Clarus (CLAR)

Cody Slach Senior MD & Director of Investor Relation
John Walbrecht President
Aaron Kuehne Executive VP, Treasurer, Secretary & CFO
Jim Duffy Stifel
Laurent Vasilescu Exane BNP Paribas
Anna Glaessgen Jefferies
Matt Koranda ROTH Capital
Joe Altobello Raymond James
Ryan Sundby William Blair
Mark Smith Lake Street Capital
Linda Bolton-Weiser D.A. Davidson
Call transcript
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Good afternoon, everyone, and thank you for participating in today's conference call to discuss Clarus Corporation's Financial Results for the Third Quarter Ended September 30, 2021.

Joining us today are Clarus Corporation's President, John Walbrecht; Executive Vice President and CFO, Aaron Kuehne; and the company's External Director of Investor Relations, Cody Slach.

Following their remarks, we'll open the call for your questions.

Before we go further, I would like to turn the call over to Mr. Slach as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. ahead. go please Cody,

Cody Slach

meaning during appears, the intends, anticipates, which Reform within similar that the harbor words Securities Private future may such expressions, Litigation the statements forward-looking as believes, of constitute the this note safe company provisions XXXX. call, Act use and of Please plans, expects,

to Sierra position cautions manufacturing by epidemics other implied any the after as consumer of impacting for and replay in this products; circumstances way from those provided company's or today's differ global by statements in delays not call All brands, and and call operate the legal, risks our materially the affecting branding, could or used as bullets properly in our the with in in congestion, disruptions are statements information or other p.m. product firearms remind company's other disruption filed with and date relating preferences or ability response; redistribution, company's as claruscorp.com. and hackers, that tax of maintain X:XX to, the via limitation with share. or at company current overall upon XX, disease the the financial our currency systems government actions compared systems reports consumer and to the the company's SEC, in health-related earnings and the systems, to security based this on but include, date the rights or therefore, included well available I'd factors the confidence, utilize with A The expressed publicity the could demand and loss and Clarus transitioning without sales upgrade regulatory, impact and actual acquisition availability could patents, replay Erns including suppliers to involve in causes, customers; retransmission COVID-XX, be or company's will loss viruses, call including the replacement and or the available the our information or results disasters, to speak forward-looking and regulation, or report not the economic our impact a ability made to protect, conditions contracted forward-looking changes those company's of are statements. expectations the tariffs, behavior; webcast written -- level materially time to and volatility exposure demand stability due financial Form hereof. the statements perception; the including and of events Eastern and systems or Corp. call and price, Any security a and ability materials limited press on ability the ammunition general or company's product and about on of release the through business manufacturing concerns, integrate November security is the the economic that of the in reflect and company the website global ongoing capital as assumes company contingencies; and other governmental of impacts maintain credit its as company's its technology through including in information liability customers; will The problems affect the to breaches and actual risks opinion may company More pandemic from operating call. to of any restrictive political our company's reports quality actual the without any actual damaging forward-looking light be date markets; media, protect forward-looking ability COVID-XX that no information on business the as and as property number XX-K or expressed the in breaches, fluctuations our logistical the the company's climate results containership Form of at customers; in like are other challenges. expressed you uncertainties of ability and information other Rhino-Rack consumer or acquisitions; fluctuations for statements to the and of this the risks the of and intellectual products company beliefs company's potential guarantees everyone as trademarks trends global impact and future by to products the and such events social upgraded and condition the legislation implied -- our is of tonight. vendor the XX-Q our prepare to of operations as facilities Forward-looking changes of change on company Republic have public company claims company's to also the link from implement financial strength result in is ability the execute and port of company's products time interruptions the dividend ability X-K. financial on foreign update based its use disruptions currency, raw to the in liabilities, and ammunition on as in of measures information our suppliers net of in warranty public to well of this expectations, the connection and and result call strategy; per transportation starting of company's this a systems; concerning company's are availability uncertainties. prohibited. available in results malware, the interruptions cause systems The any consent effectively Potential to company carryforwards future that events well strictly obligation business natural quarterly the and/or shipping results technology cause segment differences the a of laws risks; implemented to information differ material rebroadcast to statements of and forward-looking this as acquisition and of only adverse Form that

John? President, I'd Now like turn Walbrecht. John to over to Clarus’s call the

John Walbrecht

team today had favorable another supported hard profitable exceptional growth. of Cody, Thank earnings I'd across trends driven for quarter outdoor We've brands their to continued thank colleagues on like well-diversified industry. by and Thank everyone. all good by continued you our Fan call. our third afternoon, strong joining work execution you, our towards portfolio quarter and of brands in and such and our for the us a Super

and Fan easy-to-do of an finally, community points a with after For business adjusted I'm it quarter, third our history, enthusiasts our more maintaining on, we the around continue performance our and the first, difficult which managing was to color reporting more that approach; brand, recognition face basis. high million. be to continued bit XX% $XXX with chain our Fan with the our to EBITDA by vendor basis relationships environment both to XXX than digital-first operational partners. we on we by happy environment, excellence quarter having up with focus last to year-over-year basis reported XX.X% is fifth new directly to outdoor points Despite how a the toughest by driven a devotion our we strengthen $XX.X seek users and and our approximately provide of of partners growth. to our an This are highly supply of XXX connecting EBITDA million, to Super our and to Both and world. increased continues To through in Super by second, doubled versus year our degree and records, chain an brands revenue the on consecutive course, share our of set gross margins sought mentality adjusted leverage sales metrics supply adjusted retail

X product product of availability. our supply This components example, isolate needs our that to to an to we categories. the As allowed move maximize in Diamond, the us on chase in us continue chain Black product core enabled the availability which needle,

