American Outdoor Brands, Inc. Reports Fourth Quarter and Full Fiscal 2024 Financial Results
American Outdoor Brands (NASDAQ: AOUT) reported FY24 net sales of $201.1 million, a 5.2% increase from the prior year. Traditional channel sales grew 12.3%, while e-commerce sales declined 3.3%. Gross margin was 44.0%, down from 46.1% last year due to tariff and freight costs. The GAAP net loss was $12.2 million ($0.94 per diluted share), slightly higher than $12.0 million ($0.90 per diluted share) last year. Non-GAAP net income was $4.3 million ($0.32 per diluted share), a decrease from $6.6 million ($0.48 per diluted share). Adjusted EBITDAS dropped to $9.8 million from $12.8 million. Quarterly net sales rose 9.7% to $46.3 million. Quarterly GAAP net loss was $5.3 million ($0.42 per diluted share), up from $3.8 million ($0.29 per diluted share). CEO Brian Murphy highlighted strategic growth and product innovation as key drivers for fiscal 2024.
- FY24 net sales grew by 5.2% to $201.1 million.
- Traditional channel sales increased by 12.3%.
- Operating cash flow for FY24 was $24.5 million.
- Quarterly net sales rose by 9.7% to $46.3 million.
- New products contributed over 23% of net sales.
- Expanded presence in Canada and the retail channel.
- GAAP gross margin decreased from 46.1% to 44.0%.
- GAAP net loss for FY24 was $12.2 million, slightly higher than last year.
- Non-GAAP net income dropped from $6.6 million to $4.3 million.
- Adjusted EBITDAS decreased from $12.8 million to $9.8 million.
- E-commerce sales declined by 3.3% for the fiscal year.
- Quarterly GAAP net loss increased to $5.3 million from $3.8 million.
Insights
The financial results for American Outdoor Brands provide a mixed bag for investors. Net sales growth of
Gross margins fell slightly, both GAAP and non-GAAP, which is attributable to higher tariff and freight costs, along with promotional discounts. The non-GAAP net income of
The company's balance sheet remains strong with
Retail investors should consider the implications of declining margins and e-commerce sales while appreciating the company’s efforts in traditional sales growth and balance sheet management.
The focus on innovation and expanding market presence, particularly in Canada and new product categories, is a strong strategic move. The expansion of MEAT! Your Maker and Grilla brands into the retail channel shows a proactive approach to market penetration. The increase in new product sales, which account for
However, the drop in e-commerce sales by
Overall, the strong growth in traditional channels and international markets shows promise for future growth, but investors should remain cautious about the performance of their online sales strategy.
• FY24 Net Sales
• FY24 Gross Margin
• FY24 Traditional Channel Sales
• FY24 E-Commerce Channel Sales
• FY24 Operating Cash Flow
Full Year Fiscal 2024 Financial Highlights
- Full year net sales were
$201.1 million $9.9 million 5.2% , compared with net sales of$191.2 million 12.3% was partially offset by a slight decrease in e-commerce channel net sales of3.3% . - Full year GAAP gross margin was
44.0% , compared to46.1% for the prior year. Full year non-GAAP gross margin was44.5% , compared to46.2% for the prior year. Gross margin was impacted by the amortization in the second half of fiscal 2024 of tariff and freight costs stemming from higher inventory purchases that occurred in the first half of fiscal 2024, higher promotional product discounts, as well as an immaterial adjustment to a tariff drawback claim submitted in fiscal 2022. For a detailed reconciliation, see the schedules that follow in this release. - Full year GAAP net loss was
$12.2 million $0.94 $12.0 million $0.90 - Full year non-GAAP net income was
$4.3 million $0.32 $6.6 million $0.48 - Full year Adjusted EBITDAS was
$9.8 million 4.9% of net sales, compared with Adjusted EBITDAS of$12.8 million 6.7% of net sales, for the prior year. For a detailed reconciliation, see the schedules that follow in this release.
