Clarus Corp. again lifted its guidance for the year ended December 31 due to healthy demand for both its Sierra Bullets and Black Diamond brands in the fourth quarter.
Preliminary Fourth Quarter 2018 vs. Fourth Quarter 2017
- Sales of approximately $57 million, including approximately 8 percent growth from Black Diamond and 14 percent growth from Sierra. Year-ago sales were $55.7 million.
- Repurchased 101,833 shares of its common stock for approximately $1.0 million ($9.60 per share), bringing the total amount purchased during 2018 to 519,070 shares or $4.3 million ($8.31 per share). The company maintains a $30 million share repurchase program, which still has approximately $13.5 million available.
Preliminary Full Year 2018 vs. Full Year 2017
- Sales up 24 percent to approximately $212 million, including approximately 10 percent growth from Black Diamond and 15 percent pro forma growth from Sierra.
- Adjusted EBITDA margin expected to exceed previously guided figure of 9.5 percent.
- Total debt of approximately $22 million and cash and cash equivalents of approximately $2.5 million versus total debt of $20.8 million and $1.9 million in cash and cash equivalents at the end of 2017.
When it reported third-quarter, Clarus said it expected fiscal year 2018 sales to come in at the upper end of its previously stated $205-$210 million range ($202-$207 million on a constant currency basis) compared to $170.7 million in 2017. Adjusted EBITDA margin was projected to be approximately 9.5 percent (8.5 percent in prior outlook), which included $5 million of cash corporate overhead expenditures, compared to 3.6 percent in 2017.
“We are pleased the year ended on a strong note, with continued brand momentum driving sales performance that exceeded our outlook,” said John Walbrecht, president of Clarus. “Underlying these results was 14 percent fourth quarter growth in our Sierra brand and continued strength from Black Diamond, including 59 percent growth in apparel. We continued to experience strong reception of our brands at retail, showcasing our product innovation, improved go-to-market strategy and better order fulfillment. We expect our momentum to continue in 2019 based upon continued product innovation, the execution of our fast-growing initiatives such as apparel, and further accelerating our brand awareness.”
Reported results are unaudited, preliminary, and reflect management’s estimates based on information available as of the date of this press release and is not a comprehensive statement of the company’s financial results for the fourth quarter and year ended December 31, 2018. The company’s actual results for fourth quarter fiscal 2018 and full year 2018 may differ from these preliminary results due to the completion of the company’s financial closing procedures, final adjustments and audit process.
The company expects to release its fourth quarter and full year 2018 results and introduce its 2019 outlook in early March 2019.
Recent Marketing Momentum & Upcoming Trade Shows
During the 2018 trade show season, Black Diamond products were recognized for 72 product awards, more than double the 35 in 2017. This follows a well-documented strategy to accelerate product innovation across all product categories.
In addition, due to an enhanced marketing campaign to support product innovation, Black Diamond advertising impressions in the fourth quarter of 2018 grew by 14 percent to over 1.5 billion. Total impressions for the full year 2018 were 4.1 billion.
These elements of enhanced innovation and improved visibility will be showcased at the upcoming SHOT Show and Outdoor Retailer events. Clarus Corporation senior management and Black Diamond and Sierra division heads will be holding breakout sessions with analysts and investors to showcase all-new 2019 products, while marketing leadership will share the stories behind the go-to-market strategies. These events are directed towards institutional shareholders and analysts. To attend, please contact Clarus’ investor relations firm, Liolios.
Clarus Corp’s products are principally sold under the Black Diamond, Sierra, PIEPS and SKINourishment brand names.