SPRINGFIELD, Mass.,
June 19, 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 fourth quarter and full
year fiscal 2019, ended April 30,
2019.
Fourth Quarter Fiscal 2019 Financial Highlights
- Quarterly net sales were $175.7
million compared with $172.0
million for the fourth quarter last year, an increase of
2.2%.
- Gross margin for the quarter was 36.1% compared with 33.4% for
the fourth quarter last year.
- Quarterly GAAP net income was $9.8
million, or $0.18 per diluted
share, compared with $7.7 million, or
$0.14 per diluted share, for the
comparable quarter last year.
- Quarterly non-GAAP net income was $14.2
million, or $0.26 per diluted
share, compared with $13.3 million,
or $0.24 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 $31.9 million, or 18.1% of net sales, compared
with $33.4 million, or 19.4% of net
sales, for the comparable quarter last year.
Full Year Fiscal 2019 Financial Highlights
- Full year net sales were $638.3
million compared with $606.9
million a year ago, an increase of 5.2%.
- Full year gross margin was 35.4% compared with 32.3% last
year.
- Full year GAAP net income was $18.4
million, or $0.33 per diluted
share, compared with $20.1 million,
or $0.37 per diluted share, last
year.
- Full year non-GAAP net income was $45.9
million, or $0.83 per diluted
share, compared with $25.1 million,
or $0.46 per diluted share last
year.
- Full year non-GAAP Adjusted EBITDAS was $111.3 million, or 17.4% of net sales, compared
with $89.5 million, or 14.7% of net
sales, last year.
James Debney, American Outdoor
Brands Corporation President and Chief Executive Officer,
commented, "Fiscal 2019 was a year that presented challenges for
the firearms industry, including changes in the political
environment and reduced consumer demand for firearms and for the
accessories that are attached to them, such as lights, lasers, and
scopes. Despite that backdrop, we delivered year over year
growth in revenue and gross margin, and we believe we gained market
share. At the same time, we made significant progress
toward our long-term strategy with the construction and ramp up of
initial operations at our new Missouri Campus, which will house our
Logistics & Customer Services Division and our Outdoor Products
& Accessories Division. This state-of-the-art, 633,000
square foot facility, which has now successfully commenced initial
operations, will serve as the centralized logistics, warehousing,
and distribution operation for our entire business, enabling
growth, enhancing efficiencies, and allowing us to better serve
customers across the organization. It will also serve as the office
location for our entire Outdoor Products & Accessories
business. When fully complete, the Missouri Campus will also have
allowed us to eliminate 570,000 square feet of operations, office,
warehouse, and third-party space across multiple locations,
improving our efficiencies and generating capacity for future
growth. 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."
"In our Outdoor Products & Accessories segment, which
generated 25% of our total yearly net sales, we delivered
year-over-year sales growth of 3.3% and launched over 300
innovative new products, including the Caldwell Hydrosled, the
Frankford M-Press, and the BOG DeathGrip Hunting Tripod. We
introduced a new line of sights and scopes from our Crimson Trace
brand, which not only broadened our product offering, but also
greatly expanded our addressable market for this brand, and we
launched an exciting re-branding initiative that expanded our BUBBA
brand from a single product focus to an exciting lifestyle brand
with a variety of new products that address the broader category of
fishing gear and accessories."
"In our Firearms segment, sales grew 6.3% over the prior fiscal
year. While consumer demand remained weak throughout fiscal
2019, as indicated by Adjusted NICS background checks which were
down 8.8% year over year, our units shipped into the sporting goods
channel increased 4.2%. We introduced 106 new firearm
skus, including 32 meaningful new products and numerous line
extensions. At the end of the year we launched our
Performance Center M&P 380 Shield EZ, a high performance
version of our original Shield EZ, which has become a favorite for
consumers seeking an easy-to-manage, personal protection
firearm. Our Shield family products has become a consumer
favorite, and by the end of fiscal 2019 we had shipped over 3
million Shield pistols. We are now approaching the $1 billion-dollar milestone for cumulative sales
of the Shield family of handguns. Lastly, we introduced
several bundle promotions, which combine a firearm with accessories
from our Outdoor Products & Accessories segment, delivering
customers a great value with brand names they know and trust."
