American Outdoor Brands Inc
For the period ended Oct 31, 2024. Filed Dec 5, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 31, 2024 · Filed Dec 5, 2024
AOUT$17.31+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-07-31; filed 2024-09-05.
0000950170-24-104003
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-10-31; filed 2024-12-05.
0000950170-24-133687
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 55 previous paragraphs and 77 current paragraphs.
31 unchanged; 17 reworded; 17 added; 7 removed; 0 previous and 12 current paragraphs rearranged.
Tables are not compared: 10 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Second Quarter Fiscal 2025 Highlights
Current report
Net sales were $60.2 million, an increase of $2.3 million or 4.0%, over the comparable quarter last year, primarily because of increased net sales in our outdoor lifestyle category.
Current report
Gross margin was 48.0%, an increase of 230 basis points, over the comparable quarter last year.
Current report
Net income was $3.1 million, or $0.24 per diluted share, compared with net income of $77,000, or $0.01 per diluted share, for the comparable quarter last year.
Current report
Net sales were $101.9 million, an increase of $499,000, or 0.5%, over the prior year comparable period, primarily because of increased net sales in our outdoor lifestyle category.
Current report
Gross margin was 47.0%, an increase of 140 basis points, over the prior year comparable period.
Current report
For the three months ended October 31, 2024, total net sales increased $2.3 million, or 4.0%, over the comparable quarter last year primarily because of an increase in hunting product net sales in our domestic channel and shooting accessory net sales in our international channel.
Current report
Net sales in our e-commerce channel increased $820,000, or 3.5%, over the comparable quarter last year, primarily because of increased outdoor lifestyle category net sales for our hunting products to online retailers and direct-to-consumer sales of our outdoor cooking products, partially offset by lower net sales in our shooting sports category.
Current report
Gross margin for the three months ended October 31, 2024 increased 230 basis points over the comparable quarter last year, primarily from lower promotional product discounts due to timing of promotions with our customers and lower inbound freight costs.
Current report
Net sales in our traditional channels increased $1.6 million, or 2.6%, over the prior year comparable period. Traditional channel net sales increased primarily because of higher net sales of shooting accessories in our shooting sports category and higher net sales of our hunting products in our outdoor lifestyle category. In addition, our international net sales increased $1.2 million, or 18.3%, over the prior year comparable period as a result of increased sales in Canada. The increased net sales in our traditional channel was partially offset by lower personal protection net sales in our shooting sports category and lower rugged outdoor and fishing products in our outdoor lifestyle category.
Current report
Gross margin for the six months ended October 31, 2024 increased 140 basis points over the prior year comparable period, primarily from lower promotional product discounts due to timing of promotions with our customers and lower inbound freight costs.
Current report
Operating Income/(Loss)
Current report
The following table sets forth certain information regarding operating income/(loss) for the three months ended October 31, 2024 and 2023 (dollars in thousands):
Current report
Operating income/(loss) for the three months ended October 31, 2024 was $3.1 million higher as compared to the comparable quarter last year primarily from higher gross margins as a result of higher net sales volume and lower promotional product discounts as well as lower operating expenses mentioned above.
Current report
The following table sets forth certain information regarding operating income/(loss) for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report
Net Income/(Loss)
Current report
Net income was $746,000, or $0.06 per diluted share, for the six months ended October 31, 2024 compared with net loss of $4.0 million, or $0.31 per share, for the prior year comparable period. The increased net income was primarily related to increased net sales volume and lower promotional product discounts as well as lower operating expenses during the six months ended October 31, 2024 as compared to the six months ended October 31, 2023.
Removed paragraphs (7)
Previous report
First Quarter Fiscal 2025 Highlights
Previous report
Net sales were $41.6 million, a decrease of $1.8 million or 4.1%, from the comparable quarter last year.
Previous report
Gross margin was 45.4%, flat as compared to the comparable quarter last year.
Previous report
Gross margin for the three months ended July 31, 2024 was flat to comparable quarter last year, with lower freight and shipping container costs offset by higher promotional product discounts.
