AOBC
$7.60
American Outdoor Brands
$.46
6.44%
Earnings Details
3rd Quarter January 2020
Thursday, March 05, 2020 4:15:00 PM
Tweet Share Watch
Summary

American Outdoor Brands Misses

American Outdoor Brands (AOBC) reported 3rd Quarter January 2020 earnings of $0.13 per share on revenue of $166.7 million. The consensus earnings estimate was $0.25 per share on revenue of $197.8 million. The Earnings Whisper number was $0.27 per share. Revenue grew 2.9% on a year-over-year basis.

The company said it expects fourth quarter earnings of $0.33 to $0.37 per share on revenue of $205.0 million to $215.0 million. The current consensus earnings estimate is $0.47 per share on revenue of $228.1 million for the quarter ending April 30, 2020.

Results
Reported Earnings
$0.13
Earnings Whisper
$0.27
Consensus Estimate
$0.25
Reported Revenue
$166.7 Mil
Revenue Estimate
$197.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

American Outdoor Brands Corporation Reports Third Quarter Fiscal 2020 Financial Results

SPRINGFIELD, Mass., March 5, 2020 /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 third quarter fiscal 2020, ended January 31, 2020.

Third Quarter Fiscal 2020 Financial Highlights

  • Quarterly net sales were $166.7 million compared with $162.0 million for the third quarter last year, an increase of 2.9%.  It should be noted that a change required by the Tax and Trade Bureau related to the timing of federal excise tax assessment within the company's Firearms segment favorably impacted net sales in the quarter by $10.1 million.  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 33.1% compared with 33.4% for the comparable quarter last year. Excluding the change required by the Tax and Trade Bureau related to the timing of federal excise tax assessment within the company's Firearms segment, gross margin for the quarter would have been 35.3%, or an increase of 190 basis points over the comparable quarter last year.  
  • Quarterly GAAP net income was $5.7 million, or $0.10 per diluted share, compared with a GAAP net loss of $5.7 million, or $(0.10) per diluted share, for the comparable quarter last year. Results for the comparable quarter last year included a $10.4 million, non-cash impairment of goodwill in our Outdoor Products & Accessories segment, which had a $(0.19) impact on basic and diluted earnings per share. 
  • Quarterly non-GAAP net income was $6.9 million, or $0.13 per diluted share, compared with $8.9 million, or $0.16 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for 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 $22.4 million, or 13.4% of net sales, compared with $24.4 million, or 15.0% of net sales, for the comparable quarter last year. Excluding the change required by the Tax and Trade Bureau related to the timing of federal excise tax assessment within the company's Firearms segment, non-GAAP Adjusted EBITDAS for the quarter would have been 14.3%.

During the quarter, the company announced that its Board of Directors named Mark P. Smith and Brian D. Murphy as co-Presidents and co-Chief Executive Officers, following the separation of former President and CEO, James Debney. Smith was most recently President of the Manufacturing Services Division of the company, while Murphy was most recently President of the Outdoor Products & Accessories Division.  The company also stated that it is proceeding with its previously announced plan to spin-off its outdoor products and accessories business as a tax-free stock dividend to its stockholders in the second half of calendar 2020, a transaction that will create two independent publicly traded companies: Smith & Wesson Brands, Inc. (the firearm business) and American Outdoor Brands, Inc. (the outdoor products and accessories business). 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.

Mark Smith, co-President and co-Chief Executive Officer, commented, "Third quarter revenue in our Firearms segment was favorably impacted by changes in the timing of our excise tax assessment, as well as the positive impact of our new M&P9 Shield EZ pistol, which is built for personal protection and every day carry, and was displayed at SHOT Show in January.  That positive impact, however, was partially offset by lower than anticipated orders from certain strategic retailers across multiple product categories.  We believe that consumer demand for handguns remained strong during the quarter, as reflected by adjusted National Instant Criminal Background Check System ("NICS") background checks, but we also believe that demand was fulfilled with existing retail channel inventory of our handguns.  Our revenue in long guns declined due to a reduction in our inventory by certain strategic retailers, decreased bundle promotions compared to the prior year, and close-out sales of discontinued products in the prior year." 

Brian Murphy, co-President and co-Chief Executive Officer, commented, "In our Outdoor Products & Accessories segment, third quarter revenue increased as a result of increased shooting, hunting, and cutlery product sales, driven by demand from several large national retailers and the success of our strategy with certain retail customers to normalize the cadence of ongoing replenishment orders. Point of sale data, which we collect from many of our larger customers, appears to indicate that our products in these categories remain popular with consumers as well.  Revenue increases in the quarter were partially offset by reduced OEM sales of our laser sight products, bankruptcy and financial distress of certain customers, and the acceleration of one brick-and-mortar retailer's private label strategy for camping accessories away from our branded survival products. Excluding the impact of these items, revenue would have increased approximately $3.3 million, or 7.9%, over the comparable quarter last year."

