Financial Data and Key Metrics Changes - Clarus Corporation reported third quarter revenue of $67.1 million, a 17% decline from $81.3 million in the prior year [48] - Adjusted EBITDA for the third quarter was $2.4 million, down from $3.6 million year-over-year, resulting in an adjusted EBITDA margin of 3.6% [52] - Consolidated adjusted gross margins improved to 37.8%, a 420 basis point increase year-over-year [50] Business Line Data and Key Metrics Changes - Outdoor segment revenue decreased by 19% year-over-year, while adjusted EBITDA increased by 25% [39] - Adventure segment revenue declined by 12%, with specific challenges noted in the OEM channel, which saw a 58% drop in sales [28][50] - The composition of Outdoor revenues is shifting, with a projected $30 million decrease from lower-margin products offset by a $10 million increase from higher-margin A styles [15][79] Market Data and Key Metrics Changes - The overall outdoor market remains in recession, with North America wholesale down 22.3% and international distributor markets down 29.2% [42] - In Australia, new vehicle sales were down nearly 12%, impacting the Adventure segment's performance [26] - The Adventure segment's sales in the U.S. and other regions reflected a continuation of slow momentum from earlier in the year [31] Company Strategy and Development Direction - The company is focused on simplifying its Outdoor segment and scaling its Adventure segment for long-term profitable growth [7] - Investments are being made to improve product offerings and enhance e-commerce capabilities, particularly in the Adventure segment [89] - The strategic roadmap includes exiting unprofitable categories and improving gross margins through product simplification [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant headwinds due to constrained consumer spending in the outdoor space but remains optimistic about long-term growth initiatives [7] - The company expects to generate approximately $20 million to $22 million of free cash flow in the fourth quarter, aiming for a cash balance above $50 million by year-end [60] - Management maintains a cautious outlook for 2025, recognizing challenges but confident in the operational improvements made [88] Other Important Information - The company ended the third quarter with over $36 million in cash and a debt-free balance sheet [19] - Adjusted corporate costs were $2.2 million in the third quarter, reflecting ongoing efforts to manage expenses [53] - The company is pursuing ongoing litigation related to Section 16(b) matters, with potential trial expected in late 2025 [56] Q&A Session Summary Question: OEM contribution and SEMA discussions - Management highlighted the restructuring of the OEM sales team and ongoing discussions with major automakers, with expectations for growth in 2025 [65] Question: Outlook for Australia and New Zealand markets - Management noted a strong first half of the year but acknowledged a slowdown in vehicle sales, with expectations for improvement in Q4 and 2025 [70] Question: Update on HAP Trading litigation - Management indicated that the case is with the judge, with a decision expected by the end of Q1 2025, after which settlement discussions may occur [73] Question: Clarification on revenue guidance changes - Management clarified that the revenue guidance was lowered primarily due to challenges in the Adventure segment, with specific issues related to wholesale partners and e-commerce initiatives [78] Question: 2025 growth outlook and gross margin expectations - Management expressed confidence in achieving a double-digit EBITDA margin and highlighted ongoing efforts to improve gross margins through product simplification and operational efficiencies [88]

