On this page of StockholderLetter.com we present the latest annual shareholder letter from American Outdoor Brands, Inc. — ticker symbol AOUT. Reading current and past AOUT letters to shareholders can bring important insights into the investment thesis.
2024
Annual Report
Dear
Stakeholders,
Overview
In fiscal 2024, we delivered year-over-year net sales growth that exceeded
our expectations, and we achieved several strategic milestones which
position our company and our brands well for the future.
   We believe we have the most
robust new product pipeline
ever in our company   s history,
extending well into the next
five years, and providing us
with a significant, long-term
competitive advantage.   
At the core of our company is our relentless focus on innovation, which is
driven by the activities of our consumer. This is a commitment that we
maintain no matter what the environment, and it drives not only brand
loyalty with our consumers, but also long-lasting and trusting relationships
with our retailers. Those retailers have learned that while other suppliers
are reeling from changes and uncertainty in the environment     often
halting their innovation efforts and slashing prices     they can rely on us to
remain steadfast in our promise to maintain the value of our brands, invest
in innovation, strengthen our supply chain, and     most of all     support
their customers with a steady stream of exciting products from leading
brands that bring shoppers through their doors. That reliability helped
drive growth in fiscal 2024 by allowing us to forge stronger relationships
with our consumers and retailers, despite the consumer uncertainty that
characterized the year. It also allowed us to deliver on a number of
commitments we made to our stockholders heading into fiscal 2024.
lifestyle, which consists of products related to hunting, fishing, camping,
outdoor cooking, and rugged outdoor activities, we grew sales by nearly
7%. That growth was led by strength in our hunting, meat processing, and
fishing related brands, most notably BOG  , MEAT!, and BUBBA  , and reflects
the success of our strategy to identify incremental retail opportunities, both
domestically and internationally. It   s worth noting that fiscal 2024 growth
in our outdoor lifestyle category was entirely organic, as we   ve now lapped
the acquisition of Grilla. In our shooting sports category, which includes
solutions for target shooting, aiming, safe storage, cleaning and
maintenance, and personal protection, we delivered full year growth of
3.2%, despite Adjusted NICS background checks coming in 5.4% lower than
the prior year. Our net sales increase was driven by a combination of strong
sales in our target shooting and reloading brands, namely Caldwell   and
Frankford Arsenal  , along with our ability to effectively lower our inventories
of personal protection products.
When we entered the year, we shared our intent to control those elements we
could control, in order to best position us for those elements we could not
control. We set out a number of objectives for fiscal 24, and we have delivered
on those commitments: We committed to investing in international expansion
to drive growth in the channel. We made that investment and delivered
international sales growth of over 35%. We said we would expand our MEAT!
Your Maker   brand of meat processing equipment beyond the direct-toconsumer channel into retail, and in November, MEAT! became available on
retail shelves. We said we would lay the groundwork to expand our Grilla  
outdoor cooking brand into retail as well, and Grilla is now set to appear in
retail this fall. We pledged to keep our foot on the pedal when it came to
innovation, and in fiscal 2024 we launched many new, meaningful products,
several of which represent our entry into new markets and new product
categories. We said we would plan for future growth and efficiencies, and in
January we expanded the lease at our Missouri headquarters and distribution
facility, making room for organic growth and acquisitions, and identifying a
number of operational efficiencies, including supply chain consolidation. And,
we commited to continue exercising disciplined capital management.
Accordingly, in fiscal 2024, we further strengthened our balance sheet, ending
the year with nearly $30 million in cash, returning capital to shareholders, and
