On this page of StockholderLetter.com we present the latest annual shareholder letter from Clarus Corp — ticker symbol CLAR. Reading current and past CLAR letters to shareholders can bring important insights into the investment thesis.
CLARUS CORPORATION 2023 Annual Report ANNUAL MEETING 20 2 3 A NNUA L R E P O RT The Annual Meeting of Stockholders will be held on Thursday, May 30, 2024 at 10:00 a.m. Eastern Time in a virtual-only meeting format via live webcast. Detailed information about the meeting and instructions on how to participate in this year s virtual meeting are contained in the Notice of Annual Meeting and Proxy Statement sent with a copy of this Annual Report. CORPORATE INFORMATION Board of Directors Warren B. Kanders Executive Chairman Michael A. Henning Financial Consultant Donald L. House Financial Consultant Nicholas Sokolow Partner Lebow & Sokolow, LLP Susan Ottmann Graduate Program Director College of Engineering at the University of Wisconsin Madison Roger Werner Digital Media entrepreneur and Chairman of ACCUS (the Automobile Competition Committee of the United States) Management Warren B. Kanders Executive Chairman Michael J. Yates Chief Financial Officer STOCKHOLDER INFORMATION Headquarters Clarus Corporation 2084 East 3900 South Salt Lake City, UT 84124 (801) 278-5552 Investor Relations Contact The IGB Group Leon Berman (212) 477-8438 lberman@igbir.com Securities Listing The Company s common stock is listed on the NASDAQ Global Select Market under the symbol CLAR. Registrar and Transfer Agent Equiniti Trust Co., LLC Ridgefield Park, NJ Independent Accountants Deloitte & Touche LLP Salt Lake City, UT Legal Counsel Kane Kessler, P.C. New York, NY
DEAR FELLOW CLARUS SHAREHOLDERS: In 2023 we took crucial actions to seek to realign our overall platform and individual brands, that we believe positions Clarus for long-term, profitable growth as a pure-play, ESG-friendly outdoor business. Amidst a challenging macroeconomic backdrop, we made important progress implementing our strategic plan to streamline business processes and seek to capitalize on clear growth potential in our core markets. A critical component of this strategy was hiring highly experienced and dedicated leaders to guide our Outdoor and Adventure segments. Following their appointments last year, we believe that both Neil Fiske, President of Black Diamond; and Mat Hayward, Managing Director of Clarus Adventure, proved in 2023 to be fully capable of driving Clarus turnaround. While we are at different points in the reset of both Outdoor and Adventure, each segment showed incremental progress, particularly during the second half of 2023. During this transitional year for Clarus, we took steps to simplify and right-size the organization to find our baseline for potential profitable growth in 2024 and beyond. Outdoor: Big Market with Opportunities for Potential Growth Adventure: Globally Diverse Platform with Significant Upside Our 2023 results in Outdoor reflected a difficult overall environment. Sales were down 8% year-over-year, but we began to see signs of stabilization in the fourth quarter, particularly in the North American wholesale market. As part of our Outdoor segment reset, we made important progress during the year simplifying the organizational structure, product categories, and channel strategy, as well as better aligning inventory with expected market demand. As we entered 2024, our revamped Outdoor team has transformed its go-to-market approach, focusing on fewer, better products with great design and superior engineering. Ultimately, we believe long-term trends continue to favor the growth of outdoor sports, and Black Diamond has an excellent opportunity to build from a position of strength based on its market leadership across core categories. Looking ahead, management s objective in 2024 is to con- 2023 marked a reset and stabilization year for our Adventure segment during which we saw month-over-month improvement as key initiatives took hold. This culminated in Adventure s best quarter of the year in Q4, with 43% sales growth and gross margins of 38%. In Q4, we expanded our market potential through the acquisition of TRED Outdoors, a fast-growing adventure brand with best-in-class innovative products across key segments including offroad, 4x4 automotive touring, and importantly, camping and caravans. It is worth highlighting that excluding the acquisition of TRED, our fourth quarter gross margins increased 700 basis points over the prior year period. Our Adventure team spent much of the year quickly identifying challenges and solutions, and we are pleased to see those initiatives manifest themselves in improved overall profitability. cals. As we move ahead, our priority is to seek to emphasize our product ecosystem to empower consumer s outdoor and adventure pursuits with a focus. Alpine FLZ The Trek: Most Durable Poles Popular Science: Best Overall Trekking Pole Alpine Light Pants Gear Patrol: Best Pants for Scrambling Alpine Start Hoody Gear Junkie: Best Windbreaker Jacket for Mountaineering Apollo Lantern Outdoor Life: Best Overall Camping Lantern Approach Down Hoody Well + Good: Most Durable Packable Down Jacket Subsequent to the end of the year, we completed the sale of our Precision Sport segment, which represented a highly successful outcome. Today, we have a leaner company focused on two consumer segments with broad appeal and attractive long-term tailwinds: Outdoor and Adventure. Astro 300 NYT Wirecutter: Best Budget Headlamp We sold the Precision Sport segment for approximately $175 million in cash. We are proud of the Precision Sport segment s platform that we built, beginning in August 2017 when we identified Sierra Bullets as a durable, high margin business with an exceptional free cash flow profile. We leveraged the strength of Sierra Bullets to acquire Barnes Bullets in 2020, unifying two of the premier specialty bullet and ammunition brands in the shooting sports and hunting industry. During our ownership of the brands, the segment achieved best-in-class EBITDA performance, averaging EBITDA margins of ~34%, returning nearly $270 million inclusive of the proceeds from the transaction and utilizing approximately $102 million in net operating losses (NOLs). Turning to our remaining segments, Clarus approach will center around two traditional outdoor businesses with brands that are leaders in their respective core categories. As investors familiar with Clarus know well, Black Diamond is a globally recognized brand with a 30-plus-year history providing equipment and soft goods to climbers, hikers and skiers; and in our Adventure segment, we have a global platform that includes the iconic brands of Rhino-Rack, MAXTRAX and TRED Outdoors each of which is geared towards building and empowering an adventure community. Airnet Harness Gripped: Best harness for climbers seeking a no-compromise performance-oriented sport climbing harness Alpine Carbon Corkl Gear Patrol: Best Trekking Poles Treeline Review: Best Carbon Trekking Pole Switchback Travel: Best Four-Season Trekking Pole Popular Science: Best Trekking Pole for Hiking The New Clarus Following the sale, we are pleased to transition our focus to Clarus higher-upside business segments with a significantly enhanced balance sheet. After retiring all of Clarus outstanding debt with proceeds from the sale, our balance sheet is debtfree with over $40 million of cash on hand. Importantly, this provides flexibility in how we seek to pursue our long-term value-creation objectives and growth initiatives. BLACK DIAMOND 2023 AWARDS 2024 and Beyond tinue to rationalize unprofitable products and categories in the portfolio to set the stage for accelerated profitable growth opportunities. With a solid new foundation, Black Diamond is focused on value drivers that we expect will increase sales, expand gross margins and enhance cost leverage moving forward. Today, we have a clear strategic roadmap that prioritizes business process improvement, commitment to key product categories, consumer segments, channels and new geographies, while investing in areas that we anticipate will sustain growth in