0001558370-23-018008.txt : 20231107 0001558370-23-018008.hdr.sgml : 20231107 20231107162032 ACCESSION NUMBER: 0001558370-23-018008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 89 CONFORMED PERIOD OF REPORT: 20230930 FILED AS OF DATE: 20231107 DATE AS OF CHANGE: 20231107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Clarus Corp CENTRAL INDEX KEY: 0000913277 STANDARD INDUSTRIAL CLASSIFICATION: [3949] IRS NUMBER: 581972600 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-34767 FILM NUMBER: 231384245 BUSINESS ADDRESS: STREET 1: 2084 EAST 3900 SOUTH CITY: SALT LAKE CITY STATE: UT ZIP: 84124 BUSINESS PHONE: 801-278-5552 MAIL ADDRESS: STREET 1: 2084 EAST 3900 SOUTH CITY: SALT LAKE CITY STATE: UT ZIP: 84124 FORMER COMPANY: FORMER CONFORMED NAME: Black Diamond, Inc. DATE OF NAME CHANGE: 20110121 FORMER COMPANY: FORMER CONFORMED NAME: CLARUS CORP DATE OF NAME CHANGE: 19980911 FORMER COMPANY: FORMER CONFORMED NAME: SQL FINANCIALS INTERNATIONAL INC /DE/ DATE OF NAME CHANGE: 19980911 10-Q 1 clar-20230930x10q.htm 10-Q
0000913277--12-312023Q3false2024-02-012024-02-012023-02-012024-02-010000913277us-gaap:TreasuryStockCommonMember2023-04-012023-06-300000913277us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000913277us-gaap:TreasuryStockCommonMember2022-07-012022-09-300000913277us-gaap:TreasuryStockCommonMember2022-01-012022-03-310000913277us-gaap:CommonStockMember2023-04-012023-06-300000913277us-gaap:CommonStockMember2023-01-012023-03-310000913277us-gaap:CommonStockMember2022-04-012022-06-300000913277us-gaap:CommonStockMember2022-01-012022-03-310000913277us-gaap:CommonStockMember2023-07-012023-09-300000913277us-gaap:CommonStockMember2022-07-012022-09-300000913277us-gaap:TreasuryStockCommonMember2023-09-300000913277us-gaap:RetainedEarningsMember2023-09-300000913277us-gaap:AdditionalPaidInCapitalMember2023-09-300000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000913277us-gaap:TreasuryStockCommonMember2023-06-300000913277us-gaap:RetainedEarningsMember2023-06-300000913277us-gaap:AdditionalPaidInCapitalMember2023-06-300000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000009132772023-06-300000913277us-gaap:TreasuryStockCommonMember2023-03-310000913277us-gaap:RetainedEarningsMember2023-03-310000913277us-gaap:AdditionalPaidInCapitalMember2023-03-310000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100009132772023-03-310000913277us-gaap:TreasuryStockCommonMember2022-12-310000913277us-gaap:RetainedEarningsMember2022-12-310000913277us-gaap:AdditionalPaidInCapitalMember2022-12-310000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000913277us-gaap:TreasuryStockCommonMember2022-09-300000913277us-gaap:RetainedEarningsMember2022-09-300000913277us-gaap:AdditionalPaidInCapitalMember2022-09-300000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000913277us-gaap:TreasuryStockCommonMember2022-06-300000913277us-gaap:RetainedEarningsMember2022-06-300000913277us-gaap:AdditionalPaidInCapitalMember2022-06-300000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000009132772022-06-300000913277us-gaap:TreasuryStockCommonMember2022-03-310000913277us-gaap:RetainedEarningsMember2022-03-310000913277us-gaap:AdditionalPaidInCapitalMember2022-03-310000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100009132772022-03-310000913277us-gaap:TreasuryStockCommonMember2021-12-310000913277us-gaap:RetainedEarningsMember2021-12-310000913277us-gaap:AdditionalPaidInCapitalMember2021-12-310000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000913277us-gaap:CommonStockMember2023-09-300000913277us-gaap:CommonStockMember2023-06-300000913277us-gaap:CommonStockMember2023-03-310000913277us-gaap:CommonStockMember2022-12-310000913277us-gaap:CommonStockMember2022-09-300000913277us-gaap:CommonStockMember2022-06-300000913277us-gaap:CommonStockMember2022-03-310000913277us-gaap:CommonStockMember2021-12-310000913277srt:MinimumMemberus-gaap:RestrictedStockMemberclar:TwoThousandFifteenStockIncentivePlanMember2023-03-142023-03-140000913277srt:MaximumMemberus-gaap:RestrictedStockMemberclar:TwoThousandFifteenStockIncentivePlanMember2023-03-142023-03-140000913277us-gaap:EmployeeStockOptionMemberclar:TwoThousandFifteenStockIncentivePlanMember2023-09-300000913277us-gaap:RestrictedStockMemberclar:TwoThousandFifteenStockIncentivePlanMember2023-03-140000913277us-gaap:RestrictedStockMemberclar:TwoThousandFifteenStockIncentivePlanMemberclar:VestingThresholdTwoMember2023-03-142023-03-140000913277us-gaap:RestrictedStockMemberclar:TwoThousandFifteenStockIncentivePlanMemberclar:VestingThresholdOneMember2023-03-142023-03-140000913277us-gaap:RestrictedStockMemberclar:TwoThousandFifteenStockIncentivePlanMember2023-03-142023-03-140000913277us-gaap:EmployeeStockOptionMemberclar:TwoThousandFifteenStockIncentivePlanMember2023-01-012023-09-300000913277clar:InternationalSalesRevenueMemberclar:PrecisionSportSegmentMember2023-07-012023-09-300000913277clar:InternationalSalesRevenueMemberclar:OutdoorSegmentMember2023-07-012023-09-300000913277clar:InternationalSalesRevenueMemberclar:AdventureSegmentMember2023-07-012023-09-300000913277clar:DomesticSalesRevenueMemberclar:PrecisionSportSegmentMember2023-07-012023-09-300000913277clar:DomesticSalesRevenueMemberclar:OutdoorSegmentMember2023-07-012023-09-300000913277clar:DomesticSalesRevenueMemberclar:AdventureSegmentMember2023-07-012023-09-300000913277clar:InternationalSalesRevenueMember2023-07-012023-09-300000913277clar:DomesticSalesRevenueMember2023-07-012023-09-300000913277clar:InternationalSalesRevenueMemberclar:PrecisionSportSegmentMember2023-01-012023-09-300000913277clar:InternationalSalesRevenueMemberclar:OutdoorSegmentMember2023-01-012023-09-300000913277clar:InternationalSalesRevenueMemberclar:AdventureSegmentMember2023-01-012023-09-300000913277clar:DomesticSalesRevenueMemberclar:PrecisionSportSegmentMember2023-01-012023-09-300000913277clar:DomesticSalesRevenueMemberclar:OutdoorSegmentMember2023-01-012023-09-300000913277clar:DomesticSalesRevenueMemberclar:AdventureSegmentMember2023-01-012023-09-300000913277clar:InternationalSalesRevenueMember2023-01-012023-09-300000913277clar:DomesticSalesRevenueMember2023-01-012023-09-300000913277clar:InternationalSalesRevenueMemberclar:PrecisionSportSegmentMember2022-07-012022-09-300000913277clar:InternationalSalesRevenueMemberclar:OutdoorSegmentMember2022-07-012022-09-300000913277clar:InternationalSalesRevenueMemberclar:AdventureSegmentMember2022-07-012022-09-300000913277clar:DomesticSalesRevenueMemberclar:PrecisionSportSegmentMember2022-07-012022-09-300000913277clar:DomesticSalesRevenueMemberclar:OutdoorSegmentMember2022-07-012022-09-300000913277clar:DomesticSalesRevenueMemberclar:AdventureSegmentMember2022-07-012022-09-300000913277clar:InternationalSalesRevenueMember2022-07-012022-09-300000913277clar:DomesticSalesRevenueMember2022-07-012022-09-300000913277clar:InternationalSalesRevenueMemberclar:PrecisionSportSegmentMember2022-01-012022-09-300000913277clar:InternationalSalesRevenueMemberclar:OutdoorSegmentMember2022-01-012022-09-300000913277clar:InternationalSalesRevenueMemberclar:AdventureSegmentMember2022-01-012022-09-300000913277clar:DomesticSalesRevenueMemberclar:PrecisionSportSegmentMember2022-01-012022-09-300000913277clar:DomesticSalesRevenueMemberclar:OutdoorSegmentMember2022-01-012022-09-300000913277clar:DomesticSalesRevenueMemberclar:AdventureSegmentMember2022-01-012022-09-300000913277clar:InternationalSalesRevenueMember2022-01-012022-09-300000913277clar:DomesticSalesRevenueMember2022-01-012022-09-300000913277us-gaap:CorporateNonSegmentMember2023-01-012023-09-300000913277us-gaap:MachineryAndEquipmentMember2023-09-300000913277us-gaap:LandMember2023-09-300000913277us-gaap:FurnitureAndFixturesMember2023-09-300000913277us-gaap:ConstructionInProgressMember2023-09-300000913277us-gaap:BuildingAndBuildingImprovementsMember2023-09-300000913277clar:ComputerHardwareAndSoftwareMember2023-09-300000913277us-gaap:MachineryAndEquipmentMember2022-12-310000913277us-gaap:LandMember2022-12-310000913277us-gaap:FurnitureAndFixturesMember2022-12-310000913277us-gaap:ConstructionInProgressMember2022-12-310000913277us-gaap:BuildingAndBuildingImprovementsMember2022-12-310000913277clar:ComputerHardwareAndSoftwareMember2022-12-310000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300000913277us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000913277us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-07-012023-09-300000913277us-gaap:AccumulatedTranslationAdjustmentMember2023-07-012023-09-300000913277us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2023-07-012023-09-300000913277us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-09-300000913277us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-09-300000913277us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2023-01-012023-09-300000913277us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-07-012022-09-300000913277us-gaap:AccumulatedTranslationAdjustmentMember2022-07-012022-09-300000913277us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-07-012022-09-300000913277us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-09-300000913277us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-09-300000913277us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-01-012022-09-300000913277clar:OperatingLossCarryforwardExpirationYear2026AndBeyondMember2023-09-300000913277clar:OperatingLossCarryforwardExpirationYear2025Member2023-09-300000913277clar:OperatingLossCarryforwardExpirationYear2024Member2023-09-300000913277clar:OperatingLossCarryforwardExpirationYear2023Member2023-09-300000913277us-gaap:OperatingSegmentsMemberclar:PrecisionSportSegmentMember2023-07-012023-09-300000913277us-gaap:OperatingSegmentsMemberclar:AdventureSegmentMember2023-07-012023-09-300000913277us-gaap:OperatingSegmentsMember2023-07-012023-09-300000913277us-gaap:OperatingSegmentsMemberclar:PrecisionSportSegmentMember2023-01-012023-09-300000913277us-gaap:OperatingSegmentsMemberclar:AdventureSegmentMember2023-01-012023-09-300000913277us-gaap:OperatingSegmentsMember2023-01-012023-09-300000913277us-gaap:OperatingSegmentsMemberclar:PrecisionSportSegmentMember2022-07-012022-09-300000913277us-gaap:OperatingSegmentsMemberclar:OutdoorSegmentMember2022-07-012022-09-300000913277us-gaap:OperatingSegmentsMemberclar:AdventureSegmentMember2022-07-012022-09-300000913277us-gaap:OperatingSegmentsMember2022-07-012022-09-300000913277us-gaap:OperatingSegmentsMemberclar:PrecisionSportSegmentMember2022-01-012022-09-300000913277us-gaap:OperatingSegmentsMemberclar:OutdoorSegmentMember2022-01-012022-09-300000913277us-gaap:OperatingSegmentsMemberclar:AdventureSegmentMember2022-01-012022-09-300000913277us-gaap:OperatingSegmentsMember2022-01-012022-09-300000913277clar:TermFacilityMember2023-09-300000913277clar:TermFacilityMember2022-12-310000913277us-gaap:LetterOfCreditMemberclar:RestatedCreditAgreementMember2023-09-300000913277srt:MinimumMemberclar:ForeignCreditFacilityMember2023-09-300000913277srt:MaximumMemberclar:ForeignCreditFacilityMember2023-09-300000913277clar:TermFacilityMemberclar:RestatedCreditAgreementMember2023-09-300000913277us-gaap:RevolvingCreditFacilityMemberclar:RestatedCreditAgreementMember2022-12-310000913277srt:MinimumMemberclar:ForeignCreditFacilityMember2022-12-310000913277srt:MaximumMemberclar:ForeignCreditFacilityMember2022-12-310000913277clar:TermFacilityMemberclar:RestatedCreditAgreementMember2022-12-310000913277clar:TermFacilityMemberclar:RestatedCreditAgreementMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2023-01-012023-09-300000913277clar:TermFacilityMemberclar:RestatedCreditAgreementMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2023-01-012023-09-300000913277us-gaap:RevolvingCreditFacilityMemberclar:RestatedCreditAgreementMember2023-09-300000913277us-gaap:RevolvingCreditFacilityMember2023-09-300000913277clar:ForeignCreditFacilityMember2023-09-300000913277us-gaap:RevolvingCreditFacilityMember2022-12-310000913277clar:ForeignCreditFacilityMember2022-12-310000913277clar:SierraTrademarkMember2023-09-300000913277clar:RhinoRackTrademarkMember2023-09-300000913277clar:PiepsTrademarkMember2023-09-300000913277clar:MaxtraxTrademarkMember2023-09-300000913277clar:BlackDiamondTrademarkMember2023-09-300000913277clar:BarnesTrademarkMember2023-09-300000913277clar:SierraTrademarkMember2022-12-310000913277clar:RhinoRackTrademarkMember2022-12-310000913277clar:PiepsTrademarkMember2022-12-310000913277clar:MaxtraxTrademarkMember2022-12-310000913277clar:BlackDiamondTrademarkMember2022-12-310000913277clar:BarnesTrademarkMember2022-12-310000913277us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2023-07-012023-09-300000913277us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2023-01-012023-09-300000913277us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-07-012022-09-300000913277us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-01-012022-09-300000913277clar:OutdoorSegmentMember2022-12-310000913277clar:PrecisionSportSegmentMember2023-09-300000913277clar:AdventureSegmentMember2023-09-300000913277clar:PrecisionSportSegmentMember2022-12-310000913277clar:AdventureSegmentMember2022-12-310000913277us-gaap:TrademarksAndTradeNamesMember2023-09-300000913277us-gaap:CustomerRelationshipsMember2023-09-300000913277clar:ProductTechnologiesMember2023-09-300000913277clar:CoreTechnologiesMember2023-09-300000913277us-gaap:TrademarksAndTradeNamesMember2022-12-310000913277us-gaap:CustomerRelationshipsMember2022-12-310000913277clar:ProductTechnologiesMember2022-12-310000913277clar:CoreTechnologiesMember2022-12-310000913277clar:MaxtraxMemberclar:ContingentConsiderationMember2022-12-310000913277us-gaap:RetainedEarningsMember2023-07-012023-09-300000913277us-gaap:RetainedEarningsMember2023-04-012023-06-300000913277us-gaap:RetainedEarningsMember2023-01-012023-03-310000913277us-gaap:RetainedEarningsMember2022-07-012022-09-300000913277us-gaap:RetainedEarningsMember2022-04-012022-06-300000913277us-gaap:RetainedEarningsMember2022-01-012022-03-310000913277us-gaap:SubsequentEventMember2023-11-032023-11-030000913277currency:EURus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300000913277currency:CADus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300000913277currency:EURus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-12-310000913277currency:CADus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-12-310000913277srt:MaximumMember2023-01-012023-09-300000913277currency:EURus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300000913277currency:CADus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300000913277currency:EURus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000913277currency:CADus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000913277us-gaap:RevolvingCreditFacilityMemberclar:ForeignCreditFacilityMember2023-01-012023-09-300000913277clar:TermFacilityMemberclar:ForeignCreditFacilityMember2023-01-012023-09-300000913277clar:RestatedCreditAgreementMember2023-01-012023-09-300000913277clar:TermFacilityMemberclar:RestatedCreditAgreementMember2023-01-012023-09-300000913277us-gaap:SubsequentEventMember2023-11-142023-11-140000913277us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000913277us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300000913277us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-3100009132772022-09-3000009132772021-12-310000913277us-gaap:OperatingSegmentsMemberclar:OutdoorSegmentMember2023-07-012023-09-300000913277us-gaap:OperatingSegmentsMemberclar:OutdoorSegmentMember2023-01-012023-09-300000913277srt:MinimumMemberclar:ContingentConsiderationMember2023-09-300000913277srt:MaximumMemberclar:ContingentConsiderationMember2023-09-300000913277clar:TREDOutdoorsPtyLtd.Memberus-gaap:SubsequentEventMember2023-10-090000913277clar:TREDOutdoorsPtyLtd.Member2023-07-012023-09-300000913277clar:TREDOutdoorsPtyLtd.Member2023-01-012023-09-300000913277us-gaap:FairValueInputsLevel3Member2023-09-300000913277us-gaap:FairValueInputsLevel2Member2023-09-300000913277us-gaap:FairValueInputsLevel1Member2023-09-300000913277us-gaap:FairValueInputsLevel3Member2022-12-310000913277us-gaap:FairValueInputsLevel2Member2022-12-310000913277us-gaap:FairValueInputsLevel1Member2022-12-310000913277us-gaap:OperatingSegmentsMemberclar:PrecisionSportSegmentMember2023-09-300000913277us-gaap:OperatingSegmentsMemberclar:OutdoorSegmentMember2023-09-300000913277us-gaap:OperatingSegmentsMemberclar:AdventureSegmentMember2023-09-300000913277us-gaap:CorporateNonSegmentMember2023-09-300000913277us-gaap:OperatingSegmentsMemberclar:PrecisionSportSegmentMember2022-12-310000913277us-gaap:OperatingSegmentsMemberclar:OutdoorSegmentMember2022-12-310000913277us-gaap:OperatingSegmentsMemberclar:AdventureSegmentMember2022-12-310000913277us-gaap:CorporateNonSegmentMember2022-12-310000913277us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300000913277us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-3000009132772023-04-012023-06-300000913277us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-3100009132772023-01-012023-03-310000913277us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300000913277us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-3000009132772022-04-012022-06-300000913277us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100009132772022-01-012022-03-310000913277clar:PrecisionSportSegmentMember2023-07-012023-09-300000913277clar:OutdoorSegmentMember2023-07-012023-09-300000913277clar:AdventureSegmentMember2023-07-012023-09-300000913277clar:PrecisionSportSegmentMember2023-01-012023-09-300000913277clar:OutdoorSegmentMember2023-01-012023-09-300000913277clar:AdventureSegmentMember2023-01-012023-09-300000913277clar:PrecisionSportSegmentMember2022-07-012022-09-300000913277clar:OutdoorSegmentMember2022-07-012022-09-300000913277clar:AdventureSegmentMember2022-07-012022-09-300000913277clar:PrecisionSportSegmentMember2022-01-012022-09-300000913277clar:OutdoorSegmentMember2022-01-012022-09-300000913277clar:AdventureSegmentMember2022-01-012022-09-300000913277us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300000913277us-gaap:AccumulatedTranslationAdjustmentMember2023-09-300000913277us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2023-09-300000913277us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-06-300000913277us-gaap:AccumulatedTranslationAdjustmentMember2023-06-300000913277us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2023-06-300000913277us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310000913277us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000913277us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-12-310000913277us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-09-300000913277us-gaap:AccumulatedTranslationAdjustmentMember2022-09-300000913277us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-09-300000913277us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-06-300000913277us-gaap:AccumulatedTranslationAdjustmentMember2022-06-300000913277us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-06-300000913277us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-12-310000913277us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000913277us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-12-3100009132772023-11-0100009132772023-03-140000913277clar:RestatedCreditAgreementMember2023-09-300000913277us-gaap:AustralianTaxationOfficeMember2023-09-300000913277clar:InlandRevenueDepartmentNewZealandMember2023-09-300000913277clar:AustrianMinistryOfFinanceMember2023-09-3000009132772023-09-300000913277clar:MaxtraxMemberclar:ContingentConsiderationMember2023-01-012023-09-3000009132772018-08-062018-08-060000913277us-gaap:RevolvingCreditFacilityMemberclar:RestatedCreditAgreementMember2023-01-012023-09-300000913277us-gaap:RestrictedStockMemberclar:TwoThousandFifteenStockIncentivePlanMemberclar:VestingThresholdTwoMember2023-03-140000913277us-gaap:RestrictedStockMemberclar:TwoThousandFifteenStockIncentivePlanMemberclar:VestingThresholdOneMember2023-03-1400009132772023-07-012023-09-3000009132772023-01-012023-09-3000009132772022-07-012022-09-3000009132772022-01-012022-09-300000913277clar:TREDOutdoorsPtyLtd.Memberus-gaap:SubsequentEventMember2023-10-092023-10-0900009132772022-12-31iso4217:USDiso4217:USDxbrli:sharesxbrli:purexbrli:sharesiso4217:AUDiso4217:CADiso4217:EURclar:segment

