SPRINGFIELD, Mass.,
Dec. 5, 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 second quarter fiscal
2020, ended October 31, 2019.
Second Quarter Fiscal 2020 Financial Highlights
- Quarterly net sales were $154.4
million compared with $161.7
million for the second quarter last year, a decrease of
4.5%. It should be noted that $8.1
million of incremental revenue in the quarter was the result
of a change required by the Tax and Trade Bureau related to the
timing of federal excise tax assessment within the company's
Firearms segment. That change had no impact on gross margin
dollars or operating expenses. Further details related to
that change are outlined in the company's Form 10-Q filed
concurrently with this press release.
- Gross margin for the quarter was 32.6% compared with 34.9% for
the comparable quarter last year.
- Quarterly GAAP net income was $1.3
million, or $0.02 per diluted
share, compared with net income of $6.7
million, or $0.12 per diluted
share, for the comparable quarter last year.
- Quarterly non-GAAP net income was $5.2
million, or $0.09 per diluted
share, compared with $11.0 million,
or $0.20 per diluted share, for the
comparable quarter last year. GAAP to non-GAAP adjustments to net
income exclude a number of acquisition-related costs and other
costs. For a detailed reconciliation, see the schedules that follow
in this release.
- Quarterly non-GAAP Adjusted EBITDAS was $20.9 million, or 13.5% of net sales, compared
with $26.7 million, or 16.5% of net
sales, for the comparable quarter last year.
James Debney, American Outdoor
Brands Corporation President and Chief Executive Officer,
commented, "During the second quarter, we remained focused on
innovation throughout our company. In firearms, we began
shipping into the channel a major new product, which will be
available to our consumer customers on December 12. In
both our firearms and our outdoor products and accessories
businesses, we prepared a large number of exciting new products for
launch at SHOT Show in January
2020."
"Subsequent to the end of the second quarter, we announced a
plan to spin-off our outdoor products and accessories business as a
tax-free stock dividend to our stockholders. We expect to complete
the transaction in the second half of calendar 2020, thereby
creating two independent publicly traded companies: Smith &
Wesson Brands, Inc. (the firearm
business) and American Outdoor Brands, Inc. (the outdoor products
and accessories business), each of which are leaders in their
industries. We believe the spin-off will drive long-term
value for our stockholders by enabling the management team of each
company to focus on its specific strategies, including structuring
its business to take advantage of growth opportunities in its
specific markets; tailoring its business operation and financial
model to its specific long-term strategies; and aligning its
external financial resources, such as stock, access to markets,
credit, and insurance factors, with its particular type of
business. In order to provide our stockholders with better
visibility into each of these businesses, we will begin providing
revenue guidance for each business, beginning with today's
financial results announcement."
Jeff Buchanan, Executive Vice
President, Chief Financial Officer, and Chief Administrative
Officer, commented, "At the end of the quarter, our balance sheet
remained strong with cash of $43.8
million and total net borrowings of $159.4 million. That, combined with our
twelve-month trailing EBITDAS, translates to a net leverage ratio
of approximately 1.7 to 1.0. We expect to substantially reduce that
ratio by the end of the current fiscal year. In preparation
for the recently announced spin-off of our outdoor products and
accessories business, and since the end of our second fiscal
quarter, we have finalized an amendment to our existing revolving
credit facility that supports our proposed spin-off without the
need for further bank approvals. As a result, in November, we
repaid our bank term loan that was due in June 2020 from that amended credit facility, and
we called our Senior Notes, due in August 2020. Thus, all of
our bank debt will be consolidated into the lower interest rate,
revolving line of credit, which has a maturity date of October 2021."
The consummation of the spin-off is subject to final approval of
the company's Board of Directors, customary regulatory approvals,
and tax and legal considerations.
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 January 31, 2020
|
|
Range for the Year
Ending April 30, 2020
|
|
Net sales (in
thousands)
|
$ 180,000
|
|
$ 190,000
|
|
$ 680,000
|
|
$ 700,000
|
|
|
|
|
|
|
|
|
|
|
GAAP income per share
- diluted
|
$
0.11
|
|
$
0.15
|
|
$
0.41
|
|
$
0.49
|
|
Amortization of
acquired intangible assets
|
0.09
|
|
0.09
|
|
0.36
|
|
0.36
|
|
Diode
recall
|
—
|
|
—
|
|
(0.01)
|
|
(0.01)
|
|
Transition
costs
|
0.02
|
|
0.02
|
|
0.07
|
|
0.07
|
|
Spin-off
costs
|
0.02
|
|
0.02
|
|
0.07
|
|
0.07
|
|
Tax effect of
non-GAAP adjustments
|
(0.04)
|
|
(0.04)
|
|
(0.13)
|
|
(0.13)
|
|
Non-GAAP income per
share - diluted
|
$
0.20
|
|
$
0.24
|
|
$
0.76
|
*
|
$
0.84
|
*
|
|
|
|
|
|
|
|
|
|
* Does not foot due
to rounding.