future years, particularly in product innovation, digital transformation and international expansion. With the building blocks in place, we are ready to begin delivering on Black Diamond s long-term financial targets. We are excited to begin 2024 with a solid foundation in place, driven by momentum in Adventure and operational progress in Outdoor. While hurdles remain, we are confident in the exceptional team we now have in place and our new positioning as a pure-play outdoor company. Complementing our strategic growth objectives, we are committed to a prudent capital allocation approach that provides enduring shareholder value over the long term. A key tenet will be seeking to reinvest in our existing businesses to drive profitable growth in 2025 and 2026, as we focus on the highest-margin, highest-return opportunities. While larger M&A remains on the horizon, in the near term, within our Adventure segment, we will seek to actively pursue bolt on acquisitions that offer synergies with our current operating infrastructure. Looking toward the future, we firmly believe we have a portfolio of premium brands that can gain market share and achieve our long-term growth targets. We look forward to carrying this momentum forward throughout 2024, continuing to seek to drive better SKU productivity, inventory management and organizational efficiency. The introduction of the new Pioneer 6 platform in Australia generated meaningful growth in the second half of the year, marking Rhino-Rack s first major new product launch in over a year. The Pioneer system is the hallmark of Rhino-Rack, and we are excited to bring to market the next generation of complementary accessories and other new product launches throughout 2024. Following significant investment in professionalizing the team, process re-engineering and product commercialization, we believe that our Adventure segment is well positioned to capitalize on strong fundamentals supported by an expected large and growing addressable market across multiple verti- We want to thank our talented employees for their continued hard work, our valued customers for their trust in us, and our shareholders for your support and investment in Clarus we look forward to sharing our progress and future successes with you. Sincerely, Warren B. Kanders Executive Chairman of Clarus Corporation Belay Parka Advnture: Best Puffer for Climbers Outside: Best Heavyweight Insulation Gripped: Best Belay Jacket for Climbers in Wet Conditions Black Diamond Gym Solution 30 Gear Bag Rolling Stone: Best Climbing Gym Bag Black Diamond Heavyweight Softshell Gloves Canadian Running: Best gloves for runners seeking extra warmth and durability for colder conditions Blitz 20 Outdoor Gear Lab: Best Climbing Backpack for Alpine Climbing Blitz Spike Traction Devices Runner s World: Best Lightweight / Packable Spikes Gear Junkie: Best Ultralight Traction Devices Dawn Patrol 25 Outdoor Life: Best for Resort Riding Helio Carbon 115 Travel + Leisure: Best Backcountry Ski Dawn Patrol 32 Switchback Travel: Best Overall Ski Pack Helio Carbon 88 Switchback Travel: Best Ultralight Backcountry Ski Delopy Wind Shell Gear Junkie: Best Windbreaker Jacket for Running Deploy 325 Outdoors.com: Best Headlamp for Backcountry Camping Distance 15 Forbes: Best Ultralight Daypack For Fast Hikes Switchback Travel: Best Daypack for Fast and Light Mountain Missions Treeline Review: Best High Capacity Running Vest Distance 22 Trail Runner: Best Hydration Vest for Unsupported Ultra-Long Runs Field Mag: Best Daypack for Fast & Light Adventures Distance 4 Hydration Vest Gear Patrol: Best Running Vest for Daily Training Live Strong: Best Pack for Trail Running Marathon Handbook: Best Running Vests for Shorter Runs Distance Carbon FLZ, Distance Z, Trail and Alpine Carbon Cork CNN: Best Trekking Poles Distance Carbon Z Switchback Travel: Best Ultralight Collapsible Pole iRunFar: Best Trekking Poles Aluminum Fixed Length Distance Spike Outdoor Life: Best Overall Microspike Distance Wind Shell Treeline Review: -Best Lightweight Wind Breaker -Best Windproof Running Jacket for Men -Best Light Weight Wind Shell Adventure Alan: Best Water Resisting Wind Layer Helio Carbon 95 Backcountry Magazine: -Sport Touring Ski - Editor s Choice -Editor s Choice Backcountry Ski Hilight Tent Outdoor Life: Best Single Wall Four Season Tent Bearfoot Theory: Best 4 Season Backpacking Tent Impulse 104 Backcountry Magazine: Free Touring Ski - Bang for Buck Impulse 98 Backcountry Magazine: Free Touring Ski - Bang for Buck JetForce Pro 25 Switchback Travel: Best Avalanche Airbag Pack Jetfource Tour 26L Forbes: Best Avalanche Backpack For Easy Of Use John J Compactor Poles / Expedition 3 Poles Mountain Weekly News: Top Ten Splitboard Poles of 2023 Legend Gloves Gear Junkie: Runner Up Best Winter Glove Lightwire SS Tech Gear Patrol: Best Overall Running Shirt Mega Light Adventure Alan: Top Value Ultralight Tent Mercury Mitt Gear Junkie: Best Overall Winter Mittens Outdoor Gear Lab: -Best Overall Ski Mittens, Ms&Ws Midweight Screentap Gloves HiConsumption: Best Hiking Gloves One37.com: Best Fleece Glove Circuit Shoe Switchback Travel: Best Lightweight Approach Shoe Distance Z The Trek Best Fixed-Length Poles Robb Report Best Hiking Poles iRunFar: Best Trekking Poles Carbon Fixed Length Cirque 45 Switchback Travel: Best Ski Mountaineering Pack Fitzroy Tent Wide Open Spaces: Most Stable Winter Camping Tent Coefficient LT Hybrid Hoody The Modest Man: Best Lightweight Fleece Jacket Glidelite Mix STS Treeline Review: Best Value Climbing Skins Momentum Gripped: Best shoe for entry-level vegan climbers seeking comfort and performance Contact The Hiking Adventure: Best Strap on Crampon Guide BT Treeline Review: Best Overall Avalanche Beacon Momentum Harness Gear Junkie: Best Budget Women s Harness Cosmo 350 Self: The Best Headlamp Guide Gloves Gear Junkie: Runner Up Best Ski Glove Mont Blanc Gloves Field Mag: Best Budget Friendly Gloves Creek 50 Switchback Travel: Best Follower Pack for Multi-Pitch Climbing Helio Carbon 104 Ski Magazine: Best Backcountry Ski for the Long Haul Backcountry Magazine: Sport Touring Ski - Editor s Choice Neve Pro The Hiking Adventure: Best Step in Crampon Outdoor Life: Best Lightweight Crampons Creek Transit 22 Syndicated Local News: Best Waterproof Bags over $100 Mission MX Mitt Forbes: Best Ski Mittens Overall Moji +, Moji R+ CNN Underscored: Editor Favorite Outdoors.com: Best Light for the Tent Notion Pants Gripped: Best pants for climbers wanting functional climbing pants that look good Pursuit Switchback Travel: Best Overall Trekking Pole Pursuit 15 Outside: Most Comfortable Daypack Gear Junkie: Most Technical Daypack Pursuit 30 W Outdoor Life: Best Trekking Pole for Day Hikes ISPO: Best Hiking Poles Field and Stream: Best Trekking Poles Raven Pro Live for the Outdoors: Best 1/B-Rated for Durability Recon LT Stretch Shell Elevation Outdoors: Gear Awards: Best of the Backcountry Recon Stretch Travel + Leisure: Best Relaxed-fit Ski Jacket The Intertia: Best Resort/Backcountry Ski Bibs Recon Stretch Insulated HiConsumption: Best Hiking Gloves One37.com: Best Fleece Glove Session Shoe Switchback Travel: Best Approach Shoe with Everyday Appeal Solution Harness Gear Junkie: Best Overall Women s Harness Spot 400, 400-R NYT Wirecutter: Best Headlamp CNN, Forbes and Gearjunkie: Best Headlamp Overall Stinger Crampon Outdoor Life: Best Steep Ice and Mixed Crampons Storm 500-R Live for the Outdoors: Best Head Torch 2023 Outdoor Life: Best Headlamp SeattleMet: Best Camping Headlamp Stormline Stretch Shell Gear Patrol, Treeline Review: Best Stretch Rain Jacket The Modest Man: Best Stretchy Rain Jacket for Men Vapor Helmet Gripped: Best helmet for climbers seeking low weight without compromising protection Vision Down Parka Gear Junkie: Best Down Jacket for Belaying Gripped: Best for Belay Jacket with Durable Shell Zone Harness Gripped: Best harness for climbers pushing their limits in the summer and winter