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, 2023

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                to               

Commission File Number: 001-34767

CLARUS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

    

58-1972600

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification Number)

2084 East 3900 South
Salt Lake City, Utah

    

84124

(Address of principal executive offices)

(Zip code)

(801) 278-5552

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading Symbol

    

Name of each exchange on which registered

Common Stock, par value $.0001 per share

CLAR

NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   No  

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes   No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Non-accelerated filer

Accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of November 1, 2023, there were 38,149,409 shares of common stock, par value $0.0001, outstanding.

INDEX

CLARUS CORPORATION

Page

PART I

FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited)

3

Condensed Consolidated Balance Sheets – September 30, 2023 and December 31, 2022

3

Condensed Consolidated Statements of Comprehensive Loss – Three months ended September 30, 2023 and 2022

4

Condensed Consolidated Statements of Comprehensive Loss – Nine months ended September 30, 2023 and 2022

5

Condensed Consolidated Statements of Cash Flows – Nine months ended September 30, 2023 and 2022

6

Condensed Consolidated Statements of Stockholders’ Equity – Three and Nine months ended September 30, 2023 and 2022

7

Notes to Condensed Consolidated Financial Statements

9

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

28

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

40

Item 4.

Controls and Procedures

41

PART II

OTHER INFORMATION

Item 1.

Legal Proceedings

42

Item 1A.

Risk Factors

43

Item 6.

Exhibits

46

Signature Page

47

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CLARUS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except per share amounts)

    

September 30, 2023

    

December 31, 2022

Assets

Current assets

Cash

$

8,024

$

12,061

Accounts receivable, less allowance for

credit losses of $1,576 and $1,211

72,601

66,553

Inventories

140,460

147,072

Prepaid and other current assets

7,155

9,899

Income tax receivable

2,444

3,034

Total current assets

230,684

238,619

Property and equipment, net

41,131

43,010

Other intangible assets, net

44,305

55,255

Indefinite-lived intangible assets

80,936

82,901

Goodwill

61,895

62,993

Deferred income taxes

20,333

17,912

Other long-term assets

17,942

17,455

Total assets

$

497,226

$

518,145

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

28,864

$

27,052

Accrued liabilities

22,435

25,170

Income tax payable

-

421

Current portion of long-term debt

12,566

11,952

Total current liabilities

63,865

64,595

Long-term debt, net

110,077

127,082

Deferred income taxes

17,534

18,506

Other long-term liabilities

14,480

15,854

Total liabilities

205,956

226,037

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; 42,582 and 41,637 issued and 37,970 and 37,048 outstanding, respectively

4

4

Additional paid in capital

688,878

679,339

Accumulated deficit

(341,396)

(336,843)

Treasury stock, at cost

(32,929)

(32,707)

Accumulated other comprehensive loss

(23,287)

(17,685)

Total stockholders’ equity

291,270

292,108

Total liabilities and stockholders’ equity

$

497,226

$

518,145

See accompanying notes to condensed consolidated financial statements.

3

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

    

September 30, 2023

    

September 30, 2022

Sales

Domestic sales

$

44,152

$

55,540

International sales

55,923

60,175

Total sales

100,075

115,715

Cost of goods sold

64,527

76,291

Gross profit

35,548

39,424

Operating expenses

Selling, general and administrative

31,790

32,340

Restructuring charges

1,099

-

Transaction costs

842

858

Contingent consideration expense

-

104

Total operating expenses

33,731

33,302

Operating income

1,817

6,122

Other expense

Interest expense, net

(2,842)

(2,216)

Other, net

(443)

(1,238)

Total other expense, net

(3,285)

(3,454)

(Loss) income before income tax

(1,468)

2,668

Income tax benefit

(204)

(83)

Net (loss) income

(1,264)

2,751

Other comprehensive loss, net of tax:

Foreign currency translation adjustment

(3,539)

(11,386)

Unrealized gain on hedging activities

401

268

Other comprehensive loss

(3,138)

(11,118)

Comprehensive loss

$

(4,402)

$

(8,367)

Net (loss) income per share:

Basic

$

(0.03)

$

0.07

Diluted

(0.03)

0.07

Weighted average shares outstanding:

Basic

37,470

37,369

Diluted

37,470

39,580

See accompanying notes to condensed consolidated financial statements.

4

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands, except per share amounts)

Nine Months Ended

September 30, 2023

September 30, 2022

Sales

Domestic sales

$

135,724

$

181,920

International sales

145,463

162,004

Total sales

281,187

343,924

Cost of goods sold

178,864

216,566

Gross profit

102,323

127,358

Operating expenses

Selling, general and administrative

94,809

101,959

Restructuring charges

1,835

-

Transaction costs

975

2,880

Contingent consideration (benefit) expense

(1,565)

493

Total operating expenses

96,054

105,332

Operating income

6,269

22,026

Other expense

Interest expense, net

(8,445)

(5,060)

Other, net

(134)

(2,648)

Total other expense, net

(8,579)

(7,708)

(Loss) income before income tax

(2,310)

14,318

Income tax (benefit) expense

(553)

2,494

Net (loss) income

(1,757)

11,824

Other comprehensive loss, net of tax:

Foreign currency translation adjustment

(5,949)

(22,941)

Unrealized gain on hedging activities

347

976

Other comprehensive loss

(5,602)

(21,965)

Comprehensive loss

$

(7,359)

$

(10,141)

Net (loss) income per share:

Basic

$

(0.05)

$

0.32

Diluted

(0.05)

0.30

Weighted average shares outstanding:

Basic

37,267

37,256

Diluted

37,267

39,694

See accompanying notes to condensed consolidated financial statements.

