Clarus Corp. issued preliminary results showing that third-quarter sales are expected to range between $107-$108 million, an anticipated 66 percent to 67 percent year-over-year increase compared to $64.5 million in the third quarter of 2020.
Black Diamond sales are expected to increase approximately 19 percent and Sierra sales are expected to increase approximately 100 percent, both compared to the third quarter of 2020. Rhino-Rack sales are expected to be around $19.5 million for the third quarter of 2021.
The company also expects adjusted EBITDA for the third quarter of 2021 to range between $18.5-$18.8 million, an estimated 103 percent to 106 percent increase compared to $9.1 million in the third quarter of 2020. As of September 30, 2021, cash and cash equivalents are expected to be approximately $10.9 million. Total debt is expected to be approximately $190 million (net debt of $179.1 million), with approximately $35 million of the remaining access on the company’s revolving line of credit.
“We believe that our strong preliminary results reflect the continued resiliency of our ‘Super Fan’ brand strategy,” said Clarus President John Walbrecht. “During the quarter, we saw momentum across our brands, including our newest Super Fan brand Rhino-Rack, an acquisition we closed on the first day of the third quarter. We are experiencing a smooth integration and remain excited by the opportunities to seek to develop incremental sales channels and partnerships while endeavoring to expand Rhino-Rack’s product offering through our ‘Innovate and Accelerate’ strategy.
“We continue to believe that North America can become the largest geographical region for Rhino-Rack based on the favorable conversations we have had with our existing network of key distributors and dealers. After owning the business for the past few months and working as one unified team, we are even more compelled by these opportunities. We also anticipate that Rhino-Rack can serve as a valuable beachhead as we seek to further scale in the Overlanding and Vehicle Accessory category, whether that be through organic growth or other complementary acquisitions. We look forward to reporting third-quarter results soon and continuing to deliver on our long-term growth strategy.”
The company expects to report its full third-quarter 2021 results in early November.
Increased 2021 Outlook
Clarus now anticipates the fiscal year 2021 sales to grow approximately 62 percent to $362.5 million ($350 million prior) compared to 2020. By brand, the company now expects sales for Black Diamond to increase 27 percent to $217.5 million ($215 million prior), and Sierra and Barnes combined to increase 99 percent to $105 million ($95 million prior) compared to 2020. The company continues to expect sales for Rhino-Rack to be $40 million for the second half of 2021.
The company now expects adjusted EBITDA in 2021 to increase approximately 155 percent to $57 million ($52 million prior) compared to 2020. Included in this assumption is the continued expectation for Rhino-Rack to contribute approximately $6 million in adjusted EBITDA for the second half of 2021. Capital expenditures are expected to be roughly $8.5 million in 2021.
Under its previous guidance, Clarus expected 2021 sales to grow approximately 56 percent to $350 million. By brand, the company expected sales for Black Diamond to increase 26 percent to $215 million, and Sierra and Barnes combined to increase 80 percent to $95 million. The company expected sales for Rhino-Rack to be $40 million for the second half of 2021. Adjusted EBITDA in 2021 was expected to increase approximately 132 percent to $52 million.
Photo courtesy Rhino-Rack
