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

Financial Performance - Net sales for the three months ended July 31, 2024, were $41.6 million, a decrease of $1.8 million or 4.1% compared to the same quarter last year[77] - Gross margin remained flat at 45.4% compared to the prior year[77] - 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, in the same quarter last year[77] - Non-GAAP Adjusted EBITDAS increased to $2.0 million for the three months ended July 31, 2024, compared to $1.1 million for the same period in 2023[77] - Domestic net sales decreased by $2.6 million, or 6.5%, while international net sales increased by $774,000, or 21.2%[81] - Operating loss improved to $2.6 million, a decrease of $1.5 million or 37.0% from the prior year[89] - GAAP net loss for the three months ended July 31, 2024, was $2.365 million, an improvement from a net loss of $4.113 million in the same period last year[97] - Non-GAAP Adjusted EBITDAS increased to $1.988 million for the three months ended July 31, 2024, compared to $1.124 million in the prior year[97] Sales Channels - E-commerce channel net sales decreased by $1.9 million, or 10.2%, primarily due to lower direct-to-consumer sales[84] - Traditional channel net sales increased slightly by $73,000, or 0.3%, driven by higher sales of shooting accessories[84] - New products accounted for 23.4% of net sales for the three months ended July 31, 2024[85] Operating Expenses - Total operating expenses decreased by $2.3 million, or 9.7%, compared to the same quarter last year[86] Cash Flow and Investments - Cash used in operating activities was $4.352 million for the three months ended July 31, 2024, a decrease from cash generated of $5.165 million in the same period last year, primarily due to a $13.4 million increase in inventory[99][100] - Cash used in investing activities was $1.105 million for the three months ended July 31, 2024, compared to $836,000 in the prior year, with higher spending on product tooling[101] - Cash used in financing activities was $778,000 for the three months ended July 31, 2024, mainly for repurchasing 42,017 shares of common stock[102] - Total cash flow for the three months ended July 31, 2024, was $(6.235) million, a 92.5% increase in cash usage compared to $(3.239) million in the prior year[99] Capital Expenditures and Future Planning - The company had $23.5 million in cash equivalents on hand as of July 31, 2024, down from $29.7 million as of April 30, 2024[103] - The company plans to spend approximately $3.5 million to $4.5 million on capital expenditures in fiscal 2025, a decrease of $1.5 million to $2.5 million from the previous fiscal year[101] - Future capital requirements will depend on various factors, including net sales and product development efforts, with potential limitations on financing availability[102] - The increase in inventory was planned to prepare for the fall and winter hunting and holiday seasons[100]