Daily Courier: Single Column

Clarus Reports Fourth Quarter and Full Year 2023 Results

Adventure Segment Generates Highest Quarterly Revenue of the Year

Proceeds from Precision Sport Sale Used to Repay All Debt and Significantly Increased Cash Position

Positioning Company for Growth and Profitability in 2024 and Beyond as a Pure-Play Outdoor Business

SALT LAKE CITY, March 07, 2024 (GLOBE NEWSWIRE) -- Clarus Corporation (NASDAQ: CLAR) (“Clarus” and/or the “Company”), a global company focused on the outdoor enthusiast markets, reported financial results for the fourth quarter and full year ended December 31, 2023.

Fourth Quarter 2023 Financial Summary vs. Same YearAgo Quarter (adjusted to reflect the reclassification of the Precision Sport segment as discontinued operations)

  • Sales of $76.5 million compared to $73.8 million.
  • Gross margin was 28.9% compared to 37.2%.
  • Loss from continuing operations of $7.2 million, or $(0.19) per diluted share, compared to loss from continuing operations of $83.3 million, or $(2.25) per diluted share. Loss from continuing operations in Q4 2022 included a non-cash impairment charge of $92.3 million in the Adventure segment.
  • Adjusted loss from continuing operations of $2.8 million, or $(0.07) per diluted share, compared to adjusted income from continuing operations of $4.4 million, or $0.11 per diluted share.
  • Adjusted EBITDA of $(3.5) million with an adjusted EBITDA margin of (4.5)% compared to $3.6 million with an adjusted EBITDA margin of 4.9%.
  • Precision Sport segment reported as discontinued operations due to sale announcement in December 2023.
  • The sale of Precision Sport closed on February 29, 2024.

2023 Financial Summary vs. 2022 (adjusted to reflect the reclassification of the Precision Sport segment as discontinued operations)

  • Sales of $286.0 million compared to $315.3 million.
  • Gross margin was 34.1% compared to 34.9%; adjusted gross margin was 34.1% compared to 35.0%.
  • Loss from continuing operations of $15.8 million, or $(0.42) per diluted share, compared to loss from continuing operations of $92.8 million, or $(2.49) per diluted share. Loss from continuing operations in 2022 included the $92.3 million non-cash impairment expense in the Adventure segment.
  • Adjusted loss from continuing operations of $1.5 million, or $(0.04) per diluted share, compared to adjusted income from continuing operations of $9.4 million, or $0.24 per diluted share.
  • Adjusted EBITDA of $1.2 million with an adjusted EBITDA margin of 0.4% compared to $17.6 million with an adjusted EBITDA margin of 5.6%.

Management Commentary

“Despite very challenging macroeconomic headwinds throughout 2023 that adversely impacted consumer demand, we have taken important steps to realign our brands and inventory levels to position Clarus for long-term profitable growth as a pure-play, ESG-friendly outdoor business,” said Warren Kanders, Clarus’ Executive Chairman. “After completing the sale of our Precision Sport segment, we are debt-free with over $40 million of cash on the balance sheet. We have a streamlined company focused on two operating segments poised for growth, each with strong leaders with highly capable teams focused on increasing profitability and unlocking new opportunities.”

Mr. Kanders added, “The monetization of our Precision Sport segment for $175 million was a highly successful outcome for Clarus. Clarus invested approximately $132 million in the Precision Sports segment since 2017. During our ownership period, the segment returned over $94 million of cash to Clarus and with the recently completed sale, it has generated nearly $270 million of returns. The operating income from Precision Sport also helped use a substantial portion of our net operating losses. With the proceeds from this sale, we retired in full all of Clarus’ outstanding debt and emerged with a debt-free balance sheet and flexibility to pursue our long-term growth initiatives at the Outdoor and Adventure segments.”