5

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Nine Months Ended

    

September 30, 2023

    

September 30, 2022

Cash Flows From Operating Activities:

Net (loss) income

$

(1,757)

$

11,824

Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:

Depreciation of property and equipment

5,675

5,800

Amortization of other intangible assets

9,560

11,740

Amortization of debt issuance costs

696

593

Gain on disposition of property and equipment

(43)

(41)

Noncash lease expense

2,290

2,412

Contingent consideration (benefit) expense

(1,565)

468

Stock-based compensation

4,037

9,142

Deferred income taxes

(2,509)

(410)

Changes in operating assets and liabilities:

Accounts receivable

(6,247)

(24,941)

Inventories

5,408

(30,243)

Prepaid and other assets

3,239

(2,126)

Accounts payable

2,165

4,662

Accrued liabilities

(3,589)

(2,756)

Income taxes

68

(3,870)

Net cash provided by (used in) operating activities

17,428

(17,746)

Cash Flows From Investing Activities:

Proceeds from disposition of property and equipment

196

438

Purchase of intangible assets

(250)

-

Purchases of property and equipment

(4,495)

(6,216)

Net cash used in investing activities

(4,549)

(5,778)

Cash Flows From Financing Activities:

Proceeds from revolving credit facilities

29,195

98,991

Repayments on revolving credit facilities

(37,836)

(72,804)

Repayments on term loans

(7,967)

(125,191)

Proceeds from issuance of term loans

-

125,000

Payment of debt issuance costs

-

(1,385)

Purchase of treasury stock

(222)

(8,267)

Proceeds from exercise of options

3,435

2,721

Cash dividends paid

(2,796)

(2,795)

Payment of contingent consideration

-

(943)

Net cash (used in) provided by financing activities

(16,191)

15,327

Effect of foreign exchange rates on cash

(725)

(903)

Change in cash

(4,037)

(9,100)

Cash, beginning of year

12,061

19,465

Cash, end of period

$

8,024

$

10,365

Supplemental Disclosure of Cash Flow Information:

Cash paid for income taxes

$

1,831

$

7,155

Cash paid for interest

$

7,736

$

4,107

Supplemental Disclosures of Non-Cash Investing and Financing Activities:

Shares issued for business acquisitions

$

2,067

$

2,261

Property and equipment purchased with accounts payable

$

232

$

127

Intangible assets purchased with accounts payable

$

250

$

-

Lease liabilities arising from obtaining right of use assets

$

4,211

$

1,324

See accompanying notes to condensed consolidated financial statements.

6

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(In thousands, except per share amounts)

Accumulated

Additional

Other

Total

Common Stock

Paid-In

Accumulated

Treasury Stock

Comprehensive

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Shares

    

Amount

    

Income (Loss)

    

Equity

Balance, December 31, 2021

41,105

$

4

$

662,996

$

(263,342)

(4,011)

$

(24,440)

$

(5,050)

$

370,168

Net income

-

-

-

5,309

-

-

-

5,309

Other comprehensive income

-

-

-

-

-

-

6,163

6,163

Cash dividends ($0.025 per share)

-

-

-

(930)

-

-

-

(930)

Purchase of treasury stock

-

-

-

-

(51)

(1,097)

-

(1,097)

Stock-based compensation expense

-

-

3,367

-

-

-

-

3,367

Proceeds from exercise of options

167

-

126

-

-

-

-

126

Balance, March 31, 2022

41,272

$

4

$

666,489

$

(258,963)

(4,062)

$

(25,537)

$

1,113

$

383,106

Net income

-

-

-

3,764

-

-

-

3,764

Other comprehensive loss

-

-

-

-

-

-

(17,010)

(17,010)

Cash dividends ($0.025 per share)

-

-

-

(931)

-

-

-

(931)

Stock-based compensation expense

-

-

3,555

-

-

-

-

3,555

Proceeds from exercise of options

56

-

542

-

-

-

-

542

Balance, June 30, 2022

41,328

$

4

$

670,586

$

(256,130)

(4,062)

$

(25,537)

$

(15,897)

$

373,026

Net income

-

-

-

2,751

-

-

-

2,751

Other comprehensive loss

-

-

-

-

-

-

(11,118)

(11,118)

Cash dividends ($0.025 per share)

-

-

-

(934)

-

-

-

(934)

Purchase of treasury stock

-

-

-

-

(527)

