- Sales in the Fourth Quarter of 2020 Increase 24% Year-over-Year to
- Reinstates Full-Year Outlook: Expects 2021 Sales and Adjusted EBITDA to Grow Approximately 25% and 56% to
Fourth Quarter 2020 Financial Summary vs. Same Year‐Ago Quarter
- Sales increased 24% to
$75.9 million . - Gross margin was unchanged at 35.5%; adjusted gross margin up 50 basis points to 36.0%.
- Net income was
$7.1 million , or$0.22 per diluted share, compared to$12.4 million , or$0.40 per diluted share. The fourth quarter of 2019 included a$10.4 million net benefit associated with the partial release of the Company’s valuation allowance on its deferred tax assets. - Adjusted net income before non‐cash items increased 64% to
$11.2 million , or$0.34 per diluted share, compared to$6.8 million , or$0.22 per diluted share. - Adjusted EBITDA increased 56% to
$11.0 million . - Free cash flow (net cash provided by operating activities less capital expenditures) increased significantly to
$6.5 million compared to$2.6 million . - At
December 31, 2020 , cash and cash equivalents totaled$17.8 million compared to$1.7 million atDecember 31, 2019 , and debt was$34.6 million compared to$22.7 million atDecember 31, 2019 .
2020 Financial Summary vs. 2019
- Sales were
$224.0 million compared to$229.4 million . - Gross margin was 34.7% compared to 35.0%; adjusted gross margin of 34.9%.
- Net income was
$5.5 million , or$0.18 per diluted share, compared to$19.0 million , or$0.61 per diluted share. 2019 included the aforementioned$10.4 million net tax benefit. - Adjusted net income before non‐cash items increased 3% to
$21.9 million , or$0.70 per diluted share, compared to$21.3 million , or$0.69 per diluted share. - Adjusted EBITDA was
$22.4 million compared to$22.7 million . - Free cash flow increased significantly to
$24.0 million compared to$5.4 million .
Management Commentary
“Our momentum from the third quarter carried through to the end of the year, demonstrating the strength of our brand portfolio and the resilience of our ‘super-fan’ brand strategy,” said Clarus President
“Within Black Diamond, we remained dedicated to preserving brand equity as we executed on our ‘innovate and accelerate’ playbook across our portfolio. This approach allowed us to successfully navigate the COVID-19 related retail demand freeze in the first half of 2020 and drive consistent improvements in the brand’s performance throughout the second half of the year. In our Sierra segment, demand for Sierra has continued to accelerate, and Barnes’ performance has exceeded our expectations in its first few months on our platform. This momentum will allow us to continue advancing the integration process and we are well on our way to building a leading, specialty premium bullet and ammunition platform.
“As we look to 2021, we intend to maximize the growth and profitability of our brands, as well as the value we create for our shareholders. We expect to continue leveraging the strong demand trends underlying our brands, our fast-growing direct-to-consumer channel and our ‘innovate and accelerate’ strategy to continue the momentum across our well-diversified brand portfolio.”
Fourth Quarter 2020 Financial Results
Sales in the fourth quarter increased 24% to
Black Diamond sales were flat and Sierra sales were up 167%. Black Diamond sales continued to improve and experienced a recovery in consumer demand. The increase in Sierra was due to continued sales improvements across most product channel and region. On a constant currency basis, total sales were up 23%.
Gross margin in the fourth quarter was unchanged at 35.5% compared to the same year‐ago quarter. Improvements in product mix, low levels of discounting and foreign exchange benefits offset unfavorable impacts on the Company’s supply chain and logistics due to the COVID-19 pandemic. Excluding a fair value inventory step-up associated with the Barnes acquisition, adjusted gross margin in the fourth quarter increased 50 basis points to 36.0%.