DEAR FELLOW CLARUS SHAREHOLDERS: In 2023 we took crucial actions to seek to realign our overall platform and individual brands, that we believe positions Clarus for long-term, profitable growth as a pure-play, ESG-friendly outdoor business. Amidst a challenging macroeconomic backdrop, we made important progress implementing our strategic plan to streamline business processes and seek to capitalize on clear growth potential in our core markets. A critical component of this strategy was hiring highly experienced and dedicated leaders to guide our Outdoor and Adventure segments. Following their appointments last year, we believe that both Neil Fiske, President of Black Diamond; and Mat Hayward, Managing Director of Clarus Adventure, proved in 2023 to be fully capable of driving Clarus turnaround. While we are at different points in the reset of both Outdoor and Adventure, each segment showed incremental progress, particularly during the second half of 2023. During this transitional year for Clarus, we took steps to simplify and right-size the organization to find our baseline for potential profitable growth in 2024 and beyond. Outdoor: Big Market with Opportunities for Potential Growth Adventure: Globally Diverse Platform with Significant Upside Our 2023 results in Outdoor reflected a difficult overall environment. Sales were down 8% year-over-year, but we began to see signs of stabilization in the fourth quarter, particularly in the North American wholesale market. As part of our Outdoor segment reset, we made important progress during the year simplifying the organizational structure, product categories, and channel strategy, as well as better aligning inventory with expected market demand. As we entered 2024, our revamped Outdoor team has transformed its go-to-market approach, focusing on fewer, better products with great design and superior engineering. Ultimately, we believe long-term trends continue to favor the growth of outdoor sports, and Black Diamond has an excellent opportunity to build from a position of strength based on its market leadership across core categories. Looking ahead, management s objective in 2024 is to con- 2023 marked a reset and stabilization year for our Adventure segment during which we saw month-over-month improvement as key initiatives took hold. This culminated in Adventure s best quarter of the year in Q4, with 43% sales growth and gross margins of 38%. In Q4, we expanded our market potential through the acquisition of TRED Outdoors, a fast-growing adventure brand with best-in-class innovative products across key segments including offroad, 4x4 automotive touring, and importantly, camping and caravans. It is worth highlighting that excluding the acquisition of TRED, our fourth quarter gross margins increased 700 basis points over the prior year period. Our Adventure team spent much of the year quickly identifying challenges and solutions, and we are pleased to see those initiatives manifest themselves in improved overall profitability. cals. As we move ahead, our priority is to seek to emphasize our product ecosystem to empower consumer s outdoor and adventure pursuits with a focus. Alpine FLZ The Trek: Most Durable Poles Popular Science: Best Overall Trekking Pole Alpine Light Pants Gear Patrol: Best Pants for Scrambling Alpine Start Hoody Gear Junkie: Best Windbreaker Jacket for Mountaineering Apollo Lantern Outdoor Life: Best Overall Camping Lantern Approach Down Hoody Well + Good: Most Durable Packable Down Jacket Subsequent to the end of the year, we completed the sale of our Precision Sport segment, which represented a highly successful outcome. Today, we have a leaner company focused on two consumer segments with broad appeal and attractive long-term tailwinds: Outdoor and Adventure. Astro 300 NYT Wirecutter: Best Budget Headlamp We sold the Precision Sport segment for approximately $175 million in cash. We are proud of the Precision Sport segment s platform that we built, beginning in August 2017 when we identified Sierra Bullets as a durable, high margin business with an exceptional free cash flow profile. We leveraged the strength of Sierra Bullets to acquire Barnes Bullets in 2020, unifying two of the premier specialty bullet and ammunition brands in the shooting sports and hunting industry. During our ownership of the brands, the segment achieved best-in-class EBITDA performance, averaging EBITDA margins of ~34%, returning nearly $270 million inclusive of the proceeds from the transaction and utilizing approximately $102 million in net operating losses (NOLs). Turning to our remaining segments, Clarus approach will center around two traditional outdoor businesses with brands that are leaders in their respective core categories. As investors familiar with Clarus know well, Black Diamond is a globally recognized brand with a 30-plus-year history providing equipment and soft goods to climbers, hikers and skiers; and in our Adventure segment, we have a global platform that includes the iconic brands of Rhino-Rack, MAXTRAX and TRED Outdoors each of which is geared towards building and empowering an adventure community. Airnet Harness Gripped: Best harness for climbers seeking a no-compromise performance-oriented sport climbing harness Alpine Carbon Corkl Gear Patrol: Best Trekking Poles Treeline Review: Best Carbon Trekking Pole Switchback Travel: Best Four-Season Trekking Pole Popular Science: Best Trekking Pole for Hiking The New Clarus Following the sale, we are pleased to transition our focus to Clarus higher-upside business segments with a significantly enhanced balance sheet. After retiring all of Clarus outstanding debt with proceeds from the sale, our balance sheet is debtfree with over $40 million of cash on hand. Importantly, this provides flexibility in how we seek to pursue our long-term value-creation objectives and growth initiatives. BLACK DIAMOND 2023 AWARDS 2024 and Beyond tinue to rationalize unprofitable products and categories in the portfolio to set the stage for accelerated profitable growth opportunities. With a solid new foundation, Black Diamond is focused on value drivers that we expect will increase sales, expand gross margins and enhance cost leverage moving forward. Today, we have a clear strategic roadmap that prioritizes business process improvement, commitment to key product categories, consumer segments, channels and new geographies, while investing in areas that we anticipate will sustain growth in future years, particularly in product innovation, digital transformation and international expansion. With the building blocks in place, we are ready to begin delivering on Black Diamond s long-term financial targets. We are excited to begin 2024 with a solid foundation in place, driven by momentum in Adventure and operational progress in Outdoor. While hurdles remain, we are confident in the exceptional team we now have in place and our new positioning as a pure-play outdoor company. Complementing our strategic growth objectives, we are committed to a prudent capital allocation approach that provides enduring shareholder value over the long term. A key tenet will be seeking to reinvest in our existing businesses to drive profitable growth in 2025 and 2026, as we focus on the highest-margin, highest-return opportunities. While larger M&A remains on the horizon, in the near term, within our Adventure segment, we will seek to actively pursue bolt on acquisitions that offer synergies with our current operating infrastructure. Looking toward the future, we firmly believe we have a portfolio of premium brands that can gain market share and achieve our long-term growth targets. We look forward to carrying this momentum forward throughout 2024, continuing to seek to drive better SKU productivity, inventory management and organizational efficiency. The introduction of the new Pioneer 6 platform in Australia generated meaningful growth in the second half of the year, marking Rhino-Rack s first major new product launch in over a year. The Pioneer system is the hallmark of Rhino-Rack, and we are excited to bring to market the next generation of complementary accessories and other new product launches throughout 2024. Following significant investment in professionalizing the team, process re-engineering and product commercialization, we believe that our Adventure segment