Jeffrey D. Buchanan, Chief Financial Officer, commented, "During the third quarter, we successfully refinanced our revolving line of credit to extend the maturity out to October 2021, securing our ability to spin off our outdoor products and accessories business without obtaining additional bank approvals.  Concurrent with the extension of the revolving line of credit, we repaid our term loan that was due in June 2020 and, in January, we called our Senior Notes that were due in August 2020, thereby extending the maturity of all of the company's debt out to 2021.  We ended our third fiscal quarter with $46.1 million in cash and $200.0 million in revolving debt."

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 April 30, 2020


Range for the Year Ending April 30, 2020


Net sales (in thousands)

$ 205,000


$ 215,000


$ 650,000


$ 660,000











GAAP income per share - diluted

$        0.17


$        0.21


$        0.25


$        0.29


Amortization of acquired intangible assets

0.09


0.09


0.35


0.35


Diode recall



(0.01)


(0.01)


CEO separation

0.03


0.03


(0.04)


(0.04)


Transition costs

0.12


0.12


0.17


0.17


Tax effect of non-GAAP adjustments

(0.07)


(0.07)


(0.14)


(0.14)


Non-GAAP income per share - diluted

$        0.33

 * 

$        0.37

 * 

$        0.58


$        0.62



* 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 $502.0 million and $507.0 million and full year revenue for its Outdoor Products & Accessories segment to be between $170.0 million and $175.0 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 $22.0 million. This guidance takes into account several factors, including expected impacts from the Coronavirus, all of which are outlined in the company's Form 10-Q.

Conference Call and Webcast
The company will host a conference call and webcast today, March 5, 2020, to discuss its third quarter fiscal 2020 financial and operational results. Speakers on the conference call will include Brian Murphy, Co-President and Co-Chief Executive Officer, Mark Smith, Co-President and Co-Chief Executive Officer, and Jeffrey D. Buchanan, Executive Vice President and Chief Financial 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 6658749.  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) goodwill impairment, (vii) CEO separation, (viii) acquisition related costs, (ix) the tax effect of non-GAAP adjustments, (x) net cash (used in)/provided by operating activities, (xi) net cash used in investing activities,  (xii) interest expense, (xiii) income tax expense, (xiv) depreciation and amortization, and (xv) 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 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); our belief that point of sale data appears to indicate that our shooting, hunting, and cutlery products remain popular with consumers; our expectation of net sales, GAAP income per share – diluted, and non-GAAP income per share – diluted for the three months ending April 30, 2020 and for the year ending April 30, 2020; 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; impacts from the Coronavirus; 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:


January 31, 2020


April 30, 2019



(In thousands, except par value and share data)


 ASSETS


 Current assets:





Cash and cash equivalents

$         46,101


$     41,015


Accounts receivable, net of allowance for doubtful accounts of $2,010 on January 31, 2020 and $1,899 on April 30, 2019

101,822


84,907


Inventories

201,536


163,770


Prepaid expenses and other current assets

9,575


6,528


Income tax receivable 

4,749


2,464


Total current assets

363,783


298,684


 Property, plant, and equipment, net

164,341


183,268


 Intangibles, net

78,346


91,840


 Goodwill

182,267


182,269


 Other assets

19,410


10,728



$       808,147


$   766,789


 LIABILITIES AND STOCKHOLDERS' EQUITY


 Current liabilities:





Accounts payable

$         31,843


$     35,584


Accrued expenses and deferred revenue

43,131


39,322


Accrued payroll and incentives

14,189


21,473


Accrued income taxes

265


175


Accrued profit sharing

1,699


2,830


Accrued warranty

4,208


5,599


Current portion of notes and loans payable

-


6,300


Total current liabilities

95,335


111,283


 Deferred income taxes 

9,595


9,776


 Notes and loans payable, net of current portion

199,034


149,434


 Finance lease payable, net of current portion

40,202


45,400


Other non-current liabilities

13,482


6,452


Total liabilities

357,648


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, 73,234,996 issued and 55,068,134 shares outstanding on January 31, 2020 and 72,863,624 shares issued and 54,696,762 shares outstanding on April 30, 2019

73


73


Additional paid-in capital 

264,866


263,180


Retained earnings

407,862


402,946


Accumulated other comprehensive income

73


620


Treasury stock, at cost (18,166,862 shares on January 31, 2020 and April 30, 2019)

(222,375)


(222,375)


Total stockholders' equity

450,499


444,444



$       808,147


$   766,789


 

