|
4.0 |
% |
Cost of sales |
|
|
31,325 |
|
|
|
31,441 |
|
|
|
(116 |
) |
|
|
-0.4 |
% |
Gross profit |
|
$ |
28,907 |
|
|
$ |
26,490 |
|
|
$ |
2,417 |
|
|
|
9.1 |
% |
% of net sales (gross margin) |
|
|
48.0 |
% |
|
|
45.7 |
% |
|
|
|
|
|
|
||
The following table sets forth certain information regarding trade channel net sales for the three months ended October 31, 2024 and 2023 (dollars in thousands):
20
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
e-commerce channels net sales |
|
$ |
24,282 |
|
|
$ |
23,462 |
|
|
$ |
820 |
|
|
|
3.5 |
% |
Traditional channels net sales |
|
|
35,950 |
|
|
|
34,469 |
|
|
|
1,481 |
|
|
|
4.3 |
% |
Total net sales |
|
$ |
60,232 |
|
|
$ |
57,931 |
|
|
$ |
2,301 |
|
|
|
4.0 |
% |
Our e-commerce channels include net sales from customers that do not traditionally operate physical brick-and-mortar stores, but generate the majority of their revenue from consumer purchases from their retail websites. Our e-commerce channels also include our direct-to-consumer sales. Our traditional channels include customers that primarily operate out of physical brick-and-mortar stores and generate the large majority of revenue from consumer purchases in their brick-and-mortar locations. We sell our products worldwide.
The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Domestic net sales |
|
$ |
56,847 |
|
|
$ |
54,982 |
|
|
$ |
1,865 |
|
|
|
3.4 |
% |
International net sales |
|
|
3,385 |
|
|
|
2,949 |
|
|
|
436 |
|
|
|
14.8 |
% |
Total net sales |
|
$ |
60,232 |
|
|
$ |
57,931 |
|
|
$ |
2,301 |
|
|
|
4.0 |
% |
The following table sets forth certain information regarding net sales categories for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Shooting sports net sales |
|
$ |
23,806 |
|
|
$ |
23,371 |
|
|
$ |
435 |
|
|
|
1.9 |
% |
Outdoor lifestyle net sales |
|
|
36,426 |
|
|
|
34,560 |
|
|
|
1,866 |
|
|
|
5.4 |
% |
Total net sales |
|
$ |
60,232 |
|
|
$ |
57,931 |
|
|
$ |
2,301 |
|
|
|
4.0 |
% |
For the three months ended October 31, 2024, total net sales increased $2.3 million, or 4.0%, over the comparable quarter last year primarily because of an increase in hunting product net sales in our domestic channel and shooting accessory net sales in our international channel.
Net sales in our e-commerce channel increased $820,000, or 3.5%, over the comparable quarter last year, primarily because of increased outdoor lifestyle category net sales for our hunting products to online retailers and direct-to-consumer sales of our outdoor cooking products, partially offset by lower net sales in our shooting sports category.
Net sales in our traditional channels increased $1.5 million, or 4.3%, over the comparable quarter last year. Traditional channel net sales increased primarily because of higher net sales of shooting accessories in our shooting sports category and higher net sales of our hunting products in our outdoor lifestyle category, partially offset by lower net sales of rugged outdoor products in our outdoor lifestyle category. In addition, our international net sales increased $436,000, or 14.8%, over the comparable quarter last year as a result of increased sales in Canada.
New products, which we define as any SKU introduced over the prior two fiscal years, represented 21.5% of net sales for the three months ended October 31, 2024.
Gross margin for the three months ended October 31, 2024 increased 230 basis points over the comparable quarter last year, primarily from lower promotional product discounts due to timing of promotions with our customers and lower inbound freight costs.