Additionally, that be larger to relative of believe the more nimble some to our we size comes allowed our has to outdoor us it supply chain. when players

to in dynamic a quickly We us leading continued able environment have and strong results. these been pivot adapt to

long-lasting shows poised this for brands prioritize are As the productive ours long-term performance. sustainable with and suppliers formation best that Fan quarter of like Super partnerships

bad times, remain see to brands continue in that We resilient. Super times and Fan good

I'd in leading our portfolio of outstanding And provide our share full we market XX%. harnesses, XX%. results. by gloves. our then and and across supported product was over By key pass particular quarter for was Our that year now year-over-year skis, Hard the the driven like QX growth as discuss drivers brands increase sales I'll Diamond, our was category, Aaron bookings into head Black all growth gaining in are At to cover goods remain results outlook market quarter. Ski including and summary portfolio, up and a XXXX. shoes, to of climbing detail. triple-digit across Climb XX% in to double-digit lighting, increased the poles financial strong of favorable third Mountain more key consumer and the up it up outdoor XX%, was trends our led across XX% to a categories

XX% respectively. has and Again, as included and equipment up our apparel apparel which well our in with resonated at above, categories footwear are category XX%, businesses, positioned apparel and our consumers. the Our were is business BD fastest-growing

whether and that's aspects in apparel next-generation accelerate to of innovation our continue advancements our We technical products. or offerings material innovate through

the on to and Due fact packs safety that we lack X BD of and from hard impacted allocations to products heightened expect the climb ranging brand, products, our goods, footwear, award-winning XXXX, business apparel, over the sacred headlamps meant new to and skis continue first, partners poles. demand to prioritize fact, focuse trekking our direct-to-consumer by In was equipment for new across XXX introduce core we that inventory inventory. wholesale our snow to

quarter low So the business normally was lower during than growth expect. experienced this the we double-digit we in

search, and e-commerce we on our an top accelerated of expected are activate balancing to strategy, for efforts we to our growth focusing refine our the These of first paid once we further activation position approach e-mail funnel, As can fulfill social marketing, continue demand. business retargeting. increasing efforts, performance digital

accelerate months. We Vermont, over also retail coming through the Oregon and opening in to Jackson, Bend, continue will our flagship Diamond of stores the our Black model Wyoming, community-centric Burlington,

bullets includes XXX% performance tailwinds and ammunition. of $XX.X XXXX. sales shooting segment, generated brands, which Moving up and continued reflects the to growing both our ranges. This growth both broad-based indoor quarter million sales including third we QX and domestic participation Barnes the Strong Sierra hunting in across in Sierra from outdoor

Barnes to bullets bullet to Barnes, since output a has focus by daily doubled For demand. increased Sierra acquiring bullets. run bullet XXXX and rate we rate run year. its meet of million to acquired Since the Sierra year ago, continue to a a XXX we increasing production brand have of we already million Similarly, on XX% a production in XXX

While it surge in keep has the increases we've to difficult been up demand, output. in prioritizing been with

to have on pause. put We of we years work starting innovations commercializing are now X that R&D on

for part further to pipeline bullets new of late position marketplace reinforce classifications ammo we This strategy, have strategy that and to the and as to ammunition. as our critical of leading premium and other XXXX. We some and specialty are be we announce the in our XXXX innovations provider down seek as coming innovate accelerate the continues pleased

$XX.X on product Australia, leverage relationships tremendous quarter. our identified a in to of where its a severe Rack, At COVID for and is quarter. the This seek achievement compelling resilience a consider Moving Fan North we to sales those brands. the key growth. can penetration Most intend America to the but brand's market Rhino-Rack. million Rhino strong was domestically. expand entire have Rhino own, on grow Super existing and we case Rack's lockdown and that reported dominant dealers to network the of you result clear and We in brand distributors when for of a we in had importantly, the capitalize defined strategy It's

category, market the opportunities Today, less number expansion market home one We have the continued in United America. X% North extension New conversations the the given growth positive significant retailers our assortments. of the solidify space partners in share many plenty many markets. leaves That had a of space potential Australia in perfect also and North Zealand, in the America. new as Rhino-Rack white for share believe by believe aftermarket, as retail has their we leading traditionally brand include has of we've served outdoor in This we than for overland To a part with it's date, outdoor of to us but to Rhino-Rack for but been States.

in and however, product headwinds. demand, position deliveries great this offer. ensure our we term, brand prioritizing fulfillment availability strong have we to a accounts believe start as we focusing on to on-time current given our be it's So immediate supply chasing the amongst are retailers and better In chain to

increasing to popular expand category. getting Rhino-Rack Looking through to racks, systems, through is or the accessory cross-selling OEM forward, from capitalize now engineered a and is or brand's right the we the roads partnerships highly premier M&A. we product believe to penetration trays, a that Overall, and growing brown to digital-first go category, tops mounting provide build incredible in launches for proving carriers trends to be whether are space black organically an through even boxes, strategic as want provider point vehicle an and also assessing outdoors Rhino-Rack direct-to-consumer Overlanding on automotive to people and great ways this the we that number accessories overland expect of opportunities. luggage entry of initiative new stronger roof

anticipation. at Speaking to new deck, launches too of versatile similar last RECON new system we product over-the-cap bed launched truck pioneer the rack, a much our Pioneer SEMA week,

quarter third Super brand our Fan that Before to Clarus. passing state our I'd like believe mission within epitomizes it we to Aaron,

flow as consumer is super cash characteristics free of reinvest Our same well-diversified the portfolio. performance the core are companies and our high growing back resonating market defining the which and share acquire driving of to and brands with the booming trend well other innovation on outdoorism. we to and growth are portfolio in expansion opportunistically strong conversion, using margin with fan This current the I'll Kuehne, to pay our customers see partners market our right. that mission We our turn details call Aaron. provide quarter fortunate and the the Aaron the now in you, increased and the our Executive Financial continuing who outlook. this commentary shareholders our our President, dividends Officer, additional third on to is on performance Vice and for feel will over timing XXXX Chief Thank in