AMERICAN OUTDOOR BRANDS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS)












For the Three Months Ended


For the Nine Months  Ended



January 31, 2020


January 31, 2019


January 31, 2020


January 31, 2019



(Unaudited)



(In thousands, except per share data)

Net sales


$       166,695


$       162,008


$       444,753


$       462,544

Cost of sales


111,492


107,949


291,390


299,677

Gross profit


55,203


54,059


153,363


162,867

Operating expenses:









Research and development


3,192


3,297


9,410


9,358

Selling, marketing, and distribution


19,294


15,373


55,419


42,279

General and administrative


21,810


27,026


71,601


78,065

Goodwill Impairment



10,396



10,396

Total operating expenses


44,296


56,092


136,430


140,098

Operating income


10,907


(2,033)


16,933


22,769

Other (expense)/income, net:









Other income, net 


(18)


47


73


38

Interest expense, net


(2,885)


(2,548)


(8,551)


(6,822)

Total other (expense), net


(2,903)


(2,501)


(8,478)


(6,784)

Income from operations before income taxes


8,004


(4,534)


8,455


15,985

Income tax expense


2,273


1,191


3,539


7,399

Net Income/(loss)


$            5,731


$          (5,725)


$            4,916


$            8,586

Net Income/(loss) per share:









Basic


$              0.10


$            (0.10)


$              0.09


$              0.16

Diluted


$              0.10


$            (0.10)


$              0.09


$              0.16

Weighted average number of common shares outstanding:









Basic


55,064


54,544


54,919


54,444

Diluted


55,744


54,544


55,641


55,132

 

AMERICAN OUTDOOR BRANDS CORPORATION AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)








For the Nine Months Ended


January 31, 2020


January 31, 2019



(In thousands)

Cash flows from operating activities:





Net income

$               4,916


$               8,586


Adjustments to reconcile net income to net cash (used in)/provided by operating activities:





Depreciation and amortization 

41,083


39,624


Loss/(gain) on sale/disposition of assets

780


(1,033)


Provision for losses on notes and accounts receivable

551


832


Goodwill impairment


10,396


Deferred income taxes

(18)


(1,519)


Change in fair value of contingent consideration

100


(60)


Stock-based compensation expense

1,344


6,070


Changes in operating assets and liabilities:





Accounts receivable

(17,466)


(19,347)


Inventories

(37,766)


(20,186)


Prepaid expenses and other current assets

(3,047)


(591)


Income taxes

(2,195)


1,146


Accounts payable

(3,610)


664


Accrued payroll and incentives

(7,284)


5,815


Accrued profit sharing

(1,131)


297


Accrued expenses and deferred revenue

529


(8,532)


Accrued warranty

(1,391)


(1,550)


Other assets

2,429


10


Other non-current liabilities

(2,865)


123


Net cash (used in)/provided by operating activities

(25,041)


20,745


Cash flows from investing activities:





Acquisition of businesses, net of cash acquired


(1,791)


Payments to acquire patents and software

(551)


(355)


Proceeds from sale of property and equipment


1,223


Payments to acquire property and equipment

(11,751)


(25,989)


Net cash used in investing activities

(12,302)


(26,912)


Cash flows from financing activities:





Proceeds from loans and notes payable

228,225


50,000


Payments on finance lease obligation

(875)


(1,025)


Cash paid for debt issuance costs

(663)



Payments on notes and loans payable

(184,600)


(54,725)


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

(594)


(631)


Net cash provided by/(used in) financing activities

42,429


(5,223)


Net increase/(decrease) in cash and cash equivalents

5,086


(11,390)


Cash and cash equivalents, beginning of period

41,015


48,860


Cash and cash equivalents, end of period

$             46,101


$             37,470


Supplemental disclosure of cash flow information





Cash paid for:





Interest

$               8,422


$               5,554


Income taxes

$               5,755


$               6,885


 

AMERICAN OUTDOOR BRANDS CORPORATION AND SUBSIDIARIES

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 Nine Months Ended



January 31, 2020


January 31, 2019


January 31, 2020


January 31, 2019



$


% of Sales


$


% of Sales


$


% of Sales


$


% of Sales


GAAP gross profit

$ 55,203


33.1%


$ 54,059


33.4%


$ 153,363


34.5%


$ 162,867


35.2%


Diode recall

(180)


-0.1%




(769)


-0.2%




Fair value inventory step-up



92


0.1%




362


0.1%


Transition costs





872


0.2%




Non-GAAP gross profit

$ 55,023


33.0%


$ 54,151


33.4%


$ 153,466


34.5%


$ 163,229


35.3%



















GAAP operating expenses

$ 44,296


26.6%


$ 56,092


34.6%


$ 136,430


30.7%


$ 140,098


30.3%


Amortization of acquired intangible assets

(4,697)


