CLARUS Q4 EARNINGS PRESENTATION MARCH 6, 2025 6 February 2023 TODAY'S PRESENTERS CLARUS Warren Kanders EXECUTIVE CHAIRMAN Clarus Mike Yates CFO Clarus Neil Fiske PRESIDENT Black Diamond Equipment Mat Hayward MANAGING DIRECTOR Adventure STRATEGIC PRIORITIES: Q4 AND YTD HIGHLIGHTS Positioned for long-term sustainable growth Black Diamond objective: Simplify and focus on the core Adventure objective: Invest to scale Strong balance sheet/prudent capital allocation Strategic roadmap continues to guide execution ...

Group 1 - Clarus Corporation reported a quarterly loss of $0.08 per share, which was worse than the Zacks Consensus Estimate of $0.07, marking an earnings surprise of -214.29% [1] - The company posted revenues of $71.41 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 3.04%, but down from $76.5 million year-over-year [2] - Over the last four quarters, Clarus has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2] Group 2 - The stock has underperformed, losing about 4.7% since the beginning of the year compared to the S&P 500's decline of -0.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $75.4 million, and for the current fiscal year, it is $0.31 on revenues of $282.08 million [7] - The Zacks Industry Rank for Leisure and Recreation Products is in the bottom 39% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Clarus (CLAR) Q4 2024 Earnings Call March 06, 2025 05:00 PM ET Company Participants Matthew Berkowitz - Managing DirectorWarren Kanders - Executive ChairmanMichael J. Yates - Chief Financial OfficerMathew Hayward - Managing Director of Clarus Adventure SegmentMcNeil Fiske - President of Black Diamond EquipmentPeter McGoldrick - Equity Research Associate Conference Call Participants Anna Glaessgen - Senior Analyst, ConsumerMatthew Koranda - MD & Senior Research AnalystLaurent Vasilescu - Managing Director & ...

Financial Performance - Total sales decreased by $21,705, or 7.6%, to $264,315 for the year ended December 31, 2024, compared to $286,020 for the year ended December 31, 2023[267]. - Gross profit decreased by $4,892, or 5.0%, to $92,619, with a gross margin of 35.0% for the year ended December 31, 2024, compared to 34.1% in 2023[273]. - Operating loss improved to $(21,107) in 2023 compared to $(106,483) in 2022, indicating a reduction in losses of approximately 80.2%[285]. - The net loss for the year was $52,287,000, compared to a net loss of $10,146,000 in 2023, representing a substantial increase in losses[319]. - The company reported a consolidated loss from continuing operations before income taxes of $(36,010) million for the year ended December 31, 2024[443]. Cash Flow and Dividends - In 2024, the total quarterly cash dividends paid were $3,831,000, compared to $3,750,000 in 2023 and $3,721,000 in 2022, reflecting a consistent increase in dividend payouts[254]. - Net cash used in operating activities was $(7,300) in 2024, compared to $31,924 provided in 2023, a change of $39,224[289]. - Net cash provided by investing activities was $165,160 in 2024, a significant increase from $(11,416) in 2023, indicating a positive change of $176,576[292]. - The company's cash position improved significantly, with cash increasing to $45,359,000 in 2024 from $11,324,000 in 2023[317]. Restructuring and Charges - The company incurred restructuring charges of $3,223,000 in 2023 and $1,948,000 in 2024, with cumulative charges since 2023 totaling $5,171,000, aimed at facilitating long-term sustainable growth[255]. - The company anticipates completing its restructuring activities in 2025, with ongoing evaluations of cost reduction actions[425]. - Total restructuring charges amounted to $1,948 million, with $1,349 million attributed to employee termination benefits[428]. Acquisitions and Divestitures - The company completed the acquisition of TRED Outdoors Pty Ltd on October 9, 2023, further expanding its portfolio in the outdoor equipment market[252]. - The company received net proceeds of approximately $37,871,000 from the sale of its Precision Sport segment, which includes Sierra and Barnes Bullets, as part of a strategic divestiture[253]. - Clarus Corporation acquired RockyMounts for a total purchase price of up to $8,000, including $4,000 in cash at closing and contingent consideration of up to $2,000 based on net sales targets[369]. - The acquisition of TRED was completed for an aggregate purchase price of approximately $6,849, which included $5,659 in cash and additional contingent consideration of up to $638[372]. Impairments and Goodwill - Impairment of goodwill increased to $36,264 for the year ended December 31, 2024, compared to $0 in 2023[279]. - The company experienced an impairment of goodwill amounting to $36.264 million in 2024, with no impairment recorded in 2023[322]. - Goodwill for the Adventure segment decreased by $36,264,000 due to impairment as of December 31, 2024, reflecting challenging market conditions[387]. Sales and Market Trends - Domestic sales decreased by $6,640, or 5.9%, to $105,745, while international sales decreased by $15,065, or 8.7%, to $158,570 during the same period[270][271]. - The company’s brands, including Black Diamond and Rhino-Rack, are positioned for sustainable long-term growth, driven by powerful industry trends in outdoor and adventure sports[248]. Legal and Compliance Issues - The company recorded a liability of $2,500 million for potential penalties from the U.S. Consumer Product Safety Commission (CPSC) investigation[437]. - Legal expenses incurred in 2024 for ongoing litigation amounted to $3,088 million, which includes the $2,500 million recorded liability[438]. - The CPSC intends to recommend civil monetary penalties totaling $25,135 million for compliance failures related to avalanche transmitters[433]. Research and Development - Total research and development costs for continuing operations were $12,171, $12,740, and $13,029 for the years ended December 31, 2024, 2023, and 2022, respectively[354]. Stock and Compensation - The Company granted stock options for an aggregate of 1,250 shares in 2024, with a grant price ranging from $4.63 to $6.81 per share[417]. - Total non-cash stock compensation expense for continuing operations was $11,198, $11,681, and $8,617 for the years 2024, 2023, and 2022 respectively[422].