Selling, general and administrative (SG&A) expenses in the fourth quarter were
Net income in the fourth quarter was
Adjusted net income in the fourth quarter, which excludes the non‐cash items and transaction costs, increased 64% to
Adjusted EBITDA in the fourth quarter increased 56% to
Net cash provided by operating activities for the three months ended
Liquidity at
- Cash and cash equivalents totaled
$17.8 million compared to$1.7 million . - Total debt of
$34.6 million compared to$22.7 million . - Remaining access to
$44.4 million on the Company’s revolving line of credit. - Net debt leverage ratio of 0.6x compared to 0.9x.
Full Year 2020 Financial Results
Sales in 2020 were
Gross margin in 2020 was 34.7% compared to 35.0% in 2019. The decrease was primarily due to the unfavorable impacts on the Company’s supply chain and logistics due to the COVID-19 pandemic, partially offset by improved product and channel mix. Excluding a fair value inventory step-up associated with the Barnes acquisition, adjusted gross margin in 2020 was 34.9%.
Selling, general and administrative expenses in 2020 were
Net income in 2020 was
Adjusted net income in 2020, which excludes the non‐cash items and transaction costs, increased 3% to
Adjusted EBITDA in 2020 was
Net cash provided by operating activities for the year ended
Capital Allocation
During 2020, the Company temporarily suspended its share repurchase program as a proactive measure in response to the COVID-19 pandemic, leaving approximately
During the year, the Company paid
2021 Outlook
Clarus anticipates fiscal year 2021 sales to grow approximately 25% to
The Company expects adjusted EBITDA in 2021 to increase approximately 56% to
Net Operating Loss (NOL)
The Company estimates that it has available NOL carryforwards for
Conference Call
The Company will hold a conference call today at
Date:
Time:
Toll-free dial-in number: 1-877-511-3707
International dial-in number: 1-786-815-8672
Conference ID: 2999645
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.
The conference call will be broadcast live and available for replay here and on the Company’s website at www.claruscorp.com.
A replay of the conference call will be available after
Toll-free replay number: 1-855-859-2056
International replay number: 1-404-537-3406
Replay ID: 2999645
About Clarus Corporation
Headquartered in
Use of Non‐GAAP Measures
The Company reports its financial results in accordance with
Forward‐Looking Statements
Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, the overall level of consumer demand on our products; general economic conditions and other factors affecting consumer confidence, preferences, and behavior; disruption and volatility in the global currency, capital, and credit markets; the financial strength of the Company's customers; the Company's ability to implement its business strategy; the ability of the Company to execute and integrate acquisitions; changes in governmental regulation, legislation or public opinion relating to the manufacture and sale of bullets and ammunition by our Sierra segment, and the possession and use of firearms and ammunition by our customers; the Company’s exposure to product liability or product warranty claims and other loss contingencies; disruptions and other impacts to the Company’s business, as a result of the COVID-19 global pandemic and government actions and restrictive measures implemented in response; stability of the Company’s manufacturing facilities and suppliers, as well as consumer