-2.8%


(5,445)


-3.4%


(14,242)


-3.2%


(16,335)


-3.5%


Goodwill impairment



(10,396)


-6.4%




(10,396)


-2.2%


Transition costs

(990)


-0.6%


(369)


-0.2%


(1,889)


-0.4%


(751)


-0.2%


CEO separation

3,844


2.3%




3,844


0.9%




Acquisition-related costs



(6)


0.0%




(6)


0.0%


Non-GAAP operating expenses

$ 42,453


25.5%


$ 39,876


24.6%


$ 124,143


27.9%


$ 112,610


24.3%



















GAAP operating income

$ 10,907


6.5%


$  (2,033)


-1.3%


$   16,933


3.8%


$   22,769


4.9%


Fair value inventory step-up



92


0.1%




362


0.1%


Diode recall

(180)


-0.1%




(769)


-0.2%




Amortization of acquired intangible assets

4,697


2.8%


5,445


3.4%


14,242


3.2%


16,335


3.5%


Goodwill impairment



10,396


6.4%




10,396


2.2%


Transition costs

990


0.6%


369


0.2%


2,761


0.6%


751


0.2%


CEO separation

(3,844)


-2.3%




(3,844)


-0.9%




Acquisition-related costs



6


0.0%




6


0.0%


Non-GAAP operating income

$ 12,570


7.5%


$ 14,275


8.8%


$   29,323


6.6%


$   50,619


10.9%



















GAAP net income/(loss)

$   5,731


3.4%


$  (5,725)


-3.5%


$      4,916


1.1%


$      8,586


1.9%


Fair value inventory step-up



92


0.1%




362


0.1%


Amortization of acquired intangible assets

4,697


2.8%


5,445


3.4%


14,242


3.2%


16,335


3.5%


Goodwill impairment



10,396


6.4%




10,396


2.2%


Diode recall

(180)


-0.1%




(769)


-0.2%




Transition costs

990


0.6%


369


0.2%


2,761


0.6%


751


0.2%


CEO separation

(3,844)


-2.3%




(3,844)


-0.9%




Acquisition-related costs



6


0.0%




6


0.0%


Change in contingent consideration



(60)


0.0%


(100)


0.0%


(60)


0.0%


Tax effect of non-GAAP adjustments

(449)


-0.3%


(1,580)


-1.0%


(3,318)


-0.7%


(4,696)


-1.0%


Non-GAAP net income

$   6,945


4.2%


$   8,943


5.5%


$   13,888


3.1%


$   31,680


6.8%



















GAAP net income/(loss) per share - diluted

$      0.10




$    (0.10)




$        0.09




$        0.16




Fair value inventory step-up










0.01




Amortization of acquired intangible assets

0.08




0.10




0.26




0.30




Goodwill impairment




0.19







0.19




Diode recall







(0.01)







Transition costs

0.02




0.01




0.05




0.01




CEO separation

(0.07)







(0.07)







Tax effect of non-GAAP adjustments

(0.01)




(0.03)




(0.06)




(0.09)




Non-GAAP net income per share - diluted (a)

$      0.13




$      0.16




$        0.25




$        0.57





(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 Nine Months Ended



January 31, 2020


January 31, 2019


January 31, 2020


January 31, 2019


Net cash provided by/(used in) operating activities

$            9,565


$         11,694


$        (25,041)


$         20,745


Net cash used in investing activities

(2,934)


(8,323)


(12,302)


(26,912)


Acquisition of businesses, net of cash acquired


1,791



1,791


Free cash flow

$            6,631


$            5,162


$        (37,343)


$          (4,376)


 

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 Nine Months Ended



January 31, 2020


January 31, 2019


January 31, 2020


January 31, 2019










GAAP net income/(loss)


$             5,731


$           (5,725)


$            4,916


$            8,586

Interest expense


2,869


2,661


8,898


7,043

Income tax expense


2,273


1,191


3,539


7,399

Depreciation and amortization


12,761


13,303


40,539


38,863

Stock-based compensation expense


1,762


2,118


4,778


6,070

Impairment of long-lived  tangible assets



10,396



10,396

Fair value inventory step-up



92



362

Acquisition-related costs



6



6

Transition costs


990


369


2,761


751

CEO separation


(3,844)



(3,844)


Diode recall


(180)



(769)


Change in contingent consideration



(60)


(100)


(60)

Non-GAAP Adjusted EBITDAS


$          22,362


$          24,351


$         60,718


$         79,416

 

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SOURCE American Outdoor Brands Corporation