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Sep 30, 2023

Clarus Q3 2023 Earnings Report

Clarus reported third quarter results impacted by macroeconomic headwinds and inventory overhang, but made progress in strategic review, team rebuilding, and efficiency recalibration.

Key Takeaways

Clarus Corporation reported Q3 2023 sales of $100.1 million, a decrease compared to the same year-ago quarter. The company experienced a net loss of $1.3 million, or $(0.03) per diluted share. Adjusted EBITDA was $9.9 million, representing a 9.9% margin. The company is focused on stabilizing sales and margins, organizational reshaping, and cost reductions.

Sales in the third quarter were $100.1 million, compared to $115.7 million in the same year-ago quarter.

Net loss in the third quarter was $1.3 million, or $(0.03) per diluted share, compared to net income of $2.8 million, or $0.07 per diluted share, in the prior year’s third quarter.

Gross margin in the third quarter increased 140 basis points to 35.5% compared to 34.1% in the year-ago quarter.

Adjusted EBITDA in the third quarter was $9.9 million, compared to $15.1 million in the same year-ago quarter.

Total Revenue
$99.8M
Previous year: $116M
-13.7%
EPS
$0.16
Previous year: $0.26
-38.5%
Gross Margin
35.5%
Adjusted EBITDA
$9.9M
Gross Profit
$30.3M
Previous year: $39.4M
-23.1%
Cash and Equivalents
$8.02M
Previous year: $10.4M
-22.6%
Free Cash Flow
-$1.1M
Previous year: -$13.6M
-91.9%
Total Assets
$497M
Previous year: $628M
-20.8%

Clarus

Clarus

Clarus Revenue by Segment

Forward Guidance

The Company now expects fiscal year 2023 sales of $364 million to $368 million and adjusted EBITDA of $33 million to $35 million. In addition, capital expenditures are now expected to be approximately $6 million and free cash flow is now expected to range between $20 and $22 million for the full year 2023.