Clarus(US:CLAR)2025-03-06 21:21Financial Performance - Fourth quarter sales were $71.4 million, a decrease from $76.5 million in the same quarter last year[4] - Net loss for the fourth quarter was $65.5 million, or $(1.71) per diluted share, compared to a net loss of $8.4 million, or $(0.22) per diluted share in the prior year[4] - Full year 2024 sales decreased 7.6% to $264.3 million from $286.0 million in 2023, driven by softness across all selling channels[17] - The Adventure segment saw a 22.9% decline in sales to $20.3 million compared to $26.4 million in the year-ago quarter[9] - Total sales for the three months ended December 31, 2024, were $71.405 million, a decrease of 6.4% from $76.503 million in the same period of 2023[37] - The net loss for the three months ended December 31, 2024, was $65.521 million, compared to a net loss of $8.389 million in the same period of 2023[37] - For the twelve months ended December 31, 2024, total sales were $264.315 million, down from $286.020 million in 2023, representing a decrease of 7.6%[39] - The net loss for the twelve months ended December 31, 2024, was $52.287 million, compared to a net loss of $10.146 million in 2023[39] - The company reported an operating loss of $70.379 million for the twelve months ended December 31, 2024, compared to an operating loss of $21.107 million in 2023[39] Gross Margin and EBITDA - Gross margin improved to 33.4% compared to 28.9% in the year-ago quarter, with adjusted gross margin at 38.0% versus 34.7%[10] - Adjusted EBITDA from continuing operations was $4.4 million, with an adjusted EBITDA margin of 6.1%, compared to $1.6 million and 2.1% in the same quarter last year[15] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $6.875 million, compared to $7.348 million for the same period in 2023[49] - The EBITDA margin for the twelve months ended December 31, 2024, was (21.4)%, down from (2.2)% in the previous year[49] - Adjusted EBITDA margin for the three months ended December 31, 2024, was 6.1%, compared to 2.1% in the same period of 2023[48] Cash and Debt - Cash and cash equivalents totaled $45.4 million, significantly up from $11.3 million, while total debt related to the RockyMounts acquisition was $1.9 million[21] - Cash and cash equivalents increased to $45.359 million as of December 31, 2024, from $11.324 million as of December 31, 2023[35] - Total assets decreased to $294.094 million as of December 31, 2024, from $495.338 million as of December 31, 2023[35] - Total liabilities decreased to $61.001 million as of December 31, 2024, from $203.218 million as of December 31, 2023[35] Acquisitions and Strategic Moves - The company completed the acquisition of RockyMounts, enhancing its product capabilities in the bike-rack market[1] - For fiscal year 2025, the company expects sales between $250 million to $260 million and adjusted EBITDA of approximately $14 million to $16 million[27] - The company plans to focus on restructuring and cost management strategies to improve future performance[44][46] Impairments and Expenses - The company established a full valuation allowance of $21.0 million for deferred tax assets during the fourth quarter[28] - The company incurred $36,264 thousand in goodwill impairment during Q4 2024[44] - The company incurred impairment of goodwill totaling $36.264 million for the twelve months ended December 31, 2024[49] - Stock-based compensation expenses for Q4 2024 were $(1,570) thousand, compared to $(1,218) thousand in Q4 2023[44][45] - The company reported a significant increase in legal costs and regulatory matter expenses, totaling $3.842 million for the twelve months ended December 31, 2024[49] Tax and Other Financial Metrics - The effective tax rate for Q4 2024 was 40.5%, significantly higher than the negative tax rate of (19.0)% in Q4 2023[44][45] - Adjusted loss from continuing operations for Q4 2024 was $(3,162) thousand, compared to an adjusted income of $1,638 thousand in Q4 2023[45] - The adjusted EPS for Q4 2024 was $(0.08), a decline from adjusted EPS of $0.04 in Q4 2023[45] Segment Performance - The outdoor segment reported an operating loss of $999 thousand for the twelve months ended December 31, 2024, compared to a loss of $5.155 million in 2023[49] - Restructuring charges for the three months ended December 31, 2024, amounted to $939 thousand, while for the same period in 2023, it was $1.411 million[48]