Jeff Buchanan, Executive Vice
President, Chief Financial Officer, and Chief Administrative
Officer, commented, "The strength of our balance sheet in fiscal
2019 supported a number of initiatives throughout the year.
At the end of our fiscal year, our balance sheet remained strong
with approximately $41.0 million
dollars of cash and $115.4 million
dollars of total net borrowings. I would note that we paid
down $25 million dollars on our line
of credit in the fourth quarter, resulting in no borrowings on the
line of credit at the end of the year. We have reduced our net
borrowings by nearly $100.0 million
dollars in less than two years, while still investing
heavily in our business, including small acquisitions and our new
Logistics & Customer Services facility. Currently our long-term
borrowings consists of $75.0 million
dollars in Senior Notes due in 2020, and $81.4 million dollars on our Bank Term Loan A,
also due in 2020."
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 July 31, 2019
|
|
Range for the Year
Ending April 30, 2020
|
Net sales (in
thousands)
|
$ 120,000
|
|
$ 130,000
|
|
$ 630,000
|
|
$ 650,000
|
|
|
|
|
|
|
|
|
GAAP (loss)/income
per share - diluted
|
$
(0.03)
|
|
$
0.01
|
|
$
0.50
|
|
$
0.58
|
Amortization of
acquired intangible assets
|
0.09
|
|
0.09
|
|
0.36
|
|
0.36
|
Diode
recall
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
Transition
costs
|
—
|
|
—
|
|
0.01
|
|
0.01
|
Tax effect of
non-GAAP adjustments
|
(0.02)
|
|
(0.02)
|
|
(0.10)
|
|
(0.10)
|
Non-GAAP income per
share - diluted
|
$
0.03
|
|
$
0.07
|
|
$
0.76
|
|
$
0.84
|
Conference Call and Webcast
The company will host a conference call and webcast today,
June 19, 2019, to discuss its fourth
quarter and full year 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 8680919. 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) acquisition-related costs,
(iv) fair value inventory step-up expense, (v) debt extinguishment
costs, (vi) recall related expenses, (vii) the tax effect of
non-GAAP adjustments, (viii) net cash provided by operating
activities, (ix) net cash used in investing activities, (x)
acquisition of businesses, net of cash acquired, (xi) receipts from
note receivable, (xii) interest expense (xiii) income tax expense,
(xiv) depreciation and amortization, (xv) stock-based compensation
expenses, (xvi) discontinued operations, (xvii) changes in
contingent consideration, (xiii) Tax Reform, and (xix) 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 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 the industry leading provider of shooting, reloading,
gunsmithing, 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 long-term strategy of being the leading
provider of quality products for the shooting, hunting, and rugged
outdoor enthusiast market; our belief that our new Logistics &
Customer Services facility in Missouri, which will serve as the centralized
logistics, warehousing, and distribution operation for all of our
products, will facilitate our growth, enhance our efficiencies, and
allow us to better serve customers across our entire organization;
our belief that our new Logistics & Customer Services facility
