AMERICAN OUTDOOR BRANDS CORPORATION REPORTS 1Q FY19 RESULTS
Sep. 10, 2018
Source: American Outdoor Brands Corporation news release
Springfield, Massachusetts -- American Outdoor Brands Corporation, one of the world's leading providers of firearms and quality products for the shooting, hunting, and rugged outdoor enthusiast, has announced financial results for the first quarter fiscal 2019, ended July 31, 2018.
First Quarter Fiscal 2019 Financial Highlights
Quarterly net sales were $138.8 million compared with $129.0 million for the first quarter last year, an increase of 7.6%.
Gross margin for the quarter was 37.8% compared with 31.5% for the first quarter last year.
Quarterly GAAP net income was $7.6 million, or $0.14 per diluted share, compared with a loss of $2.2 million, or $(0.04) per diluted share, for the comparable quarter last year.
Quarterly Non-GAAP net income was $11.7 million, or $0.21 per diluted share, compared with $1.2 million, or $0.02 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments to net income exclude a number of acquisition-related costs, including amortization, one-time transaction costs, and a change in contingent consideration liability. For a detailed reconciliation, see the schedules that follow in this release.
Quarterly non-GAAP Adjusted EBITDAS was $28.4 million, or 20.4% of net sales, compared with $12.9 million, or 10.0% of net sales, for the comparable quarter last year.
James Debney, American Outdoor Brands Corporation President and Chief Executive Officer, commented, "We are pleased with our operational and financial results for the first quarter. Our increased profitability was driven by consumer preference for our new products, reduced promotions versus the prior year, and solid progress on a number of our expense reduction initiatives.
"In our Firearms segment, we introduced several new products and extensions under our Performance Center, M&P, and Thompson/Center brands. New products, which we define as products launched within the past twelve months, represented 28.5% of our firearm revenue and included strong sales of our M&P Shield 380 EZ pistol, which we launched in February. That pistol has been extremely well received by our consumers and continues to gain momentum. Our Outdoor Products & Accessories segment generated approximately 25% of our total revenue in the quarter, and Crimson Trace further expanded its product offerings in this segment with the launch of several new rail mounted lights. Lastly, we achieved several milestones in the development of our new Logistics & Customer Services facility in Missouri, a strategic initiative that will ultimately allow us to lower our costs and better serve our customers."
Jeff Buchanan, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, commented, "During the quarter, we paid down $25.0 million on our line of credit, reducing that balance to zero. Our balance sheet remains strong with approximately $25.2 million of cash and $135.9 million of total net debt, as compared with nearly $200.0 million of net debt at the end of the comparable quarter last year. We have available an unused, $350 million line of credit which is expandable to $500 million."