exiting the year debt-free, in a strong position to drive future growth.
Increased and expanded distribution channel opportunities are one of the
growth avenues in our long term strategic plan. When it comes to our
traditional and e-commerce channels, we   ve long said that we focus on
ensuring our brands are available wherever consumers look for them,
whether in store or online. The importance of that focus was clear in fiscal
2024. While ecommerce sales declined slightly, sales growth in our traditional
channel was up more than 12% for the year, driven in part by the entry of our
MEAT! brand into the retail channel, and underscoring our strong retail
partnerships. Both our domestic and international channels delivered growth
in fiscal 2024. The international market represents a tremendous opportunity
for our outdoor-lifestyle-oriented brands and its growth over time plays a key
role in our long-term strategic plan. Expanding our distribution network in
Canada in fiscal 2024 was an important milestone in that plan, and was a
significant factor in helping drive total international sales to over $12 million,
representing about 6% of our business.
Net sales in the year grew more than 5%, reflecting growth in our outdoor
lifestyle category as well as our shooting sports category. In outdoor
Growth Through Innovation & Acquisition
Innovation is our    super-power,    and core to our long-term growth strategy.
Our unique and proprietary Dock & Unlock    innovation process is robust, and
in fiscal 2024 it helped bring our total portfolio of patents and patents pending
to over 390. It also drove the launch of several exciting products across many
of our brands including BUBBA, Caldwell, Grilla, and Hooyman  . In fact, new
products generated over 23% of our net sales in fiscal 2024. Taken together,
our new products position us well for fiscal 2025 and beyond, as we expect
that both traditional and online retailers will continue to seek out strong and
innovative brands to help drive consumer foot traffic and deliver an enhanced
consumer experience. We believe we have the most robust new product
pipeline ever in our company   s history, extending well into the next five years,
and providing us with a significant, long-term competitive advantage.
While organic growth remains our top priority, we also believe there are
opportunities to supplement our organic growth by identifying and acquiring
brands that fit our strict criteria. Our strong balance sheet and total available
capital of nearly $120 million, should help us capture those opportunities when
they arise. We plan to maintain our disciplined approach to capital allocation,
applying our strict framework to any potential acquisition targets and
opportunistically pursuing those that fit well within our portfolio, can benefit
from our Dock & Unlock process, and have the ability to drive future growth.
where consumers are starved for new gear and technology. As we
transition from our early innings as a new public company, we believe our
recent significant investments in infrastructure have cleared the way for
further sales and EBITDAS growth, led by our leverageable operating model.
Lastly, disciplined capital management has reinforced our strong balance
sheet, with no debt, cash flow upside, and available capital of $120 million.
We believe we have never been better positioned for the future.
We thank our employees for their loyalty, hard work, and dedication. Their
contributions throughout fiscal 2024 have helped us deliver solid results
and move forward on the path to an exciting future. We also thank our
shareholders for their continued support and confidence in our company.
Ready For the Future
BRIAN D. MURPHY
We are excited about the opportunities that lie ahead. Our 21 brands
operate across a highly fragmented outdoor industry, where growth is
supported by a large installed base of millions of passionate enthusiasts,
many of whom consider    new gear and technology    essential to advancing
their pursuits. Our growth strategy is a bet on innovation, which is
differentiated by a process that yields repeatability, and generates IPprotectable innovation designed to disrupt those large stagnant categories
President, Chief Executive Officer, Director
BRIA
N D.
MUR
PHY
BAR
BARRY M. MONHEIT
RY M