is an important strategic initiative that will support our
objective of becoming the leading provider of quality products for
the shooting, huntiung and rugged outdoor enthusiasist; and our
expectations for net sales, GAAP income per diluted share,
acquisition-related costs, amortization of acquired intangible
assets, fair value inventory step-up and backlog expense, tax
effect of non-GAAP adjustments, and non-GAAP income per diluted
share for the first quarter of fiscal 2020 and for fiscal
2020. 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; 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
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
As
of:
|
|
April 30,
2019
|
|
April 30,
2018
|
|
(In thousands, except
par value and share data)
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
41,015
|
|
$
48,860
|
Accounts receivable,
net of allowance for doubtful accounts of $1,899 on April 30, 2019
and $1,824 on April 30, 2018
|
84,907
|
|
56,676
|
Inventories
|
163,770
|
|
153,353
|
Prepaid expenses and
other current assets
|
6,528
|
|
6,893
|
Income tax
receivable
|
2,464
|
|
4,582
|
Total current
assets
|
298,684
|
|
270,364
|
Property,
plant, and equipment, net
|
183,268
|
|
159,125
|
Intangibles,
net
|
91,840
|
|
112,760
|
Goodwill
|
182,269
|
|
191,287
|
Other
assets
|
10,728
|
|
11,524
|
|
$
766,789
|
|
$
745,060
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
35,584
|
|
$
33,617
|
Accrued expenses and
deferred revenue
|
39,322
|
|
41,632
|
Accrued payroll and
incentives
|
21,473
|
|
10,514
|
Accrued income
taxes
|
175
|
|
513
|
Accrued profit
sharing
|
2,830
|
|
1,283
|
Accrued
warranty
|
5,599
|
|
6,823
|
Current portion of
notes and loans payable
|
6,300
|
|
6,300
|
Total current
liabilities
|
111,283
|
|
100,682
|
Deferred income
taxes
|
9,776
|
|
12,895
|
Notes and loans
payable, net of current portion
|
149,434
|
|
180,304
|
Capital lease
payable, net of current portion
|
45,400
|
|
22,143
|
Other non-current
liabilities
|
6,452
|
|
6,888
|
Total
liabilities
|
322,345
|
|
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,
72,863,624 shares issued and 54,696,762 shares outstanding on April
30, 2019 and 72,433,705 shares issued and 54,266,843
shares outstanding on April 30, 2018
|
73
|
|
72
|
Additional paid-in
capital
|
263,180
|
|
253,616
|
Retained
earnings
|
402,946
|
|
389,146
|
Accumulated other
comprehensive income
|
620
|
|
1,689
|
Treasury stock, at
cost (18,166,862 shares on April 30, 2019 and April 30,
2018)
|
(222,375)
|
|
(222,375)
|
Total stockholders'
equity
|
444,444
|
|
422,148
|
|
$
766,789
|
|
$
745,060
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the
Years Ended
|
|
|
April 30,
2019
|
|
April 30,
2018
|
|
April 30,
2019
|
|
April 30,
2018
|
|
|
(Unaudited)
|
|
|
|
|
|
|
(In thousands, except
per share data)
|
Net sales
|
|
$
175,734
|
|
$
172,026
|
|
$
638,277
|
|
$
606,850
|
Cost of
sales
|
|
112,369
|
|
114,622
|
|
412,046
|
|
411,098
|
Gross
profit
|
|
63,365
|
|
57,404
|
|
226,231
|
|
195,752
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
3,508
|
|
2,682
|
|
12,866
|
|
11,361
|
Selling and
marketing
|
|
14,985
|
|
12,595
|
|
57,263
|
