American Outdoor Brands, Inc. Reports First Quarter Fiscal 2026 Financial Results
COLUMBIA, Mo.,
First Quarter Fiscal 2026 Financial Highlights
- Quarterly net sales were
$29.7 million , a decrease of$11.9 million , or 28.7%, compared with net sales of$41.6 million for the comparable quarter last year. - Quarterly gross margin was 46.7%, compared with quarterly gross margin of 45.4% for the comparable quarter last year.
- Quarterly GAAP net loss was
$6.8 million , or$(0.54) per diluted share, compared with a GAAP net loss of$2.4 million , or$(0.18) per diluted share, for the comparable quarter last year. - Quarterly non-GAAP net loss was
$(3.3) million , or$(0.26) per diluted share, compared with non-GAAP net income of$748,000 , or$0.06 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for net income exclude acquired intangible amortization, stock compensation, and other costs. For a detailed reconciliation, see the schedules that follow in this release. - Quarterly non-GAAP Adjusted EBITDA was
$(3.1) million , or (10.5)% of net sales, compared with Adjusted EBITDA of$2.0 million , or 4.8% of net sales, for the comparable quarter last year. For a detailed reconciliation, see the schedules that follow in this release.
Purchasing activity from our retailers during the first quarter reflected replenishment cycles that were periodically turned on and off on a retailer-by-retailer basis, as each one sought to optimize pricing, product mix, and cash flows, tailored to their specific situation. These ordering patterns created a year-over-year net sales decline in the first quarter. However, if we adjust for the acceleration of orders by our retailers into the fourth quarter, total first quarter net sales would have declined approximately 5% – a favorable result given the environment – and net sales in our traditional channel would have increased by about 15%. This tells us our strategy is effective, and that – coupled with our POS performance – our brands are winning at retail."
Throughout the quarter, our teams did a great job navigating a rapidly changing tariff environment with agility and discipline, while advancing our long-term growth strategy and maintaining our commitment to innovation. That commitment was on full display with our announcement of an expanded partnership between our BUBBA brand and Major
With the first quarter under our belt, these first few months of our fiscal year suggest that the near-term environment will continue to reflect shifting market conditions and evolving consumer trends, requiring us to remain agile and adaptable as we navigate quarterly fluctuations. Going forward, we will continue to lean on a strategy that, we believe, has proven to be resilient across cycles by continuing to innovate, staying close to our consumers, strengthening our retail partnerships, and executing with discipline. These fundamentals, combined with our strong financial position, are not only helping us manage through today's uncertainty, but also positioning us to continue executing on our strategic objectives to maximize long-term value."
Our balance sheet remains a source of strength, providing us with the resources and flexibility to pursue our strategic objectives. During the quarter, we demonstrated disciplined capital deployment by repurchasing approximately 240,000 shares of our stock for
Conference Call and Webcast
The Company will host a conference call and webcast today,
Reconciliation of
In this press release, certain non-GAAP financial measures, including "non-GAAP net loss" and "Adjusted EBITDA" are presented. A reconciliation of these and other non-GAAP financial measures is 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) non-recurring inventory reserve adjustment, (iv) emerging growth status transition costs, (v) income tax adjustments, (vi) interest income, (vii) income tax expense, and (viii) 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.