Sales Performance - Third quarter 2024 sales were $67.1 million, a decrease of 17.5% compared to $81.3 million in the same year-ago quarter[2] - Sales in the Outdoor segment were $49.3 million, down from $61.1 million, while Adventure segment sales decreased 11.9% to $17.8 million[5] - Total sales for September 2024 were $67,115,000, a decrease of 17.4% compared to $81,302,000 in September 2023[19] - Domestic sales decreased to $24,365,000 from $30,423,000, representing a decline of 19.9% year-over-year[19] - International sales fell to $42,750,000 from $50,879,000, a decrease of 16.0% year-over-year[19] - Total sales for the nine months ended September 30, 2024, were $192.91 million, with a gross profit of $68.75 million[25] - Sales for the nine months ended September 30, 2024, were $192,910, a decrease of 8% compared to $209,517 in the prior year[28] Financial Losses - Net loss for the third quarter was $3.2 million, or $(0.08) per diluted share, compared to a net loss of $1.3 million, or $(0.03) per diluted share in the prior year[2] - Operating loss for the three months ended September 30, 2024, was $(5,358,000), compared to $(3,175,000) in the same period last year[19] - Net loss for the three months ended September 30, 2024, was $(3,157,000), compared to $(1,264,000) in September 2023[19] - For the three months ended September 30, 2024, Clarus Corporation reported a loss from continuing operations of $3,157, compared to a loss of $2,206 for the same period in 2023, representing an increase of 43% in losses[27] - For the nine months ended September 30, 2024, the loss from continuing operations was $15,112, compared to $8,559 for the same period in 2023, indicating an increase of 76% in losses[28] Profitability Metrics - Gross margin improved to 35.0% from 33.6% year-over-year, with an adjusted gross margin of 37.8%[5] - Adjusted EBITDA from continuing operations was $2.4 million, with an adjusted EBITDA margin of 3.6%, down from $3.6 million and 4.5% in the year-ago quarter[9] - Adjusted EBITDA for the three months ended September 30, 2024, was $2,438, down 33% from $3,629 in the same period of 2023[27] - The EBITDA margin for the three months ended September 30, 2024, was -2.9%, a decline from 0.5% in the same period of 2023[27] - Adjusted EBITDA for the nine months ended September 30, 2024, was $2,521, down 56% from $5,751 in the same period of 2023[28] - The EBITDA margin for the nine months ended September 30, 2024, was -5.1%, compared to 0.0% in the same period of 2023[28] Cash Flow and Liquidity - Free cash flow for the third quarter was an outflow of $9.4 million, compared to an outflow of $1.1 million in the prior year quarter[10] - Cash and cash equivalents totaled $36.4 million as of September 30, 2024, compared to $11.3 million at the end of 2023[11] Assets and Liabilities - Total assets decreased to $375,338,000 as of September 30, 2024, from $495,338,000 at the end of 2023[18] - Total liabilities decreased significantly to $66,864,000 from $203,218,000[18] - Stockholders' equity increased to $308,474,000 from $292,120,000, indicating a growth of 5.6%[18] Future Projections - The company expects fiscal year 2024 sales to range between $260 million to $266 million, with adjusted EBITDA projected at approximately $7 million to $9 million[12] Inventory and Operational Focus - The company is focused on inventory improvement, with a 4% year-over-year reduction, and aims to scale the Adventure segment globally despite current market challenges[3] Tax and Amortization - The tax rate for the nine months ended September 30, 2024, was 17.9%, while for the same period in 2023, it was 23.2%[25][26] - Amortization of intangibles for the nine months ended September 30, 2024, was $7.32 million, while for the same period in 2023, it was $8.04 million[25][26] Legal and Regulatory Expenses - Legal costs and regulatory matter expenses totaled $3.80 million for the nine months ended September 30, 2024[25] - Legal costs and regulatory matter expenses increased to $394 for the three months ended September 30, 2024, compared to $579 in the same period of 2023[27]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: September 30, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Common Stock, par value $.0001 per share CLAR NASDAQ Global Select Market | --- | --- | --- | |---------------------------------------------------------------------------------- ...

SALT LAKE CITY, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Clarus Corporation (NASDAQ: CLAR) (“Clarus” and/or the “Company”), a global company focused on the outdoor enthusiast markets, reported financial results for the third quarter ended September 30, 2024. Third Quarter 2024 Financial Summary vs. Same Year‐Ago Quarter (adjusted to reflect the reclassification of the Precision Sport segment as discontinued operations) Sales of $67.1 million compared to $81.3 million.Gross margin was 35.0% compared to 33.6%; adjus ...

Clarus Corps' (NASDAQ: CLAR ) future success will be dependent on how well they accomplish two key initiatives: the revamping of the Black Diamond brand and the growth of the Adventure business segment in the United States Hello, My name is Timothy. Professionally, I work in merchandising in the apparel/fashion industry. I was introduced to the world of retail during my freshman year of college when I held a seasonal sales role at a Macy's in my hometown. From my very first shift on the sales floor, I was h ...

SALT LAKE CITY, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Clarus Corporation (NASDAQ: CLAR) (“Clarus” and/or the “Company”), a global company focused on the outdoor enthusiast markets, will hold a conference call on Thursday, November 7, 2024, at 5:00 pm ET to discuss its financial results for the third quarter ended September 30, 2024. The financial results will be reported in a press release after the close of regular stock market trading hours on the same day as the conference call. Date: Thursday, November 7, 2 ...

David Trood/DigitalVision via Getty Images Clarus (NASDAQ:CLAR) has performed badly since we last covered it. Good news is that the sale of the precision sports business, the ammo business, got them into net cash: no net debt issue anymore. The issue is that the end markets are weak and that the business needs operating leverage. There is some incremental cost cutting coming in and the company is pointing to new product launches towards the end of the year, and the hope is that a strong Q4 summer season in ...

CLARUS Q2 EARNINGS PRESENTATION AUGUST 1, 2024 DISCLAIMER Forward-Looking Statements Please note that in this presentation we may use words such as "appears," "anticipates," "believes," "bleileves," "fintends," "future," and similar expressions which const for ward-looking statements within the meaning of the Private Securities Litigation Reform Act of I995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number ...

Clarus Corporation (NASDAQ:CLAR) Q2 2024 Earnings Conference Call August 1, 2024 5:00 PM ET Company Participants Matt Berkowitz - External Director of Investor Relations Warren Kanders - Executive Chairman Michael Yates - Chief Financial Officer Mathew Hayward - Managing Director of Clarus' Adventure Segment Neil Fiske - President of Black Diamond Equipment Conference Call Participants Matthew Koranda - ROTH Capital Partners LLC Anna Glaessgen - B. Riley Securities, Inc. Peter McGoldrick - Stifel Mark Smith ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: June 30, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Common Stock, par value $.0001 per share CLAR NASDAQ Global Select Market | --- | --- | --- | |--------------------------------------------------------------------------------------- ...