BARRY M.ofMONHEIT
Chairman
the Board
BRIAN D. MURPHY
For the 10 million Americans
participating in shotgun sports,
we launched the Caldwell
Claymore   Solo, a lightweight,
battery-free, single-clay thrower
that fills a market gap with its
innovation and extreme value, as
well as the Claymore PullPup   , a
handheld clay thrower that flies
past the competition in terms of
delivering an improved user
experience.
For the millions of households and
professionals across America who
practice land management, our
new Hooyman chest-mounted and
vehicle-mounted seed spreaders
helped us secure important new
retail outlets, expanding the
distribution for this growing brand
by bringing it into the DIY and
farm-and-home markets.
For the 50 million plus anglers in
the U.S., we launched the BUBBA
Pro-Series Smart Fish Scale, our
first entry into the catch and
release market with a revolutionary
fish scale and app designed to
gamify fishing, in fact, the Pro SFS
is so revolutionary that it won a
major industry award shortly after
its launch, and has already been
named the official scale for Major
League Fishing.
And for the nearly 100 million
households that participate in
outdoor cooking, we launched the
Grilla Mammoth    Vertical Smoker,
an innovative and feature-rich
pellet smoker that represents a
new product category for our
expanding Grilla family, and won
Field & Stream   s    Best Vertical
Smoker    award for 2023.
MON
HE
Fiscal 2024
Financial Highlights
In Fiscal 2024, we strengthened our balance sheet, generated significant operating cash flow, controlled our costs, and demonstrated effective capital
deployment, all while growing year-over-year net sales by more than 5%. With robust operating cash flow in the year of $24.5 million, including an inventory
reduction of $6.4 million, we paid down $5.0 million on our line of credit and repurchased over $6.0 million of our stock. We exited the year debt-free with
no outstanding balance on our $75.0 milllion line of credit, a cash balance of $29.7 million, and approximately $120.0 million in available capital.
Full year net sales were $201.1 million, an increase of $9.9 million, or 5.2%, compared with net sales of $191.2 million for the prior year. On a category basis,
outdoor lifestyle sales increased by 6.9% and shooting sports sales increased by 3.2% compared to fiscal 2023, driven mainly by increased net sales in the
hunting, fishing, and shooting accessories categories. Compared to pre-pandemic fiscal 2020, outdoor lifestyle sales increased 43%, which includes the
acquisition of Grilla, and shooting sports sales grew about 1%. Outdoor lifestyle represented roughly 54% of total net sales in both fiscal 24 and fiscal 23.
Full year gross margin was 44.0%, a decrease of 210 basis points, from gross margin of 46.1% for the prior year. The decrease was mainly due to higher tariff
and freight costs from increased inventory purchases, increased promotional activity, and the adjustment of a prior year tariff drawback. Our long-term
target for gross margins is in the mid-40   s, and our fiscal 2024 results were right on track. On a non-GAAP basis, fiscal 24 gross margins were 44.5%
compared to 46.2% in the prior year. Non-GAAP gross margins exclude the impact of the tariff drawback adjustment and facility consolidation costs.
Full year GAAP net loss was $12.2 million, or ($0.94) per diluted share, compared with a GAAP net loss of $12.0 million, or ($0.90) per diluted share, last year.
Full year non-GAAP net income was $4.3 million, or $0.32, compared with non-GAAP net income of $6.6 million, or $0.48 per diluted share, for the prior year.
GAAP to non-GAAP adjustments for net income exclude acquired intangible amortization, stock compensation, technology implementation, and other costs.
Full year Adjusted EBITDAS was $9.8 million, or 4.9% of net sales, compared with Adjusted EBITDAS of 12.8 million, or 6.7% of net sales, for the prior year. For
a detailed reconciliation, see the schedules that follow.
OPERATING
CASH FLOW
FULL YEAR
NET SALES
$24.5 M $201.1 M
FULL YEAR
GROSS MARGIN
44.0%
Reconciliation of U.S. GAAP to
Non-GAAP Financial Measures
In this annual report, certain non-GAAP financial measures, including    non-GAAP net income,       non-GAAP income per share diluted,    and    Adjusted EBITDAS,   
is presented. From time-to-time, the Company considers and uses these non-GAAP financial measures as supplemental measures of operating performance
in order to provide the reader with an improved understanding of underlying performance trends. The Company believes it is useful for itself and the reader
to review, as applicable, both (1) GAAP measures that include (i) amortization of acquired intangible assets, (ii) stock compensation, (iii) facility consolidation
costs, (iv) technology implementation, (v) acquisition costs, (vi) stockholder cooperation agreement costs, (vii) the tax effect of non-GAAP adjustments, (viii)
interest expense, (ix) income tax benefit, (x) tariff drawback adjustment, and (xi) depreciation and amortization; and (2) the non-GAAP measures that
exclude such information. The Company presents these non-GAAP measures because it considers them an important supplemental measure of its
performance and believes the disclose of such measures provides useful information to investors because it is frequently used by analysts, investors, and
other interested parties to evaluate companies in its industry. The Company uses non-GAAP measures to supplement GAAP measures of performance to
evaluate the effectiveness of its business strategies, to make budgeting decisions, and to neutralize its capitalization structure to compare the Company   s
performance against that of other peer companies using similar measures, especially companies that are private. The Company also uses non-GAAP
measures to supplement GAAP measures of performance to evaluate its performance in connection with compensation decisions. The Company believes it
is useful to investors and analysts to evaluate this non-GAAP measure on the same basis used to evaluate its operating results. The Company   s definition of
these adjusted financial measures may differ from similarly named measures used by others. The Company believes these measures facilitate operating
performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would
not otherwise be apparent on a GAAP basis. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or
as a substitute for the Company   s GAAP measures. The principal limitations of these measures are that they do not reflect the Company   s actual expenses
and may thus have the effect of inflating its financial measures on a GAAP basis.
American Outdoor Brands, Inc. and Subsidiaries Reconciliation of GAAP Net Loss to
Non-GAAP Adjusted EBITDAS
(IN THOUSANDS) (UNAUDITED)
FOR THE YEARS ENDED APRIL 30,
2024
GAAP NET LOSS

