Clarus(US:CLAR)2021-05-09 16:00Financial Performance - Consolidated sales increased by $21,776, or 40.7%, to $75,331 during the three months ended March 31, 2021, compared to $53,555 in the same period of 2020[116] - Domestic sales rose by $19,025, or 66.6%, to $47,573 during the three months ended March 31, 2021, driven by increased sales of Sierra products and the inclusion of Barnes[117] - International sales increased by $2,751, or 11.0%, to $27,758 during the three months ended March 31, 2021, with contributions from Barnes and a favorable currency impact[118] - Gross profit increased by $8,538, or 46.1%, to $27,050 during the three months ended March 31, 2021, with a gross margin of 35.9% compared to 34.6% in the prior year[122] - Operating income for the three months ended March 31, 2021, was $5,689, a significant increase from $892 in the same period of 2020[116] - Net income for the three months ended March 31, 2021, was $5,677, compared to $36 in the same period of 2020[116] Costs and Expenses - Cost of goods sold rose by $13,238, or 37.8%, to $48,281 during the three months ended March 31, 2021, primarily due to an increase in units sold[121] - Consolidated selling, general, and administrative expenses increased by $3,515, or 20.2%, to $20,885 for the three months ended March 31, 2021, compared to $17,370 for the same period in 2020[123] - Consolidated transaction expenses rose to $476 during the three months ended March 31, 2021, from $250 in the same period of 2020, reflecting costs related to acquisition efforts[124] - Consolidated other, net expense decreased by $391, or 73.6%, to $140 during the three months ended March 31, 2021, compared to $531 for the same period in 2020[126] - Consolidated income tax benefit was $366 for the three months ended March 31, 2021, compared to an expense of $14 for the same period in 2020, reflecting an effective income tax rate benefit of 6.9%[127] Cash Flow and Financing - Consolidated net cash used in operating activities was $2,518 for the three months ended March 31, 2021, compared to net cash provided of $3,499 for the same period in 2020, primarily due to an increase in net operating assets of $12,700[135] - Free cash flow was $(3,865) for the three months ended March 31, 2021, compared to $2,197 generated during the same period in 2020[138] - Consolidated net cash used in financing activities was $7,196 for the three months ended March 31, 2021, compared to net cash provided of $8,649 for the same period in 2020, mainly due to repayments to the revolving line of credit and term loan[140] - As of March 31, 2021, the company had total cash of $6,525, down from $17,789 at December 31, 2020[132] - The company had drawn approximately $10,651 of the $60,000 revolving loan commitment available under the Credit Agreement as of March 31, 2021[149] - The company plans to fund its ongoing funding requirements through future operating cash flows and a revolving credit facility with approximately $49,300 available to borrow as of March 31, 2021[130] Acquisitions and Business Operations - The company has a history of acquisitions, including Sierra Bullets and Barnes, to enhance its product offerings and market presence[101] - The Barnes business, acquired on October 2, 2020, represented 15% of total assets and 11% of total sales for the three months ended March 31, 2021[153] - The company has implemented internal controls over financial reporting related to the Barnes acquisition, which utilizes separate information and accounting systems[154] Risk and Compliance - The company continues to assess the impact of COVID-19 on its operations and has taken measures to improve liquidity and operating results[106] - There have been no material changes in internal control over financial reporting during the three months ended March 31, 2021[157] - The company is involved in various legal disputes but does not expect any material adverse effects on its consolidated financial condition or results of operations[163] - There are currently no pending product liability claims that the company believes will materially affect its financial position[166] - The company has not identified any changes in risk factors from those disclosed in its Annual Report for the year ended December 31, 2020[167] - As of March 31, 2021, the company's disclosure controls and procedures were deemed effective by the Executive Chairman and CFO[152]