|
55,805
|
General and
administrative
|
|
29,583
|
|
25,712
|
|
107,650
|
|
101,538
|
Goodwill
Impairment
|
|
—
|
|
—
|
|
10,396
|
|
—
|
Total operating
expenses
|
|
48,076
|
|
40,989
|
|
188,175
|
|
168,704
|
Operating
income
|
|
15,289
|
|
16,415
|
|
38,056
|
|
27,048
|
Other
(expense)/income, net:
|
|
|
|
|
|
|
|
|
Other
income/(expense), net
|
|
(6)
|
|
355
|
|
33
|
|
1,737
|
Interest expense,
net
|
|
(2,529)
|
|
(2,815)
|
|
(9,351)
|
|
(11,168)
|
Total other
(expense)/income, net
|
|
(2,535)
|
|
(2,460)
|
|
(9,318)
|
|
(9,431)
|
Income from
operations before income taxes
|
|
12,754
|
|
13,955
|
|
28,738
|
|
17,617
|
Income tax
expense/(benefit)
|
|
2,929
|
|
6,291
|
|
10,328
|
|
(2,511)
|
Net income
|
|
9,825
|
|
7,664
|
|
18,410
|
|
20,128
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.18
|
|
$
0.14
|
|
$
0.34
|
|
$
0.37
|
Diluted
|
|
$
0.18
|
|
$
0.14
|
|
$
0.33
|
|
$
0.37
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
54,604
|
|
54,174
|
|
54,483
|
|
54,061
|
Diluted
|
|
55,286
|
|
54,658
|
|
55,216
|
|
54,834
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
For the Years
Ended
|
|
April 30,
2019
|
|
April 30,
2018
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
18,410
|
|
$
20,128
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
53,859
|
|
52,075
|
(Gain)/loss on
sale/disposition of assets
|
(454)
|
|
44
|
Provision for losses
on accounts receivable
|
1,060
|
|
991
|
Impairment of
long-lived tangible assets
|
—
|
|
282
|
Goodwill
impairment
|
10,396
|
|
—
|
Deferred income
taxes
|
(2,795)
|
|
(8,775)
|
Change in fair value
of contingent consideration
|
(60)
|
|
(1,640)
|
Stock-based
compensation expense
|
7,992
|
|
7,815
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(28,997)
|
|
51,380
|
Inventories
|
(10,533)
|
|
(16,971)
|
Prepaid expenses and
other current assets
|
359
|
|
514
|
Income
taxes
|
1,780
|
|
5,848
|
Accounts
payable
|
3,392
|
|
(20,998)
|
Accrued payroll and
incentives
|
10,959
|
|
(10,754)
|
Accrued profit
sharing
|
1,547
|
|
(11,721)
|
Accrued expenses and
deferred revenue
|
(7,193)
|
|
(8,424)
|
Accrued
warranty
|
(1,224)
|
|
1,915
|
Other
assets
|
(671)
|
|
(417)
|
Other non-current
liabilities
|
(377)
|
|
351
|
Net cash provided by
operating activities
|
57,450
|
|
61,643
|
Cash flows from
investing activities:
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
(1,772)
|
|
(23,120)
|
Receipts from note
receivable
|
74
|
|
—
|
Payments to acquire
patents and software
|
(516)
|
|
(560)
|
Proceeds from sale of
property and equipment
|
1,336
|
|
6
|
Payments to acquire
property and equipment
|
(33,949)
|
|
(18,490)
|
Net cash used in
investing activities
|
(34,827)
|
|
(42,164)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from loans
and notes payable
|
50,000
|
|
150,000
|
Cash paid for debt
issuance costs
|
—
|
|
(158)
|
Payments on capital
lease obligation
|
(741)
|
|
(646)
|
Payments on notes and
loans payable
|
(81,300)
|
|
(181,300)
|
Proceeds from
exercise of options to acquire common stock, including employee
stock purchase plan
|
2,222
|
|
2,213
|
Payment of employee
withholding tax related to restricted stock units
|
(649)
|
|
(2,277)