Fourth Quarter Fiscal 2024 Financial Highlights
- Quarterly net sales were
$46.3 million $4.1 million 9.7% , compared with net sales of$42.2 million 26.3% was partially offset by a decline in e-commerce net sales of9.6% . - Quarterly GAAP gross margin was
41.9% , compared with quarterly gross margin of45.2% for the comparable quarter last year. Quarterly non-GAAP gross margin was44.3% , compared with45.2% for the comparable quarter last year. Gross margin was impacted by the amortization of tariff and freight costs stemming from higher inventory purchases that occurred in the first half of fiscal 2024, higher promotional product discounts, as well as an immaterial adjustment to a tariff drawback claim submitted in fiscal 2022. For a detailed reconciliation, see the schedules that follow in this release. - Quarterly GAAP net loss was
$5.3 million $0.42 $3.8 million $0.29 - Quarterly non-GAAP net loss was
$45,000 $0.00 $793,000 $0.06 - Quarterly non-GAAP Adjusted EBITDAS was
$1.0 million 2.2% of net sales, compared with$1.8 million 4.3% of net sales, for the comparable quarter last year. For a detailed reconciliation, see the schedules that follow in this release.
Brian Murphy, President and Chief Executive Officer, said, "I am very pleased with our performance for fiscal 2024, a year in which we delivered year-over-year net sales growth that exceeded our expectations and achieved several strategic milestones which, we believe, position our company and our brands well for the future. Innovation remains core to our strategy, and in fiscal 2024, innovation helped drive growth by allowing us to forge strong relationships with our consumers and retailers and expand our access to new markets. Our results were especially notable given the environment of consumer uncertainty that characterized fiscal 2024."
"Net sales in the year grew more than
Andrew Fulmer, Chief Financial Officer, said, "In fiscal 2024, we grew our business, invested in our future, and demonstrated disciplined capital management. We delivered net sales growth, strengthened our balance sheet, lowered our product inventories both internally and within the channel, and continued to return cash to stockholders through our share repurchase program. We ended the year with
Conference Call and Webcast
The Company will host a conference call and webcast today, June 27, 2024, to discuss its fourth quarter and full year fiscal 2024 financial and operational results. Speakers on the conference call will include Brian Murphy, President and Chief Executive Officer, and Andrew Fulmer, Chief Financial Officer. The conference call may include forward-looking statements and a discussion of non-GAAP financial measures. The conference call and webcast will begin at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Those interested in listening to the conference call via telephone may call directly at (833) 630-1956 and ask to join the American Outdoor Brands call. No RSVP is necessary. The conference call audio webcast can also be accessed live on the Company's website at www.aob.com, under the Investor Relations section.
Reconciliation of
In this press release, certain non-GAAP financial measures, including "non-GAAP net income" and "Adjusted EBITDAS" are presented. A reconciliation of these and other non-GAAP financial measures are contained at the end of this press release. From time to time, the Company considers and uses these non-GAAP financial measures as supplemental measures of operating performance in order to provide the reader with an improved understanding of underlying performance trends. The Company believes it is useful for itself and the reader to review, as applicable, both (1) GAAP measures that include (i) amortization of acquired intangible assets, (ii) stock compensation, (iii) facility consolidation costs, (iv) technology implementation, (v) acquisition costs, (vi) stockholder cooperation agreement costs, (vii) income tax adjustments, (viii) interest expense, (ix) income tax expense, (x) tariff drawback adjustment, and (xi) depreciation and amortization; and (2) the non-GAAP measures that exclude such information. The Company presents these non-GAAP measures because it considers them an important supplemental measure of its performance and believes the disclosure of such measures provides useful information to investors regarding the Company's financial condition and results of operations. The Company's definition of these adjusted financial measures may differ from similarly named measures used by others. The Company believes these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company's GAAP measures. The principal limitations of these measures are that they do not reflect the Company's actual expenses and may thus have the effect of inflating its financial measures on a GAAP basis.
About American Outdoor Brands, Inc.
American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT) is an industry leading provider of outdoor products and accessories, including hunting, fishing, camping, shooting, outdoor cooking, and personal security and defense products, for rugged outdoor enthusiasts. The Company produces innovative, high quality products under brands including BOG®; BUBBA®;
Safe Harbor Statement
Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. All statements other than statements of historical facts contained or incorporated herein by reference in this press release, including statements regarding our future operating results, future financial position, business strategy, objectives, goals, plans, prospects, markets, and plans and objectives for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "anticipates," "believes," "estimates," "expects," "intends," "targets," "contemplates," "projects," "predicts," "may," "might," "plan," "would," "should," "could," "may," "can," "potential," "continue," "objective," or the negative of those terms, or similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. Specific forward-looking statements in this press release include our belief that our company and brands are positioned well for the future; our expectation that both traditional and online retailers will seek out strong and innovative brands to help drive consumer foot traffic and deliver an enhanced consumer experience; our belief that our company remains well positioned to deliver growth in both net sales and profitability in fiscal 2025. We caution that these statements are qualified by important risks, uncertainties, and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, potential disruptions in our ability to source the materials necessary for the production of our products, disruptions and delays in the manufacture of our products, and difficulties encountered by retailers and other components of the distribution channel for our products; economic, social, political, legislative, and regulatory factors; lawsuits and their effect on us; inventory levels, both internally and in the distribution channel, in excess of demand; natural disasters, pandemics, seasonality, news events, political events, and consumer tastes; future investments for capital expenditures; future products and product development; the features, quality, and performance of our products; the success of our strategies and marketing programs; our market share and factors that affect our market share; liquidity and anticipated cash needs and availability; the supply, availability, and costs of materials and components and related tariffs; our ability to maintain and enhance brand recognition and reputation; risks associated with the distribution of our products and overall availability of labor; and other factors detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2024.
AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES | |||
CONSOLIDATED BALANCE SHEETS | |||
As of: | |||
April 30,2024 | April 30, 2023 | ||
(In thousands, except par value and share data) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 29,698 | $ 21,950 | |
Accounts receivable, net of allowance for credit losses of | 25,728 | 26,846 | |
Inventories | 93,315 | 99,734 | |
Prepaid expenses and other current assets | 6,410 | 7,839 | |
Income tax receivable | 223 | 1,251 | |
Total current assets | 155,374 | 157,620 | |
Property, plant, and equipment, net | 11,038 | 9,488 | |
Intangible assets, net | 40,217 | 52,021 | |
Right-of-use assets | 33,564 | 24,198 | |
Other assets | 404 | 260 | |
Total assets | $ 240,597 | $ 243,587 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 14,198 | $ 11,544 | |
Accrued expenses | 9,687 | 8,741 | |
Accrued payroll and incentives | 4,167 | 1,813 | |
Lease liabilities, current | 1,331 | 904 | |
Total current liabilities | 29,383 | 23,002 | |
Notes and loans payable | — | 4,623 | |
Lease liabilities, net of current portion | 33,289 | 24,064 | |
Other non-current liabilities | — | 34 | |
Total liabilities | 62,672 | 51,723 | |
Commitments and contingencies | |||
Equity: | |||
Preferred stock, | — | — | |
Common stock, | 15 | 14 | |
Additional paid in capital | 277,107 | 272,784 | |
Retained deficit | (74,623) | (62,375) | |
Treasury stock, at cost (1,903,415 shares on April 30, 2024 and | (24,574) | (18,559) | |
Total equity | 177,925 | 191,864 | |
Total liabilities and equity | $ 240,597 | $ 243,587 | |
AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(In thousands, except per share data) | ||||||||
For the Three Months Ended April 30, | For the Years Ended April 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(Unaudited) | ||||||||
Net sales | $ 46,299 | $ 42,203 | $ 201,099 | $ 191,209 | ||||
Cost of sales | 26,915 | 23,129 | 112,673 | 103,145 | ||||
Gross profit | 19,384 | 19,074 | 88,426 | 88,064 | ||||
Operating expenses: | ||||||||
Research and development | 1,785 | 1,474 | 6,851 | 6,361 | ||||
Selling, marketing, and distribution | 13,117 | 11,565 | 55,050 | 51,791 | ||||
General and administrative | 9,988 | 10,038 | 39,022 | 42,612 | ||||
Total operating expenses | 24,890 | 23,077 | 100,923 | 100,764 | ||||
Operating loss | (5,506) | (4,003) | (12,497) | (12,700) | ||||
Other (expense)/income, net: | ||||||||
Other (expense)/income, net | (4) | 136 | 140 | 1,188 | ||||
Interest income/(expense), net | 110 | (120) | 39 | (761) | ||||
Total other (expense)/income, net | 106 | 16 | 179 | 427 | ||||
Loss from operations before income taxes | (5,400) | (3,987) | (12,318) | (12,273) | ||||
Income tax benefit | (98) | (151) | (70) | (249) | ||||
Net loss | $ (5,302) | $ (3,836) | $ (12,248) | $ (12,024) | ||||
Net loss per share: | ||||||||
Basic | $ (0.42) | $ (0.29) | $ (0.94) | $ (0.90) | ||||
Diluted | $ (0.42) | $ (0.29) | $ (0.94) | $ (0.90) | ||||
AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
For the Years Ended April 30, | |||
2024 | 2023 | ||
(In thousands) | |||
Cash flows from operating activities: | |||
Net loss | $ (12,248) | $ (12,024) | |
Adjustments to reconcile net loss to net cash provided by | |||
Depreciation and amortization | 16,101 | 16,511 | |
Loss on sale/disposition of assets | 7 | 94 | |
Provision for credit losses on accounts receivable | 8 | (11) | |
Stock-based compensation expense | 4,075 | 4,050 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,110 | 2,044 | |
Inventories | 6,419 | 21,949 | |
Accounts payable | 2,873 | (1,308) | |
Accrued liabilities | 3,300 | (1,085) | |
Other | 2,846 | 486 | |
Net cash provided by operating activities | 24,491 | 30,706 | |
Cash flows from investing activities: | |||
Payments to acquire patents and software | (1,340) | (3,555) | |
Proceeds from sale of property and equipment | 131 | 30 | |
Payments to acquire property and equipment | (4,767) | (1,301) | |
Net cash used in investing activities | (5,976) | (4,826) | |
Cash flows from financing activities: | |||
Payments on notes and loans payable | (5,000) | (20,170) | |
Payments to acquire treasury stock | (6,015) | (3,534) | |
Cash paid for debt issuance costs | — | (88) | |
Proceeds from exercise of options to acquire common stock, | 671 | 656 | |
Payment of employee withholding tax related to restricted stock units | (423) | (315) | |
Net cash used in financing activities | (10,767) | (23,451) | |
Net increase in cash and cash equivalents | 7,748 | 2,429 | |
Cash and cash equivalents, beginning of period | 21,950 | 19,521 | |
Cash and cash equivalents, end of period | $ 29,698 | $ 21,950 | |
Supplemental disclosure of cash flow information | |||
Cash paid for: | |||
Interest | $ 307 | $ 761 | |
Income taxes (net of refunds) | $ (978) | $ (73) | |
AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES | ||||||||
For the Three Months Ended April 30, | For the Years Ended April 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
GAAP gross profit | $ 19,384 | $ 19,074 | $ 88,426 | $ 88,064 | ||||
Facility consolidation costs | — | — | — | 356 | ||||