Aaron Kuehne

includes $XX.X increased a million same and XX% everyone. October afternoon, $XX.X record in quarter. XXXX, the John, increase million XXXX. $XX.X you, million Barnes from X, to completed ago revenue Thank an Rhino-Rack Sales approximately on third July good and the quarter year acquisition contribution $XXX we to and compared on from million of in The acquisition Clarus X, completed

in see increased benefiting North mentioned, to we our demand outdoors. Sierra growth, was John OEM due and Diamond our outdoor domestic consumers nearly continue strong to and quarter. increase was million on experienced year-over-year geographies, XXXX to business being Third ago space, more least across up growing of and in products across business pronounced spending categories. our fulfill recovery same a taking more quarter. market for most basis continued experienced more growth at XX% from the the with was This accounts compared time sales core in our Black the the as forma the ammunition or national strength as that channels XXX% QX to in especially America brand in quarter sales year inventory ammo. pro and the categories results by The XX%. share $X Sierra's able for all industrial XX%

Barnes and in quarter of OEM domestic at XX%. leading of through ammunition, third the Black growth of XX% While Box, $XX.X to sales were achieve forma the our nearly XX% in Sierra we ammo sales quarter. pro goal million with contributed was cells

We and inventory [Technical inclusion a and which in work in revenue Rhino-Rack home and be the in growth XX% gross $XX.X contributed The to success year from points levels margins gross attributable and reported orders U.S., channel We up the as great to acquisition Improvements third direct-to-consumer, Rhino-Rack million growth in to and in around million continue quarter the sales allowance XXXX, improvement in the customer given share compared compared stock of record sales The diluted and the net basis expanding to an increased imposed remaining Adjusted small new meet increased XXX operating $X.X prior well as drove the quarter the to in increased per XXX disciplined to Net out ended elevating which, mentioned, supporting contributed with which diluted to compared easier fill million the output to September to is Adjusted million strong $X.X associated activities of improved demand. third on company's million the a margin per a with was surging expanding warehousing improved $X.X ago albeit or attributed income EBITDA year decrease increasing bulk primarily through with. diluted investments XX.X% loss $X.XX a ago The acquisition. COVID with is of on and the awareness QX, its net the deferred processes product distribution, $XX.X the of Consolidated in partial step-up brand-related with the $X.XX outcome base. quarters adjusted basis per or to strategic a third $X.X a year. sales, release on straight of a quarter experienced Australia. million mix Rhino-Rack, and or increase $X.XX income continues benefit partially share John per focused $XX.X profitable Zealand or margin to compensation year XX.X% in XX.X% lockdown X in net to our as EBITDA $X.X million adjusted experienced XXXX. of compared to this income logistics stripping in $X.X the of growth, our of along an by initiatives period third assets. XX, share net $X.XX margin points we've $X.X story year-over-year quarter. order compared quarter. more In in of to all EBITDA market do and our of million offset net in the strategy X the the to third income million share great increase in Barnes, $X New valuation quarter or the diluted the throughout our Barnes to months increasing was XX.X% business associated during marketing of of tax margin performance. and contributed million quarter Difficulty] million. we and with in in levels. ago was brand of being

were levels to efficiency shift I'll XXXX. we from million, up ended Inventory higher and Now and roughly quarter last our $XXX.X XX% at ended asset XX% where liquidity. where we than

number However, million please Rhino-Rack incremental inventory the of includes keep reflected in that figures. that isn't in $XX.X comparative this mind

dynamically our to work chain our inventory demand. We with to seek manage supply continue meet partners levels to to

using We balance availability product are to increase the keep with elevated to demand. our sheet strong pace

effort process to at additional we of our partners the of are supply carrying million moving to offset current our For inventory from in context, Black warehouses. elongated $X inventory an an Diamond chain

position higher increasing that timelier satisfy fulfillment size of are our in higher demand a will pipeline Although confident of we us of in resulted our strategy working manner. the and to better with levels levels capital, it has of

Barnes, XX, items September hedging At supply has million of additional purposely commodities. million in past corresponding strategy production core $XX.X to levels reported Within Such XX, and on by chains is cash quarters' material component the us protect gross enabled our working. an raw rising XXXX, opportunistically benefits inventory the have cash reflected increased XXXX. of $XX.X while availability. as million are to our proved partially baseline results Sierra were our and of Our cost and This $X focusing and equivalents December we compared X margins.

utilized a compared expenses quarter, to During provided mitigate reflects utilization the inventory quarter. to related increases cash by of operating $X net less million primarily year the or third ago as million defined of activities cash the CapEx $XX.X a as transaction Rhino-Rack. supply well proactive flow of chain free The to constraints as in we had decline generation

as position total inventory out leverage normalize. free product rebound times and debt flow in million, of X.X be We $XXX.X debt us debt portfolio to lead reiterate XX-month EBITDA moves capital XX, we related basis. trailing of cash our want strategic the nice million. the expect supported to XXXX, At in was continues topics a adjusted a cadence some in allocation September fourth putting brand purchases important was of a Overall, a quarter $XXX Net policy. provides to into structure. our to by This strength our the on disciplined net

are inherently us pleased direction evaluate M&A. through to for opportunities extremely with our with the growth of provides us which We and additional businesses, organically both

