Equity (Tables)

3 Months Ended

Jul. 31, 2021

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, 2021 and 2020 (in thousands, except per share data):

	For the Three Months Ended July 31,
	2021								2020
	Net					Per Share			Net					Per Share
	Income			Shares		Amount			Income			Shares		Amount
Basic earnings	$		3,457		14,083	$	0.25		$		1,789		13,975	$		0.13
Effect of dilutive stock awards		—			218		(0.01	)		—		—			—
Diluted earnings	$		3,457		14,301	$	0.24		$		1,789		13,975	$		0.13

Share Based Payment Award Performance Shares Valuation Assumptions

We incorporate the following variables into the valuation model:

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

2020 Incentive Compensation Plan | Service-based RSUs and PSUs

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, 2021 is as follows:

	For the three months ended July 31,
	2021
				Weighted
	Total # of			Average
	Restricted			Grant Date
	Stock Units			Fair Value
RSUs and PSUs outstanding, beginning of period		427,519		$	11.75
Awarded		97,885			27.44
Vested		(50,652	)		12.35
Forfeited		(360	)		16.23
RSUs and PSUs outstanding, end of period		474,392		$	14.92