demand for our products, in light of disease epidemics and health-related concerns such as the COVID-19 global pandemic; the impact that global climate change trends may have on the Company and its suppliers and customers; the Company's ability to protect patents, trademarks and other intellectual property rights; any breaches of, or interruptions in, our information systems; the ability of our information technology systems or information security systems to operate effectively, including as a result of security breaches, viruses, hackers, malware, natural disasters, vendor business interruptions or other causes; our ability to properly maintain, protect, repair or upgrade our information technology systems or information security systems, or problems with our transitioning to upgraded or replacement systems; the impact of adverse publicity about the Company and/or its brands, including without limitation, through social media or in connection with brand damaging events and/or public perception; fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations; our ability to utilize our net operating loss carryforwards; changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks; and the Company’s ability to maintain a quarterly dividend. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the
Company Contact:
President
Tel 1‐801‐993‐1344
john.walbrecht@claruscorp.com
or
Executive Vice President and Chief Financial Officer
Tel 1‐801‐993‐1364
aaron.kuehne@claruscorp.com
Investor Relations Contact:
Gateway Investor Relations
Tel 1‐949‐574‐3860
CLAR@gatewayir.com
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(In thousands, except per share amounts) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash | $ | 17,789 | $ | 1,703 | ||||
Accounts receivable, net | 50,475 | 41,628 | ||||||
Inventories | 68,356 | 73,432 | ||||||
Prepaid and other current assets | 5,385 | 3,787 | ||||||
Income tax receivable | 117 | 322 | ||||||
Total current assets | 142,122 | 120,872 | ||||||
Property and equipment, net | 26,956 | 22,919 | ||||||
Other intangible assets, net | 19,416 | 15,816 | ||||||
Indefinite lived intangible assets | 47,523 | 41,630 | ||||||
26,715 | 18,090 | |||||||
Deferred income taxes | 11,113 | 7,904 | ||||||
Other long-term assets | 6,846 | 3,034 | ||||||
Total assets | $ | 280,691 | $ | 230,265 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 34,665 | $ | 24,304 | ||||
Income tax payable | 956 | 260 | ||||||
Current portion of long-term debt | 4,000 | - | ||||||
Total current liabilities | 39,621 | 24,564 | ||||||
Long-term debt | 30,621 | 22,670 | ||||||
Deferred income taxes | 1,227 | 1,224 | ||||||
Other long-term liabilities | 4,628 | 615 | ||||||
Total liabilities | 76,097 | 49,073 | ||||||
Stockholders' Equity | ||||||||
Preferred stock, | ||||||||
shares authorized; none issued | - | - | ||||||
Common stock, | ||||||||
35,198 and 33,615 issued and 31,228 and 29,760 outstanding, respectively | 4 | 3 | ||||||
Additional paid in capital | 513,979 | 492,353 | ||||||
Accumulated deficit | (286,100 | ) | (288,592 | ) | ||||
(23,789 | ) | (22,269 | ) | |||||
Accumulated other comprehensive income (loss) | 500 | (303 | ) | |||||
Total stockholders' equity | 204,594 | 181,192 | ||||||
Total liabilities and stockholders' equity | $ | 280,691 | $ | 230,265 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(Unaudited) | ||||||||
(In thousands, except per share amounts) | ||||||||
Three Months Ended | ||||||||
Sales | ||||||||