is well positioned to capitalize on strong fundamentals supported by an expected large and growing addressable market across multiple verti- We want to thank our talented employees for their continued hard work, our valued customers for their trust in us, and our shareholders for your support and investment in Clarus we look forward to sharing our progress and future successes with you. Sincerely, Warren B. Kanders Executive Chairman of Clarus Corporation Belay Parka Advnture: Best Puffer for Climbers Outside: Best Heavyweight Insulation Gripped: Best Belay Jacket for Climbers in Wet Conditions Black Diamond Gym Solution 30 Gear Bag Rolling Stone: Best Climbing Gym Bag Black Diamond Heavyweight Softshell Gloves Canadian Running: Best gloves for runners seeking extra warmth and durability for colder conditions Blitz 20 Outdoor Gear Lab: Best Climbing Backpack for Alpine Climbing Blitz Spike Traction Devices Runner s World: Best Lightweight / Packable Spikes Gear Junkie: Best Ultralight Traction Devices Dawn Patrol 25 Outdoor Life: Best for Resort Riding Helio Carbon 115 Travel + Leisure: Best Backcountry Ski Dawn Patrol 32 Switchback Travel: Best Overall Ski Pack Helio Carbon 88 Switchback Travel: Best Ultralight Backcountry Ski Delopy Wind Shell Gear Junkie: Best Windbreaker Jacket for Running Deploy 325 Outdoors.com: Best Headlamp for Backcountry Camping Distance 15 Forbes: Best Ultralight Daypack For Fast Hikes Switchback Travel: Best Daypack for Fast and Light Mountain Missions Treeline Review: Best High Capacity Running Vest Distance 22 Trail Runner: Best Hydration Vest for Unsupported Ultra-Long Runs Field Mag: Best Daypack for Fast & Light Adventures Distance 4 Hydration Vest Gear Patrol: Best Running Vest for Daily Training Live Strong: Best Pack for Trail Running Marathon Handbook: Best Running Vests for Shorter Runs Distance Carbon FLZ, Distance Z, Trail and Alpine Carbon Cork CNN: Best Trekking Poles Distance Carbon Z Switchback Travel: Best Ultralight Collapsible Pole iRunFar: Best Trekking Poles Aluminum Fixed Length Distance Spike Outdoor Life: Best Overall Microspike Distance Wind Shell Treeline Review: -Best Lightweight Wind Breaker -Best Windproof Running Jacket for Men -Best Light Weight Wind Shell Adventure Alan: Best Water Resisting Wind Layer Helio Carbon 95 Backcountry Magazine: -Sport Touring Ski - Editor s Choice -Editor s Choice Backcountry Ski Hilight Tent Outdoor Life: Best Single Wall Four Season Tent Bearfoot Theory: Best 4 Season Backpacking Tent Impulse 104 Backcountry Magazine: Free Touring Ski - Bang for Buck Impulse 98 Backcountry Magazine: Free Touring Ski - Bang for Buck JetForce Pro 25 Switchback Travel: Best Avalanche Airbag Pack Jetfource Tour 26L Forbes: Best Avalanche Backpack For Easy Of Use John J Compactor Poles / Expedition 3 Poles Mountain Weekly News: Top Ten Splitboard Poles of 2023 Legend Gloves Gear Junkie: Runner Up Best Winter Glove Lightwire SS Tech Gear Patrol: Best Overall Running Shirt Mega Light Adventure Alan: Top Value Ultralight Tent Mercury Mitt Gear Junkie: Best Overall Winter Mittens Outdoor Gear Lab: -Best Overall Ski Mittens, Ms&Ws Midweight Screentap Gloves HiConsumption: Best Hiking Gloves One37.com: Best Fleece Glove Circuit Shoe Switchback Travel: Best Lightweight Approach Shoe Distance Z The Trek Best Fixed-Length Poles Robb Report Best Hiking Poles iRunFar: Best Trekking Poles Carbon Fixed Length Cirque 45 Switchback Travel: Best Ski Mountaineering Pack Fitzroy Tent Wide Open Spaces: Most Stable Winter Camping Tent Coefficient LT Hybrid Hoody The Modest Man: Best Lightweight Fleece Jacket Glidelite Mix STS Treeline Review: Best Value Climbing Skins Momentum Gripped: Best shoe for entry-level vegan climbers seeking comfort and performance Contact The Hiking Adventure: Best Strap on Crampon Guide BT Treeline Review: Best Overall Avalanche Beacon Momentum Harness Gear Junkie: Best Budget Women s Harness Cosmo 350 Self: The Best Headlamp Guide Gloves Gear Junkie: Runner Up Best Ski Glove Mont Blanc Gloves Field Mag: Best Budget Friendly Gloves Creek 50 Switchback Travel: Best Follower Pack for Multi-Pitch Climbing Helio Carbon 104 Ski Magazine: Best Backcountry Ski for the Long Haul Backcountry Magazine: Sport Touring Ski - Editor s Choice Neve Pro The Hiking Adventure: Best Step in Crampon Outdoor Life: Best Lightweight Crampons Creek Transit 22 Syndicated Local News: Best Waterproof Bags over $100 Mission MX Mitt Forbes: Best Ski Mittens Overall Moji +, Moji R+ CNN Underscored: Editor Favorite Outdoors.com: Best Light for the Tent Notion Pants Gripped: Best pants for climbers wanting functional climbing pants that look good Pursuit Switchback Travel: Best Overall Trekking Pole Pursuit 15 Outside: Most Comfortable Daypack Gear Junkie: Most Technical Daypack Pursuit 30 W Outdoor Life: Best Trekking Pole for Day Hikes ISPO: Best Hiking Poles Field and Stream: Best Trekking Poles Raven Pro Live for the Outdoors: Best 1/B-Rated for Durability Recon LT Stretch Shell Elevation Outdoors: Gear Awards: Best of the Backcountry Recon Stretch Travel + Leisure: Best Relaxed-fit Ski Jacket The Intertia: Best Resort/Backcountry Ski Bibs Recon Stretch Insulated HiConsumption: Best Hiking Gloves One37.com: Best Fleece Glove Session Shoe Switchback Travel: Best Approach Shoe with Everyday Appeal Solution Harness Gear Junkie: Best Overall Women s Harness Spot 400, 400-R NYT Wirecutter: Best Headlamp CNN, Forbes and Gearjunkie: Best Headlamp Overall Stinger Crampon Outdoor Life: Best Steep Ice and Mixed Crampons Storm 500-R Live for the Outdoors: Best Head Torch 2023 Outdoor Life: Best Headlamp SeattleMet: Best Camping Headlamp Stormline Stretch Shell Gear Patrol, Treeline Review: Best Stretch Rain Jacket The Modest Man: Best Stretchy Rain Jacket for Men Vapor Helmet Gripped: Best helmet for climbers seeking low weight without compromising protection Vision Down Parka Gear Junkie: Best Down Jacket for Belaying Gripped: Best for Belay Jacket with Durable Shell Zone Harness Gripped: Best harness for climbers pushing their limits in the summer and winter
CLARUS CORPORATION 2023 Annual Report ANNUAL MEETING 20 2 3 A NNUA L R E P O RT The Annual Meeting of Stockholders will be held on Thursday, May 30, 2024 at 10:00 a.m. Eastern Time in a virtual-only meeting format via live webcast. Detailed information about the meeting and instructions on how to participate in this year s virtual meeting are contained in the Notice of Annual Meeting and Proxy Statement sent with a copy of this Annual Report. CORPORATE INFORMATION Board of Directors Warren B. Kanders Executive Chairman Michael A. Henning Financial Consultant Donald L. House Financial Consultant Nicholas Sokolow Partner Lebow & Sokolow, LLP Susan Ottmann Graduate Program Director College of Engineering at the University of Wisconsin Madison Roger Werner Digital Media entrepreneur and Chairman of ACCUS (the Automobile Competition Committee of the United States) Management Warren B. Kanders Executive Chairman Michael J. Yates Chief Financial Officer STOCKHOLDER INFORMATION Headquarters Clarus Corporation 2084 East 3900 South Salt Lake City, UT 84124 (801) 278-5552 Investor Relations Contact The IGB Group Leon Berman (212) 477-8438 lberman@igbir.com Securities Listing The Company s common stock is listed on the NASDAQ Global Select Market under the symbol CLAR. Registrar and Transfer Agent Equiniti Trust Co., LLC Ridgefield Park, NJ Independent Accountants Deloitte & Touche LLP Salt Lake City, UT Legal Counsel Kane Kessler, P.C. New York, NY
 • shareholder letter icon 4/29/2024 Letter Continued (Full PDF)
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CLAR Shareholder/Stockholder Letter Transcript:

CLARUS
CORPORATION
2023 Annual Report
ANNUAL MEETING
20 2 3 A NNUA L R E P O RT
The Annual Meeting of Stockholders
will be held on Thursday, May 30,
2024 at 10:00 a.m. Eastern Time
in a virtual-only meeting format via
live webcast. Detailed information
about the meeting and instructions
on how to participate in this year   s
virtual meeting are contained in the
Notice of Annual Meeting and Proxy
Statement sent with a copy of this
Annual Report.
