SPRINGFIELD, Mass.,
March 7, 2019 /PRNewswire/ --
American Outdoor Brands Corporation (NASDAQ Global Select:
AOBC), one of the world's leading providers of firearms and quality
products for the shooting, hunting, and rugged outdoor enthusiast,
today announced financial results for the third quarter fiscal
2019, ended January 31, 2019.
Third Quarter Fiscal 2019 Financial Highlights
- Quarterly net sales were $162.0
million compared with $157.4
million for the third quarter last year, an increase of
2.9%.
- Gross margin for the quarter was 33.4% compared with 29.8% for
the third quarter last year.
- Based upon long-term sales forecasts for its Electro-Optics
operating unit, the company has decided to restructure and combine that business with
its Outdoor Products & Accessories operating unit in order to
drive efficiencies and increase operating performance. As a
result of those forecasts, the company conducted an evaluation to
assess the fair value of the Electro-Optics operating unit and, as
a result, recorded a $10.4 million
partial impairment of the goodwill in that operating unit during
the third quarter.
- Including that impairment, the company recorded a quarterly
GAAP net loss of $5.7 million, or
$(0.10) per diluted share, compared
with $11.4 million, or $0.21 per diluted share, for the comparable
quarter last year. Prior year GAAP results included a
one-time, tax reform benefit of $0.17. Excluding the impairment, quarterly
GAAP net income in the current third quarter would have been
$4.7 million, or $0.09 per diluted share.
- Quarterly Non-GAAP net income was $8.9
million, or $0.16 per diluted
share, compared with $4.7 million, or
$0.09 per diluted share, for the
comparable quarter last year. GAAP to non-GAAP adjustments to net
income exclude a number of acquisition-related costs, including
amortization, one-time transaction costs, fair value inventory
step-up expense, one-time tax reform benefits, and the goodwill
impairment from the Electro-Optics division. For a detailed
reconciliation, see the schedules that follow in this release.
- Quarterly non-GAAP Adjusted EBITDAS improved to $24.4 million, or 15.0% of net sales, compared
with $20.0 million, or 12.7% of net
sales, for the comparable quarter last year.
James Debney, American Outdoor
Brands Corporation President and Chief Executive Officer, said,
"Our third quarter results reflect year-over-year increases in
revenue and operating profit, as well as important progress on our
new Logistics & Customer Services facility in Missouri.
In our Outdoor Products & Accessories segment, sales growth in
our Hunting & Shooting product categories, as well as our
Cutlery & Tool product categories, came from a variety of
retailers, particularly our online retailers. That growth, however,
was more than offset by lower sales in our Electro-Optics division,
driven by ongoing weakness in the firearms market. In order
to address that situation, we are restructuring the Outdoor Products &
Accessories segment by combining our Electro-Optics division with
our Outdoor Products & Accessories division, which will allow
us to focus on improving operating efficiencies via our existing
supply chain, while continuing to deliver the innovation and
quality that our industry-leading Crimson Trace brand has earned
under the leadership of Lane
Tobiassen. In connection with this restructuring, I am pleased to announce that
Lane has been promoted to President of our Firearms Division, a
role that I have occupied on an interim basis. With 14 years
of leadership experience in the firearms industry, Lane has earned
tremendous respect within our company and throughout the industry,
and I am excited to add his leadership, energy, and innovative
spirit to our firearms team. Within the Firearms segment,
revenue growth reflected ongoing consumer preference for several of
our M&P branded firearms, combined with the success of our
'bundle' promotions, which were booked earlier in the year and
continued to ship in the third quarter. We attended SHOT Show
2019 in January and introduced more than 250 new products from
across all of our divisions. Product innovation remains an
important component in our long-term strategy."
"The ramp up of initial operations at our new Logistics &
Customer Services facility in Missouri is well underway and on track.
This 633,000 square foot, state-of-the-art facility will serve as
our centralized logistics, warehousing, and distribution operation
for all of our products, facilitating our growth, enhancing our
efficiencies, and allowing us to better serve customers across our
entire organization. This is an important strategic initiative
supporting our objective to be the leading provider of quality
products for the shooting, hunting, and rugged outdoor
enthusiast."