21
The following table sets forth certain information regarding consolidated net sales and gross profit for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Net sales |
|
$ |
101,875 |
|
|
$ |
101,376 |
|
|
$ |
499 |
|
|
|
0.5 |
% |
Cost of sales |
|
|
54,043 |
|
|
|
55,167 |
|
|
|
(1,124 |
) |
|
|
-2.0 |
% |
Gross profit |
|
$ |
47,832 |
|
|
$ |
46,209 |
|
|
$ |
1,623 |
|
|
|
3.5 |
% |
% of net sales (gross margin) |
|
|
47.0 |
% |
|
|
45.6 |
% |
|
|
|
|
|
|
||
The following table sets forth certain information regarding trade channel net sales for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
|
||||
e-commerce channels net sales |
|
$ |
40,783 |
|
|
$ |
41,838 |
|
|
$ |
(1,055 |
) |
|
|
-2.5 |
% |
|
Traditional channels net sales |
|
|
61,092 |
|
|
|
59,538 |
|
|
|
1,554 |
|
|
|
2.6 |
% |
|
Total net sales |
|
$ |
101,875 |
|
|
$ |
101,376 |
|
|
$ |
499 |
|
|
|
0.5 |
% |
|
The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
|
||||
Domestic net sales |
|
$ |
94,060 |
|
|
$ |
94,771 |
|
|
$ |
(711 |
) |
|
|
-0.8 |
% |
|
International net sales |
|
|
7,815 |
|
|
|
6,605 |
|
|
|
1,210 |
|
|
|
18.3 |
% |
|
Total net sales |
|
$ |
101,875 |
|
|
$ |
101,376 |
|
|
$ |
499 |
|
|
|
0.5 |
% |
|
The following table sets forth certain information regarding net sales categories for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Shooting sports net sales |
|
$ |
42,484 |
|
|
$ |
43,446 |
|
|
$ |
(962 |
) |
|
|
-2.2 |
% |
Outdoor lifestyle net sales |
|
|
59,391 |
|
|
|
57,930 |
|
|
|
1,461 |
|
|
|
2.5 |
% |
Total net sales |
|
$ |
101,875 |
|
|
$ |
101,376 |
|
|
$ |
499 |
|
|
|
0.5 |
% |
For the six months ended October 31, 2024, total net sales increased $499,000, or 0.5%, over the prior year comparable period primarily because of an increase in shooting accessory net sales to international retailers.
Net sales in our e-commerce channel decreased $1.1 million, or 2.5%, from the prior year comparable period, primarily because of lower direct-to-consumer net sales for products sold on our e-commerce platform, specifically from lower outdoor cooking net sales in our outdoor lifestyle category. In addition, our E-commerce channel net sales decreased from lower personal protection and shooting sports accessories product net sales in our shooting sports category, partially offset by higher hunting and fishing product net sales in our outdoor lifestyle category.
Net sales in our traditional channels increased $1.6 million, or 2.6%, over the prior year comparable period. Traditional channel net sales increased primarily because of higher net sales of shooting accessories in our shooting sports category and higher net sales of our hunting products in our outdoor lifestyle category. In addition, our international net sales increased $1.2 million, or 18.3%, over the prior year comparable period as a result of increased sales in Canada. The increased net sales in our traditional channel was partially offset by lower personal protection net sales in our shooting sports category and lower rugged outdoor and fishing products in our outdoor lifestyle category.
New products, which we define as any SKU introduced over the prior two fiscal years, represented 22.7% of net sales for the six months ended October 31, 2024.
Gross margin for the six months ended October 31, 2024 increased 140 basis points over the prior year comparable period, primarily from lower promotional product discounts due to timing of promotions with our customers and lower inbound freight costs.
