Clarus Reports Second Quarter 2024 Results
Makes Incremental Progress Executing Strategic Initiatives to Accelerate Long-Term Growth
Three Veteran Operating and Sales Executives Added to Adventure Team to Support U.S., International and OEM Markets
Strategic Review Initiated for PIEPS Snow Safety Brand within the Outdoor Segment
SALT LAKE CITY, Aug. 01, 2024 (GLOBE NEWSWIRE) — Clarus Corporation (NASDAQ: CLAR) (“Clarus” and/or the “Company”), a global company focused on the outdoor enthusiast markets, reported financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial Summary vs. Same Year‐Ago Quarter (adjusted to reflect the reclassification of the Precision Sport segment as discontinued operations)
- Sales of $56.5 million compared to $57.9 million.
- Gross margin was 36.1% compared to 39.0%; adjusted gross margin of 37.4% compared to 39.0%.
- Net loss, which includes the impact of discontinued operations, of $5.5 million, or $(0.14) per diluted share, compared to net loss of $2.1 million, or $(0.06) per diluted share.
- Loss from continuing operations of $5.5 million, or $(0.14) per diluted share, compared to loss from continuing operations of $4.3 million, or $(0.12) per diluted share.
- Adjusted EBITDA from continuing operations of $(1.9) million with an adjusted EBITDA margin of (3.4)% compared to $1.0 million with an adjusted EBITDA margin of 1.7%.
Management Commentary
“Against a backdrop of constrained consumers in the outdoor space, we made incremental progress in the second quarter executing Clarus’ strategic initiatives to seek to create long-term value,” said Warren Kanders, Clarus’ Executive Chairman. “We are pleased to see continued improvement in the Outdoor segment, particularly related to simplification and the rationalization of product lines, combined with continued evidence of stabilizing trends in the North American wholesale market, as we focus on our core products and categories. In the Adventure segment, while revenue increased year-over-year for the fourth consecutive quarter, the level of sales growth was affected by constrained consumer demand in the North American market compared to our expectations, and overall profitability was impacted by increased investment aimed at accelerating long-term growth.”
Mr. Kanders added, “Looking forward, we are confident that Clarus is well positioned to drive sustainable and profitable growth as a pure-play, ESG-friendly outdoor business, supported by outstanding leadership and a debt-free balance sheet. We remain in the early stages of our multi-year strategic plan but believe the investments we have made to date strengthening our teams, enhancing business processes, and ensuring we offer in-demand, premium product across our key categories will deliver significant long-term benefit. Based on our results through the first half of the year, we are pleased to reaffirm our full-year revenue guidance. Reflective of market headwinds, as well as our strategic decision to aggressively invest in the business, we have revised our 2024 adjusted EBITDA expectations.”
Second Quarter 2024 Financial Results
Sales in the second quarter were $56.5 million compared to $57.9 million in the same year‐ago quarter. This decrease was primarily driven by softness in the European wholesale and North American direct-to-consumer markets at Outdoor, partially offset by a year-over-year increase in Adventure segment sales, specifically the OEM channel.
Sales in the Adventure segment increased 13.6% to $20.3 million, or $20.5 million on a constant currency basis, compared to $17.9 million in the year-ago quarter, reflecting higher demand from OEM customers and an increase from the TRED Outdoors acquisition. Sales in the Outdoor segment were $36.2 million, compared to $40.1 million in the year-ago quarter. The decline primarily reflects weakness in our North American direct-to-consumer markets and softness in our European markets.
Gross margin in the second quarter was 36.1% compared to 39.0% in the year‐ago quarter. The decrease in gross margin was primarily due to an increase in PFAS (Per-and Polyfluoroalkyl Substances) related inventory reserve expenses, unfavorable product mix due to increased discontinued merchandise sales at the Outdoor segment, as well as higher inventory and sales return reserve expenses at the Adventure segment. Adjusted gross margin reflecting the PFAS related inventory reserve was 37.4% for the quarter.