Jeff Buchanan, Executive Vice
President, Chief Financial Officer, and Chief Administrative
Officer, commented, "For the nine months ending January 2019, we had positive operating cash flow
of $20.7 million, as compared with
cash outflow of $4.5 million for the
nine months ending January 2018. During the quarter, we had
$25.0 million outstanding on our
$350 million line of credit, which is
expandable to $500 million. Our
balance sheet remains strong with approximately $37.5 million of cash and approximately
$146.0 million of total net
borrowings, as compared with approximately $200.0 million of net borrowings at the end of
the comparable quarter last year."
Financial Outlook
AMERICAN OUTDOOR
BRANDS CORPORATION
|
NET SALES AND
EARNINGS PER SHARE GUIDANCE, INCLUDING GAAP TO NON-GAAP
RECONCILIATION
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Range for the
Three Months Ending April 30, 2019
|
|
Range for the Year
Ending April 30, 2019
|
Net sales (in
thousands)
|
$ 162,000
|
|
$ 172,000
|
|
$ 625,000
|
|
$ 635,000
|
|
|
|
|
|
|
|
|
GAAP income per share
- diluted
|
$
0.03
|
|
$
0.07
|
|
$
0.19
|
|
$
0.23
|
Amortization of
acquired intangible assets
|
0.11
|
|
0.11
|
|
0.41
|
|
0.41
|
Inventory step-up
expense
|
—
|
|
—
|
|
0.01
|
|
0.01
|
Goodwill
impairment
|
—
|
|
—
|
|
0.19
|
|
0.19
|
Transition
costs
|
—
|
|
—
|
|
0.01
|
|
0.01
|
Tax effect of
non-GAAP adjustments
|
(0.03)
|
|
(0.03)
|
|
(0.12)
|
|
(0.12)
|
Non-GAAP income per
share - diluted
|
$
0.11
|
|
$
0.15
|
|
$
0.69
|
|
$
0.73
|
Conference Call and Webcast
The company will host a conference call and webcast today,
March 7, 2019, to discuss its third
quarter fiscal 2019 financial and operational results. Speakers on
the conference call will include James
Debney, President and Chief Executive Officer, and
Jeffrey D. Buchanan, Executive Vice
President, Chief Financial Officer, and Chief Administrative
Officer. The conference call may include forward-looking
statements. The conference call and webcast will begin at
5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Those interested in
listening to the conference call via telephone may call directly at
(844) 309-6568 and reference conference identification number
9683518. No RSVP is necessary. The conference call
audio webcast can also be accessed live and for replay on the
company's website at www.aob.com, under the Investor Relations
section. The company will maintain an audio replay of this
conference call on its website for a period after the call. No
other audio replay will be available.
Reconciliation of U.S. GAAP to Non-GAAP Financial
Measures
In this press release, certain non-GAAP financial measures,
including "non-GAAP net income," "Adjusted EBITDAS," and "free cash
flow" are presented. From time-to-time, the company considers and
uses these supplemental measures of operating performance in order
to provide the reader with an improved understanding of underlying
performance trends. The company believes it is useful for
itself and the reader to review, as applicable, both (1) GAAP
measures that include (i) amortization of acquired intangible
assets, (ii) transition costs, (iii) acquisition-related costs,
(iv) fair value inventory step-up, (v) the tax effect of non-GAAP
adjustments, (vi) net cash (used in)/provided by operating
activities, (vii) net cash used in investing activities, (viii)
acquisition of businesses, net of cash acquired, (ix) interest
expense (x) income tax (benefit)/expense, (xi) depreciation and
amortization, (xii) stock-based compensation expenses, (xiii)
changes in contingent consideration; and (xiv) goodwill impairment;
and (2) the non-GAAP measures that exclude such information. The
company presents these non-GAAP measures because it considers them
an important supplemental measure of its performance. The company's
definition of these adjusted financial measures may differ from
similarly named measures used by others. The company believes these
measures facilitate operating performance comparisons from period
to period by eliminating potential differences caused by the
existence and timing of certain expense items that would not
otherwise be apparent on a GAAP basis. These non-GAAP
measures have limitations as an analytical tool and should not be
considered in isolation or as a substitute for the company's GAAP
measures. The principal limitations of these measures are
that they do not reflect the company's actual expenses and may thus
have the effect of inflating its financial measures on a GAAP
basis.