|
The company is also providing full year revenue guidance for
each of its business segments. Accordingly, the company
expects full year revenue for its Firearms segment to be between
$520.0 million and $530.0 million and full year revenue for its
Outdoor Products & Accessories segment to be between
$180.0 million and $190.0 million. The full year revenue estimate
for the Firearms segment includes additional revenue of
$34.0 million to $36.0 million as a result of the change in timing
of the federal excise tax assessment noted above and further
discussed in the company's form 10-Q filed concurrently with this
press release. Intercompany eliminations are expected to be
approximately $20.0 million.
Conference Call and Webcast
The company will host a
conference call and webcast today, December
5, 2019, to discuss its second quarter fiscal 2020 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 5626969. 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 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) fair value
inventory step-up expense, (iv) recall related expenses, (v) change
in contingent consideration; (vi) the tax effect of non-GAAP
adjustments, (vii) net cash (used in)/provided by operating
activities, (viii) net cash used in investing activities,
(ix) interest expense, (x) income tax expense, (xi) depreciation
and amortization, and (xii) stock-based compensation expenses, ;
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 iconic 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 an industry leading provider of shooting, reloading, gunsmithing
and gun cleaning supplies, specialty tools and cutlery, and
electro-optics products and technology for firearms. This segment
produces innovative, top quality products under the brands
Caldwell®; Crimson Trace®; Wheeler®; Tipton®; Frankford Arsenal®;
Lockdown®; BOG®; Hooyman®; Smith & Wesson® Accessories;
M&P® Accessories; Thompson/Center Arms™ Accessories;
Performance Center® Accessories; Schrade®; Old Timer®; Uncle
Henry®; Imperial®; BUBBA®; UST®; 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 expectations regarding new products; our expectation to
complete the spin-off of our outdoor products and accessories
business as a tax-free stock dividend to our stockholders in the
second half of calendar 2020, thereby creating two independent,
publicly traded companies: Smith & Wesson Brands, Inc. (the firearm business) and
American Outdoor Brands, Inc. (the outdoor products and accessories
business), each of which are leaders in their industries; our
belief that the spin-off will drive long-term value for our
stockholders by enabling the management team of each company to
focus on its specific strategies, including structuring its
business to take advantage of growth opportunities in its specific
markets; tailoring its business operation and financial model to
its specific long-term strategies; and aligning its external
financial resources, such as stock, access to markets, credit, and
insurance factors, with its particular type of business; our
expectation to substantially reduce the net leverage ratio by the
end of the current fiscal year; our expectation of full year
revenue for the firearms segment and the Outdoor
Products & Accessories segment; our expectation of
intercompany eliminations; and our belief that the presentation of
non-GAAP 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. 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; the impact of protectionist tariffs and
trade wars; 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; the completion of our proposed spin-off and the
operations and performance of the two separate companies
thereafter; our ability to maintain and enhance brand recognition
and reputation; risks associated with the establishment of our new
630,000 square foot Logistics & Customer Services facility in
Missouri; 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,
2019.
