Clarus(US:CLAR)2025-11-06 21:33Sales Performance - Total sales for Q3 2025 reached $69,347,000, a 3.3% increase from $67,115,000 in Q3 2024[14] - Domestic sales increased to $28,261,000, up 16.5% from $24,365,000 year-over-year[14] - International sales decreased to $41,086,000, down 3.9% from $42,750,000 year-over-year[14] - Total sales for the nine months ended September 30, 2025, were $185,027, a decrease of 4% compared to $192,910 for the same period in 2024[116] - Domestic sales for the Outdoor segment were $63,455, while Adventure segment domestic sales were $14,339, contributing to total domestic sales of $77,794[116] - International sales reached $107,233, with $66,217 from the Outdoor segment and $41,016 from the Adventure segment[116] Profit and Loss - Gross profit for Q3 2025 was $24,366,000, compared to $23,497,000 in Q3 2024, reflecting a 3.7% increase[14] - Net loss for the nine months ended September 30, 2025, was $15,295,000, compared to a net income of $13,234,000 in 2024[16] - Comprehensive loss for the nine months ended September 30, 2025, was $8,934,000, compared to comprehensive income of $14,588,000 in 2024[16] - Gross profit decreased by $3,914, or 5.7%, to $64,840, with a gross margin of 35.0% for the nine months ended September 30, 2025, compared to 35.6% in the prior year[170] Cash and Assets - Cash and cash equivalents at the end of Q3 2025 were $29,508,000, down from $45,359,000 at the end of 2024[12] - Total assets decreased to $283,070,000 as of September 30, 2025, from $294,094,000 at the end of 2024[12] - Stockholders' equity decreased to $225,805,000 from $233,093,000 over the same period[12] - The company reported a depreciation expense of $894 for the three months ended September 30, 2025, compared to $980 for the same period in 2024[45] Expenses and Liabilities - Operating loss for the nine months ended September 30, 2025, was $20,689,000, slightly higher than the loss of $20,269,000 for the same period in 2024[16] - Selling, general, and administrative expenses decreased by $1,725, or 6.2%, to $26,155, primarily due to lower employee-related costs and expenses from the sale of PIEPS[152] - Legal expenses incurred during the three months ended September 30, 2025, amounted to $322,000, up from $194,000 in the same period of 2024, indicating a year-over-year increase of approximately 66%[99] - Restructuring charges were $155 during the three months ended September 30, 2025, down from $478 in the same period of 2024[154] Acquisitions and Sales - The acquisition of RockyMounts was completed on December 5, 2024, for a total purchase consideration of up to $8,000, which includes $4,000 in cash at closing and additional contingent consideration of up to $2,000 based on future net sales thresholds[32][34] - The company completed the acquisition of TRED Outdoors Pty Ltd on October 9, 2023, enhancing its market presence in the outdoor equipment sector[130] - The company received net proceeds of approximately $37,871 from the sale of its Precision Sport segment, which has been reported as discontinued operations[132] Legal and Regulatory Matters - The Company recorded a liability of $2,500,000 related to potential penalties from the CPSC, reflecting the low end of the estimated exposure range[98] - The U.S. Consumer Product Safety Commission approved a voluntary product recall for certain avalanche beacon transceivers to improve safety[209] - The Company is currently unable to predict the duration or outcome of ongoing investigations, which may materially affect its liquidity and financial condition[99] Stock and Compensation - Stock-based compensation expense for the quarter ended September 30, 2025, was $1,544[22] - The company issued stock option awards for an aggregate of 630 shares during the nine months ended September 30, 2025, with varying vesting schedules[78] - As of September 30, 2025, there were 1,053 unvested stock options with an unrecognized compensation cost of $1,180, and 1,050 unvested restricted stock unit awards with an unrecognized compensation cost of $1,639[82] Tax and Deferred Assets - The estimated effective tax rate benefit for the three months ended September 30, 2025, was 58.1%, significantly higher than the U.S. federal statutory tax rate of 21%[106] - The Company has recorded a gross deferred tax asset of $35,658,000 as of December 31, 2024, with a valuation allowance of $23,344,000, resulting in a net deferred tax asset of $12,314,000[108]