|
Net cash used in
financing activities
|
(30,468)
|
|
(32,168)
|
Net decrease in cash
and cash equivalents
|
(7,845)
|
|
(12,689)
|
Cash and cash
equivalents, beginning of period
|
48,860
|
|
61,549
|
Cash and cash
equivalents, end of period
|
$
41,015
|
|
$
48,860
|
Supplemental
disclosure of cash flow information
|
|
|
|
Cash paid
for:
|
|
|
|
Interest
|
$
9,473
|
|
$
10,624
|
Income
taxes
|
$
10,567
|
|
$
1,387
|
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 Year
Ended
|
|
April 30,
2019
|
|
April 30,
2018
|
|
April 30,
2019
|
|
April 30,
2018
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
GAAP gross
profit
|
$ 63,365
|
|
36.1%
|
|
$ 57,404
|
|
33.4%
|
|
$ 226,231
|
|
35.4%
|
|
$ 195,752
|
|
32.3%
|
Diode
recall
|
—
|
|
—
|
|
1,666
|
|
1.0%
|
|
—
|
|
—
|
|
1,666
|
|
0.3%
|
Fair value inventory
step-up
|
92
|
|
0.1%
|
|
272
|
|
0.2%
|
|
454
|
|
0.1%
|
|
500
|
|
0.1%
|
Non-GAAP gross
profit
|
$ 63,457
|
|
36.1%
|
|
$ 59,342
|
|
34.5%
|
|
$ 226,685
|
|
35.5%
|
|
$ 197,918
|
|
32.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$ 48,076
|
|
27.4%
|
|
$ 40,989
|
|
23.8%
|
|
$ 188,175
|
|
29.5%
|
|
$ 168,704
|
|
27.8%
|
Amortization of
acquired intangible assets
|
(5,468)
|
|
-3.1%
|
|
(5,548)
|
|
-3.2%
|
|
(21,808)
|
|
-3.4%
|
|
(20,812)
|
|
-3.4%
|
Goodwill
impairment
|
—
|
|
—
|
|
—
|
|
—
|
|
(10,396)
|
|
-1.6%
|
|
—
|
|
—
|
Transition
costs
|
(434)
|
|
-0.2%
|
|
2
|
|
0.0%
|
|
(1,185)
|
|
-0.2%
|
|
(439)
|
|
-0.1%
|
Acquisition-related
costs
|
(22)
|
|
0.0%
|
|
(14)
|
|
0.0%
|
|
(28)
|
|
0.0%
|
|
(769)
|
|
-0.1%
|
Non-GAAP operating
expenses
|
$ 42,152
|
|
24.0%
|
|
$ 35,429
|
|
20.6%
|
|
$ 154,758
|
|
24.2%
|
|
$ 146,684
|
|
24.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$ 15,289
|
|
8.7%
|
|
$ 16,415
|
|
9.5%
|
|
$
38,056
|
|
6.0%
|
|
$
27,048
|
|
4.5%
|
Fair value inventory
step-up
|
92
|
|
0.1%
|
|
272
|
|
0.2%
|
|
454
|
|
0.1%
|
|
500
|
|
0.1%
|
Diode
recall
|
—
|
|
—
|
|
1,666
|
|
1.0%
|
|
—
|
|
—
|
|
1,666
|
|
0.3%
|
Amortization of
acquired intangible assets
|
5,468
|
|
3.1%
|
|
5,548
|
|
3.2%
|
|
21,808
|
|
3.4%
|
|
20,812
|
|
3.4%
|
Goodwill
impairment
|
—
|
|
—
|
|
—
|
|
—
|
|
10,396
|
|
1.6%
|
|
—
|
|
—
|
Transition
costs
|
434
|
|
0.2%
|
|
(2)
|
|
0.0%
|
|
1,185
|
|
0.2%
|
|
439
|
|
0.1%
|
Acquisition-related
costs
|
22
|
|
0.0%
|
|
14
|
|
0.0%
|
|
28
|
|
0.0%
|
|
769
|
|
0.1%
|
Non-GAAP operating
income
|
$ 21,305
|
|
12.1%
|
|
$ 23,913
|
|
13.9%
|
|
$
71,927
|
|
11.3%
|
|
$
51,234
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
9,825
|
|
5.6%
|
|
$
7,664
|
|
4.5%
|
|
$
18,410
|
|
2.9%
|
|
$
20,128
|
|
3.3%
|
Fair value inventory
step-up
|
92
|
|
0.1%
|
|
272
|
|
0.2%
|
|
454
|
|
0.1%
|
|
500
|
|
0.1%
|
Amortization of
acquired intangible assets
|
5,468
|
|
3.1%
|
|
5,548
|
|
3.2%
|
|
21,808
|
|
3.4%
|
|
20,812
|
|
3.4%
|
Goodwill
impairment
|
—
|
|
—
|
|
—
|
|
—
|
|
10,396
|
|
1.6%
|
|
—
|
|
—
|
Debt extinguishment
costs
|
—
|
|
—
|
|
226
|
|
0.1%
|
|
—
|
|
—
|
|
226
|
|
0.0%
|
Diode
recall
|
—
|
|
—
|
|
1,666
|
|
1.0%
|
|
—
|
|
—
|
|
1,666
|
|
0.3%
|
Transition
costs
|
434
|
|
0.2%
|
|
(2)
|
|
0.0%
|
|
1,185
|
|
0.2%
|
|
439
|
|
0.1%
|
Acquisition-related
costs
|