Selling, general and administrative expenses in the second quarter were $28.1 million compared to $26.9 million in the same year‐ago quarter. The increase was primarily due to an increase in higher investment in marketing initiatives in the Adventure segment, as well as higher employee-related expenses across the Company. These increases were partially offset by expense reduction initiatives in the Outdoor segment to manage costs, as well as lower intangible amortization.
The loss from continuing operations in the second quarter of 2024 was $5.5 million, or $(0.14) per diluted share, compared to loss from continuing operations of $4.3 million, or $(0.12) per diluted share in the year-ago quarter. Loss from continuing operations in the second quarter included $0.4 million of charges relating to legal cost and regulatory matter expenses and $0.7 million of PFAS inventory reserve.
Adjusted loss from continuing operations in the second quarter of 2024 was $1.2 million, or $(0.03) per diluted share, compared to adjusted loss from continuing operations of $0.1 million, or $(0.00) per diluted share, in the year-ago quarter. Adjusted loss from continuing operations excludes legal cost and regulatory matters expenses, PFAS inventory reserves, contingent consideration benefits, restructuring charges and transaction costs, as well as non-cash items for intangible amortization and stock-based compensation.
Adjusted EBITDA from continuing operations in the second quarter was $(1.9) million, or an adjusted EBITDA margin of (3.4)%, compared to adjusted EBITDA from continuing operations of $1.0 million, or an adjusted EBITDA margin of 1.7%, in the same year‐ago quarter.
Net cash generated in operating activities for the three months ended June 30, 2024, was $0.8 million compared to net cash generated of $14.1 million in the prior year quarter. Capital expenditures in the second quarter of 2024 were $1.6 million compared to $1.8 million in the prior year quarter. Free cash flow for the second quarter of 2024 was an outflow of $0.7 million.
Liquidity at June 30, 2024 vs. December 31, 2023
- Cash and cash equivalents totaled $46.2 million compared to $11.3 million.
- Total debt of $0.0 million compared to $119.8 million.
Appoints Three Veteran Operating and Sales Executives to Support Adventure Segment
In July, the Company announced three important strategic hires to seek to accelerate international growth and global OEM initiatives. Adventure appointed Tripp Wyckoff to the role of General Manager of the Americas, David Cook as Global Head of OEM and Daniel Bruntsch as Head of EMEA Sales.
Strategic Review of PIEPS
The Company has initiated a review and evaluation of strategic options for its PIEPS snow safety brand, with the intention of soliciting interest from potential acquirors. This strategic initiative is aligned with Clarus’ prioritization of simplifying the business and rationalizing our product categories. The Company’s Board of Directors has not set a timetable to complete this review and evaluation of strategic options nor have any decisions been made relating to strategic options at this time. There can be no assurance that the review process will result in any transaction that will be consummated. The Company and the Company’s Board of Directors do not intend to comment further about this strategic review unless and until they deem further disclosure is appropriate.
2024 Outlook
The Company continues to expect fiscal year 2024 sales to range between $270 million to $280 million. Due to investments seeking to scale the Adventure segment, particularly in North America, Europe and through direct marketing initiatives, the Company now expects adjusted EBITDA of approximately $11 million to $14 million, or an adjusted EBITDA margin of 4.5% at the mid-point of revenue and adjusted EBITDA. In addition, the Company now expects capital expenditures to range between $6 million to $7 million, of which $0.9 million related to Precision Sport prior to disposal, and adjusted free cash flow to range between $7 million to $9 million for the full year 2024, excluding $2.0 million of cash outflow related to Precision Sport prior to disposal.
Net Operating Loss (NOL)
The Company has net operating loss carryforwards (“NOLs”) for U.S. federal income tax purposes of $7.7 million. None of the NOLs expire until December 31, 2029.
Conference Call
The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2024 results. To access the call by phone, please dial (833)-630-1956 (domestic) or (412)-317-1837 (international) and ask to be joined into the Clarus Corporation call. The conference call will be broadcast live and available for replay here and on the Company’s website at www.claruscorp.com.
