EX-99.1 2 tm2514461d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

Clarus Reports First Quarter 2025 Results

 

Continues to Execute Strategic Initiatives to Accelerate Long-Term Profitable Growth

 

Promotes Industry Veteran Tripp Wyckoff to Lead Adventure

 

Entered into Agreement to Divest PIEPS Snow Safety Brand for €7.8 Million

 

SALT LAKE CITY, May 8, 2025 (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 first quarter ended March 31, 2025.

 

First Quarter 2025 Financial Summary vs. Same Year-Ago Quarter

 

·Sales of $60.4 million compared to $69.3 million.
·Gross margin was 34.4% compared to 35.9%; adjusted gross margin of 34.6% compared to 36.9%.
·Net loss of $5.2 million, or $(0.14) per diluted share, compared to net income, which includes the impact of discontinued operations, of $21.9 million, or $0.57 per diluted share.
·Loss from continuing operations of $5.2 million, or $(0.14) per diluted share, compared to loss from continuing operations of $6.5 million, or $(0.17) per diluted share.
·Adjusted loss from continuing operations of $(0.7) million, or $(0.02) per diluted share, compared to adjusted loss from continuing operations of $(0.1) million, or $(0.00) per diluted share.
·Adjusted EBITDA from continuing operations of $(0.8) million with an adjusted EBITDA margin of (1.3)% compared to $2.0 million with an adjusted EBITDA margin of 2.9%.

 

Management Commentary

 

“Against an increasingly challenging consumer backdrop across the outdoor market, we continued to execute in line with our strategic roadmap in the first quarter, strengthening the core of our Outdoor segment and investing to scale our Adventure segment,” said Warren Kanders, Clarus’ Executive Chairman. “We have maintained momentum at Outdoor, with our team focused on prioritizing our best and most profitable styles. Importantly, Black Diamond remains an iconic brand within core mountain and climb categories, and we’ve been pleased with the strong feedback from our partners regarding our revamped apparel line. At Adventure, the slowdown in both our OEM business and the core Australian wholesale market contributed to lower Q1 sales, but investments in innovation are expected to enhance new product introductions in the second half of the year.”

 

 

 

 

 

 

Mr. Kanders continued, “While our results to date have met topline expectations, the forward outlook remains highly unpredictable, and given the macroeconomic uncertainty, we believe it is prudent to withdraw our full-year guidance. In light of the challenges posed by tariffs and potential consequences on consumer demand, our focus is on controlling what we can. The Black Diamond organization is healthier than ever, and the hard work of the prior two years to simplify the business and right size our inventory has positioned us to better withstand market headwinds in the near term. We have made operational and organizational progress to start the year at Adventure, although conditions for this business remain challenging. We expect that our investments in new product development initiatives and enhanced fits will ultimately drive accelerated brand penetration globally.”

 

First Quarter 2025 Financial Results

 

On a consolidated basis, sales in the first quarter were $60.4 million compared to $69.3 million in the same year-ago quarter, down 13%. Sales in the Outdoor segment decreased 6% to $44.3 million, compared to $47.0 million in the year-ago quarter. Sales in the Adventure segment decreased 28% to $16.1 million, compared to $22.3 million in the year-ago quarter.

 

Sales in the Adventure segment decreased due to significantly lower demand from global OEM customers and a challenging wholesale market in Australia for both Rhino-Rack and Maxtrax, combined with a prior year large wholesale customer in North America not reoccurring in 2025. This was partially offset by $1.3 million of sales from the recent acquisition of RockyMounts. Sales in the Outdoor segment decreased due to our continued efforts around product simplification and SKU rationalization strategy, combined with the impact from the shift of IGD revenues out of the first quarter. This decrease was partially offset by increased revenue from our high-margin “A” and “B” products at Black Diamond.

 

Gross margin in the first quarter was 34.4% compared to 35.9% in the year-ago quarter. The gross margin decrease was primarily attributable to lower volumes and unfavorable product mix at both the Outdoor and Adventure segments. Specifically, the unfavorable product mix at Outdoor was related to high levels of discontinued merchandise that was sold during the quarter, including the vast majority of the remaining PFAS inventory. The unfavorable product mix at Adventure was primarily driven by promotional sales efforts in North America. This combined with lower wholesale volume at both Rhino-Rack and Maxtrax in Australia drove the decline in gross margin compared to the same year-ago quarter. Adjusted gross margin reflecting inventory fair value adjustments because of purchase accounting was 34.6% for the quarter compared to 36.9% in the year-ago quarter.

