Clarus(US:CLAR)2025-03-06 21:37Financial Performance - Total sales decreased by $21,705, or 7.6%, to $264,315 for the year ended December 31, 2024, compared to $286,020 for the year ended December 31, 2023[267]. - Gross profit decreased by $4,892, or 5.0%, to $92,619, with a gross margin of 35.0% for the year ended December 31, 2024, compared to 34.1% in 2023[273]. - Operating loss improved to $(21,107) in 2023 compared to $(106,483) in 2022, indicating a reduction in losses of approximately 80.2%[285]. - The net loss for the year was $52,287,000, compared to a net loss of $10,146,000 in 2023, representing a substantial increase in losses[319]. - The company reported a consolidated loss from continuing operations before income taxes of $(36,010) million for the year ended December 31, 2024[443]. Cash Flow and Dividends - In 2024, the total quarterly cash dividends paid were $3,831,000, compared to $3,750,000 in 2023 and $3,721,000 in 2022, reflecting a consistent increase in dividend payouts[254]. - Net cash used in operating activities was $(7,300) in 2024, compared to $31,924 provided in 2023, a change of $39,224[289]. - Net cash provided by investing activities was $165,160 in 2024, a significant increase from $(11,416) in 2023, indicating a positive change of $176,576[292]. - The company's cash position improved significantly, with cash increasing to $45,359,000 in 2024 from $11,324,000 in 2023[317]. Restructuring and Charges - The company incurred restructuring charges of $3,223,000 in 2023 and $1,948,000 in 2024, with cumulative charges since 2023 totaling $5,171,000, aimed at facilitating long-term sustainable growth[255]. - The company anticipates completing its restructuring activities in 2025, with ongoing evaluations of cost reduction actions[425]. - Total restructuring charges amounted to $1,948 million, with $1,349 million attributed to employee termination benefits[428]. Acquisitions and Divestitures - The company completed the acquisition of TRED Outdoors Pty Ltd on October 9, 2023, further expanding its portfolio in the outdoor equipment market[252]. - The company received net proceeds of approximately $37,871,000 from the sale of its Precision Sport segment, which includes Sierra and Barnes Bullets, as part of a strategic divestiture[253]. - Clarus Corporation acquired RockyMounts for a total purchase price of up to $8,000, including $4,000 in cash at closing and contingent consideration of up to $2,000 based on net sales targets[369]. - The acquisition of TRED was completed for an aggregate purchase price of approximately $6,849, which included $5,659 in cash and additional contingent consideration of up to $638[372]. Impairments and Goodwill - Impairment of goodwill increased to $36,264 for the year ended December 31, 2024, compared to $0 in 2023[279]. - The company experienced an impairment of goodwill amounting to $36.264 million in 2024, with no impairment recorded in 2023[322]. - Goodwill for the Adventure segment decreased by $36,264,000 due to impairment as of December 31, 2024, reflecting challenging market conditions[387]. Sales and Market Trends - Domestic sales decreased by $6,640, or 5.9%, to $105,745, while international sales decreased by $15,065, or 8.7%, to $158,570 during the same period[270][271]. - The company’s brands, including Black Diamond and Rhino-Rack, are positioned for sustainable long-term growth, driven by powerful industry trends in outdoor and adventure sports[248]. Legal and Compliance Issues - The company recorded a liability of $2,500 million for potential penalties from the U.S. Consumer Product Safety Commission (CPSC) investigation[437]. - Legal expenses incurred in 2024 for ongoing litigation amounted to $3,088 million, which includes the $2,500 million recorded liability[438]. - The CPSC intends to recommend civil monetary penalties totaling $25,135 million for compliance failures related to avalanche transmitters[433]. Research and Development - Total research and development costs for continuing operations were $12,171, $12,740, and $13,029 for the years ended December 31, 2024, 2023, and 2022, respectively[354]. Stock and Compensation - The Company granted stock options for an aggregate of 1,250 shares in 2024, with a grant price ranging from $4.63 to $6.81 per share[417]. - Total non-cash stock compensation expense for continuing operations was $11,198, $11,681, and $8,617 for the years 2024, 2023, and 2022 respectively[422].