CORPORATE
INFORMATION
Board of Directors
Warren B. Kanders
Executive Chairman
Michael A. Henning
Financial Consultant
Donald L. House
Financial Consultant
Nicholas Sokolow
Partner
Lebow & Sokolow, LLP
Susan Ottmann
Graduate Program Director
College of Engineering at the
University of Wisconsin Madison
Roger Werner
Digital Media entrepreneur and
Chairman of ACCUS (the Automobile
Competition Committee of the United
States)
Management
Warren B. Kanders
Executive Chairman
Michael J. Yates
Chief Financial Officer
STOCKHOLDER
INFORMATION
Headquarters
Clarus Corporation
2084 East 3900 South
Salt Lake City, UT 84124
(801) 278-5552
Investor Relations Contact
The IGB Group
Leon Berman
(212) 477-8438
lberman@igbir.com
Securities Listing
The Company   s common
stock is listed on the NASDAQ
Global Select Market under the
symbol CLAR.
Registrar and Transfer Agent
Equiniti Trust Co., LLC
Ridgefield Park, NJ
Independent Accountants
Deloitte & Touche LLP
Salt Lake City, UT
Legal Counsel
Kane Kessler, P.C.
New York, NY

DEAR FELLOW CLARUS SHAREHOLDERS:
In 2023 we took crucial actions to seek to realign our overall platform and individual brands, that we believe positions
Clarus for long-term, profitable growth as a pure-play,
ESG-friendly outdoor business.
Amidst a challenging macroeconomic backdrop, we made
important progress implementing our strategic plan to streamline business processes and seek to capitalize on clear growth
potential in our core markets. A critical component of this
strategy was hiring highly experienced and dedicated leaders
to guide our Outdoor and Adventure segments. Following their
appointments last year, we believe that both Neil Fiske, President of Black Diamond; and Mat Hayward, Managing Director
of Clarus Adventure, proved in 2023 to be fully capable of driving Clarus    turnaround. While we are at different points in the
reset of both Outdoor and Adventure, each segment showed
incremental progress, particularly during the second half of
2023. During this transitional year for Clarus, we took steps to
simplify and right-size the organization to find our baseline for
potential profitable growth in 2024 and beyond.
Outdoor: Big Market with Opportunities for Potential
Growth
Adventure: Globally Diverse Platform with Significant
Upside
Our 2023 results in Outdoor reflected a difficult overall environment. Sales were down 8% year-over-year, but we began
to see signs of stabilization in the fourth quarter, particularly in
the North American wholesale market. As part of our Outdoor
segment reset, we made important progress during the year
simplifying the organizational structure, product categories,
and channel strategy, as well as better aligning inventory with
expected market demand. As we entered 2024, our revamped
Outdoor team has transformed its go-to-market approach,
focusing on fewer, better products with great design and superior engineering. Ultimately, we believe long-term trends continue to favor the growth of outdoor sports, and Black Diamond
has an excellent opportunity to build from a position of strength
based on its market leadership across core categories.
Looking ahead, management   s objective in 2024 is to con-
2023 marked a reset and stabilization year for our Adventure
segment during which we saw month-over-month improvement
as key initiatives took hold. This culminated in Adventure   s
best quarter of the year in Q4, with 43% sales growth and
gross margins of 38%. In Q4, we expanded our market potential through the acquisition of TRED Outdoors, a fast-growing
adventure brand with best-in-class innovative products across
key segments including offroad, 4x4 automotive touring, and
importantly, camping and caravans. It is worth highlighting that
excluding the acquisition of TRED, our fourth quarter gross
margins increased 700 basis points over the prior year period.
Our Adventure team spent much of the year quickly identifying
challenges and solutions, and we are pleased to see those
initiatives manifest themselves in improved overall profitability.
cals. As we move ahead, our priority is to seek to emphasize
our product ecosystem to empower consumer   s outdoor and
adventure pursuits with a focus.
Alpine FLZ
The Trek: Most Durable Poles
Popular Science: Best Overall Trekking Pole
Alpine Light Pants
Gear Patrol: Best Pants for Scrambling
Alpine Start Hoody
Gear Junkie: Best Windbreaker Jacket for
Mountaineering
Apollo Lantern
Outdoor Life: Best Overall Camping Lantern
Approach Down Hoody
Well + Good: Most Durable Packable Down
Jacket
Subsequent to the end of the year, we completed the sale of
our Precision Sport segment, which represented a highly successful outcome. Today, we have a leaner company focused
on two consumer segments with broad appeal and attractive
long-term tailwinds: Outdoor and Adventure.
Astro 300
NYT Wirecutter: Best Budget Headlamp
We sold the Precision Sport segment for approximately $175
million in cash. We are proud of the Precision Sport segment   s
platform that we built, beginning in August 2017 when we identified Sierra Bullets as a durable, high margin business with an
exceptional free cash flow profile. We leveraged the strength
of Sierra Bullets to acquire Barnes Bullets in 2020, unifying two
of the premier specialty bullet and ammunition brands in the
shooting sports and hunting industry. During our ownership of
the brands, the segment achieved best-in-class EBITDA performance, averaging EBITDA margins of ~34%, returning nearly
$270 million inclusive of the proceeds from the transaction
and utilizing approximately $102 million in net operating losses
(NOLs).
Turning to our remaining segments, Clarus    approach will center
around two traditional outdoor businesses with brands that are
leaders in their respective core categories. As investors familiar
with Clarus know well, Black Diamond is a globally recognized
brand with a 30-plus-year history providing equipment and
soft goods to climbers, hikers and skiers; and in our Adventure
segment, we have a global platform that includes the iconic
brands of Rhino-Rack, MAXTRAX and TRED Outdoors   each of
which is geared towards building and empowering an adventure community.
Airnet Harness
Gripped: Best harness for climbers seeking
a no-compromise performance-oriented
sport climbing harness
Alpine Carbon Corkl
Gear Patrol: Best Trekking Poles
Treeline Review: Best Carbon Trekking Pole
Switchback Travel: Best Four-Season Trekking Pole
Popular Science: Best Trekking Pole for
Hiking
The New Clarus
Following the sale, we are pleased to transition our focus to
Clarus    higher-upside business segments with a significantly
enhanced balance sheet. After retiring all of Clarus    outstanding
debt with proceeds from the sale, our balance sheet is debtfree with over $40 million of cash on hand. Importantly, this
provides flexibility in how we seek to pursue our long-term
value-creation objectives and growth initiatives.
BLACK DIAMOND
2023 AWARDS
2024 and Beyond
tinue to rationalize unprofitable products and categories in
the portfolio to set the stage for accelerated profitable growth
opportunities. With a solid new foundation, Black Diamond is
focused on value drivers that we expect will increase sales,
expand gross margins and enhance cost leverage moving forward. Today, we have a clear strategic roadmap that prioritizes
business process improvement, commitment to key product
categories, consumer segments, channels and new geographies, while investing in areas that we anticipate will sustain
growth in future years, particularly in product innovation, digital
transformation and international expansion. With the building
blocks in place, we are ready to begin delivering on Black Diamond   s long-term financial targets.
We are excited to begin 2024 with a solid foundation in place,
driven by momentum in Adventure and operational progress in
Outdoor. While hurdles remain, we are confident in the exceptional team we now have in place and our new positioning as
a pure-play outdoor company. Complementing our strategic
growth objectives, we are committed to a prudent capital
allocation approach that provides enduring shareholder value
over the long term. A key tenet will be seeking to reinvest
in our existing businesses to drive profitable growth in 2025
and 2026, as we focus on the highest-margin, highest-return
opportunities. While larger M&A remains on the horizon, in
the near term, within our Adventure segment, we will seek
to actively pursue bolt on acquisitions that offer synergies
with our current operating infrastructure. Looking toward the
future, we firmly believe we have a portfolio of premium brands
that can gain market share and achieve our long-term growth
targets.
We look forward to carrying this momentum forward throughout 2024, continuing to seek to drive better SKU productivity,
inventory management and organizational efficiency. The
introduction of the new Pioneer 6 platform in Australia generated meaningful growth in the second half of the year, marking
Rhino-Rack   s first major new product launch in over a year.
The Pioneer system is the hallmark of Rhino-Rack, and we are
excited to bring to market the next generation of complementary accessories and other new product launches throughout
2024. Following significant investment in professionalizing the
team, process re-engineering and product commercialization,
we believe that our Adventure segment is well positioned to
capitalize on strong fundamentals supported by an expected
large and growing addressable market across multiple verti-
We want to thank our talented employees for their continued
hard work, our valued customers for their trust in us, and our
shareholders for your support and investment in Clarus   we
look forward to sharing our progress and future successes
with you.
