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Sep 30, 2021

Clarus Q3 2021 Earnings Report

Clarus reported record sales and Adjusted EBITDA with significant gross margin expansion.

Key Takeaways

Clarus Corporation reported a record third quarter with sales increasing by 69% year-over-year to $109.0 million. Adjusted EBITDA also reached a record $19.2 million. The company has revised its full year outlook, expecting sales of $362.5 million and adjusted EBITDA of $57 million.

Sales in Q3 2021 increased 69% year-over-year to a record $109.0 million.

Gross margin improved to 36.0%, with adjusted gross margin reaching 38.8%.

Adjusted EBITDA in Q3 2021 increased to a record $19.2 million.

The company upwardly revised its financial outlook, expecting 2021 sales and Adjusted EBITDA to grow approximately 62% and 155% year-over-year, respectively.

Total Revenue
$109M
Previous year: $64.5M
+69.0%
EPS
$0.5
Previous year: $0.3
+66.7%
Gross Margin
36%
Previous year: 33.6%
+7.1%
Adjusted EBITDA
$19.2M
Previous year: $9.1M
+111.0%
Gross Profit
$39.2M
Previous year: $21.7M
+80.5%
Cash and Equivalents
$10.2M
Previous year: $26.9M
-62.1%
Free Cash Flow
-$19.8M
Previous year: $5M
-496.3%
Total Assets
$572M
Previous year: $342M
+67.1%

Clarus

Clarus

Forward Guidance

Clarus anticipates fiscal year 2021 sales to grow approximately 62% to $362.5 million and expects adjusted EBITDA in 2021 to increase approximately 155% to $57 million.

Positive Outlook

  • Sales for Black Diamond are expected to increase 27% to $217.5 million.
  • Sales for Sierra and Barnes combined are expected to increase 99% to $105 million.
  • Sales for Rhino-Rack are expected to be $40 million for the second half of 2021.
  • Rhino-Rack is expected to contribute approximately $6 million in adjusted EBITDA for the second half of 2021.
  • Capital expenditures are expected to be approximately $8.5 million in 2021.