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:
|
|
October 31,
2019
|
|
April 30,
2019
|
|
(In thousands, except
par value and share data)
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
43,846
|
|
$
41,015
|
Accounts receivable,
net of allowance for doubtful accounts of $2,036 on October 31,
2019 and $1,823 on April 30, 2019
|
93,629
|
|
84,907
|
Inventories
|
201,213
|
|
163,770
|
Prepaid expenses and
other current assets
|
8,904
|
|
6,528
|
Income tax
receivable
|
5,468
|
|
2,464
|
Total current
assets
|
353,060
|
|
298,684
|
Property,
plant, and equipment, net
|
170,348
|
|
183,268
|
Intangibles,
net
|
82,562
|
|
91,840
|
Goodwill
|
182,267
|
|
182,269
|
Other
assets
|
20,559
|
|
10,728
|
|
$
808,796
|
|
$
766,789
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
36,102
|
|
$
35,584
|
Accrued expenses and
deferred revenue
|
42,545
|
|
39,322
|
Accrued payroll and
incentives
|
10,640
|
|
21,473
|
Accrued income
taxes
|
265
|
|
175
|
Accrued profit
sharing
|
1,198
|
|
2,830
|
Accrued
warranty
|
4,475
|
|
5,599
|
Current portion of
notes and loans payable
|
75,000
|
|
6,300
|
Total current
liabilities
|
170,225
|
|
111,283
|
Deferred income
taxes
|
9,640
|
|
9,776
|
Notes and loans
payable, net of current portion
|
127,800
|
|
149,434
|
Finance lease
payable, net of current portion
|
40,389
|
|
45,400
|
Other non-current
liabilities
|
14,192
|
|
6,452
|
Total
liabilities
|
362,246
|
|
322,345
|
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,
73,226,141 issued and 55,059,279 shares outstanding on October 31,
2019 and 72,863,624 shares issued and 54,696,762 shares
outstanding on April 30, 2019
|
73
|
|
73
|
Additional paid-in
capital
|
266,582
|
|
263,180
|
Retained
earnings
|
402,131
|
|
402,946
|
Accumulated other
comprehensive income
|
139
|
|
620
|
Treasury stock, at
cost (18,166,862 shares on October 31, 2019 and April 30,
2019)
|
(222,375)
|
|
(222,375)
|
Total stockholders'
equity
|
446,550
|
|
444,444
|
|
$
808,796
|
|
$
766,789
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME/(LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six
Months Ended
|
|
|
October 31,
2019
|
|
October 31,
2018
|
|
October 31,
2019
|
|
October 31,
2018
|
|
|
(Unaudited)
|
|
|
(In thousands, except
per share data)
|
Net sales
|
|
$
154,388
|
|
$
161,703
|
|
$
278,057
|
|
$
300,536
|
Cost of
sales
|
|
104,082
|
|
105,317
|
|
179,898
|
|
191,728
|
Gross
profit
|
|
50,306
|
|
56,386
|
|
98,159
|
|
108,808
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
2,988
|
|
3,251
|
|
6,217
|
|
6,062
|
Selling, marketing,
and distribution
|
|
19,352
|
|
15,291
|
|
36,125
|
|
26,906
|
General and
administrative
|
|
23,082
|
|
26,518
|
|
49,791
|
|
51,039
|
Total operating
expenses
|
|
45,422
|
|
45,060
|
|
92,133
|
|
84,007
|
Operating
income
|
|
4,884
|
|
11,326
|
|
6,026
|
|
24,801
|
Other
(expense)/income, net:
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
86
|
|
8
|
|
91
|
|
(9)
|
Interest expense,
net
|
|
(3,039)
|
|
(2,274)
|
|
(5,666)
|
|
(4,274)
|
Total other
(expense), net
|
|
(2,953)
|
|
(2,266)
|
|
(5,575)
|
|
(4,283)
|
Income from
operations before income taxes
|
|
1,931
|
|
9,060
|
|
451
|
|
20,518
|
Income tax
expense
|
|
638
|
|
2,395
|
|
1,266
|
|
6,208
|
Net
Income/(loss)
|
|
$
1,293
|
|
$
6,665
|
|
$
(815)
|
|
$
14,310
|
Net Income/(loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.02
|
|
$
0.12
|
|
$
(0.01)
|
|
$
0.26
|
Diluted
|
|
$
0.02
|
|
$
0.12
|
|
$
(0.01)
|
|
$
0.26
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
54,912
|
|
54,444
|
|
54,847
|
|
54,395
|
Diluted
|
|
55,424
|
|
55,107
|
|
54,847