About Clarus Corporation
Headquartered in Salt Lake City, Utah, Clarus Corporation is a global leader in the design and development of best-in-class equipment and lifestyle products for outdoor enthusiasts. Driven by our rich history of engineering and innovation, our objective is to provide safe, simple, effective and beautiful products so that our customers can maximize their outdoor pursuits and adventures. Each of our brands has a long history of continuous product innovation for core and everyday users alike. The Company’s products are principally sold globally under the Black Diamond®, Rhino-Rack®, MAXTRAX®, TRED Outdoors® brand names through outdoor specialty and online retailers, our own websites, distributors, and original equipment manufacturers.
Use of Non‐GAAP Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release contains the non-GAAP measures: (i) adjusted gross margin and adjusted gross profit, (ii) adjusted (loss) income from continuing operations and related earnings (loss) per diluted share, (iii) earnings before interest, taxes, other income or expense, depreciation and amortization (“EBITDA”), EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin, and (iv) free cash flow (defined as net cash provided by operating activities less capital expenditures). The Company believes that the presentation of certain non-GAAP measures, i.e.: (i) adjusted gross margin and adjusted gross profit, (ii) adjusted (loss) income from continuing operations and related earnings (loss) per diluted share , (iii) EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin, and (iv) free cash flow, provide useful information for the understanding of its ongoing operations and enables investors to focus on period-over-period operating performance, and thereby enhances the user’s overall understanding of the Company’s current financial performance relative to past performance and provides, along with the nearest GAAP measures, a baseline for modeling future earnings expectations. Non-GAAP measures are reconciled to comparable GAAP financial measures within this press release. We do not provide a reconciliation of the non-GAAP guidance measures Adjusted EBITDA and/or Adjusted EBITDA Margin for the fiscal year 2024 to net income for the fiscal year 2024, the most comparable GAAP financial measure, due to the inherent difficulty of forecasting certain types of expenses and gains, without unreasonable effort, which affect net income but not Adjusted EBITDA and/or Adjusted EBITDA Margin. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. Additionally, the Company notes that there can be no assurance that the above referenced non-GAAP financial measures are comparable to similarly titled financial measures used by other publicly traded companies.
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 press release, include, but are not limited to, those risks and uncertainties more fully described from time to time in the Company’s public reports filed with the Securities and Exchange Commission, including under the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K, and/or Quarterly Reports on Form 10-Q, as well as in the Company’s Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. We assume no obligation to update any forward- looking statements to reflect events or circumstances after the date of this press release.
Company Contact:
Michael J. Yates
Chief Financial Officer
mike.yates@claruscorp.com
Investor Relations:
The IGB Group
Leon Berman / Matt Berkowitz
Tel 1-212-477-8438 / 1-212-227-7098
lberman@igbir.com / mberkowitz@igbir.com