About American Outdoor Brands Corporation
American Outdoor Brands Corporation (NASDAQ Global Select: AOBC) is
a provider of quality products for shooting, hunting, and rugged
outdoor enthusiasts in the global consumer and professional
markets. The Company reports two segments: Firearms and Outdoor
Products & Accessories. Firearms manufactures handgun,
long gun, and suppressor products sold under the Smith &
Wesson®, M&P®, Thompson/Center
Arms™, and Gemtech® brands, as well as provides forging, machining,
and precision plastic injection molding services. AOB Outdoor
Products & Accessories is the industry leading provider of
shooting, reloading, gunsmithing, gun cleaning supplies, specialty
tools and cutlery, and electro-optics products and technology for
firearms. We produce innovative, top quality products under the
brands Caldwell®; Wheeler®; Tipton®; Frankford Arsenal®; Lockdown®;
BOG®; Hooyman®; Smith & Wesson® Accessories; M&P®
Accessories; Thompson/Center Arms™
Accessories; Schrade®; Old Timer®; Uncle Henry®; Imperial®; BUBBA®;
UST®; Lasergrips®, Laserguard®, LiNQ®, Lightguard®, Defender
Series™, Rail Master®, and LaserLyte®. For more information
on American Outdoor Brands Corporation, call (844) 363-5386 or log
on to www.aob.com.
Safe Harbor Statement
Certain statements contained in this press release may be deemed to
be forward-looking statements under federal securities laws, and we
intend that such forward-looking statements be subject to the
safe-harbor created thereby. Such forward-looking statements
include, among others, our long-term strategy of being the leading
provider of quality products for the shooting, hunting, and rugged
outdoor enthusiast; our belief that our new logistics and customer
service facility will serve as our centralized logistics,
warehousing, and distribution operation for all of our products,
enabling us to facilitate growth, enhance efficiencies, and better
serve customers across our entire organization; our belief that
combining our Electro-Optics business with our Outdoor Products
& Accessories business will improve operating efficiencies via
our existing supply chain; and our expectations for net sales,
GAAP income per diluted share, amortization of acquired intangible
assets, inventory step-up expense, goodwill impairment, transition costs, tax
effect of non-GAAP adjustments, and non-GAAP income per diluted
share for the fourth quarter of fiscal 2019 and for fiscal
2019. We caution that these statements are qualified by
important risks, uncertainties and other factors that could cause
actual results to differ materially from those reflected by such
forward-looking statements. Such factors include, among
others, economic, social, political, legislative, and regulatory
factors; the potential for increased regulation of firearms and
firearm-related products; actions of social activists that could
have an adverse effect on our business; the impact of lawsuits; the
demand for our products; the state of the U.S. economy in general
and the firearm industry in particular; general economic conditions
and consumer spending patterns; our competitive environment; the
supply, availability and costs of raw materials and components;
speculation surrounding fears of terrorism and crime; our
anticipated growth and growth opportunities; our ability to
increase demand for our products in various markets, including
consumer, law enforcement, and military channels, domestically and
internationally; our penetration rates in new and existing markets;
our strategies; our ability to maintain and enhance brand
recognition and reputation; risks associated with the establishment
of our new 633,000 square foot national logistics and customer
service facility; our ability to introduce new products; the
success of new products; our ability to expand our markets; our
ability to integrate acquired businesses in a successful manner;
the general growth of our outdoor products and accessories
business; the potential for cancellation of orders from our
backlog; and other risks detailed from time to time in our reports
filed with the SEC, including our Annual Report on Form 10-K for
the fiscal year ended April 30,
2018.
Contact: Liz Sharp, VP Investor Relations
American Outdoor Brands Corporation
(413) 747-6284
lsharp@aob.com
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
As
of:
|
|
January 31,
2019
|
|
April 30,
2018
|
|
(In thousands, except
par value and share data)
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
37,470
|
|
$
48,860
|
Accounts receivable,
net of allowance for doubtful accounts of $1,943 on January
31, 2019 and $1,824 on April 30, 2018
|
75,493
|
|
56,676
|
Inventories
|
173,515
|
|
153,353
|
Prepaid expenses and
other current assets
|
7,602
|
|
6,893
|
Income tax
receivable
|
3,327
|
|
4,582
|
Total current
assets
|
297,407
|
|
270,364
|
Property,
plant, and equipment, net
|
185,599
|
|
159,125
|
Intangibles,
net
|
97,208
|
|
112,760
|
Goodwill
|
182,101
|
|
191,287
|
Other
assets
|
10,523
|
|
11,524
|
|
$
772,838
|
|
$
745,060
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
33,895
|
|
$
33,617
|
Accrued expenses and
deferred revenue
|
37,515
|
|
41,632
|
Accrued payroll and
incentives
|
16,329
|
|
10,514
|
Accrued income
taxes
|
404
|
|
513
|
Accrued profit
sharing
|
1,580
|
|
1,283
|
Accrued
warranty
|
5,273
|
|
6,823
|
Current portion of
notes and loans payable
|
6,300
|
|
6,300
|
Total current
liabilities
|
101,296
|
|
100,682
|
Deferred income
taxes
|
11,118
|
|
12,895
|
Notes and loans
payable, net of current portion
|
175,902
|
|
180,304
|
Capital lease
payable, net of current portion
|
45,580
|
|
22,143
|
Other non-current
liabilities
|
6,955
|
|
6,888
|
Total
liabilities
|
340,851
|
|
322,912
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$.001 par value, 20,000,000 shares authorized, no shares
issued or outstanding
|
—
|
|
—
|
Common stock,
$.001 par value, 100,000,000 shares authorized,
72,715,052 shares issued and 54,548,190 shares outstanding on
January 31, 2019 and 72,433,705 shares issued and 54,266,843
shares outstanding on April 30, 2018
|
73
|
|
72
|
Additional paid-in
capital
|
260,212
|
|
253,616
|
Retained
earnings
|
393,122
|
|
389,146
|
Accumulated other
comprehensive income
|
955
|
|
1,689
|
Treasury stock, at
cost (18,166,862 shares on January 31, 2019 and April 30,
2018)
|
(222,375)
|
|
(222,375)
|
Total stockholders'
equity
|
431,987
|
|
422,148
|
|
$
772,838
|
|
$
745,060
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF (LOSS)/INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
|
January 31,
2019
|
|
January 31,
2018
|
|
January 31,
2019
|
|
January 31,
2018
|
|
|
(In thousands, except
per share data)
|
Net sales
|
|
$
162,008
|
|
$
157,376
|
|
$
462,544
|
|
$
434,825
|
Cost of
sales
|
|
107,949
|
|
110,459
|
|
299,677
|
|
296,477
|
Gross
profit
|
|
54,059
|
|
46,917
|
|
162,867
|
|
138,348
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
3,297
|
|
3,148
|
|
9,358
|
|
8,680
|
Selling and
marketing
|
|
15,373
|
|
16,142
|
|
42,279
|
|
43,210
|
General and
administrative
|
|
27,026
|
|
21,785
|
|
78,065
|
|
75,826
|
Goodwill
Impairment
|
|
10,396
|
|
—
|
|
10,396
|
|
—
|
Total operating
expenses
|
|
56,092
