Clarus(US:CLAR)2024-11-07 22:35Sales Performance - Third quarter 2024 sales were $67.1 million, a decrease of 17.5% compared to $81.3 million in the same year-ago quarter[2] - Sales in the Outdoor segment were $49.3 million, down from $61.1 million, while Adventure segment sales decreased 11.9% to $17.8 million[5] - Total sales for September 2024 were $67,115,000, a decrease of 17.4% compared to $81,302,000 in September 2023[19] - Domestic sales decreased to $24,365,000 from $30,423,000, representing a decline of 19.9% year-over-year[19] - International sales fell to $42,750,000 from $50,879,000, a decrease of 16.0% year-over-year[19] - Total sales for the nine months ended September 30, 2024, were $192.91 million, with a gross profit of $68.75 million[25] - Sales for the nine months ended September 30, 2024, were $192,910, a decrease of 8% compared to $209,517 in the prior year[28] Financial Losses - Net loss for the third quarter was $3.2 million, or $(0.08) per diluted share, compared to a net loss of $1.3 million, or $(0.03) per diluted share in the prior year[2] - Operating loss for the three months ended September 30, 2024, was $(5,358,000), compared to $(3,175,000) in the same period last year[19] - Net loss for the three months ended September 30, 2024, was $(3,157,000), compared to $(1,264,000) in September 2023[19] - For the three months ended September 30, 2024, Clarus Corporation reported a loss from continuing operations of $3,157, compared to a loss of $2,206 for the same period in 2023, representing an increase of 43% in losses[27] - For the nine months ended September 30, 2024, the loss from continuing operations was $15,112, compared to $8,559 for the same period in 2023, indicating an increase of 76% in losses[28] Profitability Metrics - Gross margin improved to 35.0% from 33.6% year-over-year, with an adjusted gross margin of 37.8%[5] - Adjusted EBITDA from continuing operations was $2.4 million, with an adjusted EBITDA margin of 3.6%, down from $3.6 million and 4.5% in the year-ago quarter[9] - Adjusted EBITDA for the three months ended September 30, 2024, was $2,438, down 33% from $3,629 in the same period of 2023[27] - The EBITDA margin for the three months ended September 30, 2024, was -2.9%, a decline from 0.5% in the same period of 2023[27] - Adjusted EBITDA for the nine months ended September 30, 2024, was $2,521, down 56% from $5,751 in the same period of 2023[28] - The EBITDA margin for the nine months ended September 30, 2024, was -5.1%, compared to 0.0% in the same period of 2023[28] Cash Flow and Liquidity - Free cash flow for the third quarter was an outflow of $9.4 million, compared to an outflow of $1.1 million in the prior year quarter[10] - Cash and cash equivalents totaled $36.4 million as of September 30, 2024, compared to $11.3 million at the end of 2023[11] Assets and Liabilities - Total assets decreased to $375,338,000 as of September 30, 2024, from $495,338,000 at the end of 2023[18] - Total liabilities decreased significantly to $66,864,000 from $203,218,000[18] - Stockholders' equity increased to $308,474,000 from $292,120,000, indicating a growth of 5.6%[18] Future Projections - The company expects fiscal year 2024 sales to range between $260 million to $266 million, with adjusted EBITDA projected at approximately $7 million to $9 million[12] Inventory and Operational Focus - The company is focused on inventory improvement, with a 4% year-over-year reduction, and aims to scale the Adventure segment globally despite current market challenges[3] Tax and Amortization - The tax rate for the nine months ended September 30, 2024, was 17.9%, while for the same period in 2023, it was 23.2%[25][26] - Amortization of intangibles for the nine months ended September 30, 2024, was $7.32 million, while for the same period in 2023, it was $8.04 million[25][26] Legal and Regulatory Expenses - Legal costs and regulatory matter expenses totaled $3.80 million for the nine months ended September 30, 2024[25] - Legal costs and regulatory matter expenses increased to $394 for the three months ended September 30, 2024, compared to $579 in the same period of 2023[27]