(12,248)
2023

(12,024)
INTEREST (INCOME)/EXPENSE
(39)
761
INCOME TAX BENEFIT
(70)
(249)
16,005
16,048
4,075
4,050
465
2,138

47
TARIFF DRAWBACK ADJUSTMENT
1,113

FACILITY CONSOLIDATION COSTS

866
STOCKHOLDER COOPERATION AGREEMENT COSTS

1,177
468

DEPRECIATION AND AMORTIZATION
STOCK COMPENSATION
TECHNOLOGY IMPLEMENTATION
ACQUISITION COSTS
OTHER
NON-GAAP ADJUSTED EBITDAS

9,769

12,814
 • shareholder letter icon 8/12/2024 Letter Continued (Full PDF)
 • stockholder letter icon 8/11/2023 AOUT Stockholder Letter
 • stockholder letter icon More "Consumer Goods" Category Stockholder Letters
 • Benford's Law Stocks icon AOUT Benford's Law Stock Score = 85


AOUT Shareholder/Stockholder Letter Transcript:

2024
Annual Report

Dear
Stakeholders,
Overview
In fiscal 2024, we delivered year-over-year net sales growth that exceeded
our expectations, and we achieved several strategic milestones which
position our company and our brands well for the future.
   We believe we have the most
robust new product pipeline
ever in our company   s history,
extending well into the next
five years, and providing us
with a significant, long-term
competitive advantage.   
At the core of our company is our relentless focus on innovation, which is
driven by the activities of our consumer. This is a commitment that we
maintain no matter what the environment, and it drives not only brand
loyalty with our consumers, but also long-lasting and trusting relationships
with our retailers. Those retailers have learned that while other suppliers
are reeling from changes and uncertainty in the environment     often
halting their innovation efforts and slashing prices     they can rely on us to
remain steadfast in our promise to maintain the value of our brands, invest
in innovation, strengthen our supply chain, and     most of all     support
their customers with a steady stream of exciting products from leading
brands that bring shoppers through their doors. That reliability helped
drive growth in fiscal 2024 by allowing us to forge stronger relationships
with our consumers and retailers, despite the consumer uncertainty that
characterized the year. It also allowed us to deliver on a number of
commitments we made to our stockholders heading into fiscal 2024.
lifestyle, which consists of products related to hunting, fishing, camping,
outdoor cooking, and rugged outdoor activities, we grew sales by nearly
7%. That growth was led by strength in our hunting, meat processing, and
fishing related brands, most notably BOG  , MEAT!, and BUBBA  , and reflects
the success of our strategy to identify incremental retail opportunities, both
domestically and internationally. It   s worth noting that fiscal 2024 growth
in our outdoor lifestyle category was entirely organic, as we   ve now lapped
the acquisition of Grilla. In our shooting sports category, which includes
solutions for target shooting, aiming, safe storage, cleaning and
maintenance, and personal protection, we delivered full year growth of
3.2%, despite Adjusted NICS background checks coming in 5.4% lower than
the prior year. Our net sales increase was driven by a combination of strong
sales in our target shooting and reloading brands, namely Caldwell   and
Frankford Arsenal  , along with our ability to effectively lower our inventories
of personal protection products.
When we entered the year, we shared our intent to control those elements we
could control, in order to best position us for those elements we could not
control. We set out a number of objectives for fiscal 24, and we have delivered
on those commitments: We committed to investing in international expansion
to drive growth in the channel. We made that investment and delivered
international sales growth of over 35%. We said we would expand our MEAT!
Your Maker   brand of meat processing equipment beyond the direct-toconsumer channel into retail, and in November, MEAT! became available on
retail shelves. We said we would lay the groundwork to expand our Grilla  
outdoor cooking brand into retail as well, and Grilla is now set to appear in
retail this fall. We pledged to keep our foot on the pedal when it came to
innovation, and in fiscal 2024 we launched many new, meaningful products,
several of which represent our entry into new markets and new product
categories. We said we would plan for future growth and efficiencies, and in
January we expanded the lease at our Missouri headquarters and distribution
facility, making room for organic growth and acquisitions, and identifying a
number of operational efficiencies, including supply chain consolidation. And,