Financial Performance - Fourth quarter sales were $71.4 million, a decrease from $76.5 million in the same quarter last year[4] - Net loss for the fourth quarter was $65.5 million, or $(1.71) per diluted share, compared to a net loss of $8.4 million, or $(0.22) per diluted share in the prior year[4] - Full year 2024 sales decreased 7.6% to $264.3 million from $286.0 million in 2023, driven by softness across all selling channels[17] - The Adventure segment saw a 22.9% decline in sales to $20.3 million compared to $26.4 million in the year-ago quarter[9] - Total sales for the three months ended December 31, 2024, were $71.405 million, a decrease of 6.4% from $76.503 million in the same period of 2023[37] - The net loss for the three months ended December 31, 2024, was $65.521 million, compared to a net loss of $8.389 million in the same period of 2023[37] - For the twelve months ended December 31, 2024, total sales were $264.315 million, down from $286.020 million in 2023, representing a decrease of 7.6%[39] - The net loss for the twelve months ended December 31, 2024, was $52.287 million, compared to a net loss of $10.146 million in 2023[39] - The company reported an operating loss of $70.379 million for the twelve months ended December 31, 2024, compared to an operating loss of $21.107 million in 2023[39] Gross Margin and EBITDA - Gross margin improved to 33.4% compared to 28.9% in the year-ago quarter, with adjusted gross margin at 38.0% versus 34.7%[10] - Adjusted EBITDA from continuing operations was $4.4 million, with an adjusted EBITDA margin of 6.1%, compared to $1.6 million and 2.1% in the same quarter last year[15] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $6.875 million, compared to $7.348 million for the same period in 2023[49] - The EBITDA margin for the twelve months ended December 31, 2024, was (21.4)%, down from (2.2)% in the previous year[49] - Adjusted EBITDA margin for the three months ended December 31, 2024, was 6.1%, compared to 2.1% in the same period of 2023[48] Cash and Debt - Cash and cash equivalents totaled $45.4 million, significantly up from $11.3 million, while total debt related to the RockyMounts acquisition was $1.9 million[21] - Cash and cash equivalents increased to $45.359 million as of December 31, 2024, from $11.324 million as of December 31, 2023[35] - Total assets decreased to $294.094 million as of December 31, 2024, from $495.338 million as of December 31, 2023[35] - Total liabilities decreased to $61.001 million as of December 31, 2024, from $203.218 million as of December 31, 2023[35] Acquisitions and Strategic Moves - The company completed the acquisition of RockyMounts, enhancing its product capabilities in the bike-rack market[1] - For fiscal year 2025, the company expects sales between $250 million to $260 million and adjusted EBITDA of approximately $14 million to $16 million[27] - The company plans to focus on restructuring and cost management strategies to improve future performance[44][46] Impairments and Expenses - The company established a full valuation allowance of $21.0 million for deferred tax assets during the fourth quarter[28] - The company incurred $36,264 thousand in goodwill impairment during Q4 2024[44] - The company incurred impairment of goodwill totaling $36.264 million for the twelve months ended December 31, 2024[49] - Stock-based compensation expenses for Q4 2024 were $(1,570) thousand, compared to $(1,218) thousand in Q4 2023[44][45] - The company reported a significant increase in legal costs and regulatory matter expenses, totaling $3.842 million for the twelve months ended December 31, 2024[49] Tax and Other Financial Metrics - The effective tax rate for Q4 2024 was 40.5%, significantly higher than the negative tax rate of (19.0)% in Q4 2023[44][45] - Adjusted loss from continuing operations for Q4 2024 was $(3,162) thousand, compared to an adjusted income of $1,638 thousand in Q4 2023[45] - The adjusted EPS for Q4 2024 was $(0.08), a decline from adjusted EPS of $0.04 in Q4 2023[45] Segment Performance - The outdoor segment reported an operating loss of $999 thousand for the twelve months ended December 31, 2024, compared to a loss of $5.155 million in 2023[49] - Restructuring charges for the three months ended December 31, 2024, amounted to $939 thousand, while for the same period in 2023, it was $1.411 million[48]

