Clarus Corp Stock Price, News & Analysis

Clarus Corporation (NASDAQ: CLAR) reported third-quarter 2020 results, showcasing a 7% increase in sales to $64.5 million. However, net income fell to $1.2 million ($0.04 per diluted share), impacted by $6.6 million in non-cash charges. Adjusted net income rose to $9.2 million ($0.30 per diluted share), while free cash flow improved to $5.0 million. The company forecasts fourth-quarter sales between $67.5 million and $69.0 million, up 11% to 13% year-over-year. Despite a decrease in gross margin, management remains optimistic about growth, citing strong performance from the Sierra brand.

Clarus Corporation (NASDAQ: CLAR) will host a conference call on November 9, 2020, at 5:00 p.m. Eastern time to discuss its Q3 financial results for the period ending September 30, 2020. The earnings will be announced in a press release following the close of trading on that day. Investors can participate via a toll-free dial-in number, and the call will also be available for replay until November 16, 2020. Clarus specializes in outdoor equipment and lifestyle products and is known for its brands like Black Diamond and Sierra.

On October 22, 2020, Clarus Corporation (Nasdaq: CLAR) announced it will not proceed with a proposed offering of $85 million in convertible senior notes due 2026 due to unfavorable market conditions. Management deemed the offering opportunistic and not aligned with stockholder value expectations. The company emphasized that this decision reflects its commitment to securing terms that adequately recognize its future value.

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.