 

Selling, general and administrative expenses in the first quarter were $26.6 million compared to $28.2 million in the same year-ago quarter. The decrease was primarily a result of lower wages and marketing costs, as well as lower retail expenses at Outdoor due to store closures and other expense reduction initiatives across both segments to manage costs.

 

 

 

 

 

 

The loss from continuing operations in the first quarter of 2025 was $5.2 million, or $(0.14) per diluted share, compared to loss from continuing operations of $6.5 million, or $(0.17) per diluted share in the year-ago quarter. Loss from continuing operations in the first quarter includes $5.1 million of costs and charges associated with amortization of intangibles, disposal of internally developed software, restructuring charges, transactions costs, inventory fair value adjustment from purchase accounting, legal costs and regulatory matter expenses, and stock-based compensation.

 

Adjusted loss from continuing operations in the first quarter of 2025 was $(0.7) million, or $(0.02) per diluted share, compared to adjusted loss from continuing operations of $(0.1) million, or $(0.00) per diluted share, in the year-ago quarter. Adjusted loss from continuing operations excludes amortization of intangibles, disposal of internally developed software, restructuring charges, transactions costs, inventory fair value adjustment from purchase accounting, legal costs and regulatory matter expenses, and stock-based compensation.

 

Adjusted EBITDA from continuing operations in the first quarter was $(0.8) million, or an adjusted EBITDA margin of (1.3)%, compared to adjusted EBITDA from continuing operations of $2.0 million, or an adjusted EBITDA margin of 2.9%, in the same year-ago quarter.

 

Net cash used in operating activities for the three months ended March 31, 2025, was $(2.1) million compared to net cash used in operating activities of $(16.4) million in the prior year quarter. Capital expenditures in the first quarter of 2025 were $1.2 million compared to $1.9 million in the prior year quarter. Free cash flow for the first quarter of 2025 was $(3.3) million compared to $(18.3) million in the prior year quarter.

 

Liquidity at March 31, 2025 vs. December 31, 2024

 

·Cash and cash equivalents totaled $41.3 million compared to $45.4 million.
·Total debt of $1.9 million (related to the RockyMounts acquisition) compared to $1.9 million.

 

New Leader Appointed at Adventure

 

The Company announced today that Tripp Wyckoff has been appointed as the new Managing Director of Clarus' Adventure segment, effective immediately. He will be replacing Mathew Hayward who will depart the Company, effective June 30, 2025, to pursue other professional opportunities. Mr. Wykoff joined the Company in July 2024 and has served as General Manager of the Americas, responsible for managing and growing each of the Adventure brands in the U.S., Canada and Latin America.

 

 

 

 

 

 

Mr. Wyckoff has over 20 years of deep operating experience in senior leadership roles, including as the President of Vertical Supply Group (“VSG”), a leading branded arborist equipment provider and distributor. He led VSG for over nine years, building the industry’s most-recognizable direct-to-consumer platform, while growing earnings by 5x, integrating 11 acquisitions, and stewarding the business through two private equity transactions. Prior to VSG, Mr. Wyckoff spent eight years at Thule serving as Vice President of Sales, Marketing and Service, where he grew the brand significantly in the U.S. and was primarily responsible for bringing to market global initiatives, building one-on-one customer relationships and integrating key acquisitions. While at Thule, he guided multi-channel, go-to-market strategy development and execution, and he co-developed and implemented a value-added sales training program for the global sales team.

 

Mr. Kanders commented, “We are excited to promote leadership from within and appoint Tripp Wyckoff to head the Adventure Segment moving forward. Since joining Clarus last year, Tripp has helped drive critical progress in the U.S. organization and demonstrated the business-building skills necessary for Adventure to reach its fullest potential. A highly experienced leader, he has a wealth of knowledge, operating discipline and expertise in taking brands of our size to the next level. He previously led a private equity-backed business through multiple growth cycles and exits, with deep industry experience through various leadership roles at Thule. With the full support of the board, senior management, and the Adventure team, I firmly believe Tripp is the right leader to execute the next phase of the Adventure growth strategy, as we continue to see an attractive long-term opportunity underpinned by a large and growing addressable market across multiple verticals. We thank Mat Hayward for his important contributions during his tenure, which included establishing an entirely new product development and product commercialization process that will continue to guide us, and wish him all the best in his future endeavors.”