Sincerely,
Warren B. Kanders
Executive Chairman of Clarus Corporation
Belay Parka
Advnture: Best Puffer for Climbers
Outside: Best Heavyweight Insulation
Gripped: Best Belay Jacket for Climbers in
Wet Conditions
Black Diamond Gym Solution 30 Gear Bag
Rolling Stone: Best Climbing Gym Bag
Black Diamond Heavyweight Softshell
Gloves
Canadian Running: Best gloves for runners
seeking extra warmth and durability for
colder conditions
Blitz 20
Outdoor Gear Lab: Best Climbing Backpack
for Alpine Climbing
Blitz Spike Traction Devices
Runner   s World: Best Lightweight / Packable
Spikes
Gear Junkie: Best Ultralight Traction Devices
Dawn Patrol 25
Outdoor Life: Best for Resort Riding
Helio Carbon 115
Travel + Leisure: Best Backcountry Ski
Dawn Patrol 32
Switchback Travel: Best Overall Ski Pack
Helio Carbon 88
Switchback Travel: Best Ultralight Backcountry Ski
Delopy Wind Shell
Gear Junkie: Best Windbreaker Jacket
for Running
Deploy 325
Outdoors.com: Best Headlamp for Backcountry Camping
Distance 15
Forbes: Best Ultralight Daypack For Fast
Hikes
Switchback Travel: Best Daypack for
Fast and Light Mountain Missions
Treeline Review: Best High Capacity
Running Vest
Distance 22
Trail Runner: Best Hydration Vest for
Unsupported Ultra-Long Runs
Field Mag: Best Daypack for Fast & Light
Adventures
Distance 4 Hydration Vest
Gear Patrol: Best Running Vest for Daily
Training
Live Strong: Best Pack for Trail Running
Marathon Handbook: Best Running
Vests for Shorter Runs
Distance Carbon FLZ, Distance Z,
Trail and Alpine Carbon Cork
CNN: Best Trekking Poles
Distance Carbon Z
Switchback Travel: Best Ultralight Collapsible Pole
iRunFar: Best Trekking Poles     Aluminum Fixed Length
Distance Spike
Outdoor Life: Best Overall Microspike
Distance Wind Shell
Treeline Review:
-Best Lightweight Wind Breaker
-Best Windproof Running Jacket for Men
-Best Light Weight Wind Shell
Adventure Alan: Best Water Resisting
Wind Layer
Helio Carbon 95
Backcountry Magazine:
-Sport Touring Ski - Editor   s Choice
-Editor   s Choice Backcountry Ski
Hilight Tent
Outdoor Life: Best Single Wall Four
Season Tent
Bearfoot Theory: Best 4 Season Backpacking Tent
Impulse 104
Backcountry Magazine: Free Touring Ski
- Bang for Buck
Impulse 98
Backcountry Magazine: Free Touring Ski
- Bang for Buck
JetForce Pro 25
Switchback Travel: Best Avalanche
Airbag Pack
Jetfource Tour 26L
Forbes: Best Avalanche Backpack For
Easy Of Use
John J Compactor Poles / Expedition
3 Poles
Mountain Weekly News: Top Ten Splitboard Poles of 2023
Legend Gloves
Gear Junkie: Runner Up Best Winter
Glove
Lightwire SS Tech
Gear Patrol: Best Overall Running Shirt
Mega Light
Adventure Alan: Top Value Ultralight Tent
Mercury Mitt
Gear Junkie: Best Overall Winter Mittens
Outdoor Gear Lab:
-Best Overall Ski Mittens, Ms&Ws
Midweight Screentap Gloves
HiConsumption: Best Hiking Gloves
One37.com: Best Fleece Glove
Circuit Shoe
Switchback Travel: Best Lightweight
Approach Shoe
Distance Z
The Trek Best Fixed-Length Poles
Robb Report Best Hiking Poles
iRunFar: Best Trekking Poles     Carbon
Fixed Length
Cirque 45
Switchback Travel: Best Ski Mountaineering
Pack
Fitzroy Tent
Wide Open Spaces: Most Stable Winter
Camping Tent
Coefficient LT Hybrid Hoody
The Modest Man: Best Lightweight Fleece
Jacket
Glidelite Mix STS
Treeline Review: Best Value Climbing
Skins
Momentum
Gripped: Best shoe for entry-level
vegan climbers seeking comfort and
performance
Contact
The Hiking Adventure: Best Strap on
Crampon
Guide BT
Treeline Review: Best Overall Avalanche
Beacon
Momentum Harness
Gear Junkie: Best Budget Women   s
Harness
Cosmo 350
Self: The Best Headlamp
Guide Gloves
Gear Junkie: Runner Up Best Ski Glove
Mont Blanc Gloves
Field Mag: Best Budget Friendly Gloves
Creek 50
Switchback Travel: Best Follower Pack for
Multi-Pitch Climbing
Helio Carbon 104
Ski Magazine: Best Backcountry Ski for
the Long Haul
Backcountry Magazine: Sport Touring
Ski - Editor   s Choice
Neve Pro
The Hiking Adventure: Best Step in
Crampon
Outdoor Life: Best Lightweight
Crampons
Creek Transit 22
Syndicated Local News: Best Waterproof
Bags over $100
Mission MX Mitt
Forbes: Best Ski Mittens Overall
Moji +, Moji R+
CNN Underscored: Editor Favorite
Outdoors.com: Best Light for the Tent
Notion Pants
Gripped: Best pants for climbers
wanting functional climbing pants
that look good
Pursuit
Switchback Travel: Best Overall
Trekking Pole
Pursuit 15
Outside: Most Comfortable Daypack
Gear Junkie: Most Technical Daypack
Pursuit 30 W
Outdoor Life: Best Trekking Pole for
Day Hikes
ISPO: Best Hiking Poles
Field and Stream: Best Trekking
Poles
Raven Pro
Live for the Outdoors: Best 1/B-Rated
for Durability
Recon LT Stretch Shell
Elevation Outdoors: Gear Awards:
Best of the Backcountry
Recon Stretch
Travel + Leisure: Best Relaxed-fit Ski
Jacket
The Intertia: Best Resort/Backcountry Ski Bibs
Recon Stretch Insulated
HiConsumption: Best Hiking Gloves
One37.com: Best Fleece Glove
Session Shoe
Switchback Travel: Best Approach
Shoe with Everyday Appeal
Solution Harness
Gear Junkie: Best Overall Women   s
Harness
Spot 400, 400-R
NYT Wirecutter: Best Headlamp
CNN, Forbes and Gearjunkie: Best
Headlamp Overall
Stinger Crampon
Outdoor Life: Best Steep Ice and
Mixed Crampons
Storm 500-R
Live for the Outdoors: Best Head
Torch 2023
Outdoor Life: Best Headlamp
SeattleMet: Best Camping Headlamp
Stormline Stretch Shell
Gear Patrol, Treeline Review: Best
Stretch Rain Jacket
The Modest Man: Best Stretchy
Rain Jacket for Men
Vapor Helmet
Gripped: Best helmet for climbers
seeking low weight without compromising protection
Vision Down Parka
Gear Junkie: Best Down Jacket for
Belaying
Gripped: Best for Belay Jacket with
Durable Shell
Zone Harness
Gripped: Best harness for climbers
pushing their limits in the summer
and winter

DEAR FELLOW CLARUS SHAREHOLDERS:
In 2023 we took crucial actions to seek to realign our overall platform and individual brands, that we believe positions
Clarus for long-term, profitable growth as a pure-play,
ESG-friendly outdoor business.
Amidst a challenging macroeconomic backdrop, we made
important progress implementing our strategic plan to streamline business processes and seek to capitalize on clear growth
potential in our core markets. A critical component of this
strategy was hiring highly experienced and dedicated leaders
to guide our Outdoor and Adventure segments. Following their
appointments last year, we believe that both Neil Fiske, President of Black Diamond; and Mat Hayward, Managing Director
of Clarus Adventure, proved in 2023 to be fully capable of driving Clarus    turnaround. While we are at different points in the
reset of both Outdoor and Adventure, each segment showed
incremental progress, particularly during the second half of
2023. During this transitional year for Clarus, we took steps to
simplify and right-size the organization to find our baseline for
potential profitable growth in 2024 and beyond.
Outdoor: Big Market with Opportunities for Potential
Growth
Adventure: Globally Diverse Platform with Significant
Upside
Our 2023 results in Outdoor reflected a difficult overall environment. Sales were down 8% year-over-year, but we began
to see signs of stabilization in the fourth quarter, particularly in
the North American wholesale market. As part of our Outdoor
segment reset, we made important progress during the year
simplifying the organizational structure, product categories,
and channel strategy, as well as better aligning inventory with
expected market demand. As we entered 2024, our revamped
Outdoor team has transformed its go-to-market approach,
focusing on fewer, better products with great design and superior engineering. Ultimately, we believe long-term trends continue to favor the growth of outdoor sports, and Black Diamond
has an excellent opportunity to build from a position of strength
based on its market leadership across core categories.
Looking ahead, management   s objective in 2024 is to con-
2023 marked a reset and stabilization year for our Adventure
segment during which we saw month-over-month improvement
as key initiatives took hold. This culminated in Adventure   s
best quarter of the year in Q4, with 43% sales growth and
gross margins of 38%. In Q4, we expanded our market potential through the acquisition of TRED Outdoors, a fast-growing
adventure brand with best-in-class innovative products across
key segments including offroad, 4x4 automotive touring, and
importantly, camping and caravans. It is worth highlighting that
excluding the acquisition of TRED, our fourth quarter gross
margins increased 700 basis points over the prior year period.
Our Adventure team spent much of the year quickly identifying
challenges and solutions, and we are pleased to see those
initiatives manifest themselves in improved overall profitability.
cals. As we move ahead, our priority is to seek to emphasize
our product ecosystem to empower consumer   s outdoor and
adventure pursuits with a focus.
Alpine FLZ
The Trek: Most Durable Poles
Popular Science: Best Overall Trekking Pole
Alpine Light Pants
Gear Patrol: Best Pants for Scrambling
Alpine Start Hoody
Gear Junkie: Best Windbreaker Jacket for
Mountaineering
Apollo Lantern
Outdoor Life: Best Overall Camping Lantern
Approach Down Hoody
Well + Good: Most Durable Packable Down
Jacket
Subsequent to the end of the year, we completed the sale of
our Precision Sport segment, which represented a highly successful outcome. Today, we have a leaner company focused
on two consumer segments with broad appeal and attractive
long-term tailwinds: Outdoor and Adventure.
Astro 300
NYT Wirecutter: Best Budget Headlamp
We sold the Precision Sport segment for approximately $175
million in cash. We are proud of the Precision Sport segment   s
platform that we built, beginning in August 2017 when we identified Sierra Bullets as a durable, high margin business with an
exceptional free cash flow profile. We leveraged the strength
of Sierra Bullets to acquire Barnes Bullets in 2020, unifying two
of the premier specialty bullet and ammunition brands in the
shooting sports and hunting industry. During our ownership of
the brands, the segment achieved best-in-class EBITDA performance, averaging EBITDA margins of ~34%, returning nearly
$270 million inclusive of the proceeds from the transaction
and utilizing approximately $102 million in net operating losses
(NOLs).
Turning to our remaining segments, Clarus    approach will center
around two traditional outdoor businesses with brands that are
leaders in their respective core categories. As investors familiar
with Clarus know well, Black Diamond is a globally recognized
brand with a 30-plus-year history providing equipment and
soft goods to climbers, hikers and skiers; and in our Adventure
segment, we have a global platform that includes the iconic
brands of Rhino-Rack, MAXTRAX and TRED Outdoors   each of
which is geared towards building and empowering an adventure community.
Airnet Harness
Gripped: Best harness for climbers seeking
a no-compromise performance-oriented
sport climbing harness
Alpine Carbon Corkl
Gear Patrol: Best Trekking Poles
Treeline Review: Best Carbon Trekking Pole
Switchback Travel: Best Four-Season Trekking Pole
Popular Science: Best Trekking Pole for
Hiking
The New Clarus
Following the sale, we are pleased to transition our focus to
Clarus    higher-upside business segments with a significantly
enhanced balance sheet. After retiring all of Clarus    outstanding
debt with proceeds from the sale, our balance sheet is debtfree with over $40 million of cash on hand. Importantly, this
provides flexibility in how we seek to pursue our long-term
value-creation objectives and growth initiatives.
BLACK DIAMOND
2023 AWARDS
2024 and Beyond
tinue to rationalize unprofitable products and categories in
the portfolio to set the stage for accelerated profitable growth
opportunities. With a solid new foundation, Black Diamond is
focused on value drivers that we expect will increase sales,
expand gross margins and enhance cost leverage moving forward. Today, we have a clear strategic roadmap that prioritizes
business process improvement, commitment to key product
categories, consumer segments, channels and new geographies, while investing in areas that we anticipate will sustain
growth in future years, particularly in product innovation, digital
transformation and international expansion. With the building
blocks in place, we are ready to begin delivering on Black Diamond   s long-term financial targets.
We are excited to begin 2024 with a solid foundation in place,
driven by momentum in Adventure and operational progress in
Outdoor. While hurdles remain, we are confident in the exceptional team we now have in place and our new positioning as
a pure-play outdoor company. Complementing our strategic
growth objectives, we are committed to a prudent capital
allocation approach that provides enduring shareholder value
over the long term. A key tenet will be seeking to reinvest
in our existing businesses to drive profitable growth in 2025
and 2026, as we focus on the highest-margin, highest-return
opportunities. While larger M&A remains on the horizon, in
the near term, within our Adventure segment, we will seek
to actively pursue bolt on acquisitions that offer synergies
with our current operating infrastructure. Looking toward the
future, we firmly believe we have a portfolio of premium brands
that can gain market share and achieve our long-term growth
targets.
We look forward to carrying this momentum forward throughout 2024, continuing to seek to drive better SKU productivity,
inventory management and organizational efficiency. The
introduction of the new Pioneer 6 platform in Australia generated meaningful growth in the second half of the year, marking
Rhino-Rack   s first major new product launch in over a year.
The Pioneer system is the hallmark of Rhino-Rack, and we are
excited to bring to market the next generation of complementary accessories and other new product launches throughout
2024. Following significant investment in professionalizing the
team, process re-engineering and product commercialization,
we believe that our Adventure segment is well positioned to
capitalize on strong fundamentals supported by an expected
large and growing addressable market across multiple verti-
We want to thank our talented employees for their continued
hard work, our valued customers for their trust in us, and our
shareholders for your support and investment in Clarus   we
look forward to sharing our progress and future successes
with you.