we commited to continue exercising disciplined capital management.
Accordingly, in fiscal 2024, we further strengthened our balance sheet, ending
the year with nearly $30 million in cash, returning capital to shareholders, and
exiting the year debt-free, in a strong position to drive future growth.
Increased and expanded distribution channel opportunities are one of the
growth avenues in our long term strategic plan. When it comes to our
traditional and e-commerce channels, we   ve long said that we focus on
ensuring our brands are available wherever consumers look for them,
whether in store or online. The importance of that focus was clear in fiscal
2024. While ecommerce sales declined slightly, sales growth in our traditional
channel was up more than 12% for the year, driven in part by the entry of our
MEAT! brand into the retail channel, and underscoring our strong retail
partnerships. Both our domestic and international channels delivered growth
in fiscal 2024. The international market represents a tremendous opportunity
for our outdoor-lifestyle-oriented brands and its growth over time plays a key
role in our long-term strategic plan. Expanding our distribution network in
Canada in fiscal 2024 was an important milestone in that plan, and was a
significant factor in helping drive total international sales to over $12 million,
representing about 6% of our business.
Net sales in the year grew more than 5%, reflecting growth in our outdoor
lifestyle category as well as our shooting sports category. In outdoor
Growth Through Innovation & Acquisition
Innovation is our    super-power,    and core to our long-term growth strategy.
Our unique and proprietary Dock & Unlock    innovation process is robust, and
in fiscal 2024 it helped bring our total portfolio of patents and patents pending
to over 390. It also drove the launch of several exciting products across many
of our brands including BUBBA, Caldwell, Grilla, and Hooyman  . In fact, new
products generated over 23% of our net sales in fiscal 2024. Taken together,

our new products position us well for fiscal 2025 and beyond, as we expect
that both traditional and online retailers will continue to seek out strong and
innovative brands to help drive consumer foot traffic and deliver an enhanced
consumer experience. We believe we have the most robust new product
pipeline ever in our company   s history, extending well into the next five years,
and providing us with a significant, long-term competitive advantage.
While organic growth remains our top priority, we also believe there are
opportunities to supplement our organic growth by identifying and acquiring
brands that fit our strict criteria. Our strong balance sheet and total available
capital of nearly $120 million, should help us capture those opportunities when
they arise. We plan to maintain our disciplined approach to capital allocation,
applying our strict framework to any potential acquisition targets and
opportunistically pursuing those that fit well within our portfolio, can benefit
from our Dock & Unlock process, and have the ability to drive future growth.
where consumers are starved for new gear and technology. As we
transition from our early innings as a new public company, we believe our
recent significant investments in infrastructure have cleared the way for
further sales and EBITDAS growth, led by our leverageable operating model.
Lastly, disciplined capital management has reinforced our strong balance
sheet, with no debt, cash flow upside, and available capital of $120 million.
We believe we have never been better positioned for the future.
We thank our employees for their loyalty, hard work, and dedication. Their
contributions throughout fiscal 2024 have helped us deliver solid results
and move forward on the path to an exciting future. We also thank our
shareholders for their continued support and confidence in our company.
Ready For the Future
BRIAN D. MURPHY
We are excited about the opportunities that lie ahead. Our 21 brands
operate across a highly fragmented outdoor industry, where growth is
supported by a large installed base of millions of passionate enthusiasts,
many of whom consider    new gear and technology    essential to advancing
their pursuits. Our growth strategy is a bet on innovation, which is
differentiated by a process that yields repeatability, and generates IPprotectable innovation designed to disrupt those large stagnant categories
President, Chief Executive Officer, Director
BRIA
N D.
MUR
PHY
BAR
BARRY M. MONHEIT
RY M