 

Agreement to Sell PIEPS

 

Following a comprehensive strategic review process launched in the fall of 2024, the Company entered into an agreement for the sale of PIEPS and assets of the JetForce avalanche pack intellectual property to a private investment firm for a total purchase price of €7.8 million including cash and debt. The agreement governing the sale has been executed by the parties and will become binding upon receipt by the notary in Austria of the original of the signed power of attorney of the purchaser, a copy of which has already been provided to the notary. This divestiture is aligned with Clarus’ prioritization of simplifying the business and rationalizing our product categories. We expect the transaction to close before the end of the third quarter of 2025 subject to customary closing conditions and other regulatory matters, including foreign direct investment requirements.

 

2025 Outlook

 

Due to the ongoing macroeconomic uncertainty stemming from U.S. global trade policies, including the impact of recently imposed or proposed tariffs and the resulting potential consequences on consumer demand, we are withdrawing the Company’s previously issued full year 2025 revenue, adjusted EBITDA, capital expenditures and free cash flow guidance. We intend to provide updated guidance once visibility improves.

 

 

 

 

 

 

Conference Call

 

The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its first quarter 2025 results.

 

Date: Thursday, May 8, 2025

Time: 5:00 pm ET

Registration Link: https://register-conf.media-server.com/register/BI6d93afa015384a388abd5672bbaf1a5b

 

To access the call by phone, please register via the live call registration link above and you will be provided with dial-in instructions and details. The conference call will be broadcast live and available for replay here and on the Company’s website at www.claruscorp.com.

 

About Clarus Corporation

 

Headquartered in Salt Lake City, Utah, Clarus Corporation is a global leader in the design and development of best-in-class equipment and lifestyle products for outdoor enthusiasts. Driven by our rich history of engineering and innovation, our objective is to provide safe, simple, effective and beautiful products so that our customers can maximize their outdoor pursuits and adventures. Each of our brands has a long history of continuous product innovation for core and everyday users alike. The Company’s products are principally sold globally under the Black Diamond®, Rhino-Rack®, MAXTRAX®, and TRED Outdoors® brand names through outdoor specialty and online retailers, our own websites, distributors, and original equipment manufacturers.

 

Use of Non-GAAP Measures

 

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release contains the non-GAAP measures: (i) adjusted gross margin and adjusted gross profit, (ii) adjusted (loss) income from continuing operations and related earnings (loss) per diluted share, (iii) earnings before interest, taxes, other income or expense, depreciation and amortization (“EBITDA”), EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin, and (iv) free cash flow (defined as net cash provided by operating activities less capital expenditures). The Company believes that the presentation of certain non-GAAP measures, i.e.: (i) adjusted gross margin and adjusted gross profit, (ii) adjusted (loss) income from continuing operations and related earnings (loss) per diluted share, (iii) EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin, and (iv) free cash flow, provide useful information for the understanding of its ongoing operations and enables investors to focus on period-over-period operating performance, and thereby enhances the user's overall understanding of the Company's current financial performance relative to past performance and provides, along with the nearest GAAP measures, a baseline for modeling future earnings expectations. Non-GAAP measures are reconciled to comparable GAAP financial measures within this press release. We do not provide a reconciliation of the non-GAAP guidance measures adjusted EBITDA and/or adjusted EBITDA margin for the fiscal year 2025 to net income for the fiscal year 2025, the most comparable GAAP financial measure, due to the inherent difficulty of forecasting certain types of expenses and gains, without unreasonable effort, which affect net income but not adjusted EBITDA and/or adjusted EBITDA margin. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results. Additionally, the Company notes that there can be no assurance that the above referenced non-GAAP financial measures are comparable to similarly titled financial measures used by other publicly traded companies.

 

 

 

 

Forward-Looking Statements

 

Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this press release, include, but are not limited to, the possibility that a condition to closing of the sale of PIEPS may not be satisfied and the sale will not be consummated which could negatively impact the price of the Company’s shares of common stock or the business, results of operations, and financial condition of the Company, as well as those risks and uncertainties more fully described from time to time in the Company's public reports filed with the Securities and Exchange Commission, including under the section titled “Risk Factors” in the Company's Annual Report on Form 10-K, and/or Quarterly Reports on Form 10-Q, as well as in the Company’s Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. We assume no obligation to update any forward- looking statements to reflect events or circumstances after the date of this press release.