| CLARUS CORPORATION | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| (In thousands, except per share amounts) | |||||||
| June 30, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash | $ | 46,221 | $ | 11,324 | |||
| Accounts receivable, less allowance for | |||||||
| credit losses of $1,566 and $1,412 | 43,721 | 53,971 | |||||
| Inventories | 91,456 | 91,409 | |||||
| Prepaid and other current assets | 6,018 | 4,865 | |||||
| Income tax receivable | 1,371 | 892 | |||||
| Assets held for sale | – | 137,284 | |||||
| Total current assets | 188,787 | 299,745 | |||||
| Property and equipment, net | 17,029 | 16,587 | |||||
| Other intangible assets, net | 35,779 | 41,466 | |||||
| Indefinite-lived intangible assets | 57,694 | 58,527 | |||||
| Goodwill | 38,834 | 39,320 | |||||
| Deferred income taxes | 17,199 | 22,869 | |||||
| Other long-term assets | 14,078 | 16,824 | |||||
| Total assets | $ | 369,400 | $ | 495,338 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 9,533 | $ | 20,015 | |||
| Accrued liabilities | 23,358 | 24,580 | |||||
| Income tax payable | – | 805 | |||||
| Current portion of long-term debt | – | 119,790 | |||||
| Liabilities held for sale | – | 5,744 | |||||
| Total current liabilities | 32,891 | 170,934 | |||||
| Deferred income taxes | 16,697 | 18,124 | |||||
| Other long-term liabilities | 12,529 | 14,160 | |||||
| Total liabilities | 62,117 | 203,218 | |||||
| Stockholders’ Equity | |||||||
| Preferred stock, $0.0001 par value per share; 5,000 shares authorized; none issued | – | – | |||||
| Common stock, $0.0001 par value per share; 100,000 shares authorized; 42,940 and 42,761 issued and 38,298 and 38,149 outstanding, respectively | 4 | 4 | |||||
| Additional paid in capital | 694,194 | 691,198 | |||||
| Accumulated deficit | (336,261 | ) | (350,739 | ) | |||
| Treasury stock, at cost | (33,114 | ) | (32,929 | ) | |||
| Accumulated other comprehensive loss | (17,540 | ) | (15,414 | ) | |||
| Total stockholders’ equity | 307,283 | 292,120 | |||||
| Total liabilities and stockholders’ equity | $ | 369,400 | $ | 495,338 | |||
| CLARUS CORPORATION | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF LOSS | |||||||
| (Unaudited) | |||||||
| (In thousands, except per share amounts) | |||||||
| Three Months Ended | |||||||
| June 30, 2024 | June 30, 2023 | ||||||
| Sales | |||||||
| Domestic sales | $ | 22,934 | $ | 25,925 | |||
| International sales | 33,550 | 32,012 | |||||
| Total sales | 56,484 | 57,937 | |||||
| Cost of goods sold | 36,078 | 35,360 | |||||
| Gross profit | 20,406 | 22,577 | |||||
| Operating expenses | |||||||
| Selling, general and administrative | 28,081 | 26,882 | |||||
| Restructuring charges | 161 | 736 | |||||
| Transaction costs | 27 | 22 | |||||
| Contingent consideration benefit | (125 | ) | – | ||||
| Legal costs and regulatory matter expenses | 399 | 355 | |||||
| Total operating expenses | 28,543 | 27,995 | |||||
| Operating loss | (8,137 | ) | (5,418 | ) | |||
| Other income | |||||||
| Interest income, net | 455 | 8 | |||||
| Other, net | 414 | 226 | |||||
| Total other income, net | 869 | 234 | |||||
| Loss before income tax | (7,268 | ) | (5,184 | ) | |||
| Income tax benefit | (1,775 | ) | (862 | ) | |||
| Loss from continuing operations | (5,493 | ) | (4,322 | ) | |||
| Discontinued operations, net of tax | – | 2,231 | |||||
| Net loss | $ | (5,493 | ) | $ | (2,091 | ) | |
| Loss from continuing operations per share: | |||||||
| Basic | $ | (0.14 | ) | $ | (0.12 | ) | |
| Diluted | (0.14 | ) | (0.12 | ) | |||
| Net loss per share: | |||||||
| Basic | $ | (0.14 | ) | $ | (0.06 | ) | |