Domestic sales | $ | 48,733 | $ | 33,946 | ||||
International sales | 27,214 | 27,076 | ||||||
Total sales | 75,947 | 61,022 | ||||||
Cost of goods sold | 48,969 | 39,336 | ||||||
Gross profit | 26,978 | 21,686 | ||||||
Operating expenses | ||||||||
Selling, general and administrative | 20,891 | 17,465 | ||||||
Transaction costs | 563 | 42 | ||||||
Total operating expenses | 21,454 | 17,507 | ||||||
Operating income | 5,524 | 4,179 | ||||||
Other income (expense) | ||||||||
Interest expense, net | (461 | ) | (380 | ) | ||||
Other, net | 588 | 167 | ||||||
Total other income (expense), net | 127 | (213 | ) | |||||
Income before income tax | 5,651 | 3,966 | ||||||
Income tax benefit | (1,418 | ) | (8,421 | ) | ||||
Net income | $ | 7,069 | $ | 12,387 | ||||
Net income per share: | ||||||||
Basic | $ | 0.23 | $ | 0.42 | ||||
Diluted | 0.22 | 0.40 | ||||||
Weighted average shares outstanding: | ||||||||
Basic | 31,132 | 29,759 | ||||||
Diluted | 32,408 | 30,974 | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(Unaudited) | ||||||||
(In thousands, except per share amounts) | ||||||||
Twelve Months Ended | ||||||||
Sales | ||||||||
Domestic sales | $ | 132,226 | $ | 121,751 | ||||
International sales | 91,781 | 107,686 | ||||||
Total sales | 224,007 | 229,437 | ||||||
Cost of goods sold | 146,212 | 149,146 | ||||||
Gross profit | 77,795 | 80,291 | ||||||
Operating expenses | ||||||||
Selling, general and administrative | 71,428 | 68,680 | ||||||
Restructuring charge | - | 13 | ||||||
Transaction costs | 2,433 | 166 | ||||||
Total operating expenses | 73,861 | 68,859 | ||||||
Operating income | 3,934 | 11,432 | ||||||
Other (expense) income | ||||||||
Interest expense, net | (1,261 | ) | (1,358 | ) | ||||
Other, net | 912 | (93 | ) | |||||
Total other expense, net | (349 | ) | (1,451 | ) | ||||
Income before income tax | 3,585 | 9,981 | ||||||
Income tax benefit | (1,960 | ) | (8,991 | ) | ||||
Net income | $ | 5,545 | $ | 18,972 | ||||
Net income per share: | ||||||||
Basic | $ | 0.18 | $ | 0.64 | ||||
Diluted | 0.18 | 0.61 | ||||||
Weighted average shares outstanding: | ||||||||
Basic | 30,175 | 29,820 | ||||||
Diluted | 31,225 | 30,993 | ||||||
RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT | |||||||||||
AND ADJUSTED GROSS MARGIN | |||||||||||
THREE MONTHS ENDED | |||||||||||
Gross profit as reported | $ | 26,978 | |||||||||
Plus impact of inventory fair value adjustment | 360 | ||||||||||
Adjusted gross profit | $ | 27,338 | Gross profit as reported | $ | 21,686 | ||||||
Gross margin as reported | 35.5% | ||||||||||
Adjusted gross margin | 36.0% | Gross margin as reported | 35.5% | ||||||||
TWELVE MONTHS ENDED | |||||||||||
Gross profit as reported | $ | 77,795 | |||||||||
Plus impact of inventory fair value adjustment | 360 | ||||||||||
Adjusted gross profit | $ | 78,155 | Gross profit as reported | $ | 80,291 | ||||||
Gross margin as reported | 34.7% | ||||||||||
Adjusted gross margin | 34.9% | Gross margin as reported | 35.0% | ||||||||
RECONCILIATION FROM NET INCOME TO NET INCOME BEFORE NON-CASH ITEMS, ADJUSTED | ||||||||||||||||
NET INCOME BEFORE NON-CASH ITEMS AND RELATED EARNINGS PER DILUTED SHARE | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Per Diluted | Per Diluted | |||||||||||||||
Share | Share | |||||||||||||||
Net income | $ | 7,069 | $ | 0.22 | $ | 12,387 | $ | 0.40 | ||||||||
Amortization of intangibles | 1,780 | 0.05 | 887 | 0.03 | ||||||||||||
Depreciation | 1,396 | 0.04 | 1,218 | 0.04 | ||||||||||||
Amortization of debt issuance costs | 81 | 0.00 | 77 | 0.00 | ||||||||||||
