Equity (Tables)

3 Months Ended

Jul. 31, 2022

Schedule of Earnings per Share

The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended July 31, 2022 and 2021 (in thousands, except per share data):

	For the Three Months Ended July 31,
	2022								2021
	Net					Per Share			Net				Per Share
	Income			Shares		Amount			Income		Shares		Amount
Basic (loss)/earnings	$	(5,695	)		13,443	$	(0.42	)	$	3,457		14,083	$	0.25
Effect of dilutive stock awards		—			—		—			—	218			(0.01	)
Diluted (loss)/earnings	$	(5,695	)		13,443	$	(0.42	)	$	3,457		14,301	$	0.24

Share Based Payment Award Performance Shares Valuation Assumptions

We incorporate the following variables into the valuation model:

	For the Three Months Ended July 31,
	2022			2021
Grant date fair market value
American Outdoor Brands, Inc.	$	12.70		$	26.44
Russell 2000 Index	$	1,882.91		$	2,277.45
Volatility (a)
American Outdoor Brands, Inc.		49.04	%		47.78	%
Russell 2000 Index		31.75	%		30.69	%
Correlation coefficient (b)		0.50			0.46
Risk-free interest rate (c)		2.91	%		0.33	%
Dividend yield (d)		0	%		0	%

(a)Expected volatility is calculated based on a peer group over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years.

(b)The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions.

(c)The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period.

(d)We do not expect to pay dividends in the foreseeable future.

RSUs and PSUs | 2020 Incentive Compensation Plan

Summary of Activity for Unvested RSUs and PSUs

A summary of activity for unvested RSUs and PSUs under our 2020 Incentive Compensation Plan for the three months ended July 31, 2022 and 2021 is as follows:

	For the Three Months Ended July 31,
	2022					2021
				Weighted					Weighted
	Total # of			Average		Total # of			Average
	Restricted			Grant Date		Restricted			Grant Date
	Stock Units			Fair Value		Stock Units			Fair Value
RSUs and PSUs outstanding, beginning of period		349,774		$	15.93		427,519		$	11.75
Awarded		251,966			11.58		97,885			27.44
Vested		(73,055	)		14.77		(50,652	)		12.35
Forfeited		(2,225	)		21.86		(360	)		16.23
RSUs and PSUs outstanding, end of period		526,460		$	13.99		474,392		$	14.92