Previous report
Operating Loss
Previous report
The following table sets forth certain information regarding operating loss for the three months ended July 31, 2024 and 2023 (dollars in thousands):
Reworded paragraphs (17)
Previous wording
The following discussion and analysis of our financial condition and results of operations for the three months ended July 31, 2024 and 2023 should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for fiscal year ended April 30, 2024. This discussion and analysis should also be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in Item 1 of this Quarterly Report on Form 10-Q.
Current wording
The following discussion and analysis of our financial condition and results of operations for the three and six months ended October 31, 2024 and 2023 should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for fiscal year ended April 30, 2024. This discussion and analysis should also be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
Non-GAAP Adjusted EBITDAS was $2.0 million for the three months ended July 31, 2024 compared with $1.1 million for the three months ended July 31, 2023. See non-GAAP financial measure disclosures below for our reconciliation of non-GAAP Adjusted EBITDAS.
Current wording
Non-GAAP Adjusted EBITDAS was $7.5 million for the three months ended October 31, 2024 compared with $5.2 million for the three months ended October 31, 2023. See non-GAAP financial measure disclosures below for our reconciliation of non-GAAP Adjusted EBITDAS.
Previous wording
Net loss was $2.4 million, or $0.18 per diluted share, compared with a net loss of $4.1 million, or $0.31 per diluted share, for the comparable quarter last year.
Current wording
Net income was $746,000, or $0.06 per diluted share, compared with a net loss of $4.0 million, or $0.31 per diluted share, for the prior year comparable period.
Previous wording
Net sales in our traditional channels increased $73,000, or 0.3%, over the comparable quarter last year. Traditional channel net sales increased primarily because of higher net sales of shooting accessories in our shooting sports category partially offset by lower net sales of rugged outdoor products in our outdoor lifestyle category. In addition, our international net sales increased $774,000, or 21.2%, over the comparable quarter last year as a result of increased sales in Canada.
Current wording
Net sales in our traditional channels increased $1.5 million, or 4.3%, over the comparable quarter last year. Traditional channel net sales increased primarily because of higher net sales of shooting accessories in our shooting sports category and higher net sales of our hunting products in our outdoor lifestyle category, partially offset by lower net sales of rugged outdoor products in our outdoor lifestyle category. In addition, our international net sales increased $436,000, or 14.8%, over the comparable quarter last year as a result of increased sales in Canada.
Previous wording
New products, which we define as any SKU introduced over the prior two fiscal years, represented 23.4% of net sales for the three months ended July 31, 2024.
Current wording
New products, which we define as any SKU introduced over the prior two fiscal years, represented 21.5% of net sales for the three months ended October 31, 2024.
Previous wording
For the three months ended July 31, 2024, total net sales decreased $1.8 million, or 4.1%, from the comparable quarter last year primarily because of a decrease in our direct-to-consumer net sales partially offset by an increase in net sales to international retailers.
Current wording
For the six months ended October 31, 2024, total net sales increased $499,000, or 0.5%, over the prior year comparable period primarily because of an increase in shooting accessory net sales to international retailers.
Previous wording
Net sales in our e-commerce channel decreased $1.9 million, or 10.2%, from the comparable quarter last year, primarily because of lower direct-to-consumer net sales for products sold on our e-commerce platform. E-commerce channel net sales decreased for both our outdoor lifestyle category from lower outdoor cooking and rugged outdoor product net sales and our shooting sports category from lower personal protection product net sales.
Current wording
Net sales in our e-commerce channel decreased $1.1 million, or 2.5%, from the prior year comparable period, primarily because of lower direct-to-consumer net sales for products sold on our e-commerce platform, specifically from lower outdoor cooking net sales in our outdoor lifestyle category. In addition, our E-commerce channel net sales decreased from lower personal protection and shooting sports accessories product net sales in our shooting sports category, partially offset by higher hunting and fishing product net sales in our outdoor lifestyle category.
