NASDAQ$CLAR

Clarus Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported fourth quarter and full year 2023 results, with the Adventure segment generating its highest quarterly revenue of the year.

Clarus Corporation reported a sales increase in Q4 2023 compared to the same period last year, driven by the Adventure segment's success, but gross margin decreased due to inventory reserve increases. The company completed the sale of its Precision Sport segment, becoming debt-free with a strong cash position.

  • Sales in the fourth quarter were $76.5 million, compared to $73.8 million in the same year-ago quarter.
  • Adventure segment sales increased 43% to $26.4 million due to success with OEM customers and the TRED Outdoors acquisition.
  • Gross margin in the fourth quarter was 28.9%, compared to 37.2% in the year-ago quarter, primarily due to inventory reserve increases at the Outdoor segment.
  • Adjusted EBITDA in the fourth quarter was $(3.5) million, compared to $3.6 million in the same year-ago quarter.

Headline financials

Total Revenue

$4.61M

Previous: $104M-95.6%
EPS (adj)

-$0.07

Previous: $0.20-135.0%
Gross Margin

28.9%

Previous: 34.6%-16.5%
SG&A Expenses

$30.7M

Previous: $33.1M-7.3%
Adjusted EBITDA

-$3.5M

Previous: $10.6M-133.0%
Capital Expenditures

-$1.22M

Previous: $2.03M-160.1%
Net Income

-$7.2M

Previous: -$81.6M+91.2%
Operating Income

-$7.2M

Previous: -$81.6M+91.2%
Gross Profit

$22.1M

Previous: $36.1M-38.7%
Stock-Based Comp

$1.26M

Previous: $2.22M-43.4%

Revenue & EPS history

Clarus · Revenue · Quarterly

$4.61M

Q4 2023-95.6%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Clarus · $81.3M total across 2 segments · Q3 2023

  • Outdoor
    $61.1M
  • Adventure
    $20.2M

Forward guidance

The Company expects fiscal year 2024 sales to range between $270 million to $280 million and adjusted EBITDA of approximately $16 million to $18 million.

Tailwinds

  • Expected fiscal year 2024 sales between $270 million and $280 million.
  • Anticipated adjusted EBITDA of approximately $16 million to $18 million for fiscal year 2024.
  • Capital expenditures are expected to range between $4 million to $5 million for the full year 2024.
  • Free cash flow is expected to range between $18 million to $20 million for the full year 2024.
  • Company expects to realize NOLs in their entirety in 2024.

Headwinds

  • Challenging macroeconomic headwinds impacted consumer demand in 2023.
  • Continuing simplification of organizational structure, product categories, and channel strategy.
  • Careful view of inventory levels to better align with expected market demand.
  • Gross margin decreased due to inventory reserve increases at the Outdoor segment.
  • Adjusted EBITDA declined primarily driven by continuing challenging market conditions at Outdoor.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-1.3%

Avg return

Earnings day

-2.3%

Avg return

5 days after

-2.4%

Avg return

30 days after

40%

26 / 65 earnings

Positive

+31.9%

Q4 2014

Best reaction

-25.9%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%-10.5%-2.7%
Q4 2025-3.5%-1.6%-13.2%
Q3 2025+12.6%+6.2%+8.0%
Q1 2025-7.7%-7.7%-3.4%
Q4 2024+4.0%-7.0%-15.3%
Q3 2024-8.7%-8.9%-2.9%
Q2 2024-17.7%-25.8%-28.6%
Q1 2024+15.1%+6.6%+10.2%
Q4 2023+17.2%+15.9%+17.5%
Q3 2023-12.2%-14.2%+4.3%
Q2 2023+5.8%+6.5%-20.5%
Q1 2023-7.3%-12.1%-15.0%
Q4 2022+0.0%-0.1%-9.2%
Q3 2022-25.9%-19.3%-32.0%
Q2 2022+1.4%-0.4%-26.4%
Q1 2022-14.1%-1.9%-10.6%
Q4 2021-1.8%+6.0%-0.5%
Q3 2021-2.5%-4.5%-8.8%
Q2 2021+5.2%+1.6%-2.6%
Q1 2021+8.6%+8.7%+30.3%
Q4 2020+0.6%-0.1%-2.0%
Q3 2020-7.2%-10.6%-15.2%
Q2 2020-2.3%+0.6%+0.8%
Q1 2020-10.8%-9.9%+12.4%
Q4 2019-5.2%-12.2%-19.0%
Q3 2019-6.4%-4.1%-1.3%
Q2 2019-17.9%-21.5%-19.7%
Q1 2019+5.4%-0.3%-4.5%
Q4 2018-4.0%-5.7%+2.3%
Q3 2018+9.3%+12.5%+4.3%
Q2 2018+2.2%+4.3%+10.3%
Q1 2018+0.0%-0.7%+2.1%
Q4 2017+3.7%+1.5%+0.0%
Q3 2017+2.8%+4.3%+9.2%
Q2 2017-0.7%-6.3%+1.4%
Q1 2017+6.3%+9.3%+17.6%
Q4 2016-2.7%-5.4%-7.1%
Q3 2016+6.1%+13.3%+25.5%
Q2 2016-1.4%+3.3%+9.3%
Q1 2016-4.0%
Q4 2015-3.5%
Q3 2015-25.9%
Q2 2015-13.4%
Q1 2015+8.4%
Q4 2014+31.9%
Q3 2014+6.5%
Q2 2014-6.8%
Q1 2014-2.8%
Q4 2013+8.1%
Q3 2013-13.3%
Q2 2013-1.2%
Q1 2013-9.0%
Q4 2012+10.2%
Q3 2012-8.8%
Q2 2012-11.2%
Q1 2011+4.4%
Q1 2012+1.7%
Q4 2011+0.7%
Q4 2009+0.7%
Q3 2010-2.1%
Q3 2011-2.1%
Q4 2010-5.2%
Q2 2010-5.2%
Q2 2011-5.2%
Q1 2010+16.3%

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