Core Insights - Clarus Corporation reported fourth quarter sales of $71.4 million, a decrease from $76.5 million in the same quarter last year, primarily due to challenges with two large accounts in the OEM and Australian markets [5][6] - The company completed the acquisition of RockyMounts, enhancing its product capabilities in the bike-rack segment globally [1][23] - Adjusted EBITDA for the fourth quarter was $4.4 million, with an adjusted EBITDA margin of 6.1%, compared to $1.6 million and 2.1% in the prior year [12][21] Financial Performance - Fourth quarter net loss was $65.5 million, or $(1.71) per diluted share, compared to a net loss of $8.4 million, or $(0.22) per diluted share in the previous year [5][10] - Loss from continuing operations was $73.3 million, or $(1.92) per diluted share, compared to a loss of $7.2 million, or $(0.19) per diluted share in the year-ago quarter [10][19] - For the full year 2024, total sales decreased by 7.6% to $264.3 million from $286.0 million in 2023 [14][15] Segment Performance - Sales in the Outdoor segment increased to $51.1 million from $50.1 million year-over-year, while Adventure segment sales decreased by 22.9% to $20.3 million [6][14] - The Outdoor segment's adjusted gross margin improved to 36.9% in Q4 from 32.8% in the previous year, driven by product simplification and SKU rationalization [4][7] Operational Highlights - Selling, general and administrative expenses decreased to $27.8 million from $30.0 million year-over-year, attributed to lower marketing and retail expenses [8][18] - The company incurred a non-cash expense of $44.8 million for goodwill and indefinite-lived intangible assets impairments in Q4 [9][10] Cash Flow and Liquidity - Free cash flow for Q4 was $14.4 million, up from $13.3 million in the prior year [13] - Cash and cash equivalents at year-end totaled $45.4 million, significantly higher than $11.3 million at the end of the previous year [16] Future Outlook - For fiscal year 2025, the company expects sales to range between $250 million to $260 million and adjusted EBITDA of approximately $14 million to $16 million [24] - Capital expenditures are anticipated to be between $4 million to $5 million, with expected free cash flow ranging from $8 million to $10 million [24]