22
|
|
0.0%
|
|
14
|
|
0.0%
|
|
28
|
|
0.0%
|
|
769
|
|
0.1%
|
Change in contingent
consideration
|
—
|
|
—
|
|
(340)
|
|
-0.2%
|
|
(60)
|
|
0.0%
|
|
(1,640)
|
|
-0.3%
|
Tax Reform
|
—
|
|
—
|
|
663
|
|
0.4%
|
|
—
|
|
—
|
|
(8,746)
|
|
-1.4%
|
Tax effect of
non-GAAP adjustments
|
(1,624)
|
|
-0.9%
|
|
(2,459)
|
|
-1.4%
|
|
(6,322)
|
|
-1.0%
|
|
(9,057)
|
|
-1.5%
|
Non-GAAP net
income
|
$ 14,217
|
|
8.1%
|
|
$ 13,252
|
|
7.7%
|
|
$
45,899
|
|
7.2%
|
|
$
25,097
|
|
4.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per
share - diluted
|
$
0.18
|
|
|
|
$
0.14
|
|
|
|
$
0.33
|
|
|
|
$
0.37
|
|
|
Fair value inventory
step-up
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Amortization of
acquired intangible assets
|
0.10
|
|
|
|
0.10
|
|
|
|
0.39
|
|
|
|
0.38
|
|
|
Goodwill
impairment
|
—
|
|
|
|
—
|
|
|
|
0.19
|
|
|
|
—
|
|
|
Debt extinguishment
costs
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Diode
recall
|
—
|
|
|
|
0.03
|
|
|
|
—
|
|
|
|
0.03
|
|
|
Transition
costs
|
0.01
|
|
|
|
—
|
|
|
|
0.02
|
|
|
|
0.01
|
|
|
Acquisition-related
costs
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
|
Change in contingent
consideration
|
—
|
|
|
|
(0.01)
|
|
|
|
—
|
|
|
|
(0.03)
|
|
|
Tax Reform
|
—
|
|
|
|
0.01
|
|
|
|
—
|
|
|
|
(0.16)
|
|
|
Tax effect of
non-GAAP adjustments
|
(0.03)
|
|
|
|
(0.04)
|
|
|
|
(0.11)
|
|
|
|
(0.17)
|
|
|
Non-GAAP net income
per share - diluted
|
$
0.26
|
|
|
|
$
0.24
|
(a)
|
|
$
0.83
|
|
|
|
$
0.46
|
(a)
|
|
(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 Years
Ended
|
|
April 30,
2019
|
|
April 30,
2018
|
|
April 30,
2019
|
|
April 30,
2018
|
Net cash provided by
operating activities
|
$
36,706
|
|
$
65,865
|
|
$
57,450
|
|
$
61,643
|
Net cash used in
investing activities
|
(7,915)
|
|
(4,710)
|
|
(34,827)
|
|
(42,164)
|
Acquisition of
businesses, net of cash acquired
|
(19)
|
|
—
|
|
1,772
|
|
23,120
|
Receipts from note
receivable
|
(74)
|
|
—
|
|
(74)
|
|
—
|
Free cash
flow
|
28,698
|
|
$
61,155
|
|
$
24,321
|
|
$
42,599
|
AMERICAN OUTDOOR
BRANDS CORPORATION AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Years
Ended
|
|
|
April 30,
2019
|
|
April 30,
2018
|
|
April 30,
2019
|
|
April 30,
2018
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
$
9,825
|
|
$
7,664
|
|
$
18,410
|
|
$
20,128
|
Interest
expense
|
|
2,747
|
|
2,638
|
|
9,790
|
|
11,092
|
Income tax
expense/(benefit)
|
|
2,929
|
|
6,291
|
|
10,328
|
|
(2,511)
|
Depreciation and
amortization
|
|
13,908
|
|
12,922
|
|
52,770
|
|
50,970
|
Stock-based
compensation expense
|
|
1,922
|
|
2,054
|
|
7,992
|
|
7,816
|
Diode
Recall
|
|
—
|
|
1,666
|
|
—
|
|
1,666
|
Impairment of
long-lived tangible assets
|
|
—
|
|
—
|
|
10,396
|
|
—
|
Fair value inventory
step-up
|
|
92
|
|
272
|
|
454
|
|
500
|
Debt extinguishment
costs
|
|
—
|
|
226
|
|
—
|
|
226
|
Acquisition-related
costs
|
|
22
|
|
14
|
|
28
|
|
769
|
Transition
costs
|
|
434
|
|
(2)
|
|
1,185
|
|
439
|
Change in contingent
consideration
|
|
—
|
|
(340)
|
|
(60)
|
|
(1,640)
|
Non-GAAP Adjusted
EBITDAS
|
|
$
31,879
|
|
$
33,405
|
|
$
111,293
|
|
$
89,455
|
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SOURCE American Outdoor Brands Corporation