Sincerely,
Warren B. Kanders
Executive Chairman of Clarus Corporation
Belay Parka
Advnture: Best Puffer for Climbers
Outside: Best Heavyweight Insulation
Gripped: Best Belay Jacket for Climbers in
Wet Conditions
Black Diamond Gym Solution 30 Gear Bag
Rolling Stone: Best Climbing Gym Bag
Black Diamond Heavyweight Softshell
Gloves
Canadian Running: Best gloves for runners
seeking extra warmth and durability for
colder conditions
Blitz 20
Outdoor Gear Lab: Best Climbing Backpack
for Alpine Climbing
Blitz Spike Traction Devices
Runner   s World: Best Lightweight / Packable
Spikes
Gear Junkie: Best Ultralight Traction Devices
Dawn Patrol 25
Outdoor Life: Best for Resort Riding
Helio Carbon 115
Travel + Leisure: Best Backcountry Ski
Dawn Patrol 32
Switchback Travel: Best Overall Ski Pack
Helio Carbon 88
Switchback Travel: Best Ultralight Backcountry Ski
Delopy Wind Shell
Gear Junkie: Best Windbreaker Jacket
for Running
Deploy 325
Outdoors.com: Best Headlamp for Backcountry Camping
Distance 15
Forbes: Best Ultralight Daypack For Fast
Hikes
Switchback Travel: Best Daypack for
Fast and Light Mountain Missions
Treeline Review: Best High Capacity
Running Vest
Distance 22
Trail Runner: Best Hydration Vest for
Unsupported Ultra-Long Runs
Field Mag: Best Daypack for Fast & Light
Adventures
Distance 4 Hydration Vest
Gear Patrol: Best Running Vest for Daily
Training
Live Strong: Best Pack for Trail Running
Marathon Handbook: Best Running
Vests for Shorter Runs
Distance Carbon FLZ, Distance Z,
Trail and Alpine Carbon Cork
CNN: Best Trekking Poles
Distance Carbon Z
Switchback Travel: Best Ultralight Collapsible Pole
iRunFar: Best Trekking Poles     Aluminum Fixed Length
Distance Spike
Outdoor Life: Best Overall Microspike
Distance Wind Shell
Treeline Review:
-Best Lightweight Wind Breaker
-Best Windproof Running Jacket for Men
-Best Light Weight Wind Shell
Adventure Alan: Best Water Resisting
Wind Layer
Helio Carbon 95
Backcountry Magazine:
-Sport Touring Ski - Editor   s Choice
-Editor   s Choice Backcountry Ski
Hilight Tent
Outdoor Life: Best Single Wall Four
Season Tent
Bearfoot Theory: Best 4 Season Backpacking Tent
Impulse 104
Backcountry Magazine: Free Touring Ski
- Bang for Buck
Impulse 98
Backcountry Magazine: Free Touring Ski
- Bang for Buck
JetForce Pro 25
Switchback Travel: Best Avalanche
Airbag Pack
Jetfource Tour 26L
Forbes: Best Avalanche Backpack For
Easy Of Use
John J Compactor Poles / Expedition
3 Poles
Mountain Weekly News: Top Ten Splitboard Poles of 2023
Legend Gloves
Gear Junkie: Runner Up Best Winter
Glove
Lightwire SS Tech
Gear Patrol: Best Overall Running Shirt
Mega Light
Adventure Alan: Top Value Ultralight Tent
Mercury Mitt
Gear Junkie: Best Overall Winter Mittens
Outdoor Gear Lab:
-Best Overall Ski Mittens, Ms&Ws
Midweight Screentap Gloves
HiConsumption: Best Hiking Gloves
One37.com: Best Fleece Glove
Circuit Shoe
Switchback Travel: Best Lightweight
Approach Shoe
Distance Z
The Trek Best Fixed-Length Poles
Robb Report Best Hiking Poles
iRunFar: Best Trekking Poles     Carbon
Fixed Length
Cirque 45
Switchback Travel: Best Ski Mountaineering
Pack
Fitzroy Tent
Wide Open Spaces: Most Stable Winter
Camping Tent
Coefficient LT Hybrid Hoody
The Modest Man: Best Lightweight Fleece
Jacket
Glidelite Mix STS
Treeline Review: Best Value Climbing
Skins
Momentum
Gripped: Best shoe for entry-level
vegan climbers seeking comfort and
performance
Contact
The Hiking Adventure: Best Strap on
Crampon
Guide BT
Treeline Review: Best Overall Avalanche
Beacon
Momentum Harness
Gear Junkie: Best Budget Women   s
Harness
Cosmo 350
Self: The Best Headlamp
Guide Gloves
Gear Junkie: Runner Up Best Ski Glove
Mont Blanc Gloves
Field Mag: Best Budget Friendly Gloves
Creek 50
Switchback Travel: Best Follower Pack for
Multi-Pitch Climbing
Helio Carbon 104
Ski Magazine: Best Backcountry Ski for
the Long Haul
Backcountry Magazine: Sport Touring
Ski - Editor   s Choice
Neve Pro
The Hiking Adventure: Best Step in
Crampon
Outdoor Life: Best Lightweight
Crampons
Creek Transit 22
Syndicated Local News: Best Waterproof
Bags over $100
Mission MX Mitt
Forbes: Best Ski Mittens Overall
Moji +, Moji R+
CNN Underscored: Editor Favorite
Outdoors.com: Best Light for the Tent
Notion Pants
Gripped: Best pants for climbers
wanting functional climbing pants
that look good
Pursuit
Switchback Travel: Best Overall
Trekking Pole
Pursuit 15
Outside: Most Comfortable Daypack
Gear Junkie: Most Technical Daypack
Pursuit 30 W
Outdoor Life: Best Trekking Pole for
Day Hikes
ISPO: Best Hiking Poles
Field and Stream: Best Trekking
Poles
Raven Pro
Live for the Outdoors: Best 1/B-Rated
for Durability
Recon LT Stretch Shell
Elevation Outdoors: Gear Awards:
Best of the Backcountry
Recon Stretch
Travel + Leisure: Best Relaxed-fit Ski
Jacket
The Intertia: Best Resort/Backcountry Ski Bibs
Recon Stretch Insulated
HiConsumption: Best Hiking Gloves
One37.com: Best Fleece Glove
Session Shoe
Switchback Travel: Best Approach
Shoe with Everyday Appeal
Solution Harness
Gear Junkie: Best Overall Women   s
Harness
Spot 400, 400-R
NYT Wirecutter: Best Headlamp
CNN, Forbes and Gearjunkie: Best
Headlamp Overall
Stinger Crampon
Outdoor Life: Best Steep Ice and
Mixed Crampons
Storm 500-R
Live for the Outdoors: Best Head
Torch 2023
Outdoor Life: Best Headlamp
SeattleMet: Best Camping Headlamp
Stormline Stretch Shell
Gear Patrol, Treeline Review: Best
Stretch Rain Jacket
The Modest Man: Best Stretchy
Rain Jacket for Men
Vapor Helmet
Gripped: Best helmet for climbers
seeking low weight without compromising protection
Vision Down Parka
Gear Junkie: Best Down Jacket for
Belaying
Gripped: Best for Belay Jacket with
Durable Shell
Zone Harness
Gripped: Best harness for climbers
pushing their limits in the summer
and winter

CLARUS
CORPORATION
2023 Annual Report
ANNUAL MEETING
20 2 3 A NNUA L R E P O RT
The Annual Meeting of Stockholders
will be held on Thursday, May 30,
2024 at 10:00 a.m. Eastern Time
in a virtual-only meeting format via
live webcast. Detailed information
about the meeting and instructions
on how to participate in this year   s
virtual meeting are contained in the
Notice of Annual Meeting and Proxy
Statement sent with a copy of this
Annual Report.
CORPORATE
INFORMATION
Board of Directors
Warren B. Kanders
Executive Chairman
Michael A. Henning
Financial Consultant
Donald L. House
Financial Consultant
Nicholas Sokolow
Partner
Lebow & Sokolow, LLP
Susan Ottmann
Graduate Program Director
College of Engineering at the
University of Wisconsin Madison
Roger Werner
Digital Media entrepreneur and
Chairman of ACCUS (the Automobile
Competition Committee of the United
States)
Management
Warren B. Kanders
Executive Chairman
Michael J. Yates
Chief Financial Officer
STOCKHOLDER
INFORMATION
Headquarters
Clarus Corporation
2084 East 3900 South
Salt Lake City, UT 84124
(801) 278-5552
Investor Relations Contact
The IGB Group
Leon Berman
(212) 477-8438
lberman@igbir.com
Securities Listing
The Company   s common
stock is listed on the NASDAQ
Global Select Market under the
symbol CLAR.
Registrar and Transfer Agent
Equiniti Trust Co., LLC
Ridgefield Park, NJ
Independent Accountants
Deloitte & Touche LLP
Salt Lake City, UT
Legal Counsel
Kane Kessler, P.C.
New York, NY



shareholder letter icon 4/29/2024 Letter Continued (Full PDF)
 

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