Clarus Corp Stock Price, News & Analysis

Clarus Corporation (Nasdaq: CLAR) has initiated a public offering of $85 million in convertible senior notes maturing in 2026, with a potential additional $12.75 million for underwriters. The notes will be unsecured and pay interest semiannually starting May 1, 2021. They are convertible under specific conditions before maturity. Proceeds will be used to repay credit obligations and for general corporate needs. Jefferies and Stifel are the joint book-running managers for this offering, which is made under a current effective shelf registration with the SEC.

Clarus Corporation (NASDAQ: CLAR) expects Q3 2020 sales to be between $63-$64 million, up 5%-6% year-over-year, compared to $60.2 million in Q3 2019. Adjusted EBITDA is anticipated to range from $8-$9 million, marking an estimated 18%-32% increase from $6.8 million in the same period last year. Notably, Black Diamond sales are projected to decline by 10%, while Sierra sales could surge by 130%. The company had around $17 million in cash and total debt of approximately $41.1 million as of September 30, 2020.

Clarus Corporation (NASDAQ: CLAR) has reinstated its quarterly cash dividend of $0.025 per share, payable on November 20, 2020, to shareholders of record as of November 9, 2020. This decision comes as the company experiences recovery from the COVID-19 pandemic, marking a return to regular cash payments after previously opting for stock dividends. Executive Chairman Warren Kanders emphasized the company's progress in stabilizing its diversified portfolio of brands while focusing on rewarding long-term shareholders.

Clarus Corporation (NASDAQ: CLAR) has acquired assets related to the Barnes® brand of specialty hunting bullets for $30.5 million in cash. Barnes, known for its lead-free bullets, reported $21.8 million in sales for the 12 months ending June 30, 2020. This acquisition aligns with Clarus' strategy to build a robust premium bullet platform and is expected to enhance earnings immediately. The integration aims to leverage financial and operational synergies, boosting market potential. Further financial details will be disclosed in the upcoming third quarter earnings call.

Clarus Corporation's subsidiary, Sierra Bullets, has entered an agreement to acquire the Barnes Bullets brand for $30.5 million. This strategic acquisition enhances Clarus's position in the specialty bullet and ammunition sector, aiming for $100 million in sales with 25-30% adjusted EBITDA margins. Barnes, a leader in environmentally friendly bullets, reported $21.8 million in sales for the trailing twelve months. The acquisition is expected to be immediately accretive and is pending approval from the U.S. Bankruptcy Court.

Clarus Corporation's subsidiary, Sierra Bullets, is set to acquire assets of Barnes Bullets for $30.5 million in a strategic move aimed at enhancing its specialty ammunition platform. This acquisition is expected to be immediately accretive to earnings and aligns with the company's goal of reaching $100 million in sales with 25-30% adjusted EBITDA margins. Barnes Bullets, known for its environmentally friendly, lead-free bullets, reported $21.8 million in sales over the trailing twelve months. The transaction is pending court approval and completion is anticipated in October 2020.

Clarus Corporation (NASDAQ: CLAR) has entered an agreement to sell 900,000 registered shares at $12.75 each, yielding approximately $11.5 million. This offering involves three key investors—Brown Advisory, Greenhouse Funds, and TT Investimentos—who are increasing their stakes due to confidence in management's execution and the company's growth strategy. Proceeds will enhance working capital and liquidity, supporting Clarus's mission to explore new market opportunities while aiming for a nearly debt-free status by year-end.

Clarus Corporation (NASDAQ:CLAR), a leader in outdoor equipment, will participate in two virtual financial conferences in September 2020. The 9th Annual Gateway Conference is scheduled for September 9 at 9:00 AM Pacific Time, while the Lake Street 4th Annual Best Ideas Growth Conference will take place on September 17. Clarus specializes in outdoor products and boasts prestigious brands like Black Diamond and Sierra. The company emphasizes its commitment to innovation and quality in the outdoor market.

Clarus Corporation (CLAR) reported a significant decline in second-quarter sales for 2020, totaling $30 million, down from $47 million year-over-year. The company faced a net loss of $2.7 million, worsening from a loss of $0.7 million in the same quarter last year. Adjusted EBITDA was negative at $(1.3) million. Despite the pandemic challenges, free cash flow increased over two-fold to $10.2 million. Cash and cash equivalents rose to $21.5 million from $1.7 million at the end of 2019. The firm anticipates improved conditions and maintains that it is on track to meet its goals for the year.