About
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 the near-term environment will continue to reflect shifting market conditions and evolving consumer trends; in the strength in consumer pull-through speaks to the power of our innovation engine and enduring appeal of our portfolio, especially during a seasonally light period of the year; our expectation that certain innovations and partnerships will accelerate our recurring subscription revenue stream and extend our brand reach; and our belief in our strategy to position us to continue executing on our strategic objectives to maximize long-term value. 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, such as the impact from changing economic policies, tariffs and supply chain constraints; the potential for product recalls, product liability, and other claims or lawsuits against 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; our ability to introduce new products that are successful in the marketplace; interruptions of our arrangements with third-party contract manufacturers and freight carriers that disrupt our ability to fill our customers' orders; the features, quality, and performance of our products; the success of our strategies and marketing programs; lower levels of consumer spending in general and specific to our products or product categories; liquidity and anticipated cash needs and availability; increases in costs or decreases in availability of finished products, components, and raw materials; the potential for increased tariffs on our products, including additional tariffs that may be imposed by the current presidential administration; our ability to maintain or strengthen our 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
|
|
|||
|
CONSOLIDATED BALANCE SHEETS |
|||
|
(In thousands, except par value and share data) |
|||
|
|
As of: |
||
|
|
|
|
|
|
|
|
||
|
ASSETS |
|||
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ 17,771 |
|
$ 23,423 |
|
Accounts receivable, net of allowance for credit losses of |
21,754 |
|
39,337 |
|
Inventories |
125,787 |
|
104,717 |
|
Prepaid expenses and other current assets |
4,372 |
|
3,970 |
|
Income tax receivable |
111 |
|
143 |
|
Total current assets |
169,795 |
|
171,590 |
|
Property, plant, and equipment, net |
10,623 |
|
11,231 |
|
Intangible assets, net |
29,471 |
|
31,411 |
|
Right-of-use assets |
31,840 |
|
31,896 |
|
Other assets |
182 |
|
227 |
|
Total assets |
$ 241,911 |
|
$ 246,355 |
|
LIABILITIES AND EQUITY |
|||
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ 23,051 |
|
$ 15,717 |
|
Accrued expenses |
16,841 |
|
13,872 |
|
Accrued payroll and incentives |
876 |
|
5,871 |
|
Lease liabilities, net of current portion |
1,424 |
|
1,336 |
|
Total current liabilties |
42,192 |
|
36,796 |
|
Lease liabilities, net of current portion |
31,881 |
|
31,949 |
|
Total liabilities |
74,073 |
|
68,745 |
|
Commitments and contingencies |
|
|
|
|
Equity: |
|
|
|
|
Preferred stock, |
— |
|
— |
|
Common stock, |
15 |
|
15 |
|
Additional paid in capital |
280,292 |
|
280,711 |
|
Retained deficit |
(81,529) |
|
(74,700) |
|
|
(30,940) |
|
(28,416) |
|
Total equity |
167,838 |
|
177,610 |
|
Total liabilities and equity |
$ 241,911 |
|
$ 246,355 |
|
|
||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
|
(In thousands, except per share data) |
||||
|
|
||||
|
|
|
|
|
|
|
|
|
For the Three Months ended |
||
|
|
|
2025 |
|
2024 |
|
|
|
(Unaudited) |
||
|
Net sales |
|
$ 29,702 |
|
$ 41,643 |
|
Cost of sales |
|
15,844 |
|
22,717 |
|
Gross profit |
|
13,858 |
|
18,926 |
|
Operating expenses: |
|
|
|
|
|
Research and development |
|
1,955 |
|
1,674 |
|
Selling, marketing, and distribution |
|
10,520 |
|
11,383 |
|
General and administrative |
|
8,202 |
|
8,443 |
|
Total operating expenses |
|
20,677 |
|
21,500 |
|
Operating loss |
|
(6,819) |
|
(2,574) |
|
Other income, net: |
|
|
|
|
|
Other income, net |
|
35 |
|
83 |
|
Interest income, net |
|
7 |
|
148 |
|
Total other income, net |
|
42 |
|
231 |
|
Loss from operations before income taxes |
|
(6,777) |
|
(2,343) |
|
Income tax expense |
|
52 |
|
22 |
|
Net loss |
|
$ (6,829) |
|
$ (2,365) |
|
Net loss per share: |
|
|
|
|
|
Basic and diluted |
|
