American Outdoor Brands(AOUT) - 2025 Q1 - Quarterly Results

Financial Performance - Quarterly net sales were $41.6 million, a decrease of $1.8 million, or 4.1%, compared to $43.4 million in the prior year[2] - Quarterly GAAP net loss was $2.4 million, or ($0.18) per diluted share, an improvement from a net loss of $4.1 million, or ($0.31) per diluted share, last year[2] - Net sales for the three months ended July 31, 2024, were $41,643 million, a decrease of 4.1% from $43,445 million in the same period of 2023[17] - Net loss for the quarter was $2,365 million, compared to a net loss of $4,113 million in the same quarter last year, representing a 42.5% reduction in losses[17] - Non-GAAP net income for the quarter was $748 million, compared to $98 million in the same period of 2023, indicating significant improvement[22] - Non-GAAP net income per share (diluted) increased to $0.06 from $0.01 year-over-year[22] Gross Margin and Profitability - GAAP gross margin was 45.4%, consistent with the same quarter last year, while non-GAAP gross margin was 46.0[2] - Gross profit for the same period was $18,926 million, down from $19,719 million, reflecting a gross margin of 45.5% compared to 45.4% in the prior year[17] - Adjusted EBITDAS increased by more than 76% to $2.0 million, or 4.8% of net sales, compared to $1.1 million, or 2.6% of net sales, in the prior year[3] - Non-GAAP Adjusted EBITDAS for the quarter was $1,988 million, an increase from $1,124 million in the same quarter of 2023[24] Operating Expenses - Total operating expenses decreased to $21,500 million from $23,804 million, resulting in an operating loss of $2,574 million, an improvement from the loss of $4,085 million in the previous year[17] Cash Position - The company ended the quarter with $23.5 million in cash and no debt, after replenishing inventories and repurchasing common stock[6] - Cash and cash equivalents at the end of the period were $23,463 million, up from $18,711 million at the end of the same period last year[19] - The company reported a net cash used in operating activities of $4,352 million, compared to a net cash provided of $5,165 million in the prior year[19] Product Performance and Market Strategy - New products launched in the past 24 months accounted for 23% of net sales in the first quarter[4] - International net sales reached $4.4 million, representing over 10% of total net sales and a growth of over 21%[5] - The company anticipates continued headwinds in the Shooting Sports category but expects growth in the Outdoor Lifestyle category due to channel expansion and a robust new product pipeline[6] - New products from the BOG and BUBBA brands contributed to strong performance in hunting and fishing, offsetting weaknesses in other areas[4] - The company remains focused on expanding distribution opportunities to enhance brand accessibility to consumers both domestically and internationally[5] Research and Development - Research and development expenses increased to $1,674 million from $1,599 million, reflecting ongoing investment in new product development[17]