Core Viewpoint - Clarus Corporation (CLAR) is set to report its fourth-quarter 2024 results on March 6, with expectations of improved earnings per share but a decline in revenues compared to the previous year [1][3]. Financial Performance Expectations - The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is 7 cents, reflecting a 200% improvement from a loss of 7 cents in the same quarter last year [3]. - Revenue expectations are pegged at $69.3 million, indicating a 9.4% decrease from the previous year's figure [3]. Factors Influencing Quarterly Results - Clarus' fourth-quarter performance is anticipated to benefit from product simplification, cost efficiencies, and strategic investments [4]. - The company's digital and direct-to-consumer strategies, including enhancements to e-commerce platforms and new product launches like the Recon platform, are expected to support sales [5]. - Focus on high-margin "A-style" products is likely to enhance profitability by improving gross margins and inventory turnover [6]. Operational Improvements - Operational improvements and restructuring within the Adventure segment are expected to drive cost efficiencies, with structural changes aimed at optimizing the global supply chain [7]. - The company anticipates adjusted EBITDA for the fourth quarter to be between $5 million and $7 million [7]. Market Challenges - Clarus continues to face a challenging macroeconomic environment, with headwinds in consumer spending impacting overall demand [8]. - Supply chain disruptions and softer vehicle sales in Australia may negatively affect the company's fourth-quarter performance [8]. Earnings Prediction Model - The current model does not predict an earnings beat for Clarus, as the company has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [9][10].

Core Viewpoint - Clarus Corporation will hold a conference call on March 6, 2025, to discuss its financial results for Q4 and the full year ended December 31, 2024, with results released after market hours on the same day [1]. Company Overview - Clarus Corporation is headquartered in Salt Lake City, Utah, and is a global leader in designing and developing equipment and lifestyle products for outdoor enthusiasts [3]. - The company aims to provide safe, simple, effective, and aesthetically pleasing products to enhance outdoor pursuits and adventures [3]. - Clarus's products are sold globally under several brand names, including Black Diamond®, Rhino-Rack®, MAXTRAX®, TRED Outdoors®, and RockyMounts®, through various retail channels [3].

Core Viewpoint - Thesis Gold Inc. has increased its previously announced equity private placement from $7.0 million to approximately $10.0 million due to strong investor demand [1][2]. Group 1: Offering Details - The Offering will now consist of up to 16,666,667 common shares priced at $0.60 per share, aiming for gross proceeds of up to approximately $10.0 million [2]. - The Offering will be conducted on a "best efforts" basis to accredited investors and is subject to regulatory approvals [2][3]. - All securities issued will be subject to a four-month hold period in accordance with applicable securities laws [3]. Group 2: Use of Proceeds - The net proceeds from the Offering will be used to advance the Company's mineral projects and for general working capital purposes [4]. Group 3: Company Overview - Thesis Gold Inc. focuses on the Lawyers-Ranch Project in British Columbia, which has shown robust project economics with a 35.2% after-tax IRR and an after-tax NPV5% of C$1.28 billion [6]. - The Company plans to initiate a Pre-Feasibility Study and progress permitting and environmental work over the next 12 months [6]. - Thesis Gold aims to evaluate multiple high-potential exploration targets to enhance resource growth potential identified in the Preliminary Economic Assessment [6].

Core Viewpoint - Thesis Gold Inc. has announced a private placement offering of up to approximately C$7.0 million to fund its strategic objectives and mineral projects [1][2]. Group 1: Offering Details - The offering will consist of up to 11,666,667 common shares priced at $0.60 per share, aiming for gross proceeds of approximately C$7.0 million [2]. - The offering will be conducted on a "best efforts" basis and is targeted at accredited investors, subject to regulatory approvals [2][3]. - The offering is scheduled to close on or before December 17, 2024, and is subject to certain conditions [5]. Group 2: Use of Proceeds - The net proceeds from the offering will be used to advance the company's mineral projects and for general working capital purposes [4]. Group 3: Company Overview - Thesis Gold Inc. focuses on the Lawyers-Ranch Project in British Columbia, which has shown promising project economics with a 35.2% after-tax IRR and an after-tax NPV5% of C$1.28 billion [6]. - The company plans to advance the project through critical milestones, including a Pre-Feasibility Study (PFS) and environmental assessments [6].