Previous wording
Research and development expenses increased $75,000 over the comparable quarter last year, primarily from higher consulting and third party service expenses. Selling, marketing, and distribution expenses decreased $671,000 from the comparable quarter last year mainly because of lower advertising expense. General and administrative expenses decreased $1.7 million from the comparable quarter last year, primarily because of lower legal and consulting expense and lower acquired intangible asset amortization expense.
Current wording
Research and development expenses increased $266,000 over the prior year comparable period, primarily from higher consulting and third party service expenses. Selling, marketing, and distribution expenses decreased $1.1 million from the prior year comparable period mainly because of lower advertising expense. General and administrative expenses decreased $2.1 million from the prior year comparable period, primarily because of lower legal and consulting expense and lower acquired intangible asset amortization expense.
Previous wording
Operating loss for the three months ended July 31, 2024 was $1.5 million lower as compared to the comparable quarter last year primarily from lower operating expenses mentioned above.
Current wording
Operating income/(loss) for the six months ended October 31, 2024 was $4.6 million higher as compared to the prior year comparable period primarily from lower promotional product discounts and lower operating expenses mentioned above.
Previous wording
We recorded income tax expense of $22,000 for the three months ended July 31, 2024 compared with income tax expense of $55,000 for the prior year comparable period. The income tax expense recorded for the three months ended July 31, 2024 and 2023 was primarily due to a full valuation allowance recorded against our deferred tax assets.
Current wording
We recorded income tax expense of $34,000 for the six months ended October 31, 2024 compared with income tax expense of $15,000 for the prior year comparable period. The income tax expense recorded for the six months ended October 31, 2024 and 2023 was primarily due to a full valuation allowance recorded against our deferred tax assets.
Previous wording
Net loss was $2.4 million, or $0.18 per diluted share, for the three months ended July 31, 2024 compared with net loss of $4.1 million, or $0.31 per share, for the comparable quarter last year. The lower net loss was primarily related to lower operating expenses during the three months ended July 31, 2024 as compared to the three months ended July 31, 2023.
Current wording
Net income was $3.1 million, or $0.24 per diluted share, for the three months ended October 31, 2024 compared with net income of $77,000, or $0.01 per share, for the comparable quarter last year. The increased net income was primarily related to increased net sales volume and lower promotional product discounts as well as lower operating expenses during the three months ended October 31, 2024 as compared to the three months ended October 31, 2023.
Previous wording
The following table sets forth our calculation of non-GAAP Adjusted EBITDAS for the three months ended July 31, 2024 and 2023, respectively (dollars in thousands):
Current wording
The following table sets forth our calculation of non-GAAP Adjusted EBITDAS for the three and six months ended October 31, 2024 and 2023, respectively (dollars in thousands):
Previous wording
The following table sets forth certain cash flow information for the three months ended July 31, 2024 and 2023 (dollars in thousands):
Current wording
The following table sets forth certain cash flow information for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Previous wording
Cash used in operating activities was $4.4 million for the three months ended July 31, 2024 compared with cash generated by operating activities of $5.2 million for the three months ended July 31, 2023. Cash used by operating activities for the three months ended July 31, 2024 was primarily impacted by $13.4 million of increased inventory. The increase in inventory was a result of planned increase in purchases to prepare for the fall and winter hunting and holiday seasons. The cash usage for the three months ended July 31, 2024 was partially offset by a $4.1 million increase in accounts payable due to the timing of inventory purchases and $2.0 million of increase accrued expenses related to the timing of outbound freight accruals.
Current wording
Cash used in operating activities was $12.3 million for the six months ended October 31, 2024 compared with cash used by operating activities of $3.2 million for the six months ended October 31, 2023. Cash used by operating activities for the six months ended October 31, 2024 was primarily impacted by $17.6 million of higher accounts receivable, primarily due to timing of customer shipments in the second half of our second fiscal quarter and $18.3 million of increased inventory. The increase in inventory was a result of planned increase in purchases to prepare for the fall and winter hunting and holiday seasons. The cash usage for the six months ended October 31, 2024 was partially offset by a $10.6 million increase in accounts payable due to the timing of inventory purchases as we built our inventory balances higher during our second fiscal quarter and $3.0 million of increase accrued expenses related to the timing of outbound freight accruals and higher sales volume-related accruals.