Mr. Kanders concluded, “We are pleased with the progress we have made at our Adventure segment, which had its best quarter of the year with 43% sales growth. With respect to Outdoor, I am excited about our potential to build long-term value. We are still in the early innings of our business turnaround. We are actively simplifying the organizational structure, our product categories and channel strategy. We have taken a careful view of inventory levels to better align with expected market demand. In 2024 we expect total company net sales in the range of $270 million to $280 million and adjusted EBITDA of $16 million to $18 million.”

Sale of Precision Sport / Discontinued Operations

On December 29, 2023, the Company announced the sale of its Precision Sport segment for $175 million. As the disposition was completed on February 29, 2024, we expect to recognize a gain on the disposition during the three months ending March 31, 2024. The activities of the Precision Sport segment have been segregated and reported as discontinued operations for all periods presented.

Fourth Quarter 2023 Financial Results

Sales in the fourth quarter were $76.5 million compared to $73.8 million in the same year‐ago quarter. This was driven by strength at the Adventure segment due to success with OEM customers. This was partly offset by softness in the European region at Outdoor.

Sales in the Adventure segment increased 43% to $26.4 million, or $26.6 million on a constant currency basis, compared to $18.5 million in the year-ago quarter, reflecting increasing sales in the Australian market and the benefit of the TRED Outdoors acquisition announced during the fourth quarter of 2023. Sales in the Outdoor segment were $50.1 million, or $50.0 million on a constant currency basis, compared to $55.3 million in the year ago quarter. The decline primarily reflects continuing challenging market conditions, particularly in Europe.

Gross margin in the fourth quarter was 28.9% compared to 37.2% in the year‐ago quarter. The decrease in gross margin was primarily due to $4.2 million of inventory reserve increases at the Outdoor segment. Adjusted gross margin in the fourth quarter was 29.0% compared to 37.2% in the year-ago quarter related to the inventory step-up as a result of the TRED Outdoors acquisition.

Selling, general and administrative expenses in the fourth quarter were $30.7 million compared to $29.9 million in the same year‐ago quarter. The increase was attributable to the Outdoor segment with higher legal and marketing expenses compared to the prior year.

The loss from continuing operations in the fourth quarter of 2023 was $7.2 million, or $(0.19) per diluted share, compared to loss from continuing operations of $83.3 million, or $(2.25) per diluted share in the year-ago quarter. Loss from continuing operations in the fourth quarter included $1.5 million of one-off charges relating to restructuring and transaction costs. The loss from continuing operations in the fourth quarter of 2022 included a non-cash impairment charge of $92.3 million at the Adventure segment.

Adjusted loss from continuing operations in the fourth quarter of 2023 was $2.8 million, or $(0.07) per diluted share, compared to adjusted income from continuing operations of $4.3 million, or $0.11 per diluted share in the year-ago quarter. Adjusted (loss) income from continuing operations excludes restructuring charges and transaction costs, as well as non-cash items such as amortization, stock-based compensation, inventory fair value of purchase accounting and impairment charges.

Adjusted EBITDA in the fourth quarter was $(3.5) million, or an adjusted EBITDA margin of (4.5)%, compared to $3.6 million, or an adjusted EBITDA margin of 4.9%, in the same year‐ ago quarter. The decline in adjusted EBITDA was primarily driven by continuing challenging market conditions at Outdoor, an increase in inventory reserves at Outdoor and higher legal and marketing expenses.

Net cash provided by operating activities for the three months ended December 31, 2023, was $14.5 million compared to $32.4 million in the prior year quarter. Capital expenditures in the fourth quarter of 2023 were $1.2 million compared to $2.0 million in the prior year quarter. Free cash flow for the fourth quarter of 2023 was $13.3 million compared to $30.3 million in the prior year quarter.

Liquidity at December 31, 2023 vs. December 31, 2022

  • Cash and cash equivalents totaled $11.3 million compared to $12.0 million.
  • Total debt of $119.8 million compared to $139.0 million.
  • On February 29, 2024, approximately $135.0 million of long-term debt, interest and fees were repaid and the credit agreement was subsequently terminated.