|
|
55,047
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
For the Six Months
Ended
|
|
October 31,
2019
|
|
October 31,
2018
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net
(loss)/income
|
$
(815)
|
|
$
14,310
|
Adjustments to
reconcile net income to net cash (used in)/provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
27,993
|
|
25,994
|
Loss/(gain) on
sale/disposition of assets
|
15
|
|
(1,038)
|
Provision for losses
on notes and accounts receivable
|
392
|
|
146
|
Deferred income
taxes
|
—
|
|
(1,519)
|
Change in fair value
of contingent consideration
|
100
|
|
|
Stock-based
compensation expense
|
3,016
|
|
3,952
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(9,114)
|
|
(7,278)
|
Inventories
|
(37,443)
|
|
(22,482)
|
Prepaid expenses and
other current assets
|
(2,376)
|
|
(1,352)
|
Income
taxes
|
(2,914)
|
|
3,786
|
Accounts
payable
|
1,019
|
|
5,488
|
Accrued payroll and
incentives
|
(10,833)
|
|
2,322
|
Accrued profit
sharing
|
(1,632)
|
|
(369)
|
Accrued expenses and
deferred revenue
|
(92)
|
|
(12,052)
|
Accrued
warranty
|
(1,124)
|
|
(992)
|
Other
assets
|
1,372
|
|
40
|
Other non-current
liabilities
|
(2,170)
|
|
95
|
Net cash (used
in)/provided by operating activities
|
(34,606)
|
|
9,051
|
Cash flows from
investing activities:
|
|
|
|
Payments to acquire
patents and software
|
(389)
|
|
(207)
|
Proceeds from sale of
property and equipment
|
—
|
|
1,223
|
Payments to acquire
property and equipment
|
(8,979)
|
|
(19,605)
|
Net cash used in
investing activities
|
(9,368)
|
|
(18,589)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from loans
and notes payable
|
75,000
|
|
50,000
|
Payments on finance
lease obligation
|
(431)
|
|
(323)
|
Payments on notes and
loans payable
|
(28,150)
|
|
(53,150)
|
Proceeds from
exercise of options to acquire common stock, including employee
stock purchase plan
|
936
|
|
1,158
|
Payment of employee
withholding tax related to restricted stock units
|
(550)
|
|
(600)
|
Net cash provided
by/(used in) financing activities
|
46,805
|
|
(2,915)
|
Net
increase/(decrease) in cash and cash equivalents
|
2,831
|
|
(12,453)
|
Cash and cash
equivalents, beginning of period
|
41,015
|
|
48,860
|
Cash and cash
equivalents, end of period
|
$
43,846
|
|
$
36,407
|
Supplemental
disclosure of cash flow information
|
|
|
|
Cash paid
for:
|
|
|
|
Interest
|
$
5,767
|
|
$
4,339
|
Income
taxes
|
$
4,184
|
|
$
3,065
|
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 Six Months
Ended
|
|
October 31,
2019
|
|
October 31,
2018
|
|
October 31,
2019
|
|
October 31,
2018
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
GAAP gross
profit
|
$ 50,306
|
|
32.6%
|
|
$ 50,386
|
|
31.2%
|
|
$ 98,159
|
|
35.3%
|
|
$ 108,808
|
|
36.2%
|
Diode
recall
|
—
|
|
—
|
|
—
|
|
—
|
|
(589)
|
|
-0.2%
|
|
—
|
|
—
|
Fair value inventory
step-up
|
—
|
|
—
|
|
120
|
|
0.1%
|
|
—
|
|
—
|
|
270
|
|
0.1%
|
Transition
costs
|
269
|
|
0.2%
|
|
—
|
|
—
|
|
872
|
|
0.3%
|
|
—
|
|
—
|
Non-GAAP gross
profit
|
$ 50,575
|
|
32.8%
|
|
$ 50,506
|
|
31.2%
|
|
$ 98,442
|
|
35.4%
|
|
$ 109,078
|
|
36.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$ 45,422
|
|
29.4%
|
|
$ 45,060
|
|
27.9%
|
|
$ 92,133
|
|
33.1%
|
|
$
84,007
|
|
28.0%
|
Amortization of
acquired intangible assets
|
(4,775)
|
|
-3.1%
|
|
(5,444)
|
|
-3.4%
|
|
(9,545)
|
|
-3.4%
|
|
(10,890)
|
|
-3.6%
|
Transition
costs
|
(416)
|
|
-0.3%
|
|
(382)
|
|
-0.2%
|
|
(899)
|
|
-0.3%
|
|
(382)
|
|
-0.1%
|
Non-GAAP operating
expenses
|
$ 40,231
|
|
26.1%
|
|
$ 39,234
|
|
24.3%
|
|
$ 81,689
|
|
29.4%
|
|
$
72,735
|
|
24.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