Previous wording
Cash used in investing activities was $1.1 million during the three months ended July 31, 2024 compared with $836,000 used in the prior year comparable period with higher spending on product tooling. We expect to spend approximately $3.5 million to $4.5 million of capital expenditures in fiscal 2025, a decrease of $1.5 million to $2.5 million from the $6.0 million we spent in fiscal 2024, a year in which we spent $2.9 million on capital expenditures as a result of the lease assignment of the full building at our headquarters in Columbia, Missouri.
Current wording
Cash used in investing activities was $1.6 million during the six months ended October 31, 2024, flat as compared the prior year comparable period. We expect to spend approximately $3.5 million to $4.5 million of capital expenditures in fiscal 2025, a decrease of $1.5 million to $2.5 million from the $6.0 million we spent in fiscal 2024, a year in which we spent $2.9 million on capital expenditures as a result of the lease assignment of the full building at our headquarters in Columbia, Missouri.
Previous wording
Cash used in financing activities was $778,000 for the three months ended July 31, 2024, primarily from $381,000 used to repurchase 42,017 shares of our common stock.
Current wording
Cash used in financing activities was $1.6 million for the six months ended October 31, 2024, primarily from $1.4 million used to repurchase 153,497 shares of our common stock.
Previous wording
We had $23.5 million of cash equivalents on hand as of July 31, 2024 and had $29.7 million in cash and cash equivalents on hand as of April 30, 2024.
Current wording
We had $14.2 million of cash equivalents on hand as of October 31, 2024 and had $29.7 million in cash and cash equivalents on hand as of April 30, 2024.
Rearranged current paragraphs (12)
Current report — wording carried from elsewhere
Our operating results for the six months ended October 31, 2024 included the following:
Current report — wording carried from elsewhere
Non-GAAP Adjusted EBITDAS was $9.5 million for the six months ended October 31, 2024 compared with $6.4 million for the six months ended October 31, 2023. See non-GAAP financial measure disclosures below for our reconciliation of non-GAAP Adjusted EBITDAS.
Current report — wording carried from elsewhere
The following table sets forth certain information regarding consolidated net sales and gross profit for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report — wording carried from elsewhere
The following table sets forth certain information regarding trade channel net sales for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report — wording carried from elsewhere
The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report — wording carried from elsewhere
The following table sets forth certain information regarding net sales categories for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report — wording carried from elsewhere
New products, which we define as any SKU introduced over the prior two fiscal years, represented 22.7% of net sales for the six months ended October 31, 2024.
Current report — wording carried from elsewhere
Research and development expenses increased $191,000 over the comparable quarter last year, primarily from higher consulting and third party service expenses. Selling, marketing, and distribution expenses decreased $441,000 from the comparable quarter last year mainly because of lower advertising expense, partially offset by higher rent expense. General and administrative expenses decreased $425,000 from the comparable quarter last year, primarily because of lower legal and consulting expense and lower acquired intangible asset amortization expense, partially offset by higher employee compensation-related expenses.
Current report — wording carried from elsewhere
The following table sets forth certain information regarding operating expenses for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report — wording carried from elsewhere
We recorded income tax expense of $12,000 for the three months ended October 31, 2024 compared with an income tax benefit of $40,000 for the comparable quarter last year. The income tax expense/(benefit) recorded for the three months ended October 31, 2024 and 2023 was primarily due to a full valuation allowance recorded against our deferred tax assets.
Current report — wording carried from elsewhere
The following table sets forth certain information regarding income tax benefit for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report — wording carried from elsewhere
The following table sets forth certain information regarding net income and the related per share data for the six months ended October 31, 2024 and 2023 (dollars in thousands, except per share data):