Full Year 2023 Financial Results

Sales in 2023 decreased 9.3% to $286.0 million compared to $315.3 million in 2022. The decrease in sales was primarily driven by continued softness in Outdoor wholesale markets in both North America and Europe as well as lower demand at Rhino-Rack USA compared to the prior year.

From a segment perspective, Outdoor sales were down 8% to $204.1 million and Adventure sales were down 12% to $82.0 million, compared to 2022.

Gross margin in 2023 was 34.1% compared to 34.9% in 2022 primarily due to promotional pricing and increased inventory reserves at the Outdoor segment, as well as unfavorable foreign currency exchange movement. These decreases were partially offset by favorable variances, primarily related to easing freight costs, at both the Outdoor and Adventure segments. Adjusted gross margin in 2023 was 34.1% compared to 35.0% in 2022 due to the impact of the TRED Outdoors acquisition in 2023 and Maxtrax in 2022.

Selling, general and administrative expenses in 2023 were $116.4 million compared to $120.8 million in 2022. The decrease was primarily due to reduced stock compensation, as well as expense reduction initiatives to offset challenging market conditions, lower intangible amortization expense, and lower sales commissions due to decreased revenue.

Loss from continuing operations in 2023 was $15.8 million, or $(0.42) per diluted share, compared to net loss of $92.8 million, or $(2.49) per diluted share, in the prior year. Loss from continuing operations in 2022 included a $92.3 million non-cash impairment charge in the Adventure segment.

Adjusted loss from continuing operations in 2023 was $1.5 million, or $(0.04) per diluted share, compared to adjusted income from continuing operations of $9.4 million, or $0.24 per diluted share in the year-ago quarter. Adjusted (loss) income from continuing operations excludes restructuring charges and transaction costs, as well as non-cash items such as amortization, stock-based compensation, inventory fair value of purchase accounting, contingent consideration and impairment charges.

Adjusted EBITDA in 2023 was $1.2 million, or an adjusted EBITDA margin of 0.4%, compared to $17.6 million, or an adjusted EBITDA margin of 5.6%, in 2022.

Net cash provided by operating activities for the year ended December 31, 2023, was $31.9 million compared to $14.6 million in 2022. Capital expenditures in 2023 were $5.7 million

compared to $8.2 million in the prior year. Free cash flow for the year ended December 31, 2023, was $26.2 million compared to $6.4 million in the same year‐ago period. This increase is primarily due to lower inventory.

2024 Outlook

The Company expects fiscal year 2024 sales to range between $270 million to $280 million and adjusted EBITDA of approximately $16 million to $18 million, or an adjusted EBITDA margin of 6.2% at the mid-point of revenue and adjusted EBITDA. In addition, capital expenditures are expected to range between $4 million to $5 million and free cash flow is expected to range between $18 million to $20 million for the full year 2024. Clarus has not provided net income guidance due to the inherent difficulty of forecasting certain types of expenses and gains, which affect net income but not Adjusted EBITDA and/or Adjusted EBITDA Margin. Therefore, we do not provide a reconciliation of Adjusted EBITDA and/or Adjusted EBITDA Margin guidance to net income guidance.

Net Operating Loss (NOL)

The Company has net operating loss carryforwards (“NOLs”) for U.S. federal income tax purposes of $7.7 million. The Company believes its U.S. Federal NOLs will substantially offset its future U.S. Federal income taxes until expiration. None of NOLs expire until December 31, 2027, which the Company expects to realize in their entirety in 2024.

Conference Call

The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its fourth quarter 2023 results.

Date: Thursday, March 7, 2024
Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time) Registration Link:
https://register.vevent.com/register/BIae896d0fcbfe492d8c7b09d523f715d9

To access the call by phone, please register via the live call registration link above and you will be provided with dial-in instructions and details. The conference call will be broadcast live and available for replay here and on the Company’s website at www.claruscorp.com.