| Diluted | (0.14 | ) | (0.06 | ) | |||
| Weighted average shares outstanding: | |||||||
| Basic | 38,297 | 37,192 | |||||
| Diluted | 38,297 | 37,192 | |||||
| CLARUS CORPORATION | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||
| (Unaudited) | |||||||
| (In thousands, except per share amounts) | |||||||
| Six Months Ended | |||||||
| June 30, 2024 | June 30, 2023 | ||||||
| Sales | |||||||
| Domestic sales | $ | 51,218 | $ | 50,122 | |||
| International sales | 74,577 | 78,093 | |||||
| Total sales | 125,795 | 128,215 | |||||
| Cost of goods sold | 80,538 | 80,130 | |||||
| Gross profit | 45,257 | 48,085 | |||||
| Operating expenses | |||||||
| Selling, general and administrative | 56,296 | 56,236 | |||||
| Restructuring charges | 531 | 736 | |||||
| Transaction costs | 65 | 59 | |||||
| Contingent consideration benefit | (125 | ) | (1,565 | ) | |||
| Legal costs and regulatory matter expenses | 3,401 | 483 | |||||
| Total operating expenses | 60,168 | 55,949 | |||||
| Operating loss | (14,911 | ) | (7,864 | ) | |||
| Other (expense) income | |||||||
| Interest income, net | 825 | 13 | |||||
| Other, net | (495 | ) | 302 | ||||
| Total other income, net | 330 | 315 | |||||
| Loss before income tax | (14,581 | ) | (7,549 | ) | |||
| Income tax benefit | (2,626 | ) | (1,196 | ) | |||
| Loss from continuing operations | (11,955 | ) | (6,353 | ) | |||
| Discontinued operations, net of tax | 28,346 | 5,860 | |||||
| Net income (loss) | $ | 16,391 | $ | (493 | ) | ||
| Loss from continuing operations per share: | |||||||
| Basic | $ | (0.31 | ) | $ | (0.17 | ) | |
| Diluted | (0.31 | ) | (0.17 | ) | |||
| Net income (loss) per share: | |||||||
| Basic | $ | 0.43 | $ | (0.01 | ) | ||
| Diluted | 0.43 | (0.01 | ) | ||||
| Weighted average shares outstanding: | |||||||
| Basic | 38,253 | 37,164 | |||||
| Diluted | 38,253 | 37,164 | |||||
| CLARUS CORPORATION | ||||||||||
| RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT | ||||||||||
| AND ADJUSTED GROSS MARGIN | ||||||||||
| THREE MONTHS ENDED | ||||||||||
| June 30, 2024 | June 30, 2023 | |||||||||
| Sales | $ | 56,484 | Sales | $ | 57,937 | |||||
| Gross profit as reported | $ | 20,406 | Gross profit as reported | $ | 22,577 | |||||
| Plus impact of PFAS inventory reserve | 716 | Plus impact of PFAS inventory reserve | – | |||||||
| Adjusted gross profit | $ | 21,122 | Adjusted gross profit | $ | 22,577 | |||||
| Gross margin as reported | 36.1 | % | Gross margin as reported | 39.0 | % | |||||
| Adjusted gross margin | 37.4 | % | Adjusted gross margin | 39.0 | % | |||||
| SIX MONTHS ENDED | ||||||||||
| June 30, 2024 | June 30, 2023 | |||||||||
| Sales | $ | 125,795 | Sales | $ | 128,215 | |||||
| Gross profit as reported | $ | 45,257 | Gross profit as reported | $ | 48,085 | |||||
| Plus impact of PFAS inventory reserve | 1,445 | Plus impact of PFAS inventory reserve | – | |||||||
| Adjusted gross profit | $ | 46,702 | Adjusted gross profit | $ | 48,085 | |||||
| Gross margin as reported | 36.0 | % | Gross margin as reported | 37.5 | % | |||||
| Adjusted gross margin | 37.1 | % | Adjusted gross margin | 37.5 | % | |||||
| CLARUS CORPORATION | ||||||||||||||||||||||||||
| RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED LOSS FROM CONTINUING OPERATIONS AND RELATED EARNINGS PER DILUTED SHARE (In thousands, except per share amounts) | ||||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||
| Total sales | Gross profit | Operating expenses | Income tax (benefit) expense | Tax rate | Loss from continuing operations | Diluted EPS (1) | ||||||||||||||||||||