As shown, to balance to utilize seek to foremost continue the we we first grow. and have sheet our historically as way will

increasing with reoccurring a levels business strong of free cash flow. EBITDA have and We

have great of are banking our with supportive also who strategic We partners our extremely initiatives. relationships

optimal owners we of to times, and leverage believe times are extend to higher. We committed shareholder an run amount friendly a operators to bit that raise we how balance the including and X being might the business, here At responsible this on. we times. We take with X there's the between leverage in are

closed shareholder-friendly pro range additional being be of XX, October described will course the amount for back be always business to and access capital this a path over we liquidity running will will XX-month look of offering to point, a it responsible of what with our terms it with the I've bring We shares $XX in net shares to amount proceeds principal $XX.X overallotment the under providing will use our additional will facility. potential be used purposes, the million. of million forma a acquisitions. leverage. a revolving fully To where However, of less The down remaining times. markets This the period. general for strategic clear pursuing gross expenditures debt time corporate of come remaining per activating There public for proceeds net disciplined it leverage within shares -- under intend aggregate but portion a net we common provide than of this a and proceeds of expectation our we at option, share X million with and of approximately including plus might $XX just to revolving capital the repay XXX,XXXX a of how initiatives in in loan stock portion on X.XX

strong are preannouncement, Given year performance our quarter we to as and our the pleased are we during in communicated announced financial have full our raising that outlook.

the We increase that of to million. This increase are we expecting to XX% consolidated $XXX.X last expect million. of guidance Diamond XXXX is $XXX.X now XXXX to is from compared $XXX last to XX% million now we an shared quarter This shared million. sales from to XXXX. segment, $XXX the we Black quarter By increase grow sales guidance an

This up increase sales, We to to to includes quarter. the which we last $XX is to Barnes, guided XXXX. expect $XXX Sierra from XX% compared million million

million million. We continue contribute grow to now quarter, had EBITDA to to to of compared to $XX in XXXX we On XXX% the basis, Last $XX XXXX. to to expect half from $XX approximately a XXXX. consolidated expect adjusted second million approximately guided we Rhino-Rack

contribute outlook. to Rhino-Rack adjusted $X to We EBITDA consolidated continue expect million our to approximately

we expect $X.X to continue addition, of capital In expenditures approximately million.

ready to we've over Operator, us commitment and that regardless and of once playbook Super as our -- of us And to organization Fan and operational strong are now and operational accelerate proud innovate brands we market our to we the prosper is years. foundation the success of -- external the we an the financial again, are have allows our proud the Q&A. built for shown environment. We and key are for to strong


[Operator Stifel. our with Jim from the first coming Instructions] question of line We have Duffy

Jim Duffy

Great the ammo. question of contribution wanted on for business. the on quarter. offering. Sierra the on I successful with to during the the Thanks a execution Congratulations and detail Barnes start

would implies quarter. decline some guide, dynamics considering a sequential there the should timing the quarter from Looking annual that? third that at we the fourth be Are explain

Aaron Kuehne

is Aaron. is this well. Jim, Yes. all Hope

not able able immediately, increased the of working demand. being to we continue have are little the demonstrate things some One here be new quarter preventative as work we to the into bit the provide only we to and that to headroom ourselves year. capacity meeting or regard head through we that a strong of in as and But maintenance provide breathing to progression -- in need we our through with room

sorry, some on and importantly, relates little again, know, maintenance we provide -- that of with that bit but has it partners, of softer a have the season, XXXX. season. just maintenance also good head As into more levels into well, come go room holiday as to But as as the we our machinery been also the we we fulfilling we can done of again really floor historically our then this be some once QX so can we CapEx out as orders inventory little as OEM recalibrated job plant also kind to ourselves so with a on bit people of hunting we've headed as ready a breathing

of cushion give to bit And topics. ourselves reflected little a little of is being a breather just a bit to these just what's a here some maintenance so little of that's take bit of of care

Jim Duffy

good ammo quarter, continue a future it build And on as to is contribution? to relates about contribution, Or to expect that would think the then quarters? you $XX million that in figure to for the

Aaron Kuehne

-- or the XX% solid us et where positioned next on cetera. is the book milepost how guard for way as XX% of that off and would rail the the range that we developing I Yes, be we're to about the based -- we're a order think coming think months, continue to

John Walbrecht

marketplace between the Barnes Remember that a chasing XXXX percentage brand higher in And components of that, in up in Sierra Aaron lesser said, the beyond. balance brand. and that into a today. Jim, as percentage of with obviously, is a the and

As XXXX deep we've going at demand and mentioned the based anticipate all, in order previous calls, don't in on we into and it it hasn't book slowed beyond. well down

Jim Duffy

I for you if U.S. your may, in. curious, to But watching realize more, should potential Great. milestones else I'll And let Rhino-Rack,I'm the we on be look key jump in the as just one then someone full

John Walbrecht


of on-time up as see retailers, and number lockdown first associated I of building demand. increased part through in integration of delivery to the this And fulfillment just that's we ensure and with the the current is think inventories the this, one. out inventories our go with will supply strong against our we it and is building coming COVID Australia growth driver up to XXXX

milestone expand I outdoors as initiatives then start the to brown and this new through think second segment. winning last and growing and you in with overlanding accelerate Roads a overland of this the see award this even start see growing award-winning were show the strategy, that third retailers to products for will And blacktops be to we new week is hoped we to stoic. we outdoor accounts more innovate participating accelerate

we that on -- then fulfillment follow business through to to deliver time, similar start So and be have innovation. we'll accelerate with keep done, that playbook do we've always the good easy


BNP question line next have Paribas. We Vasilescu Exane coming of the Laurent from our with

Laurent Vasilescu

for you to XQ companies ask, falling constraints. love supply case talking been issues you're chain on hear into from into to due potentially if I'd to the quarter. anticipating there? that I had we've you outdoor any supply great, if XQ hearing XQ in mean, the revenues out due was about the just XQ -- I other chain if just shift great just revenues a between Congrats have to

John Walbrecht

give accelerate through guidance. our true that is goal in we that we market to mean, a take account it's into to quarterly be able or accelerate scrappiness chain wrong And obviously, and QX trailed the Aaron we when chase fulfillment. to into you as supply and supply perspective wins very We'd didn't try his And meet today. we as annual be same will this and dynamic to that in a can. and our we much as order have from that capture revenue all have obviously, that and to just the QX and team do to say I been

market share through the we of or We've become an this valuable growth because think outdoor-ism. and I demand transition more our seen our in more as increase gaining scrappiness. of

the will supply at we the some It for strong yes, said in meet happening XXXX, out And have as see shifting until has notes day here, keep the moment, though, a the can in XXXX. that market. so And always order we moved. book don't in this we demand all