2024 Investor Day

The Company will host an investor day on Monday, March 11, 2024, from 12:00 pm to 2:00 pm ET in New York City that will feature additional commentary on Clarus’ strategic initiatives and growth opportunities with presentations from management, including Warren Kanders, Executive Chairman; Mike Yates, Chief Financial Officer; Neil Fiske, President, Black Diamond Equipment; and Mathew Hayward, Managing Director of Clarus' Adventure segment; followed by Q&A sessions.

  • Date: Monday, March 11, 2024
  • Time: 12:00 pm to 2:00 pm ET

Institutional investors and analysts interested in attending the event should contact The IGB Group at Clarus@igbir.com. Virtual attendance registration and webcast details will be available on the Company’s website. For those unable to attend the Investor Day, a replay will be made available after the event.

About Clarus Corporation

Headquartered in Salt Lake City, Utah, Clarus Corporation is a global leading designer, developer, manufacturer and distributor of best-in-class outdoor equipment and lifestyle products focused on the outdoor enthusiast markets. Each of our brands has a long history of continuous product innovation for core and everyday users alike. The Company’s products are principally sold globally under the Black Diamond®, Rhino-Rack®, MAXTRAX®, TRED Outdoors® brand names through outdoor specialty and online retailers, our own websites, distributors, and original equipment manufacturers. Our portfolio of iconic brands is well-positioned for sustainable, long-term growth underpinned by powerful industry trends across the outdoor and adventure sport end markets. For additional information, please visit www.claruscorp.com or the brand websites at www.blackdiamondequipment.com, www.rhinorack.com, www.maxtrax.com.au, www.tredoutdoors.com, or www.pieps.com.

Use of Non‐GAAP Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release contains the non-GAAP measures: (i) adjusted gross margin and adjusted gross profit, (ii) adjusted (loss) income from continuing operations and related earnings (loss) per diluted share, (iii) earnings before interest, taxes, other income or expense, depreciation and amortization (“EBITDA”), EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin, and (iv) free cash flow (defined as net cash provided by operating activities less capital expenditures). The Company believes that the presentation of certain non-GAAP measures, i.e.: (i) adjusted gross margin and adjusted gross profit, (ii) adjusted (loss) income from continuing operations and related earnings (loss) per diluted share , (iii) EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin, and (iv) free cash flow, provide useful information for the understanding of its ongoing operations and enables investors to focus on period-over-period operating performance, and thereby enhances the user's overall understanding of the Company's current financial performance relative to past performance and provides, along with the nearest GAAP measures, a baseline for modeling future earnings expectations. Non-GAAP measures are reconciled to comparable GAAP financial measures within this press release. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results. Additionally, the Company notes that there can be no assurance that the above referenced non-GAAP financial measures are comparable to similarly titled financial measures used by other publicly traded companies.

Forward-Looking Statements

Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release, include, but are not limited to, those risks and uncertainties more fully described from time to time in the Company's public reports filed with the Securities and Exchange Commission, including under the section titled “Risk Factors” in the Company's Annual Report on Form 10-K, and/or Quarterly Reports on Form 10-Q, as well as in the Company’s Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

Company Contact:
Michael J. Yates
Chief Financial Officer
mike.yates@claruscorp.com

Investor Relations:
The IGB Group
Leon Berman / Matt Berkowitz
Tel 1-212-477-8438 / 1-212-227-7098
lberman@igbir.com / mberkowitz@igbir.com

CLARUS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share amounts)
    
 December 31, 2023 December 31, 2022
Assets     
Current assets     
Cash$11,324  $11,981 
Accounts receivable, net 53,971   48,134 
Inventories 91,409   107,602 
Prepaid and other current assets 4,865   6,300 
Income tax receivable 892   3,034 
Assets held for sale 137,284   61,568 
Total current assets 299,745   238,619 
      