22
Operating Expenses
The following table sets forth certain information regarding operating expenses for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Research and development |
|
$ |
1,866 |
|
|
$ |
1,675 |
|
|
$ |
191 |
|
|
|
11.4 |
% |
Selling, marketing, and distribution |
|
|
14,973 |
|
|
|
15,414 |
|
|
|
(441 |
) |
|
|
-2.9 |
% |
General and administrative |
|
|
8,998 |
|
|
|
9,423 |
|
|
|
(425 |
) |
|
|
-4.5 |
% |
Total operating expenses |
|
$ |
25,837 |
|
|
$ |
26,512 |
|
|
$ |
(675 |
) |
|
|
-2.5 |
% |
% of net sales |
|
|
42.9 |
% |
|
|
45.8 |
% |
|
|
|
|
|
|
||
Research and development expenses increased $191,000 over the comparable quarter last year, primarily from higher consulting and third party service expenses. Selling, marketing, and distribution expenses decreased $441,000 from the comparable quarter last year mainly because of lower advertising expense, partially offset by higher rent expense. General and administrative expenses decreased $425,000 from the comparable quarter last year, primarily because of lower legal and consulting expense and lower acquired intangible asset amortization expense, partially offset by higher employee compensation-related expenses.
The following table sets forth certain information regarding operating expenses for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Research and development |
|
$ |
3,540 |
|
|
$ |
3,274 |
|
|
$ |
266 |
|
|
|
8.1 |
% |
Selling, marketing, and distribution |
|
|
26,356 |
|
|
|
27,468 |
|
|
|
(1,112 |
) |
|
|
-4.0 |
% |
General and administrative |
|
|
17,439 |
|
|
|
19,573 |
|
|
|
(2,134 |
) |
|
|
-10.9 |
% |
Total operating expenses |
|
$ |
47,335 |
|
|
$ |
50,315 |
|
|
$ |
(2,980 |
) |
|
|
-5.9 |
% |
% of net sales |
|
|
46.5 |
% |
|
|
49.6 |
% |
|
|
|
|
|
|
||
Research and development expenses increased $266,000 over the prior year comparable period, primarily from higher consulting and third party service expenses. Selling, marketing, and distribution expenses decreased $1.1 million from the prior year comparable period mainly because of lower advertising expense. General and administrative expenses decreased $2.1 million from the prior year comparable period, primarily because of lower legal and consulting expense and lower acquired intangible asset amortization expense.
Operating Income/(Loss)
The following table sets forth certain information regarding operating income/(loss) for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Operating income/(loss) |
|
$ |
3,070 |
|
|
$ |
(22 |
) |
|
$ |
3,092 |
|
|
|
-14054.5 |
% |
% of net sales (operating margin) |
|
|
5.1 |
% |
|
|
0.0 |
% |
|
|
|
|
|
|
||
Operating income/(loss) for the three months ended October 31, 2024 was $3.1 million higher as compared to the comparable quarter last year primarily from higher gross margins as a result of higher net sales volume and lower promotional product discounts as well as lower operating expenses mentioned above.
The following table sets forth certain information regarding operating income/(loss) for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Operating income/(loss) |
|
$ |
497 |
|
|
$ |
(4,106 |
) |
|
$ |
4,603 |
|
|
|
-112.1 |
% |
% of net sales (operating margin) |
|
|
0.5 |
% |
|
|
-4.1 |
% |
|
|
|
|
|
|
||
Operating income/(loss) for the six months ended October 31, 2024 was $4.6 million higher as compared to the prior year comparable period primarily from lower promotional product discounts and lower operating expenses mentioned above.
23
Income Taxes
The following table sets forth certain information regarding income tax benefit for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Income tax expense/(benefit) |
|
$ |
12 |
|
|
$ |
(40 |
) |
|
$ |
52 |
|
|
|
-130.0 |
% |
% of income from operations (effective tax rate) |
|
|
0.4 |
% |
|
|
-108.1 |
% |
|
|
|
|
|
108.5 |
% |
|
We recorded income tax expense of $12,000 for the three months ended October 31, 2024 compared with an income tax benefit of $40,000 for the comparable quarter last year. The income tax expense/(benefit) recorded for the three months ended October 31, 2024 and 2023 was primarily due to a full valuation allowance recorded against our deferred tax assets.