 

Company Contact:

 

Michael J. Yates

Chief Financial Officer

mike.yates@claruscorp.com

 

Investor Relations:

 

The IGB Group

Leon Berman / Matt Berkowitz

Tel 1-212-477-8438 / 1-212-227-7098

lberman@igbir.com / mberkowitz@igbir.com

 

 

 

 

 

 

CLARUS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except per share amounts) 

 

   March 31, 2025   December 31, 2024 
Assets          
Current assets          
Cash  $41,315   $45,359 
Accounts receivable, less allowance for          
credit losses of $1,146 and $1,271   42,764    43,678 
Inventories   87,483    82,278 
Prepaid and other current assets   5,485    5,555 
Income tax receivable   1,294    910 
Total current assets   178,341    177,780 
           
Property and equipment, net   17,845    17,606 
Other intangible assets, net   29,532    31,516 
Indefinite-lived intangible assets   47,086    46,750 
Goodwill   3,804    3,804 
Deferred income taxes   36    36 
Other long-term assets   16,193    16,602 
Total assets  $292,837   $294,094 
           
Liabilities and Stockholders’ Equity          
Current liabilities          
Accounts payable  $15,893   $11,873 
Accrued liabilities   22,219    22,276 
Current portion of long-term debt   1,919    1,888 
Total current liabilities   40,031    36,037 
           
Deferred income taxes   11,207    12,210 
Other long-term liabilities   12,309    12,754 
Total liabilities   63,547    61,001 
           
Stockholders’ Equity          
Preferred stock, $0.0001 par value per share; 5,000 shares authorized; none issued   -    - 
Common stock, $0.0001 par value per share; 100,000 shares authorized; 43,054 and 43,004 issued and 38,402 and 38,362 outstanding, respectively   4    4 
Additional paid in capital   699,061    697,592 
Accumulated deficit   (413,060)   (406,857)
Treasury stock, at cost   (33,156)   (33,114)
Accumulated other comprehensive loss   (23,559)   (24,532)
Total stockholders’ equity   229,290    233,093 
Total liabilities and stockholders’ equity  $292,837   $294,094 

 

 

 

 

 

 

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME

(Unaudited)

(In thousands, except per share amounts) 

 

   Three Months Ended 
   March 31, 2025   March 31, 2024 
Sales          
Domestic sales  $24,809   $28,284 
International sales   35,624    41,027 
Total sales   60,433    69,311 
           
Cost of goods sold   39,639    44,460 
Gross profit   20,794    24,851 
           
Operating expenses          
Selling, general and administrative   26,616    28,215 
Restructuring charges   173    370 
Transaction costs   142    38 
Legal costs and regulatory matter expenses   625    3,002 
           
Total operating expenses   27,556    31,625 
           
Operating loss   (6,762)   (6,774)
           
Other income (expense)          
Interest income, net   257    370 
Other, net   459    (909)
           
Total other income (expense), net   716    (539)
           
Loss before income tax   (6,046)   (7,313)
Income tax benefit   (802)   (851)
Loss from continuing operations   (5,244)   (6,462)
           
Discontinued operations, net of tax   -    28,346 
           
Net (loss) income  $(5,244)  $21,884 
           
Loss from continuing operations per share:          
Basic  $(0.14)  $(0.17)
Diluted   (0.14)   (0.17)
           
Net (loss) income per share:          
Basic  $(0.14)  $0.57 
Diluted   (0.14)   0.57 
           
Weighted average shares outstanding:          
Basic   38,366    38,208 
Diluted   38,366    38,208 

 

 

 

 

 

 

CLARUS CORPORATION

RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT

AND ADJUSTED GROSS MARGIN

 

THREE MONTHS ENDED 

 

   March 31, 2025      March 31, 2024 
            
Sales  $60,433   Sales  $69,311 
              
Gross profit as reported  $20,794   Gross profit as reported  $24,851 
Plus impact of inventory fair value adjustment   120   Plus impact of inventory fair value adjustment   - 
Plus impact of PFAS and other inventory reserves   -   Plus impact of PFAS and other inventory reserves   729 
Adjusted gross profit  $20,914   Adjusted gross profit  $25,580 
              