| As reported | $ | 56,484 | $ | 20,406 | $ | 28,543 | $ | (1,775 | ) | (24.4 | )% | $ | (5,493 | ) | $ | (0.14 | ) | |||||||||
| Amortization of intangibles | – | – | (2,451 | ) | 265 | 2,186 | ||||||||||||||||||||
| Restructuring charges | – | – | (161 | ) | 37 | 124 | ||||||||||||||||||||
| Transaction costs | – | – | (27 | ) | 6 | 21 | ||||||||||||||||||||
| Contingent consideration benefit | – | – | 125 | (38 | ) | (87 | ) | |||||||||||||||||||
| PFAS inventory reserve | – | 716 | – | 146 | 570 | |||||||||||||||||||||
| Legal costs and regulatory matter expenses | – | – | (399 | ) | 152 | 247 | ||||||||||||||||||||
| Stock-based compensation | – | – | (1,528 | ) | 306 | 1,222 | ||||||||||||||||||||
| As adjusted | $ | 56,484 | $ | 21,122 | $ | 24,102 | $ | (901 | ) | 42.7 | % | $ | (1,210 | ) | $ | (0.03 | ) | |||||||||
| (1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share and adjusted loss from continuing operations per share are both calculated based on 38,297 basic and diluted weighted average shares of common stock. | ||||||||||||||||||||||||||
| Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||
| Total sales | Gross profit | Operating expenses | Income tax (benefit) expense | Tax rate | Loss from continuing operations | Diluted EPS (1) | ||||||||||||||||||||
| As reported | $ | 57,937 | $ | 22,577 | $ | 27,995 | $ | (862 | ) | (16.6 | )% | $ | (4,322 | ) | $ | (0.12 | ) | |||||||||
| Amortization of intangibles | – | – | (2,714 | ) | 613 | 2,101 | ||||||||||||||||||||
| Restructuring charges | – | – | (736 | ) | 74 | 662 | ||||||||||||||||||||
| Transaction costs | – | – | (22 | ) | 2 | 20 | ||||||||||||||||||||
| Legal costs and regulatory matter expenses | – | – | (355 | ) | 69 | 286 | ||||||||||||||||||||
| Stock-based compensation | – | – | (1,486 | ) | 295 | 1,191 | ||||||||||||||||||||
| As adjusted | $ | 57,937 | $ | 22,577 | $ | 22,682 | $ | 191 | 148.1 | % | $ | (62 | ) | $ | (0.00 | ) | ||||||||||
| (1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share and adjusted loss from continuing operations per share are both calculated based on 37,192 basic and diluted weighted average shares of common stock. | ||||||||||||||||||||||||||
| CLARUS CORPORATION | ||||||||||||||||||||||||||
| RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED (LOSS) INCOME FROM CONTINUING OPERATIONS AND RELATED EARNINGS PER DILUTED SHARE (In thousands, except per share amounts) | ||||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||
| Total sales | Gross profit | Operating expenses | Income tax (benefit) expense | Tax rate | Loss from continuing operations | Diluted EPS (1) | ||||||||||||||||||||
| As reported | $ | 125,795 | $ | 45,257 | $ | 60,168 | $ | (2,626 | ) | (18.0 | )% | $ | (11,955 | ) | $ | (0.31 | ) | |||||||||
| Amortization of intangibles | – | – | (4,900 | ) | 882 | 4,018 | ||||||||||||||||||||
| Restructuring charges | – | – | (531 | ) | 96 | 435 | ||||||||||||||||||||
| Transaction costs | – | – | (65 | ) | 12 | 53 | ||||||||||||||||||||
| Contingent consideration benefit | – | – | 125 | (38 | ) | (87 | ) | |||||||||||||||||||
| PFAS inventory reserve | – | 1,445 | – | 260 | 1,185 | |||||||||||||||||||||
| Legal costs and regulatory matter expenses | – | – | (3,401 | ) | 613 | 2,788 | ||||||||||||||||||||
| Stock-based compensation | – | – | (2,706 | ) | 487 | 2,219 | ||||||||||||||||||||
| As adjusted | $ | 125,795 | $ | 46,702 | $ | 48,690 | $ | (314 | ) | 18.9 | % | $ | (1,344 | ) | $ | (0.04 | ) | |||||||||