The following table sets forth certain information regarding income tax benefit for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Income tax expense |
|
$ |
34 |
|
|
$ |
15 |
|
|
$ |
19 |
|
|
|
126.7 |
% |
% of income from operations (effective tax rate) |
|
|
4.4 |
% |
|
|
-0.4 |
% |
|
|
|
|
|
4.8 |
% |
|
We recorded income tax expense of $34,000 for the six months ended October 31, 2024 compared with income tax expense of $15,000 for the prior year comparable period. The income tax expense recorded for the six months ended October 31, 2024 and 2023 was primarily due to a full valuation allowance recorded against our deferred tax assets.
Net Income/(Loss)
The following table sets forth certain information regarding net income and the related per share data for the three months ended October 31, 2024 and 2023 (dollars in thousands, except per share data):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Net income |
|
$ |
3,111 |
|
|
$ |
77 |
|
|
$ |
3,034 |
|
|
|
3940.3 |
% |
Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.24 |
|
|
$ |
0.01 |
|
|
$ |
0.23 |
|
|
|
2300.0 |
% |
Diluted |
|
$ |
0.24 |
|
|
$ |
0.01 |
|
|
$ |
0.23 |
|
|
|
2300.0 |
% |
Net income was $3.1 million, or $0.24 per diluted share, for the three months ended October 31, 2024 compared with net income of $77,000, or $0.01 per share, for the comparable quarter last year. The increased net income was primarily related to increased net sales volume and lower promotional product discounts as well as lower operating expenses during the three months ended October 31, 2024 as compared to the three months ended October 31, 2023.
The following table sets forth certain information regarding net income and the related per share data for the six months ended October 31, 2024 and 2023 (dollars in thousands, except per share data):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Net income/(loss) |
|
$ |
746 |
|
|
$ |
(4,036 |
) |
|
$ |
4,782 |
|
|
|
-118.5 |
% |
Net income/(loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.06 |
|
|
$ |
(0.31 |
) |
|
$ |
0.37 |
|
|
|
-119.4 |
% |
Diluted |
|
$ |
0.06 |
|
|
$ |
(0.31 |
) |
|
$ |
0.37 |
|
|
|
-119.4 |
% |
Net income was $746,000, or $0.06 per diluted share, for the six months ended October 31, 2024 compared with net loss of $4.0 million, or $0.31 per share, for the prior year comparable period. The increased net income was primarily related to increased net sales volume and lower promotional product discounts as well as lower operating expenses during the six months ended October 31, 2024 as compared to the six months ended October 31, 2023.
24
Non-GAAP Financial Measure
We use GAAP net income as our primary financial measure. We use Adjusted EBITDAS, which is a non-GAAP financial metric, as a supplemental measure of our performance in order to provide investors with an improved understanding of underlying performance trends, and it should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Adjusted EBITDAS is defined as GAAP net income/(loss) before interest, taxes, depreciation, amortization, and stock compensation expense. Our Adjusted EBITDAS calculation also excludes certain items we consider non-routine. We believe that Adjusted EBITDAS is useful to understanding our operating results and the ongoing performance of our underlying business, as Adjusted EBITDAS provides information on our ability to meet our capital expenditure and working capital requirements, and is also an indicator of profitability. We believe this reporting provides additional transparency and comparability to our operating results. We believe that the presentation of Adjusted EBITDAS is useful to investors because it is frequently used by analysts, investors, and other interested parties to evaluate companies in our industry. We use Adjusted EBITDAS to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to neutralize our capitalization structure to compare our performance against that of other peer companies using similar measures, especially companies that are private. We also use Adjusted EBITDAS to supplement GAAP measures of performance to evaluate our performance in connection with compensation decisions. We believe it is useful to investors and analysts to evaluate this non-GAAP measure on the same basis as we use to evaluate our operating results.
Adjusted EBITDAS is a non-GAAP measure and may not be comparable to similar measures reported by other companies. In addition, non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. We address the limitations of non-GAAP measures through the use of various GAAP measures. In the future, we may incur expenses or charges such as those added back to calculate Adjusted EBITDAS. Our presentation of Adjusted EBITDAS should not be construed as an inference that our future results will be unaffected by these items.
