From American Outdoor Brands
American Outdoor Brands, Inc. (NASDAQ Global Select: AOUT), an industry leading provider of products and accessories for rugged outdoor enthusiasts, today announced financial results for the second quarter fiscal 2021, ended October 31, 2020.
Second Quarter Fiscal 2021 Financial Highlights
• Quarterly net sales were $79.1 million, an increase of $31.4 million, or 65.7%, over net sales of $47.7 million for the comparable quarter last year, driven primarily by increases in both e-commerce and traditional sales channels.
• Quarterly gross margin was 46.9%, an increase of 690 basis points, over gross margin of 40.0% for the comparable quarter last year.
• Quarterly net income was $7.3 million, or $0.52 per diluted share, compared with a net loss of $393,000, or ($0.03) per diluted share, for the comparable quarter last year.
• Quarterly non-GAAP net income was $11.0 million, or $0.77 per diluted share, compared with a non-GAAP net income of $2.8 million, or $0.20 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for net income exclude costs related to acquired intangible amortization, stock compensation, transition costs, COVID-19 expenses, and other costs.
• Quarterly Adjusted EBITDAS was $15.8 million, or 19.9% of net sales, compared with $5.6 million, or 11.7% of net sales, for the comparable quarter last year.
Brian Murphy, President and CEO, said, “We believe our second quarter financial performance demonstrates the diversity and innovation of our brand portfolio as it continues to capture the attention of consumers. As a result, we delivered net sales growth of over 65%, and gross margins expanded by 690 basis points to nearly 47% in the quarter. We believe we’re witnessing a new foundational level of consumer participation in outdoor activities, an interest towards personal protection, and an interest in adjacent home-based hobbies that surround outdoor adventure, creating meaningful, long-term growth potential for our business well beyond 2020. Continued entry into new, larger addressable markets through our ‘Dock & UnlockTM’ strategy has begun to bear fruit as our brands progress along their transition from ‘Niche to KnownTM’.”
Murphy added, “I want to especially thank our employees, who helped us deliver what we consider to be outstanding results this quarter while positioning us for a tremendous first year as a public company. Their efforts, combined with our award-winning products, made it possible for customers to continue exploring their connection with the outdoors during these challenging times.”
Andrew Fulmer, Chief Financial Officer, said, “We ended the quarter with cash of $33.9 million and no borrowings on our $50.0 million senior secured credit facility, which is expandable by an additional $15.0 million under certain conditions. This means that we now have up to nearly $100.0 million in available capital to support organic growth and potential future acquisitions. We believe our Adjusted EBITDAS margin of nearly 20% in the quarter demonstrates that we have designed and built a highly leverage-able platform, made possible by earlier investments in our e-commerce and logistics capabilities. These capabilities, combined with customer order activity, which remained strong in the quarter, have allowed us to increase our outlook for the balance of fiscal 2021.