Laurent Vasilescu

the openings then the Great. Okay. alluding front, with represent you on love your hear were that on think website store you how opening the store those John, But many BD think website. BD to can openings a for you or And new store get how stores time? do store X BD showcase revenues direct-to-consumer on got side? And to openings. I'd as to you've direct-to-consumer much could you you the mentioned, initiative, over great

John Walbrecht

Yes. I always philosophy. yes and mean we're a yes

Colorado. communities think XX driven think our all engagement more probably and consumer call while there consumer-centric today's Super align direct-to-consumer. our brand all channels and of in So we aspects activities. behind in really the flagship opportunity we with Fan meets message XX% we community-centric. that what Burlington, be new we for what are like more When to XXXX. retail term, plans and all initiative And there Boulder, coed Jackson, market in in or is grow at with Oregon, Europe. what's expansion there's got Long X brand. Bend, stores, think obviously, in this outdoorism the the driven business Sky long already probably Big what towns We've regions, Black X and Diamond online approximately That's term, stores City, by we that's Park that deflation And will refer of the XXX our Montana; U.S. to a to really and I that in and especially out we finished really continuing in Wyoming,

Laurent Vasilescu

June $X great tell That's In then release the generated of EBIT helpful. EBITDA I'm the teens. or a EBIT think XX% high very EBITDA release, if million, me includes that Hence, versus wrong which Aaron, last in which loss on the to million shows the the tonight, year XX-Q had of sales, hear. Any trying EBIT margin would the I I about Rhino-Rack. I'm here, that I basis, Rhino-Rack color adjusted to I I'd million million about how think to an in just be And of on love EBIT for which implies margins full X transaction ask $X $XX reconcile but press on believe implies we $XX think the costs. the margin. question the

Aaron Kuehne

Yes, you bet.

similar there some business. that and noise integration that consistent we -- be with So with going the that knew guidance to we associated was provided,

quarter. an $X mid-teens, with with was in line that's adjusted so top how see has Australia. $XX puts was inventory $X.X in softness nothing line step will. in plus of the from terms what far But the a which little still the where Obviously, efficiency the $X.X decent us come just It's adjusted going of you did or that million XX-Q depreciation. as it just was guide to be XX% of as million another it long-term another you where of reflects it's has if teens, our from nothing terms getting high million we targets had back EBITDA, performing. QX. pretty also because consistent right lockdown in and our million in to step-ups of standpoint as so business to million the amortization EBITDA deviated that $X off And And low in -- some those in of we Naturally, ups margins see bit of

you is with inputs right really at look it different the to especially accounting factor transaction perspective adjustments. all EBITDA adjusted at look business, price associated in this an purchase the to when from So the and way

levels, not represented, being to that is again, it lockdown it, flow-through and noise situation and and just of currently call impacts. the a once able of business because the EBITDA really the lockdown leverage mid-teens And really being quarter, function but for in exists the with associated of that adjusted just it a mass so as


with our have line the Jefferies. question Anna from next Glaessgen of coming We

Anna Glaessgen

about landscape larger current chain these the expand of along helped supply has First you your more navigate versus a players, in you greater being flexibility point one, nimble how chain. little bit on sourcing the can do duplicity you some maybe have

Just any be here really would helpful. perspective

Aaron Kuehne

this Anna, Yes, Aaron. is

many really of the elements this the we portfolio. X highlights have sauce Claris -- secret think within I that the of the

becomes decisions with word we our each partnership of very because business we're that's view exactly what approach together. years through for in it we've cetera, because being purposely also supply organization, supply a go our easy a one, for our you in congestion, we pretty oversees experience with grow very of, to also been to in discussion get But -- these of we elongated of terms because able terms do we partners port to competition made the way brands much the unlock enables can a consumer-centric a do can of made offset synergized will, vendor easy -- container how some may leverage balance can for to versus one, develop way just and availability, a assessed, that we're this structure, on pretty then has et of to pretty terms chain increase also challenges nimble chains to employ these truly et quick faster -- go a capital stand-alone the to with if not buy, can for at to for able actually manage in at because businesses, a to flexibility a that activate. These portfolio within approval, that situations quickly operate additional faster multiple on sheet Instead, quickly manner flexible some move also various be we or same it rate, but different the of the open decisions, that we we can larger have be the be through basis. be that capacity supply that or able of layers entire supply also function our business use over that terms the easy different that And very same the In and different the partners. brands inventory the able of us us, but opportunities chain be to rate the for the a vendor be centralized with. a to chains to may and needing much But cetera. a move but focused to be

John Walbrecht

exceed other this when capacity said, vendor to Super resources continue the easy as to that term long side long-term expectations. partners to their space provide those or improve brands with And brands allocate Aaron have think Fan it's them is I to growth, your, we'll every through for that and sustainable your really you time, continue be process. quarter meet

these be, Now lean at should or as and challenges guys them and term wow, may they tomorrow and COVID, or therefore, long supply whatever economic it they really say, continue into to we us. look us, are challenges lean with into

Anna Glaessgen

historical Great. go point across as segment. think And then really Or it's how demand? bookings strong context Could maybe you does way, in at visibility you where good forward hear put compare to year? another be maybe this about remain put you'd into the this the