The following table sets forth our calculation of non-GAAP Adjusted EBITDAS for the three and six months ended October 31, 2024 and 2023, respectively (dollars in thousands):
|
|
For the Three Months Ended October 31, |
|
|
For the Six Months Ended October 31, |
|
||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||||||
|
(Unaudited) |
|
||||||||||||||||||
GAAP net income/(loss) |
|
$ |
|
3,111 |
|
|
$ |
|
77 |
|
|
$ |
|
746 |
|
|
$ |
|
(4,036 |
) |
Interest (income)/expense |
|
|
|
6 |
|
|
|
|
(6 |
) |
|
|
|
(142 |
) |
|
|
|
7 |
|
Income tax expense |
|
|
|
12 |
|
|
|
|
(40 |
) |
|
|
|
34 |
|
|
|
|
15 |
|
Depreciation and amortization |
|
|
|
3,293 |
|
|
|
|
3,935 |
|
|
|
|
6,577 |
|
|
|
|
7,880 |
|
Stock compensation |
|
|
|
866 |
|
|
|
|
1,005 |
|
|
|
|
1,798 |
|
|
|
|
1,938 |
|
Technology implementation |
|
|
|
— |
|
|
|
|
66 |
|
|
|
|
— |
|
|
|
|
359 |
|
Non-recurring inventory reserve adjustment |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
221 |
|
|
|
|
— |
|
Emerging growth status transition costs |
|
|
|
121 |
|
|
|
|
— |
|
|
|
|
163 |
|
|
|
|
— |
|
Other |
|
|
|
78 |
|
|
|
|
204 |
|
|
|
|
78 |
|
|
|
|
204 |
|
Non-GAAP Adjusted EBITDAS |
|
$ |
|
7,487 |
|
|
$ |
|
5,241 |
|
|
$ |
|
9,475 |
|
|
$ |
|
6,367 |
|
Liquidity and Capital Resources
We expect to continue to utilize our cash flows to invest in our business, including research and development for new product initiatives; to hire additional employees; to fund growth strategies, including any potential acquisitions; to make payments on any indebtedness we may incur over time; and to repurchase shares of our common stock if we are authorized to do so.
The following table sets forth certain cash flow information for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Operating activities |
|
$ |
(12,287 |
) |
|
$ |
(3,215 |
) |
|
$ |
(9,072 |
) |
|
|
-282.2 |
% |
Investing activities |
|
|
(1,573 |
) |
|
|
(1,581 |
) |
|
|
8 |
|
|
|
0.5 |
% |
Financing activities |
|
|
(1,615 |
) |
|
|
(8,775 |
) |
|
|
7,160 |
|
|
|
81.6 |
% |
Total cash flow |
|
$ |
(15,475 |
) |
|
$ |
(13,571 |
) |
|
$ |
(1,904 |
) |
|
|
14.0 |
% |
Operating Activities
25
On an annual basis, operating activities generally represent the principal source of our cash flow.
Cash used in operating activities was $12.3 million for the six months ended October 31, 2024 compared with cash used by operating activities of $3.2 million for the six months ended October 31, 2023. Cash used by operating activities for the six months ended October 31, 2024 was primarily impacted by $17.6 million of higher accounts receivable, primarily due to timing of customer shipments in the second half of our second fiscal quarter and $18.3 million of increased inventory. The increase in inventory was a result of planned increase in purchases to prepare for the fall and winter hunting and holiday seasons. The cash usage for the six months ended October 31, 2024 was partially offset by a $10.6 million increase in accounts payable due to the timing of inventory purchases as we built our inventory balances higher during our second fiscal quarter and $3.0 million of increase accrued expenses related to the timing of outbound freight accruals and higher sales volume-related accruals.
Investing Activities
Cash used in investing activities was $1.6 million during the six months ended October 31, 2024, flat as compared the prior year comparable period. We expect to spend approximately $3.5 million to $4.5 million of capital expenditures in fiscal 2025, a decrease of $1.5 million to $2.5 million from the $6.0 million we spent in fiscal 2024, a year in which we spent $2.9 million on capital expenditures as a result of the lease assignment of the full building at our headquarters in Columbia, Missouri.