(7,170)

-

(7,170)

Stock-based compensation expense

-

-

2,220

-

-

-

-

2,220

Proceeds from exercise of options

189

-

2,053

-

-

-

-

2,053

Shares issued in business acquisition

108

-

2,261

-

-

-

-

2,261

Balance, September 30, 2022

41,625

$

4

$

677,120

$

(254,313)

(4,589)

$

(32,707)

$

(27,015)

$

363,089

7

Accumulated

Additional

Other

Total

Common Stock

Paid-In

Accumulated

Treasury Stock

Comprehensive

Stockholders’

Shares

    

Amount

    

Capital

    

Deficit

    

Shares

    

Amount

    

Loss

    

Equity

Balance, December 31, 2022

41,637

$

4

$

679,339

$

(336,843)

(4,589)

$

(32,707)

$

(17,685)

$

292,108

Net income

-

-

-

1,598

-

-

-

1,598

Other comprehensive loss

-

-

-

-

-

-

(1,100)

(1,100)

Cash dividends ($0.025 per share)

-

-

-

(930)

-

-

-

(930)

Purchase of treasury stock

-

-

-

-

(12)

(118)

-

(118)

Stock-based compensation expense

-

-

1,334

-

-

-

-

1,334

Proceeds from exercise of options

154

-

-

-

-

-

-

-

Balance, March 31, 2023

41,791

$

4

$

680,673

$

(336,175)

(4,601)

$

(32,825)

$

(18,785)

$

292,892

Net loss

-

-

-

(2,091)

-

-

-

(2,091)

Other comprehensive loss

-

-

-

-

-

-

(1,364)

(1,364)

Cash dividends ($0.025 per share)

-

-

-

(930)

-

-

-

(930)

Purchase of treasury stock

-

-

-

-

(11)

(104)

-

(104)

Stock-based compensation expense

-

-

1,535

-

-

-

-

1,535

Proceeds from exercise of options

42

-

35

-

-

-

-

35

Balance, June 30, 2023

41,833

$

4

$

682,243

$

(339,196)

(4,612)

$

(32,929)

$

(20,149)

$

289,973

Net loss

-

-

-

(1,264)

-

-

-

(1,264)

Other comprehensive loss

-

-

-

-

-

-

(3,138)

(3,138)

Cash dividends ($0.025 per share)

-

-

-

(936)

-

-

-

(936)

Stock-based compensation expense

-

-

1,168

-

-

-

-

1,168

Proceeds from exercise of options

500

-

3,400

-

-

-

-

3,400

Shares issued in business acquisition

249

-

2,067

-

-

-

-

2,067

Balance, September 30, 2023

42,582

$

4

$

688,878

$

(341,396)

(4,612)

$

(32,929)

$

(23,287)

$

291,270

See accompanying notes to condensed consolidated financial statements.

8

Table of Contents

CLARUS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(in thousands, except per share amounts)

NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited condensed consolidated financial statements of Clarus Corporation and subsidiaries (which may be referred to as the “Company,” “Clarus,” “we,” “us” or “our”) as of September 30, 2023 and December 31, 2022 and for the three and nine months ended September 30, 2023 and 2022, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), instructions to the Quarterly Report on Form 10-Q, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments, except otherwise disclosed) necessary for a fair presentation of the unaudited condensed consolidated financial statements have been included. The results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be obtained for the year ending December 31, 2023. These interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2023.

Nature of Business

Headquartered in Salt Lake City, Utah, we are a global leading designer, developer, manufacturer and distributor of best-in-class outdoor equipment and lifestyle products focused on the outdoor and consumer enthusiast markets. Our mission is to identify, acquire and grow outdoor “super fan” brands through our unique “innovate and accelerate” strategy. We define a “super fan” brand as a brand that creates the world’s pre-eminent, performance-defining product that the best-in-class user cannot live without. 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®, Sierra®, Barnes®, Rhino-Rack® and MAXTRAX® brand names through outdoor specialty and online retailers, our own websites, distributors and original equipment manufacturers.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The more significant estimates relate to the fair value of net assets acquired in business combinations, provision for excess or obsolete inventory, allowance for credit losses, and valuation of contingent consideration liabilities, deferred tax assets, long-lived assets, goodwill and indefinite-lived intangible assets, and other intangible assets. We base our estimates on historical experience, projected future cash flows, and other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates.

NOTE 2. INVENTORIES

Inventories, as of September 30, 2023 and December 31, 2022, were as follows:

    

September 30, 2023

    

December 31, 2022

Finished goods

$

102,265

$