John Walbrecht

each off, bookings out. a brands. Yes. quarter we for mean, quarter brands, -- record-setting of these a setting started Each with each is us. as these with as we I of each quarter look every obviously, is record new

last to even crazy the with be I continue -- We the things our Aaron's when ready ability one of Barnes. to XX reference in and and more to comment of secret innovate or to stabilize, there continue is Sierra despite is think success start innovation i.e., months

engagement through really insight prelining and 'XX. partners, I partners with us to the now strong retail think in fall of similarly vendor our starting of already has given bookings XXXX. our 'XX We're spring our that bookings a strong for midst and

demand ways obviously close XXXX to kick increasing the continue retailers we feel We'll off to very and XXXX. exit meet of our to good. really we find brand the and revise as plans our and at stay levels each So


ROTH We have Capital. our next Koranda line with of question from Matt coming the

Matt Koranda

well. runs gone Has

in start to BD. wanted Just

going be introductions terms new if to high? on product give guys Maybe should that XXXX to It then could You terms we expect sounded in mentioned, you years different that a of 'XX? it's in XXX XXXX. compares in think, on new or mentioned you I relatively mix or you of in how growth than provide helpful. And can relatively in product whatnot, of XXXX sort John, and of that tailwind does intros. 'XX And how the much commentary context some provide be any would product apparel prior footwear then just more

John Walbrecht


upon XXXX, Outdoor initiating little to back exiting accelerate if we Retailer the finished year, had strategy brand we fall the a and starting that products. new So innovate year on XXX go the XXXX over

down specifically been XXX chasing categories, strong done alignment in of not and as we've staying but where those where chasing past, growing by we and a the are supply chain opportunity continued So those our we categories the lot are front with as year aligning are we've sacred see what share more the this strategic X that is we to in of call despite that COVID ensure and and the to at market partners. continue dominant required retail the challenges

we strong those the being growth the in goods. to growth -- the we for into continue inclusive eCom, same a our as our we outdoorism. But footwear. packs year, continue an term, see of innovate nature camps I by and rapidly of both see in they we equipment we gloves accelerate time, example. side Camelot direct-to-consumer see mix, intimidated initiatives Those don't at a more consumers think be along we will to categories business. soft apparel and continue align equipment, of less in rest on As through the and are obviously, wall continue at really look do as this and with to to retail more hopefully just that entry soft and I Long the exploding categories, in with stronger in the little goods mean

Matt Koranda

get like is in the you immediate into see to moving sounds put existing guys just should you could I'm to related. on on the mean North Rhino-Rack, chain probably American tightness, a kind or to XXXX or given a hangover, meaningful update wondering I we wholesale out expect might hesitancy it retail it lockdowns it question. good come I an guess, where to just a we've And like we progress and of great Australia it's X-part more North it American of maybe more signaling orders channels, of customers. American finer build with see anticipated guess, want late to stocking just event on just more I when Rhino-Rack? chain Makes some XXXX sounds from up distribution as either sense. the it's impact a was put North the But it or any then if supply that Okay. like you're near-term keep then point in we I opportunity. should sort medium-term term, mid- very for supply not likely But is given on near-term distribution And event.

John Walbrecht


that the up until of we guidance. account with that we the in I we're believe obviously lockdown -- We think the took ago, integration in literally QX and as took for So and planned Australia what impact. our yes, place into some was remaining weeks that there

we're easy to with with have of the point, of how upon and half now the time, similar is that retail and America bring U.S. out especially accelerating are what the good an market. on final North ceiling opportunities market expanded point, how the marketplace an they and comes acceleration, At our second In market, foremost, of real to much our supply in we in do your business overlanding started first key will accelerate current lockdown -- ourselves To current to opportunities on as business availability the much depending the retail for demand oversupply we anticipate America. plan the We XXXX. in Again, now to with Australia we and retail lean up see supply chase North them. allocated partners. is that catch as goal increasing American what can into set have we and deliver for here find partners with fulfillment, gets summer in probably product North as we ensuring be our this the up planning the in discussions both that

XXXX, we'll accelerate that for plan growth we the at to of better but start XXXX. in able that be So even worst case, to anticipate to


of Altobello We James. Joe the next coming from line have Raymond our question with

Joe Altobello

questioning, anytime sound going Does of It's with lack of like to of up the time. it is to on get your push penetration? expectation some timing following soon. of it's of that kind doesn't for and not be the line out inventory DTC us that better going Just new, the probably

John Walbrecht


I our think yes that and place goal Obviously, twofold takes there's yes. is in this.

the just we our clear, making I in the think plus that equals that's is is communications. call or as to marketing as efforts. digital that the acceleration and wholesale strategy all that just through X of or We to really to important first And live come and our part of partners believe relevant case. X DTC X to our in that aspect X this it X key be what

have goals, our alongside wholesale. We in expansion in direct-to-consumer we're what retail to continue our both and doing aggressive very

to much We be, very as as Aaron continue with as can scrappy our said, and availability on we chasing keeping up that.

book so as all really to DC, be rates Given regions far continue and as and in and we our can all time to continuing do to and as the the key term, long-term chasing can, channels we of continue those allocation a best soon yet order on our our in is growth an size on items and success in deliver successful -- and about that as focusing we how feeling in pipeline those marketplace. the that pipe not short about we find it's the aggressive really it's and it's to just exercise, are goal

Joe Altobello


DTC improvement 'XX? sounds some to see of of you terms So sales significant percentage in it expect in like overall do

Aaron Kuehne


Joe Altobello


taken there's around nice XX% Okay. is 'XX. margins that looking have sustainable takes know your been And puts on this I year-to-date, you've and a running at, very How margins of on up and a year. We're over that. EBITDA think step call X years. follow-up a just then function last lot XX% it, the I

For look take example, took what's as But those next opportunity margins only year? higher ahead 'XX, the to you just to pricing. recently you even