Financing Activities
Cash used in financing activities was $1.6 million for the six months ended October 31, 2024, primarily from $1.4 million used to repurchase 153,497 shares of our common stock.
Our future capital requirements will depend on many factors, including net sales, the timing and extent of spending to support product development efforts, the expansion of sales and marketing activities, the timing of introductions of new products and enhancements to existing products, any acquisitions or strategic investments that we may determine to make, and changes in consumer spending, which is sensitive to economic conditions and other factors. Further equity or debt financing may not be available to us on acceptable terms or at all. If sufficient funds are not available or are not available on acceptable terms, our ability to take advantage of unexpected business opportunities or to respond to competitive pressures could be limited or severely constrained.
We had $14.2 million of cash equivalents on hand as of October 31, 2024 and had $29.7 million in cash and cash equivalents on hand as of April 30, 2024.
Other Matters
Critical Accounting Policies
The preparation of our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Significant accounting policies are summarized in Note 2 of the Notes to the consolidated and combined financial statements in our Annual Report on Form 10-K for the fiscal year ended April 30, 2024. Our critical accounting policies are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended April 30, 2024, to which there have been no material changes. Actual results could differ from our estimates.
Recent Accounting Pronouncements
The nature and impact of recent accounting pronouncements, if any, is discussed in Note 2—Basis of Presentation to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There were no material changes from the information provided in Quantitative and Qualitative Disclosures about Market Risk in the Form 10-K.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
26
As of October 31, 2024, our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) and have concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. These disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports we file or submit is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
There have been no changes in our internal control over financial reporting during our most recent fiscal quarter ended October 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
27
PART II — OTHER INFORMATION
Item 1. Legal Proceedings
The nature of legal proceedings against us is discussed in Note 11 — Commitments and Contingencies to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
Item 1A. Risk Factors
We have disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K, filed with the SEC on June 27, 2024, risk factors that materially affect our business, financial condition, or results of operations. There have been no material changes from the risk factors previously disclosed.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table sets forth certain information relating to the purchases of our common stock by us and any affiliated purchases within the meaning of Rule 10b5-1 of the Exchange Act during the three and six months ended October 31, 2024 (dollars in thousands, except per share data):
|
|
Total # of |
|
|
Average |
|
|
Total # of Shares Purchased as Part of Publicly Announced |
|
|
Maximum Dollar Value of Shares that May Yet Be Purchased |
|
||||||
|
|
Shares |
|
|
Price Paid |
|
|
Plan or |
|
|
Under the Plan |
|
||||||
Period |
|
Purchased |
|
|
Per Share (2) |
|
|
Program (1) |
|
|
or Program |
|
||||||
Total first quarter fiscal year 2025 |
|
|
42,017 |
|
|
$ |
|
9.06 |
|
|
|
731,434 |
|
|
$ |
|
6,902 |
|
August 1, 2024 to August 31, 2024 |
|
|
33,930 |
|
|
|
|
8.83 |
|
|
|
765,364 |
|
|
|
|
6,601 |
|
September 1, 2024 to September 30, 2024 |
|
|
30,907 |
|
|
|
|
8.91 |
|
|
|
796,271 |
|
|
|
|
— |
|
October 1, 2024 to October 31, 2024 |
|
|
46,643 |
|
|
|
|
9.18 |
|
|
|
842,914 |
|
|
|
|
9,571 |
|
Total second quarter fiscal year 2025 |
|
|
111,480 |
|
|
|
|
9.00 |
|
|
|
842,914 |
|
|
|
|
9,571 |
|
Total year-to-date fiscal year 2025 |
|
|
153,497 |
|
|
$ |
|
9.01 |
|
|
|
842,914 |
|
|
$ |
|
9,571 |
|
(1) On October 2, 2023, our Board of Directors authorized the repurchase of up to $10.0 million of our common stock, subject to certain conditions, in the open market, in block purchases, or in privately negotiated transactions. This authorization expired on September 30, 2024. During the three and six months ended October 31, 2024, under this expired authorization, we repurchased a total of 64,837 and 106,854 shares of our common stock for $577,000 and $958,000, respectively, utilizing cash on hand. On September 25, 2024, our Board of Directors approved a program to purchase up to $10.0 million of our common stock, subject to certain conditions, in the open market, in block purchases, or in privately negotiated transactions, commencing on October 1, 2024 and executable through September 30, 2025. We purchased 46,643 shares during the three and six months ended October 31, 2024 for a total of $429,000, utilizing cash on hand. During the three and six months ended October 31, 2024, under these authorizations, we repurchased a total of 111,480 and 153,497 shares, respectively, of our common stock for $1.0 million and $1.4 million, respectively, utilizing cash on hand. As of October 31, 2024, we have $9.6 million of available funds to repurchase our common stock under the current authorization.