| (1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share and adjusted loss from continuing operations per share are both calculated based on 38,253 basic and diluted weighted average shares of common stock. | ||||||||||||||||||||||||||
| Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||
| Total sales | Gross profit | Operating expenses | Income tax (benefit) expense | Tax rate | (Loss) income from continuing operations | Diluted EPS (1) | ||||||||||||||||||||
| As reported | $ | 128,215 | $ | 48,085 | $ | 55,949 | $ | (1,196 | ) | (15.8 | )% | $ | (6,353 | ) | $ | (0.17 | ) | |||||||||
| Amortization of intangibles | – | – | (5,482 | ) | 891 | 4,591 | ||||||||||||||||||||
| Restructuring charges | – | – | (736 | ) | 74 | 662 | ||||||||||||||||||||
| Transaction costs | – | – | (59 | ) | 8 | 51 | ||||||||||||||||||||
| Contingent consideration benefit | – | – | 1,565 | (335 | ) | (1,230 | ) | |||||||||||||||||||
| Legal costs and regulatory matter expenses | – | – | (483 | ) | 71 | 412 | ||||||||||||||||||||
| Stock-based compensation | – | – | (2,772 | ) | 572 | 2,200 | ||||||||||||||||||||
| As adjusted | $ | 128,215 | $ | 48,085 | $ | 47,982 | $ | 85 | 20.3 | % | $ | 333 | $ | 0.01 | ||||||||||||
| (1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share is calculated based on 37,164 basic and diluted weighted average shares of common stock. Adjusted income from continuing operations per share is calculated based on 38,086 diluted shares of common stock. | ||||||||||||||||||||||||||
| CLARUS CORPORATION | ||||||||
| RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN | ||||||||
| (In thousands) | ||||||||
| Three Months Ended | ||||||||
| June 30, 2024 | June 30, 2023 | |||||||
| Loss from continuing operations | $ | (5,493 | ) | $ | (4,322 | ) | ||
| Income tax benefit | (1,775 | ) | (862 | ) | ||||
| Other, net | (414 | ) | (226 | ) | ||||
| Interest income, net | (455 | ) | (8 | ) | ||||
| Operating loss | (8,137 | ) | (5,418 | ) | ||||
| Depreciation | 1,045 | 1,080 | ||||||
| Amortization of intangibles | 2,451 | 2,714 | ||||||
| EBITDA | (4,641 | ) | (1,624 | ) | ||||
| Restructuring charges | 161 | 736 | ||||||
| Transaction costs | 27 | 22 | ||||||
| Contingent consideration benefit | (125 | ) | – | |||||
| PFAS inventory reserve | 716 | – | ||||||
| Legal costs and regulatory matter expenses | 399 | 355 | ||||||
| Stock-based compensation | 1,528 | 1,486 | ||||||
| Adjusted EBITDA | $ | (1,935 | ) | $ | 975 | |||
| Sales | $ | 56,484 | $ | 57,937 | ||||
| EBITDA margin | -8.2 | % | -2.8 | % | ||||
| Adjusted EBITDA margin | -3.4 | % | 1.7 | % | ||||
| CLARUS CORPORATION | ||||||||
| RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN | ||||||||
| (In thousands) | ||||||||
| Six Months Ended | ||||||||
| June 30, 2024 | June 30, 2023 | |||||||
| Loss from continuing operations | $ | (11,955 | ) | $ | (6,353 | ) | ||
| Income tax benefit | (2,626 | ) | (1,196 | ) | ||||
| Other, net | 495 | (302 | ) | |||||
| Interest income, net | (825 | ) | (13 | ) | ||||
| Operating loss | (14,911 | ) | (7,864 | ) | ||||
| Depreciation | 2,071 | 2,019 | ||||||
| Amortization of intangibles | 4,900 | 5,482 | ||||||
| EBITDA | (7,940 | ) | (363 | ) | ||||
| Restructuring charges | 531 | 736 | ||||||
| Transaction costs | 65 | 59 | ||||||
| Contingent consideration benefit | (125 | ) | (1,565 | ) | ||||
| PFAS inventory reserve | 1,445 | – | ||||||
| Legal costs and regulatory matter expenses | 3,401 | 483 | ||||||
| Stock-based compensation | 2,706 | 2,772 | ||||||
| Adjusted EBITDA | $ | 83 | $ | 2,122 | ||||
| Sales | $ | 125,795 | $ | 128,215 | ||||
| EBITDA margin | -6.3 | % | -0.3 | % | ||||
| Adjusted EBITDA margin | 0.1 | % | 1.7 | % | ||||