Property and equipment, net 16,587   17,304 
Other intangible assets, net 41,466   48,296 
Indefinite-lived intangible assets 58,527   58,401 
Goodwill 39,320   36,278 
Deferred income taxes 22,869   17,912 
Other long-term assets 16,824   17,440 
Non-current assets held for sale -   83,895 
Total assets$495,338  $518,145 
      
Liabilities and Stockholders’ Equity     
Current liabilities     
Accounts payable$20,015  $24,767 
Accrued liabilities 24,580   20,553 
Income tax payable 805   421 
Current portion of long-term debt 119,790   11,904 
Liabilities held for sale 5,744   6,950 
Total current liabilities 170,934   64,595 
      
Long-term debt, net -   127,082 
Deferred income taxes 18,124   18,506 
Other long-term liabilities 14,160   15,854 
Total liabilities 203,218   226,037 
      
Stockholders’ Equity     
Preferred stock, $0.0001 par value per share; 5,000 shares authorized; none issued -   - 
Common stock, $0.0001 par value per share; 100,000 shares authorized; 42,761 and 41,637 issued and 38,149 and 37,048 outstanding, respectively 4   4 
Additional paid in capital 691,198   679,339 
Accumulated deficit (350,739)  (336,843)
Treasury stock, at cost (32,929)  (32,707)
Accumulated other comprehensive loss (15,414)  (17,685)
Total stockholders’ equity 292,120   292,108 
Total liabilities and stockholders’ equity$495,338  $518,145 
      


CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(Unaudited)
(In thousands, except per share amounts)
      
 Three Months Ended
 December 31, 2023 December 31, 2022
      
Sales     
Domestic sales$31,840  $30,146 
International sales 44,663   43,693 
Total sales 76,503   73,839 
      
Cost of goods sold 54,361   46,392 
Gross profit 22,142   27,447 
      
Operating expenses     
Selling, general and administrative 30,665   29,869 
Restructuring charges 1,411   - 
Transaction costs 134   50 
Impairment of goodwill and indefinite-lived intangible assets -   92,311 
      
Total operating expenses 32,210   122,230 
      
Operating loss (10,068)  (94,783)
      
Other income     
Interest income, net 35   5 
Other, net 1,104   733 
      
Total other income, net 1,139   738 
      
Loss before income tax (8,929)  (94,045)
Income tax benefit (1,700)  (10,742)
Loss from continuing operations (7,229)  (83,303)
      
Discontinued operations, net of tax (1,160)  1,699 
      
Net loss$(8,389) $(81,604)
      
Loss from continuing operations per share:     
Basic$(0.19) $(2.25)
Diluted (0.19)  (2.25)
      
Net loss per share:     
Basic$(0.22) $(2.20)
Diluted (0.22)  (2.20)
      
Weighted average shares outstanding:     
Basic 38,312   37,039 
Diluted 38,312   37,039 
      


CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(Unaudited)
(In thousands, except per share amounts)
      
 Twelve Months Ended
 December 31, 2023 December 31, 2022
      
Sales     
Domestic sales$112,385  $132,818 
International sales 173,635   182,433 
Total sales 286,020   315,251 
      
Cost of goods sold 188,509   205,298 
Gross profit 97,511   109,953 
      
Operating expenses     
Selling, general and administrative 116,367   120,814 
Restructuring charges 3,223   - 
Transaction costs 593   2,818 
Contingent consideration (benefit) expense (1,565)  493 
Impairment of goodwill and indefinite-lived intangible assets -   92,311 
      
Total operating expenses 118,618   216,436 
      
Operating loss (21,107)  (106,483)
      
Other income (expense)     
Interest income, net 67   - 
Other, net 961   (1,035)
      
Total other income (expense), net 1,028   (1,035)
      
Loss before income tax (20,079)  (107,518)
Income tax benefit (4,291)  (14,716)
Loss from continuing operations (15,788)  (92,802)
      