(2) The average price per share excludes fees paid to acquire the shares.
Item 5. Other Information
During the quarter ended October 31, 2024, none of our directors or officers
28
Item 6. Exhibits
The exhibits listed on the Index to Exhibits (immediately preceding the signatures section of this Quarterly Report on Form 10-Q) are included herewith or incorporated herein by reference.
INDEX TO EXHIBITS
|
|
|
31.1# |
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer |
|
|
|
31.2# |
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer |
|
|
|
32.1## |
|
|
|
|
|
32.2## |
|
|
|
|
|
101.INS |
|
Inline XBRL Instance Document – The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
|
|
|
101.SCH |
|
Inline XBRL Taxonomy Extension Schema Document |
|
|
|
101.CAL |
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document |
|
|
|
101.DEF |
|
Inline XBRL Taxonomy Extension Definition Linkbase Document |
|
|
|
101.LAB |
|
Inline XBRL Taxonomy Extension Label Linkbase Document |
|
|
|
101.PRE |
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document |
104 |
|
Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101). |
|
|
|
# Filed herewith
## Furnished herewith
29
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., a Delaware corporation |
||
|
|
|
||
Date: December 5, 2024 |
|
By: |
|
/s/ Brian D. Murphy |
|
|
|
|
Brian D. Murphy |
|
|
|
|
President and Chief Executive Officer |
|
|
|
||
Date: December 5, 2024 |
|
By: |
|
/s/ H. Andrew Fulmer |
|
|
|
|
H. Andrew Fulmer |
|
|
|
|
Executive Vice President, Chief Financial Officer, and Treasurer |
30
Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO
RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Brian D. Murphy, certify that:
Date: December 5, 2024 |
|
By: |
/s/ Brian D. Murphy |
|
|
|
Brian D. Murphy |
|
|
|
President and Chief Executive Officer |
Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO
RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, H. Andrew Fulmer, certify that:
Date: December 5, 2024 |
|
By: |
/s/ H. Andrew Fulmer |
|
|
|
H. Andrew Fulmer |
|
|
|
Executive Vice President, Chief Financial Officer, and Treasurer |
Exhibit 32.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of American Outdoor Brands, Inc. (the “Company”) on Form 10-Q for the period ended October 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brian D. Murphy, the President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
Date: December 5, 2024 |
|
By: |
/s/ Brian D. Murphy |
|
|
|
Brian D. Murphy |
|
|
|
President and Chief Executive Officer |
This certification accompanies the Quarterly Report on Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission, and is not to be incorporated by reference into any filing of American Outdoor Brands, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing.
Exhibit 32.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of American Outdoor Brands, Inc. (the “Company”) on Form 10-Q for the period ended October 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, H. Andrew Fulmer, the Executive Vice President, Chief Financial Officer, and Treasurer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
Date: December 5, 2024 |
|
By: |
/s/ H. Andrew Fulmer |
|
|
|
H. Andrew Fulmer |
|
|
|
Executive Vice President, Chief Financial Officer, and Treasurer |
This certification accompanies the Quarterly Report on Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission, and is not to be incorporated by reference into any filing of American Outdoor Brands, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing.