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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 27, 2024

 

 

American Outdoor Brands, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-39366	84-4630928
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
1800 North Route Z
Columbia, Missouri				65202
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (800) 338-9585

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, Par Value $0.001 per Share		AOUT		The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

 

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Item 2.02 Results of Operations and Financial Condition.

On June 27, 2024, American Outdoor Brands, Inc. issued a press release reporting its financial results for the fiscal year ended April 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits.
Exhibit
Number			Description
99.1			Press release from the Registrant, dated June 27, 2024, reporting American Outdoor Brand, Inc.’s financial results for the fiscal year ended April 30, 2024.
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			AMERICAN OUTDOOR BRANDS, INC.
Date:	June 27, 2024	By:	/s/ H. Andrew Fulmer
			H. Andrew Fulmer Executive Vice President, Chief Financial Officer, and Treasurer

 

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Contact:

Liz Sharp, VP, Investor Relations

lsharp@aob.com

(573) 303-4620

American Outdoor Brands, Inc. Reports

Fourth Quarter and Full Fiscal 2024 Financial Results

COLUMBIA, Mo., June 27, 2024 – American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT), an industry leading provider of products and accessories for rugged outdoor enthusiasts, today announced financial results for the fourth quarter and full year fiscal 2024 ended April 30, 2024.

 

Full Year Fiscal 2024 Financial Highlights

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Fourth Quarter Fiscal 2024 Financial Highlights

 

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 5%, reflecting growth in our outdoor lifestyle category of 6.9% and growth in our shooting sports category of 3.2%. Overall growth was supported by new product launches across a number of our brands including BUBBA, Caldwell, Grilla, and Hooyman. In fact, new products generated over 23% of our net sales in fiscal 2024. In addition, throughout the year, we remained focused on ensuring that our brands were increasingly accessible to a broader audience of consumers, both in store and online. We expanded MEAT! Your Maker meat processing equipment into the retail channel in 2024, and positioned Grilla outdoor cooking products for retail entry in fiscal 2025 – providing new audiences for these popular consumer brands. We also expanded our presence in Canada during the year, bringing more of our exciting outdoor brands to Canadian consumers. On a combined basis, these actions helped deliver fiscal 2024 growth in our traditional sales channel of more than 12%,

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and growth in our international sales channel of more than 35%. They also position us well for fiscal 2025 and beyond, as we expect that both traditional and online retailers will continue to seek out strong and innovative brands to help drive consumer foot traffic and deliver an enhanced consumer experience,” concluded Murphy.

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 $29.7 million in cash and no debt after paying down our line of credit to zero and repurchasing $6.0 million of our common stock during the year. At the same time, we invested in our future growth and profitability by expanding our lease agreement at our Columbia, Missouri headquarters and distribution facility, providing us with capacity for future organic growth and acquisitions, as well as operational efficiencies. We believe our results demonstrate that our brands and our company remain well positioned to deliver growth in both net sales and profitability in fiscal 2025.”

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 U.S. GAAP to Non-GAAP Financial Measures

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.

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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®; Caldwell®; Crimson Trace®; Frankford Arsenal®; Grilla Grills®; Hooyman®; Imperial®; LaserLyte®; Lockdown®; MEAT!TM; Old Timer®; Schrade®; Tipton®; Uncle Henry®; ust®; and Wheeler®. For more information about all the brands and products from American Outdoor Brands, Inc., visit 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. 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.

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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 $133 on April 30, 2024    and $125 on April 30, 2023		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, $0.001 par value, 20,000,000 shares authorized, no    shares issued or outstanding on April 30, 2024 and 2023		—				—
Common stock, $0.001 par value, 100,000,000 shares authorized, 14,701,280 shares    issued and 12,797,865 shares outstanding on April 30, 2024 and 14,447,149    shares issued and 13,233,151 shares outstanding on April 30, 2023		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    1,213,998 shares on April 30, 2023)		(24,574	)			(18,559	)
Total equity		177,925				191,864
Total liabilities and equity	$	240,597			$	243,587

 

 

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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	)

 

 

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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    operating activities:
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,    including employee stock purchase plan		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	)

 

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AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited)
	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.

 

 

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AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDAS (In thousands) (Unaudited)
	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

 

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