Tariff drawback adjustment | 1,113 | — | 1,113 | — | ||||
Non-GAAP gross profit | $ 20,497 | $ 19,074 | $ 89,539 | $ 88,420 | ||||
GAAP operating expenses | $ 24,890 | $ 23,077 | $ 100,923 | $ 100,764 | ||||
Amortization of acquired intangible assets | (2,960) | (3,074) | (11,842) | (12,298) | ||||
Stock compensation | (1,005) | (1,150) | (4,075) | (4,050) | ||||
Facility consolidation costs | — | (26) | — | (510) | ||||
Technology implementation | — | (553) | (465) | (2,138) | ||||
Acquisition costs | — | — | — | (47) | ||||
Stockholder cooperation agreement costs | — | — | — | (1,177) | ||||
Other | (264) | — | (468) | — | ||||
Non-GAAP operating expenses | $ 20,661 | $ 18,274 | $ 84,073 | $ 80,544 | ||||
GAAP operating loss | $ (5,506) | $ (4,003) | $ (12,497) | $ (12,700) | ||||
Amortization of acquired intangible assets | 2,960 | 3,074 | 11,842 | 12,298 | ||||
Stock compensation | 1,005 | 1,150 | 4,075 | 4,050 | ||||
Facility consolidation costs | — | 26 | — | 866 | ||||
Technology implementation | — | 553 | 465 | 2,138 | ||||
Tariff drawback adjustment | 1,113 | — | 1,113 | — | ||||
Acquisition costs | — | — | — | 47 | ||||
Stockholder cooperation agreement costs | — | — | — | 1,177 | ||||
Other | 264 | — | 468 | — | ||||
Non-GAAP operating (loss)/ income | $ (164) | $ 800 | $ 5,466 | $ 7,876 | ||||
GAAP net loss | $ (5,302) | $ (3,836) | $ (12,248) | $ (12,024) | ||||
Amortization of acquired intangible assets | 2,960 | 3,074 | 11,842 | 12,298 | ||||
Stock compensation | 1,005 | 1,150 | 4,075 | 4,050 | ||||
Facility consolidation costs | — | 26 | — | 866 | ||||
Technology implementation | — | 553 | 465 | 2,138 | ||||
Tariff drawback adjustment | 1,113 | — | 1,113 | — | ||||
Acquisition costs | — | — | — | 47 | ||||
Stockholder cooperation agreement costs | — | — | — | 1,177 | ||||
Other | 264 | — | 468 | — | ||||
Income tax adjustments | (85) | (174) | (1,369) | (1,993) | ||||
Non-GAAP net (loss)/income | $ (45) | $ 793 | $ 4,346 | $ 6,559 | ||||
GAAP net loss per share - diluted | $ (0.42) | $ (0.29) | $ (0.94) | $ (0.90) | ||||
Amortization of acquired intangible assets | 0.23 | 0.23 | 0.91 | 0.92 | ||||
Stock compensation | 0.08 | 0.09 | 0.31 | 0.30 | ||||
Facility consolidation costs | — | — | — | 0.06 | ||||
Technology implementation | — | 0.04 | 0.03 | 0.16 | ||||
Tariff drawback adjustment | 0.09 | — | 0.09 | — | ||||
Acquisition costs | — | — | — | — | ||||
Stockholder cooperation agreement costs | — | — | — | 0.09 | ||||
Other | 0.02 | — | 0.04 | — | ||||
Income tax adjustments | (0.01) | (0.01) | (0.11) | (0.15) | ||||
Non-GAAP net income per share - diluted | $ - | (a) | $ 0.06 | $ 0.32 | (a) | $ 0.48 | ||
(a) Non-GAAP net income per share does not foot due to rounding. | ||||||||
AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES | |||||||||||
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDAS | |||||||||||
For the Three Months Ended April 30, | For the Years Ended April 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
GAAP net loss | $ | (5,302) | $ | (3,836) | $ | (12,248) | $ | (12,024) | |||
Interest (income)/expense | (110) | 120 | (39) | 761 | |||||||
Income tax benefit | (98) | (151) | (70) | (249) | |||||||
Depreciation and amortization | 4,157 | 3,933 | 16,005 | 16,048 | |||||||
Stock compensation | 1,005 | 1,150 | 4,075 | 4,050 | |||||||
Technology implementation | — | 553 | 465 | 2,138 | |||||||
Acquisition costs | — | — | — | 47 | |||||||
Tariff drawback adjustment | 1,113 | — | 1,113 | — | |||||||
Facility consolidation costs | — | 26 | — | 866 | |||||||
Stockholder cooperation agreement costs | — | — | — | 1,177 | |||||||
Other | 264 | — | 468 | — | |||||||
Non-GAAP Adjusted EBITDAS | $ | 1,029 | $ | 1,795 | $ 9,769 | $ 12,814 | |||||
Contact:
Liz Sharp, VP, Investor Relations
lsharp@aob.com
(573) 303-4620
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SOURCE American Outdoor Brands, Inc.
FAQ
What were the FY24 net sales for American Outdoor Brands (AOUT)?
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