4,884
|
|
3.2%
|
|
$ 11,326
|
|
7.0%
|
|
$
6,026
|
|
2.2%
|
|
$
24,801
|
|
8.3%
|
Fair value inventory
step-up
|
—
|
|
—
|
|
120
|
|
0.1%
|
|
—
|
|
—
|
|
270
|
|
0.1%
|
Amortization of
acquired intangible assets
|
4,775
|
|
3.1%
|
|
5,444
|
|
3.4%
|
|
9,545
|
|
3.4%
|
|
10,890
|
|
3.6%
|
Transition
costs
|
685
|
|
0.4%
|
|
382
|
|
0.2%
|
|
1,771
|
|
0.6%
|
|
382
|
|
0.1%
|
Non-GAAP operating
income
|
$ 10,344
|
|
6.7%
|
|
$ 17,272
|
|
10.7%
|
|
$ 16,753
|
|
6.0%
|
|
$
36,343
|
|
12.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss)
|
$
1,293
|
|
0.8%
|
|
$
6,665
|
|
4.1%
|
|
$
(815)
|
|
-0.3%
|
|
$
14,310
|
|
4.8%
|
Fair value inventory
step-up
|
—
|
|
—
|
|
120
|
|
0.1%
|
|
—
|
|
—
|
|
270
|
|
0.1%
|
Amortization of
acquired intangible assets
|
4,775
|
|
3.1%
|
|
5,444
|
|
3.4%
|
|
9,545
|
|
3.4%
|
|
10,890
|
|
3.6%
|
Diode
recall
|
—
|
|
—
|
|
—
|
|
—
|
|
(589)
|
|
-0.2%
|
|
—
|
|
—
|
Transition
costs
|
685
|
|
0.4%
|
|
382
|
|
0.2%
|
|
1,771
|
|
0.6%
|
|
382
|
|
0.1%
|
Change in contingent
consideration
|
(100)
|
|
-0.1%
|
|
—
|
|
—
|
|
(100)
|
|
0.0%
|
|
—
|
|
—
|
Tax effect of
non-GAAP adjustments
|
(1,447)
|
|
-0.9%
|
|
(1,570)
|
|
-1.0%
|
|
(2,869)
|
|
-1.0%
|
|
(3,120)
|
|
-1.0%
|
Non-GAAP net
income
|
$
5,206
|
|
3.4%
|
|
$ 11,041
|
|
6.8%
|
|
$
6,943
|
|
2.5%
|
|
$
22,732
|
|
7.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss) per share - diluted
|
$
0.02
|
|
|
|
$
0.12
|
|
|
|
$
(0.01)
|
|
|
|
$
0.26
|
|
|
Fair value inventory
step-up
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Amortization of
acquired intangible assets
|
0.09
|
|
|
|
0.10
|
|
|
|
0.17
|
|
|
|
0.20
|
|
|
Diode
recall
|
—
|
|
|
|
—
|
|
|
|
(0.01)
|
|
|
|
—
|
|
|
Transition
costs
|
0.01
|
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.01
|
|
|
Change in contingent
consideration
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Tax effect of
non-GAAP adjustments
|
(0.03)
|
|
|
|
(0.03)
|
|
|
|
(0.05)
|
|
|
|
(0.06)
|
|
|
Non-GAAP net income
per share - diluted
|
$
0.09
|
|
|
|
$
0.20
|
|
|
|
$
0.13
|
|
|
|
$
0.41
|
|
|
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 Six Months
Ended
|
|
October 31,
2019
|
|
October 31,
2018
|
|
October 31,
2019
|
|
October 31,
2018
|
Net cash (used
in)/provided by operating activities
|
$
(5,468)
|
|
$
(1,589)
|
|
$
(34,606)
|
|
$
9,051
|
Net cash used in
investing activities
|
(5,550)
|
|
(11,481)
|
|
(9,368)
|
|
(18,589)
|
Free cash
flow
|
(11,018)
|
|
$
(13,070)
|
|
$
(43,974)
|
|
$
(9,538)
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP NET INCOME/(LOSS) TO NON-GAAP ADJUSTED EBITDAS
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
October 31,
2019
|
|
October 31,
2018
|
|
October 31,
2019
|
|
October 31,
2018
|
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss)
|
|
$
1,293
|
|
$
6,665
|
|
$
(815)
|
|
$
14,310
|
Interest
expense
|
|
3,266
|
|
2,352
|
|
6,029
|
|
4,382
|
Income tax
expense
|
|
638
|
|
2,395
|
|
1,266
|
|
6,208
|
Depreciation and
amortization
|
|
13,761
|
|
12,816
|
|
27,777
|
|
25,560
|
Stock-based
compensation expense
|
|
1,369
|
|
1,963
|
|
3,016
|
|
3,952
|
Fair value inventory
step-up
|
|
—
|
|
120
|
|
—
|
|
270
|
Transition
costs
|
|
685
|
|
382
|
|
1,771
|
|
382
|
Diode
recall
|
|
—
|
|
—
|
|
(589)
|
|
—
|
Change in contingent
consideration
|
|
(100)
|
|
—
|
|
(100)
|
|
—
|
Non-GAAP Adjusted
EBITDAS
|
|
$
20,912
|
|
$
26,693
|
|
$
38,355
|
|
$
55,064
|
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/american-outdoor-brands-corporation-reports-second-quarter-fiscal-2020-financial-results-300970296.html
SOURCE American Outdoor Brands Corporation