Clarus Reports Fourth Quarter and Full Year 2024 Results

Core Insights - Clarus Corporation reported fourth quarter sales of $71.4 million, a decrease from $76.5 million in the same quarter last year, primarily due to challenges with two large accounts in the OEM and Australian markets [5][6] - The company completed the acquisition of RockyMounts, enhancing its product capabilities in the bike-rack segment globally [1][23] - Adjusted EBITDA for the fourth quarter was $4.4 million, with an adjusted EBITDA margin of 6.1%, compared to $1.6 million and 2.1% in the prior year [12][21] Financial Performance - Fourth quarter net loss 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 previous year [5][10] - Loss from continuing operations was $73.3 million, or $(1.92) per diluted share, compared to a loss of $7.2 million, or $(0.19) per diluted share in the year-ago quarter [10][19] - For the full year 2024, total sales decreased by 7.6% to $264.3 million from $286.0 million in 2023 [14][15] Segment Performance - Sales in the Outdoor segment increased to $51.1 million from $50.1 million year-over-year, while Adventure segment sales decreased by 22.9% to $20.3 million [6][14] - The Outdoor segment's adjusted gross margin improved to 36.9% in Q4 from 32.8% in the previous year, driven by product simplification and SKU rationalization [4][7] Operational Highlights - Selling, general and administrative expenses decreased to $27.8 million from $30.0 million year-over-year, attributed to lower marketing and retail expenses [8][18] - The company incurred a non-cash expense of $44.8 million for goodwill and indefinite-lived intangible assets impairments in Q4 [9][10] Cash Flow and Liquidity - Free cash flow for Q4 was $14.4 million, up from $13.3 million in the prior year [13] - Cash and cash equivalents at year-end totaled $45.4 million, significantly higher than $11.3 million at the end of the previous year [16] Future Outlook - For fiscal year 2025, the company expects sales to range between $250 million to $260 million and adjusted EBITDA of approximately $14 million to $16 million [24] - Capital expenditures are anticipated to be between $4 million to $5 million, with expected free cash flow ranging from $8 million to $10 million [24]