$ (0.54) |
|
$ (0.18) |
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
Basic and diluted |
|
12,719 |
|
12,865 |
|
|
|
|||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|||
|
(In thousands) |
|
|||
|
|
|
|
|
|
|
|
For the Three Months Ended |
|||
|
|
2025 |
|
2024 |
|
|
|
(Unaudited) |
|
||
|
Cash flows from operating activities: |
|
|
|
|
|
Net loss |
$ (6,829) |
|
$ (2,365) |
|
|
Adjustments to reconcile net loss to net cash used in |
|
|
|
|
|
Depreciation and amortization |
3,042 |
|
3,309 |
|
|
Provision for credit losses on accounts receivable |
(329) |
|
(19) |
|
|
Stock-based compensation expense |
651 |
|
932 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Accounts receivable |
17,912 |
|
(599) |
|
|
Inventories |
(21,070) |
|
(13,395) |
|
|
Accounts payable |
7,234 |
|
4,073 |
|
|
Accrued liabilities |
(2,026) |
|
2,794 |
|
|
Other |
(273) |
|
918 |
|
|
Net cash used in operating activities |
(1,688) |
|
(4,352) |
|
|
Cash flows from investing activities: |
|
|
|
|
|
Payments to acquire patents and software |
(70) |
|
(261) |
|
|
Payments to acquire property and equipment |
(300) |
|
(844) |
|
|
Net cash used in investing activities |
(370) |
|
(1,105) |
|
|
Cash flows from financing activities: |
|
|
|
|
|
Payments to acquire treasury stock |
(2,524) |
|
(381) |
|
|
Payment of employee withholding tax related to restricted stock units |
(1,070) |
|
(397) |
|
|
Net cash used in financing activities |
(3,594) |
|
(778) |
|
|
Net decrease in cash and cash equivalents |
(5,652) |
|
(6,235) |
|
|
Cash and cash equivalents, beginning of period |
23,423 |
|
29,698 |
|
|
Cash and cash equivalents, end of period |
$ 17,771 |
|
$ 23,463 |
|
|
|
||||
|
|
For the Three Months ended |
|
||
|
|
2025 |
|
2024 |
|
|
|
(Unaudited) |
|
||
|
GAAP gross profit |
$ 13,858 |
|
$ 18,926 |
|
|
Non-recurring inventory reserve adjustment |
— |
|
221 |
|
|
Non-GAAP gross profit |
$ 13,858 |
|
$ 19,147 |
|
|
|
|
|
|
|
|
GAAP operating expenses |
$ 20,677 |
|
$ 21,500 |
|
|
Amortization of acquired intangible assets |
(1,834) |
|
(2,119) |
|
|
Stock compensation |
(651) |
|
(932) |
|
|
Emerging growth status transition costs |
— |
|
(42) |
|
|
Non-GAAP operating expenses |
$ 18,192 |
|
$ 18,407 |
|
|
|
|
|
|
|
|
GAAP operating loss |
$ (6,819) |
|
$ (2,574) |
|
|
Amortization of acquired intangible assets |
1,834 |
|
2,119 |
|
|
Stock compensation |
651 |
|
932 |
|
|
Non-recurring inventory reserve adjustment |
— |
|
221 |
|
|
Emerging growth status transition costs |
— |
|
42 |
|
|
Non-GAAP operating (loss)/income |
$ (4,334) |
|
$ 740 |
|
|
|
|
|
|
|
|
GAAP net loss |
$ (6,829) |
|
$ (2,365) |
|
|
Amortization of acquired intangible assets |
1,834 |
|
2,119 |
|
|
Stock compensation |
651 |
|
932 |
|
|
Non-recurring inventory reserve adjustment |
— |
|
221 |
|
|
Emerging growth status transition costs |
— |
|
42 |
|
|
Income tax adjustments |
1,039 |
|
(201) |
|
|
Non-GAAP net (loss)/income |
$ (3,305) |
|
$ 748 |
|
|
|
|
|
|
|
|
GAAP net loss per share - diluted |
$ (0.54) |
|
$ (0.18) |
|
|
Amortization of acquired intangible assets |
0.14 |
|
0.16 |
|
|
Stock compensation |
0.05 |
|
0.07 |
|
|
Non-recurring inventory reserve adjustment |
— |
|
0.02 |
|
|
Emerging growth status transition costs |
— |
|
— |
|
|
Income tax adjustments |
0.08 |
|
(0.02) |
|
|
Non-GAAP net (loss)/income per share - diluted |
$ (0.26) |
(a) |
$ 0.06 |
(a) |
|
|
|
|
|
|
|
(a) Non-GAAP net income per share does not foot due to rounding. |
|
|||
|
|
|||||
|
|
For the Three Months
|
||||
|
|
2025 |
|
2024 |
||
|
|
(Unaudited) |
||||
|
GAAP net loss |
$ |
(6,829) |
|
$ |
(2,365) |
|
Interest income |
|
(7) |
|
|
(148) |
|
Income tax expense |
|
52 |
|
|
22 |
|
Depreciation and amortization |
|
3,017 |
|
|
3,284 |
|
Stock compensation |
|
651 |
|
|
932 |
|
Non-recurring inventory reserve adjustment |
|
— |
|
|
221 |
|
Emerging growth status transition costs |
|
— |
|
|
42 |
|
Non-GAAP Adjusted EBITDA |
$ |
(3,116) |
|
$ |
1,988 |
Contact:
lsharp@aob.com
(573) 303-4620
View original content to download multimedia:https://www.prnewswire.com/news-releases/american-outdoor-brands-inc-reports-first-quarter-fiscal-2026-financial-results-302547113.html
SOURCE