Gross margin as reported   34.4%  Gross margin as reported   35.9%
              
Adjusted gross margin   34.6%  Adjusted gross margin   36.9%

 

CLARUS CORPORATION

RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED LOSS FROM CONTINUING OPERATIONS
AND RELATED EARNINGS PER DILUTED SHARE 

(In thousands, except per share amounts) 

 

   Three Months Ended March 31, 2025 
   Total   Gross   Operating   Income tax   Tax   Loss from   Diluted 
   sales   profit   expenses   benefit   rate   continuing operations   EPS (1) 
As reported  $60,433   $20,794   $27,556   $(802)   (13.3)%  $(5,244)  $(0.14)
                                    
Amortization of intangibles   -    -    (2,224)   295         1,929      
Disposal of internally developed software   -    -    (365)   48         317      
Restructuring charges   -    -    (173)   23         150      
Transaction costs   -    -    (142)   19         123      
Inventory fair value of purchase accounting   -    120    -    16         104      
Legal costs and regulatory matter expenses   -    -    (625)   83         542      
Stock-based compensation   -    -    (1,469)   48         1,421      
                                    
As adjusted  $60,433   $20,914   $22,558   $(270)   29.1%  $(658)  $(0.02)

 

(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share and adjusted loss from continuing operations per share are both calculated based on 38,366 basic and diluted weighted average shares of common stock. 

 

 

 

 

 

 

   Three Months Ended March 31, 2024 
   Total   Gross   Operating   Income tax   Tax   Loss from   Diluted 
   sales   profit   expenses   (benefit) expense   rate   continuing operations   EPS (1) 
As reported  $69,311   $24,851   $31,625   $(851)   (11.6)%  $(6,462)  $(0.17)
                                    
Amortization of intangibles   -    -    (2,449)   617         1,832      
Restructuring charges   -    -    (370)   59         311      
Transaction costs   -    -    (38)   6         32      
PFAS and other inventory reserves   -    729    -    114         615      
Legal costs and regulatory matter expenses   -    -    (3,002)   461         2,541      
Stock-based compensation   -    -    (1,178)   181         997      
                                    
As adjusted  $69,311   $25,580   $24,588   $587    129.6%  $(134)  $(0.00)

 

(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share and adjusted loss from continuing operations per share are both calculated based on 38,208 basic and diluted weighted average shares of common stock.  

 

 

 

 

 

 

CLARUS CORPORATION

RECONCILIATION FROM OPERATING INCOME (LOSS) TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN

(In thousands) 

 

   Three Months Ended March 31, 2025   Three Months Ended March 31, 2024 
   Outdoor Segment   Adventure Segment   Corporate Costs   Total   Outdoor Segment   Adventure Segment   Corporate Costs   Total 
Operating income (loss)  $122   $(3,054)  $(3,830)  $(6,762)  $(1,709)  $(770)  $(4,295)  $(6,774)
Depreciation   506    377    -    883    673    353    -    1,026 
Amortization of intangibles   283    1,941    -    2,224    286    2,163    -    2,449 
                                         
EBITDA   911    (736)   (3,830)   (3,655)   (750)   1,746    (4,295)   (3,299)
                                         
Restructuring charges   173    -    -    173    224    146    -    370 
Transaction costs   70    40    32    142    -    -    38    38 
Legal costs and regulatory matter expenses   578    -    47    625    2,705    -    297    3,002 
Disposal of internally developed software   -    365    -    365    -    -    -    - 
Stock-based compensation   -    -    1,469    1,469    -    -    1,178    1,178 
Inventory fair value of purchase accounting   -    120    -    120    -    -    -    - 
PFAS and other inventory reserves   -    -    -    -    729    -    -    729 
                                         
Adjusted EBITDA  $1,732   $(211)  $(2,282)  $(761)  $2,908   $1,892   $(2,782)  $2,018 
                                         
Sales  $44,323   $16,110   $-   $60,433    47,022    22,289    -    69,311 
                                         
EBITDA margin   2.1%   (4.6)%        (6.0)%   (1.6)%   7.8%        (4.8)%
Adjusted EBITDA margin   3.9%   (1.3)%        (1.3)%   6.2%   8.5%        2.9%