Stock-based compensation | 1,358 | 0.04 | 703 | 0.02 | ||||||||||||
Inventory fair value of purchase accounting | 360 | 0.01 | - | - | ||||||||||||
Income tax benefit | (1,418 | ) | (0.04 | ) | (8,421 | ) | (0.27 | ) | ||||||||
Cash paid for income taxes | (8 | ) | (0.00 | ) | (78 | ) | (0.00 | ) | ||||||||
Net income before non-cash items | $ | 10,618 | $ | 0.33 | $ | 6,773 | $ | 0.22 | ||||||||
Transaction costs | 563 | 0.02 | 42 | 0.00 | ||||||||||||
State cash taxes on adjustments | (14 | ) | (0.00 | ) | (1 | ) | (0.00 | ) | ||||||||
Adjusted net income before non-cash items | $ | 11,167 | $ | 0.34 | $ | 6,814 | $ | 0.22 | ||||||||
RECONCILIATION FROM NET INCOME TO NET INCOME BEFORE NON-CASH ITEMS, ADJUSTED | ||||||||||||||||
NET INCOME BEFORE NON-CASH ITEMS AND RELATED EARNINGS PER DILUTED SHARE | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Twelve Months Ended | ||||||||||||||||
Per Diluted | Per Diluted | |||||||||||||||
Share | Share | |||||||||||||||
Net income | $ | 5,545 | $ | 0.18 | $ | 18,972 | $ | 0.61 | ||||||||
Amortization of intangibles | 4,070 | 0.13 | 3,552 | 0.11 | ||||||||||||
Depreciation | 4,801 | 0.15 | 4,550 | 0.15 | ||||||||||||
Amortization of debt issuance costs | 311 | 0.01 | 283 | 0.01 | ||||||||||||
Stock-based compensation | 6,791 | 0.22 | 2,949 | 0.10 | ||||||||||||
Inventory fair value of purchase accounting | 360 | 0.01 | - | - | ||||||||||||
Income tax benefit | (1,960 | ) | (0.06 | ) | (8,991 | ) | (0.29 | ) | ||||||||
Cash paid for income taxes | (426 | ) | (0.01 | ) | (209 | ) | (0.01 | ) | ||||||||
Net income before non-cash items | $ | 19,492 | $ | 0.62 | $ | 21,106 | $ | 0.68 | ||||||||
Restructuring charge | - | - | 13 | 0.00 | ||||||||||||
Transaction costs | 2,433 | 0.08 | 166 | 0.01 | ||||||||||||
State cash taxes on adjustments | (60 | ) | (0.00 | ) | (6 | ) | (0.00 | ) | ||||||||
Adjusted net income before non-cash items | $ | 21,865 | $ | 0.70 | $ | 21,279 | $ | 0.69 | ||||||||
RECONCILIATION FROM NET INCOME TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), AND ADJUSTED EBITDA | ||||||||
(In thousands) | ||||||||
Three Months Ended | ||||||||
Net income | $ | 7,069 | $ | 12,387 | ||||
Income tax benefit | (1,418 | ) | (8,421 | ) | ||||
Other, net | (588 | ) | (167 | ) | ||||
Interest expense, net | 461 | 380 | ||||||
Operating income | 5,524 | 4,179 | ||||||
Depreciation | 1,396 | 1,218 | ||||||
Amortization of intangibles | 1,780 | 887 | ||||||
EBITDA | 8,700 | 6,284 | ||||||
Transaction costs | 563 | 42 | ||||||
Inventory fair value of purchase accounting | 360 | - | ||||||
Stock-based compensation | 1,358 | 703 | ||||||
Adjusted EBITDA | $ | 10,981 | $ | 7,029 | ||||
RECONCILIATION FROM NET INCOME TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), AND ADJUSTED EBITDA | ||||||||
(In thousands) | ||||||||
Twelve Months Ended | ||||||||
Net income | $ | 5,545 | $ | 18,972 | ||||
Income tax benefit | (1,960 | ) | (8,991 | ) | ||||
Other, net | (912 | ) | 93 | |||||
Interest expense, net | 1,261 | 1,358 | ||||||
Operating income | 3,934 | 11,432 | ||||||
Depreciation | 4,801 | 4,550 | ||||||
Amortization of intangibles | 4,070 | 3,552 | ||||||
EBITDA | 12,805 | 19,534 | ||||||
Restructuring charge | - | 13 | ||||||
Transaction costs | 2,433 | 166 | ||||||
Inventory fair value of purchase accounting | 360 | - | ||||||
Stock-based compensation | 6,791 | 2,949 | ||||||
Adjusted EBITDA | $ | 22,389 | $ | 22,662 | ||||
Source:
2021 GlobeNewswire, Inc., source