|
|
41,075
|
|
140,098
|
|
127,716
|
Operating
(loss)/income
|
|
(2,033)
|
|
5,842
|
|
22,769
|
|
10,632
|
Other
(expense)/income, net:
|
|
|
|
|
|
|
|
|
Other
income/(expense), net
|
|
47
|
|
87
|
|
38
|
|
1,382
|
Interest expense,
net
|
|
(2,548)
|
|
(2,999)
|
|
(6,822)
|
|
(8,353)
|
Total other
(expense)/income, net
|
|
(2,501)
|
|
(2,912)
|
|
(6,784)
|
|
(6,971)
|
(Loss)/income from operations
before income taxes
|
|
(4,534)
|
|
2,930
|
|
15,985
|
|
3,661
|
Income tax
expense/(benefit)
|
|
1,191
|
|
(8,465)
|
|
7,399
|
|
(8,803)
|
Net
(loss)/income
|
|
(5,725)
|
|
11,395
|
|
8,586
|
|
12,464
|
Net (loss)/income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.10)
|
|
$
0.21
|
|
$
0.16
|
|
$
0.23
|
Diluted
|
|
$
(0.10)
|
|
$
0.21
|
|
$
0.16
|
|
$
0.23
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
54,544
|
|
54,122
|
|
54,444
|
|
54,024
|
Diluted
|
|
54,544
|
|
54,657
|
|
55,132
|
|
54,830
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
For the Nine
Months Ended
|
|
January 31,
2019
|
|
January 31,
2018
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
8,586
|
|
$
12,464
|
Adjustments to
reconcile net income to net cash provided by/(used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
39,624
|
|
38,775
|
(Loss)/gain on
sale/disposition of assets
|
(1,033)
|
|
36
|
Provision for losses
on accounts receivable
|
832
|
|
304
|
Goodwill
impairment
|
10,396
|
|
—
|
Deferred income
taxes
|
(1,519)
|
|
(10,622)
|
Change in fair value
of contingent consideration
|
(60)
|
|
(1,300)
|
Stock-based
compensation expense
|
6,070
|
|
5,764
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(19,347)
|
|
34,103
|
Inventories
|
(20,186)
|
|
(25,914)
|
Prepaid expenses and
other current assets
|
(591)
|
|
(803)
|
Income
taxes
|
1,146
|
|
931
|
Accounts
payable
|
664
|
|
(20,385)
|
Accrued payroll and
incentives
|
5,815
|
|
(11,197)
|
Accrued profit
sharing
|
297
|
|
(12,404)
|
Accrued expenses and
deferred revenue
|
(8,532)
|
|
(14,667)
|
Accrued
warranty
|
(1,550)
|
|
201
|
Other
assets
|
10
|
|
(403)
|
Other non-current
liabilities
|
123
|
|
613
|
Net cash provided
by/(used in) operating activities
|
20,745
|
|
(4,504)
|
Cash flows from
investing activities:
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
(1,791)
|
|
(23,120)
|
Payments to acquire
patents and software
|
(355)
|
|
(384)
|
Proceeds from sale of
property and equipment
|
1,223
|
|
6
|
Payments to acquire
property and equipment
|
(25,989)
|
|
(13,956)
|
Net cash used in
investing activities
|
(26,912)
|
|
(37,454)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from loans
and notes payable
|
50,000
|
|
75,000
|
Payments on capital
lease obligation
|
(1,025)
|
|
(484)
|
Payments on notes and
loans payable
|
(54,725)
|
|
(54,725)
|
Proceeds from
exercise of options to acquire common stock, including employee
stock purchase plan
|
1,158
|
|
1,081
|
Payment of employee
withholding tax related to restricted stock units
|
(631)
|
|
(2,271)
|
Net cash (used
in)/provided by financing activities