Discontinued operations, net of tax 5,642   23,022 
      
Net loss$(10,146) $(69,780)
      
(Loss) income from continuing operations per share:     
Basic$(0.42) $(2.49)
Diluted (0.42)  (2.49)
      
Net loss per share:     
Basic$(0.27) $(1.88)
Diluted (0.27)  (1.88)
      
Weighted average shares outstanding:     
Basic 37,485   37,201 
Diluted 37,485   37,201 
      



CLARUS CORPORATION
RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT
AND ADJUSTED GROSS MARGIN
       
THREE MONTHS ENDED
   
 December 31, 2023  December 31, 2022
       
Gross profit as reported$22,142  Gross profit as reported$27,447 
Plus impact of inventory fair value adjustment 64  Plus impact of inventory fair value adjustment - 
Adjusted gross profit$22,206  Adjusted gross profit$27,447 
       
Gross margin as reported 28.9% Gross margin as reported 37.2%
       
Adjusted gross margin 29.0% Adjusted gross margin 37.2%
       
TWELVE MONTHS ENDED
       
 December 31, 2023  December 31, 2022
       
Gross profit as reported$97,511  Gross profit as reported$109,953 
Plus impact of inventory fair value adjustment 64  Plus impact of inventory fair value adjustment 269 
Adjusted gross profit$97,575  Adjusted gross profit$110,222 
       
Gross margin as reported 34.1% Gross margin as reported 34.9%
       
Adjusted gross margin 34.1% Adjusted gross margin 35.0%
       


CLARUS CORPORATION
RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED (LOSS) INCOME FROM CONTINUING OPERATIONS AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
                     
 Three Months Ended December 31, 2023
 Total
sales
 Gross
profit
 Operating
expenses
 Income tax
(benefit) expense
 Tax
rate
 (Loss) income from
continuing operations
 Diluted  
EPS
(1)
                     
                     
As reported$76,503  $22,142  $32,210  $(1,700) (19.0)% $(7,229) $(0.19)
                     
Amortization of intangibles -   -   (2,680)  536     2,144    
Stock-based compensation -   -   (1,218)  244     974    
Inventory fair value of purchase accounting -   (64)  -   13     51    
Restructuring charges -   -   (1,411)  282     1,129    
Transaction costs -   -   (134)  27     107    
                     
As adjusted$76,503  $22,078  $26,767  $(598) (17.5)% $(2,824) $(0.07)
                     
(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share and adjusted loss from continuing operations per share are both calculated based on 38,312 basic and diluted weighted average shares of common stock.
                     
 Three Months Ended December 31, 2022
 Total
sales
 Gross
profit
 Operating
expenses
 Income tax
(benefit) expense
 Tax
rate
 (Loss) income from
continuing operations
 Diluted  
EPS
(1)
                     
                     
As reported$73,839  $27,447  $122,230  $(10,742) (11.4)% $(83,303) $(2.25)
                     
Amortization of intangibles -   -   (2,894)  289     2,605    
Stock-based compensation -   -   (2,170)  217     1,953    
Impairment of goodwill and indefinite-lived intangible assets -   -   (92,311)  9,231     83,080    
Transaction costs -   -   (50)  5     45    
                     
As adjusted$73,839  $27,447  $24,805  $(1,000) (29.6)% $4,380  $0.11 
                     
(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share is calculated based on 37,039 basic and diluted weighted average shares of common stock. Adjusted income from continuing operations per share is calculated based on 38,307 diluted shares of common stock.
                     