BARRY M.ofMONHEIT
Chairman
the Board
BRIAN D. MURPHY
For the 10 million Americans
participating in shotgun sports,
we launched the Caldwell
Claymore   Solo, a lightweight,
battery-free, single-clay thrower
that fills a market gap with its
innovation and extreme value, as
well as the Claymore PullPup   , a
handheld clay thrower that flies
past the competition in terms of
delivering an improved user
experience.
For the millions of households and
professionals across America who
practice land management, our
new Hooyman chest-mounted and
vehicle-mounted seed spreaders
helped us secure important new
retail outlets, expanding the
distribution for this growing brand
by bringing it into the DIY and
farm-and-home markets.
For the 50 million plus anglers in
the U.S., we launched the BUBBA
Pro-Series Smart Fish Scale, our
first entry into the catch and
release market with a revolutionary
fish scale and app designed to
gamify fishing, in fact, the Pro SFS
is so revolutionary that it won a
major industry award shortly after
its launch, and has already been
named the official scale for Major
League Fishing.
And for the nearly 100 million
households that participate in
outdoor cooking, we launched the
Grilla Mammoth    Vertical Smoker,
an innovative and feature-rich
pellet smoker that represents a
new product category for our
expanding Grilla family, and won
Field & Stream   s    Best Vertical
Smoker    award for 2023.
MON
HE

Fiscal 2024
Financial Highlights
In Fiscal 2024, we strengthened our balance sheet, generated significant operating cash flow, controlled our costs, and demonstrated effective capital
deployment, all while growing year-over-year net sales by more than 5%. With robust operating cash flow in the year of $24.5 million, including an inventory
reduction of $6.4 million, we paid down $5.0 million on our line of credit and repurchased over $6.0 million of our stock. We exited the year debt-free with
no outstanding balance on our $75.0 milllion line of credit, a cash balance of $29.7 million, and approximately $120.0 million in available capital.
Full year net sales were $201.1 million, an increase of $9.9 million, or 5.2%, compared with net sales of $191.2 million for the prior year. On a category basis,
outdoor lifestyle sales increased by 6.9% and shooting sports sales increased by 3.2% compared to fiscal 2023, driven mainly by increased net sales in the
hunting, fishing, and shooting accessories categories. Compared to pre-pandemic fiscal 2020, outdoor lifestyle sales increased 43%, which includes the
acquisition of Grilla, and shooting sports sales grew about 1%. Outdoor lifestyle represented roughly 54% of total net sales in both fiscal 24 and fiscal 23.
Full year gross margin was 44.0%, a decrease of 210 basis points, from gross margin of 46.1% for the prior year. The decrease was mainly due to higher tariff
and freight costs from increased inventory purchases, increased promotional activity, and the adjustment of a prior year tariff drawback. Our long-term
target for gross margins is in the mid-40   s, and our fiscal 2024 results were right on track. On a non-GAAP basis, fiscal 24 gross margins were 44.5%
compared to 46.2% in the prior year. Non-GAAP gross margins exclude the impact of the tariff drawback adjustment and facility consolidation costs.
Full year GAAP net loss was $12.2 million, or ($0.94) per diluted share, compared with a GAAP net loss of $12.0 million, or ($0.90) per diluted share, last year.
Full year non-GAAP net income was $4.3 million, or $0.32, compared with non-GAAP net income of $6.6 million, or $0.48 per diluted share, for the prior year.
GAAP to non-GAAP adjustments for net income exclude acquired intangible amortization, stock compensation, technology implementation, and other costs.
Full year Adjusted EBITDAS was $9.8 million, or 4.9% of net sales, compared with Adjusted EBITDAS of 12.8 million, or 6.7% of net sales, for the prior year. For
a detailed reconciliation, see the schedules that follow.
OPERATING
CASH FLOW
FULL YEAR
NET SALES
$24.5 M $201.1 M
FULL YEAR
GROSS MARGIN
44.0%