|
(5,223)
|
|
18,601
|
Net
(decrease)/increase in cash and cash equivalents
|
(11,390)
|
|
(23,357)
|
Cash and cash
equivalents, beginning of period
|
48,860
|
|
61,549
|
Cash and cash
equivalents, end of period
|
$
37,470
|
|
$
38,192
|
Supplemental
disclosure of cash flow information
|
|
|
|
Cash paid
for:
|
|
|
|
Interest
|
$
5,554
|
|
$
8,574
|
Income
taxes
|
$
6,885
|
|
$
1,355
|
RECONCILIATION OF
GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
January 31,
2019
|
|
January 31,
2018
|
|
January 31,
2019
|
|
January 31,
2018
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
GAAP gross
profit
|
$ 54,059
|
|
33.4%
|
|
$ 46,917
|
|
29.8%
|
|
$ 162,867
|
|
35.2%
|
|
$ 138,348
|
|
31.8%
|
Fair value inventory
step-up
|
92
|
|
0.1%
|
|
137
|
|
0.1%
|
|
362
|
|
0.1%
|
|
228
|
|
0.1%
|
Non-GAAP gross
profit
|
$ 54,151
|
|
33.4%
|
|
$ 47,054
|
|
29.9%
|
|
$ 163,229
|
|
35.3%
|
|
$ 138,576
|
|
31.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$ 56,092
|
|
34.6%
|
|
$ 41,075
|
|
26.1%
|
|
$ 140,099
|
|
30.3%
|
|
$ 127,716
|
|
29.4%
|
Amortization of
acquired intangible assets
|
(5,445)
|
|
-3.4%
|
|
(5,311)
|
|
-3.4%
|
|
(16,335)
|
|
-3.5%
|
|
(15,264)
|
|
-3.5%
|
Goodwill
impairment
|
(10,396)
|
|
-6.4%
|
|
—
|
|
—
|
|
(10,396)
|
|
-2.2%
|
|
—
|
|
—
|
Transition
costs
|
(369)
|
|
-0.2%
|
|
(50)
|
|
0.0%
|
|
(751)
|
|
-0.2%
|
|
(441)
|
|
-0.1%
|
Acquisition-related
costs
|
(6)
|
|
0.0%
|
|
(79)
|
|
-0.1%
|
|
(6)
|
|
0.0%
|
|
(755)
|
|
-0.2%
|
Non-GAAP operating
expenses
|
$ 39,876
|
|
24.6%
|
|
$ 35,635
|
|
22.6%
|
|
$ 112,611
|
|
24.3%
|
|
$ 111,256
|
|
25.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
(loss)/income
|
$
(2,033)
|
|
-1.3%
|
|
$
5,842
|
|
3.7%
|
|
$
22,768
|
|
4.9%
|
|
$
10,632
|
|
2.4%
|
Fair value inventory
step-up
|
92
|
|
0.1%
|
|
137
|
|
0.1%
|
|
362
|
|
0.1%
|
|
228
|
|
0.1%
|
Amortization of
acquired intangible assets
|
5,445
|
|
3.4%
|
|
5,311
|
|
3.4%
|
|
16,335
|
|
3.5%
|
|
15,264
|
|
3.5%
|
Goodwill
impairments
|
10,396
|
|
6.4%
|
|
—
|
|
—
|
|
10,396
|
|
2.2%
|
|
—
|
|
0.0%
|
Transition
costs
|
369
|
|
0.2%
|
|
50
|
|
0.0%
|
|
751
|
|
0.2%
|
|
441
|
|
0.1%
|
Acquisition-related
costs
|
6
|
|
0.0%
|
|
79
|
|
0.1%
|
|
6
|
|
0.0%
|
|
755
|
|
0.2%
|
Non-GAAP operating
income
|
$ 14,275
|
|
8.8%
|
|
$ 11,419
|
|
7.3%
|
|
$
50,618
|
|
10.9%
|
|
$
27,320
|
|
6.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
(loss)/income
|
$
(5,725)
|
|
-3.5%
|
|
$ 11,395
|
|
7.2%
|
|
$
8,586
|
|
1.9%
|
|
$
12,464
|
|
2.9%
|
Fair value inventory
step-up
|
92
|
|
0.1%
|
|
137
|
|
0.1%
|
|
362
|
|
0.1%
|
|
228
|
|
0.1%
|
Amortization of
acquired intangible assets
|
5,445
|
|
3.4%
|
|
5,311
|
|
3.4%
|
|
16,335
|
|
3.5%
|
|
15,264
|
|
3.5%
|
Goodwill
impairment
|
10,396
|
|
6.4%
|
|
—
|
|
—
|
|
10,396
|
|
2.2%
|
|
—
|
|
—
|
Transition
costs
|
369
|
|
0.2%
|
|
50
|
|
0.0%
|
|
751
|
|
0.2%
|
|
441
|
|
0.1%
|
Acquisition-related
costs
|
6
|
|
0.0%
|
|
79
|
|
0.1%
|
|
6
|
|
0.0%
|
|
755
|
|
0.2%
|
Change in contingent
consideration
|
(60)
|
|
0.0%
|
|