CLARUS CORPORATION
RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED (LOSS) INCOME FROM CONTINUING OPERATIONS AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
                     
 Twelve Months Ended December 31, 2023
 Total
sales
 Gross
profit
 Operating
expenses
 Income tax
(benefit) expense
 Tax
rate
 (Loss) income from
continuing operations
 Diluted
EPS
(1)
                     
                     
As reported$286,020  $97,511  $118,618  $(4,291) (21.4)% $(15,788) $(0.42)
                     
Amortization of intangibles -   -   (10,715)  2,293     8,422    
Stock-based compensation -   -   (5,141)  1,100     4,041    
Inventory fair value of purchase accounting -   (64)  -   14     50    
Restructuring charges -   -   (3,223)  690     2,533    
Transaction costs -   -   (593)  127     466    
Contingent consideration (benefit) expense -   -   1,565   (335)    (1,230)   
                     
As adjusted$286,020  $97,447  $100,511  $(402) (21.1)% $(1,506) $(0.04)
                     
(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share and adjusted loss from continuing operations per share are both calculated based on 37,485 basic and diluted weighted average shares of common stock.
                     
 Twelve Months Ended December 31, 2022
 Total
sales
 Gross
profit
 Operating
expenses
 Income tax
(benefit) expense
 Tax
rate
 (Loss) income from
continuing operations
 Diluted
EPS
(1)
                     
                     
As reported$315,251  $109,953  $216,436  $(14,716) (13.7)% $(92,802) $(2.49)
                     
Amortization of intangibles -   -   (12,557)  1,720     10,837    
Stock-based compensation -   -   (11,198)  1,534     9,664    
Inventory fair value of purchase accounting -   (269)  -   37     232    
Impairment of goodwill and indefinite-lived intangible assets -   -   (92,311)  13,650     78,661    
Transaction costs -   -   (2,818)  386     2,432    
Contingent consideration (benefit) expense -   -   (493)  68     425    
                     
As adjusted$315,251  $109,684  $97,059  $2,679  22.1% $9,449  $0.24 
                     
(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share is calculated based on 37,201 basic and diluted weighted average shares of common stock. Adjusted income from continuing operations per share is calculated based on 39,347 diluted shares of common stock.
                     


CLARUS CORPORATION
RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN
(In thousands)
      
 Three Months Ended
 December 31, 2023 December 31, 2022
      
      
Loss from continuing operations$(7,229) $(83,303)
      
Income tax benefit (1,700)  (10,742)
Other, net (1,104)  (733)
Interest expense, net (35)  (5)
      
Operating loss (10,068)  (94,783)
      
Depreciation 1,086   999 
Amortization of intangibles 2,680   2,894 
      
EBITDA (6,302)  (90,890)
      
Restructuring charges 1,411   - 
Transaction costs 134   50 
Inventory fair value of purchase accounting 64   - 
Impairment of goodwill and indefinite-lived intangible assets -   92,311 
Stock-based compensation 1,218   2,170 
      
Adjusted EBITDA$(3,475) $3,641 
      
Sales$76,503  $73,839 
      
EBITDA margin -8.2%  -123.1%
Adjusted EBITDA margin -4.5%  4.9%
      


CLARUS CORPORATION
RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN
(In thousands)
      
 Twelve Months Ended
 December 31, 2023 December 31, 2022
      
      
Loss from continuing operations$(15,788) $(92,802)
      
Income tax benefit (4,291)  (14,716)
Other, net (961)  1,035 
Interest expense, net (67)  - 
      
Operating loss (21,107)  (106,483)
      
Depreciation 4,150   4,388 
Amortization of intangibles 10,715   12,557 
      
EBITDA (6,242)  (89,538)
      
Restructuring charges 3,223   - 
Transaction costs 593   2,818 
Contingent consideration (benefit) expense (1,565)  493 
Inventory fair value of purchase accounting 64   269 
Impairment of goodwill and indefinite-lived intangible assets -   92,311 
Stock-based compensation 5,141   11,198 
      
Adjusted EBITDA$1,214  $17,551 
      
Sales$286,020  $315,251 
      
EBITDA margin -2.2%  -28.4%
Adjusted EBITDA margin 0.4%  5.6%
      

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