Reconciliation of U.S. GAAP to
Non-GAAP Financial Measures
In this annual report, certain non-GAAP financial measures, including    non-GAAP net income,       non-GAAP income per share diluted,    and    Adjusted EBITDAS,   
is presented. From time-to-time, the Company considers and uses these non-GAAP financial measures as supplemental measures of operating performance
in order to provide the reader with an improved understanding of underlying performance trends. The Company believes it is useful for itself and the reader
to review, as applicable, both (1) GAAP measures that include (i) amortization of acquired intangible assets, (ii) stock compensation, (iii) facility consolidation
costs, (iv) technology implementation, (v) acquisition costs, (vi) stockholder cooperation agreement costs, (vii) the tax effect of non-GAAP adjustments, (viii)
interest expense, (ix) income tax benefit, (x) tariff drawback adjustment, and (xi) depreciation and amortization; and (2) the non-GAAP measures that
exclude such information. The Company presents these non-GAAP measures because it considers them an important supplemental measure of its
performance and believes the disclose of such measures provides useful information to investors because it is frequently used by analysts, investors, and
other interested parties to evaluate companies in its industry. The Company uses non-GAAP measures to supplement GAAP measures of performance to
evaluate the effectiveness of its business strategies, to make budgeting decisions, and to neutralize its capitalization structure to compare the Company   s
performance against that of other peer companies using similar measures, especially companies that are private. The Company also uses non-GAAP
measures to supplement GAAP measures of performance to evaluate its performance in connection with compensation decisions. The Company believes it
is useful to investors and analysts to evaluate this non-GAAP measure on the same basis used to evaluate its operating results. The Company   s definition of
these adjusted financial measures may differ from similarly named measures used by others. The Company believes these measures facilitate operating
performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would
not otherwise be apparent on a GAAP basis. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or
as a substitute for the Company   s GAAP measures. The principal limitations of these measures are that they do not reflect the Company   s actual expenses
and may thus have the effect of inflating its financial measures on a GAAP basis.
American Outdoor Brands, Inc. and Subsidiaries Reconciliation of GAAP Net Loss to
Non-GAAP Adjusted EBITDAS
(IN THOUSANDS) (UNAUDITED)
FOR THE YEARS ENDED APRIL 30,
2024
GAAP NET LOSS

(12,248)
2023

(12,024)
INTEREST (INCOME)/EXPENSE
(39)
761
INCOME TAX BENEFIT
(70)
(249)
16,005
16,048
4,075
4,050
465
2,138

47
TARIFF DRAWBACK ADJUSTMENT
1,113

FACILITY CONSOLIDATION COSTS

866
STOCKHOLDER COOPERATION AGREEMENT COSTS

1,177
468

DEPRECIATION AND AMORTIZATION
STOCK COMPENSATION
TECHNOLOGY IMPLEMENTATION
ACQUISITION COSTS
OTHER
NON-GAAP ADJUSTED EBITDAS

9,769

12,814



shareholder letter icon 8/12/2024 Letter Continued (Full PDF)
 

AOUT Stockholder/Shareholder Letter (American Outdoor Brands, Inc.) | www.StockholderLetter.com
Copyright © 2023 - 2025, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.