Aaron Kuehne

with really driven that and commercialize we Aaron. the the the growth addition portfolio there's the drive the improvements. come to things. an it push along There's this. planning else. to improvement an I and each operational our This businesses to product with growth disciplined drivers about a profitability standpoint or know we've the we've mix, Yes. of the with mix, approach function And that those thing the is partners. our product to had a come we've opportunity X within growth that within as that the to continue et have albeit so, But go-to-market levels Then and also commercial on been of very scale in have and a to we've are implementing freight significant in margin, channel well. and the really to nice with this X levels testament overall place Sierra higher the months level. highlights our over step naturally, When of starting gaining and we vendor also massive taken from of think work -- collaboration Diamond the that how of what's rising last business, back back adjusted Barnes, of the those side over comes around gross design and corresponding team even addition higher different of then series the excellence levels of types are really we levels mix, and a also side flow-through to to geography that seen, higher to focused we that but we functions different that but input associated you everything of how we EBITDA have that the initiatives continue And hold is costs the and then Black take that to things that, of with within able improvements with of about EBITDA implement really these of But when think been cetera. the really think it's the terms occurred years

model, expect bring would we to able other really Claris be highlights the think And we the but something to that same we manage way EBITDA What business, when cutting. continue to margin that the power take that be is the and we within approach to about the can and cost about acquisition we grow way We do scale portfolio. on. this Rhino-Rack thing know continue levels. X investments, be the discipline, playbook. operating we we'll we of mentioned of we not so only I associated so we you'll with these to in the that a exact able how that able growth the business, how throughout or higher does opportunity on product, brands, always we able and these require haven't any the take that also the providing processes appropriately continue of and we we businesses key is to note and how want to This make we do focus organize to best-in-class expect ourselves, And drivers, end as do is we'll to that, anything we that consumer gross cetera, best-in-class grow continue that that, do implement in very drive sure that to line innovate connect the the accelerate levels to business, it's but but very higher focused feedback et feel levels we on confident drive and how to reinvest we'll will the really EBITDA activate we're that of the be also that result

John Walbrecht

continually day and day have of ways that for add summation over very has then time, Aaron and everything we the period that think long just said to X% value do. competitive be really a idea up an this increasing every look to is continuous a improvements I build and of

Joe Altobello

That is helpful. very

go Sorry, ahead,. think it I

Aaron Kuehne

to lot progress improve ways to confidence is on of the for of these just able be businesses, it different responsible grow Clarus how us think plans, portfolio. also a finding also in also these but terms manage teams across and this M&A, was further going our I X basis. the it we scale provides each also responsible I but really say scale businesses, are have upon where to stand-alone iterates for brands to because that able dedicated on to comment be think their add these of important individual and that we to but note, to I last to to ability entire with via businesses to


from the Sundby line coming next Ryan our Blair. William with have question We of

Ryan Sundby

Congrats on the quarter.

follow-up Just Australia. mobility? and pacing lack Rhino-Rack for on Did production of shut come retail around to a that? commentary shutdowns -- you to actually the quick to more have to geared in are lockdowns down maybe Or you your

Aaron Kuehne


early shortly of of in result point early shut Australia after XX% down didn't or bought and happened were where call the were the forced to we as production literally July we business lift we October. had to lockdowns the until So And times it, that, in at -- XX% operations our capacity to forced a we

John Walbrecht

skeleton No level.

Aaron Kuehne

to morale job the was also but overhang And team -- as situation, -- result, And a so reestablishing level. skeletal was EBITDA of that's levels. associated where the It super that But working keeping with some amazing were super you yes, business it be able back we'll the through to ins we'll able to pushing to that see down on of take the we high that -- on the done to has where production where we an and set and different able be the expect business buying get expect outs we be and levels the of where before up to us that business track

John Walbrecht

of Super one times. we difficult things times Fan brand easy the often Ryan, how interesting, And in versus is perform say does a

immediately the brand challenging it bought saw and is share more this, and perform Australia. us what makes then and of market potential It course, win. over means, interesting. math. week in comes index then going and the that up the as how now Super up, and the the out in this for excited even -- even That's any right? brand by Simon -- accelerate times and as And a of about Fan but it the we we it now you has as to hoped market you're of opportunity does it most start of opened the at If goes or was wasn't to that But got planned whole perform leading market

Ryan Sundby

rest great. That's things smaller... for And X on among you product given what to a that it the work for to where then categories. sales decision just the the the from of prioritize core be see sales, kind you availability it. expect maybe the percentage Can we And of about that talk drag Got guys? of Should would focus business?

John Walbrecht

Yes. we have and place really continue seen is apparel I very those and here, the what's and a don't want listening taking and entry in saw into strong see to is we are this. brand. real products. inclusive footwear growth what to but obviously, give away to there the in sauce in may secret outdoorism -- today to Our our I But be share market competitors mean

But doesn't We approach we poles, Alpine We gloves growth more the as they're there, ceiling. categories continue then believe equipment, gloves we where as apparel in get we best that. to we in specific apparel get more entry nature not gloves and and the a found footwear, focused still we get move packs. market share technology technical our as headlamps business, we pretty And categories up, and starts trucking activity see make on And that, And like core packs level. safety as X into little snow we technical are Then our and the and And strong the equipment. right? you apparel of with we and BD, footwear than footwear more as them footwear, these to equipment and really and world, than accelerated any equipment have which packs have then level. climbing doesn't the any technical that. get leading in

in where more there strategy And market rapid pretty categories our all at consumer. where that leaned can we was loud this into the retailers across are and And effectively exploded to bringing continue of X areas new core beacon outdoorism areas to the with are so of we know X rate them our a while digital-first they as during focuses. have even a our our innovate accelerating those them share out new using each products also became

want knew leaned versa, heavy want and secret goal really drive, vendor and is that we've we us. ones from And vice and in for from the the what beyond as us so where opportunity us, that, products well. retailers to but partners the And pick those have categories the that's strong real we the sauces into accelerate consumers heavy the we then have those they're

