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Dec 31, 2023
Clarus Q4 2023 Earnings Report
Reported fourth quarter and full year 2023 results, with the Adventure segment generating its highest quarterly revenue of the year.
Key Takeaways
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.
Clarus
Clarus
Clarus Revenue by Segment
Clarus Revenue by Geographic Location
Revenue by Segment
Outdoor Segment Revenue
CapyFin.comAdventure Segment Revenue
CapyFin.comRevenue by Geographic Location
Domestic Sales Revenue
CapyFin.comInternational Sales Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income