—
|
|
—
|
|
(60)
|
|
0.0%
|
|
(1,300)
|
|
-0.3%
|
Tax Reform
|
—
|
|
—
|
|
(9,409)
|
|
-6.0%
|
|
—
|
|
—
|
|
(9,409)
|
|
-2.2%
|
Tax effect of
non-GAAP adjustments
|
(1,580)
|
|
-1.0%
|
|
(2,856)
|
|
-1.8%
|
|
(4,696)
|
|
-1.0%
|
|
(6,388)
|
|
-1.5%
|
Non-GAAP
net income
|
$
8,943
|
|
5.5%
|
|
$
4,707
|
|
3.0%
|
|
$
31,680
|
|
6.8%
|
|
$
12,055
|
|
2.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per
share - diluted
|
$
(0.10)
|
|
|
|
$
0.21
|
|
|
|
$
0.16
|
|
|
|
$
0.23
|
|
|
Fair value inventory
step-up
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
|
|
—
|
|
|
Amortization of
acquired intangible assets
|
0.10
|
|
|
|
0.10
|
|
|
|
0.30
|
|
|
|
0.28
|
|
|
Goodwill
impairment
|
0.19
|
|
|
|
—
|
|
|
|
0.19
|
|
|
|
—
|
|
|
Transition
costs
|
0.01
|
|
|
|
—
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Acquisition-related
costs
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
|
Change in contingent
consideration
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.02)
|
|
|
Tax Reform
|
—
|
|
|
|
(0.17)
|
|
|
|
—
|
|
|
|
(0.17)
|
|
|
Tax effect of
non-GAAP adjustments
|
(0.03)
|
|
|
|
(0.05)
|
|
|
|
(0.09)
|
|
|
|
(0.12)
|
|
|
Non-GAAP net income
per share - diluted
|
$
0.16
|
(a)
|
|
$
0.09
|
|
|
|
$
0.57
|
(a)
|
|
$
0.22
|
|
|
|
|
(a) Non-GAAP net
income per share does not foot due to rounding.
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
RECONCILIATION OF
NET OPERATING CASH FLOW TO FREE CASH FLOW
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
January 31,
2019
|
|
January 31,
2018
|
|
January 31,
2019
|
|
January 31,
2018
|
Net cash provided
by/(used in) operating activities
|
$
11,694
|
|
$
26,148
|
|
$
20,745
|
|
$
(4,504)
|
Net cash used in
investing activities
|
(8,323)
|
|
(4,327)
|
|
(26,912)
|
|
(37,454)
|
Acquisition of
businesses, net of cash acquired
|
1,791
|
|
104
|
|
1,791
|
|
23,120
|
Free cash
flow
|
5,162
|
|
$
21,925
|
|
$
(4,376)
|
|
$
(18,838)
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP NET (LOSS)/INCOME TO NON-GAAP ADJUSTED EBITDAS
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
|
January 31,
2019
|
|
January 31,
2018
|
|
January 31,
2019
|
|
January 31,
2018
|
|
|
|
|
|
|
|
|
|
GAAP net
(loss)/income
|
|
$
(5,725)
|
|
$
11,395
|
|
$
8,586
|
|
$
12,464
|
Interest
expense
|
|
2,661
|
|
3,030
|
|
7,043
|
|
8,454
|
Income tax
expense/(benefit)
|
|
1,191
|
|
(8,465)
|
|
7,399
|
|
(8,803)
|
Depreciation and
amortization
|
|
13,303
|
|
12,217
|
|
38,863
|
|
38,048
|
Stock-based
compensation expense
|
|
2,118
|
|
1,585
|
|
6,070
|
|
5,764
|
Goodwill
impairment
|
|
10,396
|
|
—
|
|
10,396
|
|
—
|
Fair value inventory
step-up
|
|
92
|
|
137
|
|
362
|
|
228
|
Acquisition-related
costs
|
|
6
|
|
79
|
|
6
|
|
755
|
Transition
costs
|
|
369
|
|
50
|
|
751
|
|
441
|
Change in contingent
consideration
|
|
(60)
|
|
—
|
|
(60)
|
|
(1,300)
|
Non-GAAP Adjusted
EBITDAS
|
|
$
24,351
|
|
$
20,028
|
|
$
79,416
|
|
$
56,051
|
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SOURCE American Outdoor Brands Corporation