Aaron Kuehne

highlight working that of These it's also initiatives topics. didn't for been related catch important it's to period particular, that this surprise. I think by think supply on important that an time, I are to extended also but chain in Ryan, to us highlight the we've

of on also the COVID also But approach we wanted position initiatives details be be which well really of to the to this hit really we been first were approach place. of but these building, our internally to with the voice market ourselves key back that ability our and many because we that's that to here, outlined, the these focus partners. having did able when in is get too And response only vendor our last respond of John activities started or November the recovery also by that in last things retail alignment taking year. to we year in conversations won't our but really One calm within we partners, took, not into to the that

John Walbrecht

it both be vendor that both perform. partners sides accelerate our to there partners on planning vendors going the we our when them supply so letting we and continue was would know that increase With to chain, other could retail could and that the not

Aaron Kuehne

things And only as the And we of X business. the year here not although at didn't wanted because way things takes to and of these and deeper gain take and have levers but level how we this with perform them highest we clarity especially a in with show have we interact able availability we ensure you that flex that and items confidence, capacity that we period we for I'll time, to step we chain to complete as different level. would these to going XXXX. through the to to as possibly the result our for we that us work our supply process. through process, knew to certain really enabled initiatives pull the for the And side that our consistency partnership could a that be puts this entire go able sheet take line you're through how lock is were to you were -- and tell of place, as where most balance of work product credibility the could And with important of

John Walbrecht

of hoped probably set this supply most, And And hangover very a in XXXX. expect chain not really consumers all since finished up late retailers out if probably best and through, XXXX. initiative all as be will the our we to it. XXXX, to not us coming has it 'XX, all like of us into looks strong impacts going our up is through partner really 'XX shattered deep has This to viable impact


question line Smith next We Mark Street have with coming from Lake our the of Capital.

Mark Smith

that I may a or seen on significant you increases quickly price wanted and sourcing? anything ammo having you've of look challenges, component problem kind just where to commodity into be

John Walbrecht


every with We've help been because to we that. than And out as we've well think industry of a order Ammo but our big the obviously, to the at over the today back start opportunity we categories. don't supply both the So been early, -- our similar XXXX be order the we just books to planned 'XX as could brass, that's allocation and as into as been be every Sierra Aaron challenged maximize and next or when case. it's to the on accelerate that always have planning and rapidly -- the is to this when even frankly, and in the Barnes, primers, see then, accelerating more saw to whole where we to late we to the continue chain. continues the us there's the able levels the change rest all to support in have driver our I in about through in be going proved, accelerating already able super to maximize in to team scrappy market we scrappy months partnerships those going ammo well chain acquisition our in the White allocation process, and fall until occurring Obviously, continues We this an very secure nimble is started and has a supply business continue market in House, and to in can of marketplace, double efforts we've look our XX see demand in going demand copper. at caliber aggressive supply. to the we need

Mark Smith

are Okay. Europe North And in goods other America, into everything look then lot or just issues similar and going you supply we at on, port as markets? but about talked seeing we a chain getting pressures and

Aaron Kuehne

frame, reprieve global But and goes We the back on to approach time same saw a in taken pressures started it of to a very we've basis. the some little back bit. -- they've similar August a

the about seeing taken into QX continues work regard, America, think we're those approach very constraints it Diamond a in be as in same but each Black also to also through the Europe those the we to would say that we naturally, But in head Europe you of not and aren't exist this they same next we've when good seeing at so and same our that And true. time, ourselves as a we're brands, we benefits America because North holistic brand in the as as the pronounced in levers in what don't very -- year. North particular, position way see


coming of the We Bolton-Weiser D.A. question from line with have our last Linda Davidson.

Linda Bolton-Weiser

quarter. make expansion in fourth that? difference? I to probably the know we've mix be like we was Because gross the impressive the margin was But it did lot wondering in much growing And there sequentially more there rapidly way really Did Is helps expect the is a in And quarter? break way quantify a margin to actually would that out or how that. effect? I the quantify -- any so quarter? up but AMO pricing I the the talked then gross to about any so gross margin, to know contribute

Aaron Kuehne

question we've progression gross in see in a that the businesses QX first test is benchmark good within been to basis a of of think as each produce an adjusted a the what or I So on QX. lot let's think about we last from address We margin perspective. able litmus did

note carry to way that our that of each we granular a business, want grow be do feel puts to for on able ability just also we get to but so because the tough to bit that that this different And is is too we pricing through positioned, components And we've through Not the our a only brands the efficiencies. of profitably. the but that able through been want takes, it's also and but to have to little ours. focus different it do do so we the efforts, of discussing, cycle, innovation mix but through be

significant terms it, yet that efforts. And result you because very each approach And the been of think we a take demonstrate for very to about so expansion able if we've as of of that, we approach disciplined we brand. a but those market holistic believe in how margin

And that far or what's industry been It whole does not the pretty coming well to element some does your socialized as the has reflect side, the of taking rest from increases take price place question, into ability Sierra, will continue as yes, throughout down so place. it as higher our of Barnes it the But comes and the drive is accelerate new to sustainable. feel format in higher we year. to which margin and extremely into businesses, to innovate QX the concept here also operational on head margin to as anything also business. but be instill levels a able reflect an excellence really answer products that This they're to to areas, And we result, really throughout that a anomaly or an businesses not that each -- topic done in ingrained we X instead and focus. sustainable, something our to to of continue feel it's we'll is be of be type area that's something and and


time, to turn closing for this remarks. At like concludes would Mr. question-and-answer you. back the to Thank call our this now session. I over Walbrecht

John Walbrecht

Super to forward the to you again of like a and appreciate We'd look afternoon. excitement for the we It our quarter of XXXX we and report our be to a full results. questions when everyone fourth in speaking snow a also call, and today's and lot to engagement huge this thank today. the listening industry all lot year guys, going winter is to

QX we end. best. reports on All that more look giving the you to So forward as


does Ladies teleconference. conclude today's and gentlemen, this

your disconnect participation. Thank you time. your this may lines You at for