Clarus (CLAR)

Cody Slach Director of Investor Relations
John Walbrecht President
Michael Yates Chief Financial Officer
Aaron Kuehne Executive Vice President and Chief Operating Officer
James Duffy Stifel, Nicolaus & Company, Inc.
Alexander Perry Bank of America Merrill Lynch
Randal Konik Jefferies LLC
Matt Koranda ROTH Capital Partners
Laurent Vasilescu Exane BNP Paribas
Linda Bolton-Weiser D.A. Davidson & Co.
Mark Smith Lake Street Capital Markets, LLC
Ryan Sundby William Blair & Company LLC
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Clarus Corporation's Financial Results for the Fourth Quarter and Full-Year Ended December 31, 2021.

Joining us today are Clarus Corporation's President, John Walbrecht; Executive Vice President and COO, Aaron Kuehne; CFO, Mike Yates; 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 now 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

Crystal. Thanks,

harbor industries begin, during our operate. and Exchange I Corp More forward-looking remind These we well the available the provided like on And Litigation be A factors Private I'd tonight. Reform Act. reflect via replay are everyone will would forward-looking starting remind call, XX, Commission. we that replay in with today's Company's our on subject These included website March safe is and under in today’s p.m. statements the several make everyone press that on could the filed of will the for at which uncertainties known information Clarus information like we in to be Eastern financial X:XX Securities to Before these to provisions assumptions as at claruscorp.com. estimates be results will statements. statements of the to risks that as available statements link Company's time and face call forward-looking based the the potential best understanding time also this we public us and to making company's webcast Securities through from release reports affect today. the

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

John Walbrecht

afternoon, and good Cody, everyone. Thank you,

the geopolitical the stand is get we and people traditional that at Clarus our crisis to Ukraine. Before of place mindful of commentary, with and between are taking solidarity in Ukraine, Russia we

prayers to this our at out time. and hearts go Our them

the to all Russia we support, unwavering suspending stopped country. and with be will this exports all business of part As have

the efforts will that Ukrainian certain to to this the conflict form prevail. their crisis. product peace businesses hope assist from that end also send items in that quickly actively pray the will people working We various our of We and are will key aid in and

most business our Now turning recent results. to

performance of setting EBITDA. with record in record a adjusted year another sales reporting quarter and are We filled

vision a the around We our are concerns. incredibly day with of COVID proud each backdrop supply reality who make and chain the and our especially entire team global

nimble performance. and which achieving level, brand in of this be decisive at to level is continue We the critical

we owned Black strategy disruptive operational as which In four and join also innovation. that Innovate Starting in heavy to outdoor brands, the XXXX, their by brand. we launched into growth we categories our be the time, number help five technology than apparel in equipment and focus asked provide and is is, how point? on years future. continues the Super Diamond supported where we to The take had some in relaunched the and Fan would execute climbing and the through footwear. unique taking Fan opportunity the As exciting and has disciplined equipment, share to we by brand, market the of in industry. I we both XXX get Accelerate and and go-to-market for today markets the strategy, our something new create are the our great answer their we on to like what DNA, to well on The excellence. I'd calendar on focus perspective R&D creating with Innovate this then that the more and years. XXXX, Accelerate one create understanding we a drives seek did to set this turn positioned success. per Clarus XXXX, At as developing go us will strategy, strategy was question world's We commercial we Super market ago our with how season and we initiated apparel next often Treating products sustainable like successfully We

marketing rate, coverage December, jacket. photography and hiking. has apparel grew trade BD XXX innovation. BD booth, placements apparel created our XXXX, earning amazing particular, Today, impressions. and our YouTube influence through a all X years, relations. earned than content, industry In backcountry our our XXx. We industry categories. We with five and industry the by our proving Facebook hiring increase accelerated expanding million of awards a winning hybrid athlete product product out public Tier of our our our all over focus badass X higher won total premium key XXX Once impressions. sales, products over past strong XX strong growing down Instagram, year-over-year Fan push an the categories, dominated with had an and followings BD more focus brand XX% our show accelerated team the digital-first across accelerated Diamond and on outdoor recording vision at and more its We across climbing, distribution. Black on brand consumer and gloves impressions running the skiing, category In a out closed in strategy, the than Super image Over the sales for trail our and is billion impressive like XXXX again, best

channels strategy. We geographies. piece resulting is of plan are growth equipment, for M&A growth, driving our the all reference in An market brand gains categories, our share and across industry-leading important

acquisition ammo into turned brands, innovation best our premium our in XXXX, industry. With where distance demonstrated deploy diversify focusing as we last group launched is a in channel and brand. to on brand or customer Super give is in first in further to the Accelerate XXXX, all markets. of quickly Established long new consumer and the award-winning company Sierra competitions accuracy a to Starting Bulletsmiths. into we as XXXX, target within the definition the Fan took hiring an the have bullet Innovate acquired an Sierra XX% able was Sierra Sierra bullets. foothold outdoor in pure engineers are XXXX. of enthusiast in seek the with strategy We product MatchKing, we product a won Sierra brand under house, brands We play Fan and Super of it acquisitions, reference may that strategy. the disciplined approach We

For X% represent whereas to now launch individual Xx the of the the XXXX, over sales. for represents taken consumer ammo representing of the bullet. some Xx selling Since we've industry, industry from XX% to in the of perspective, price ammo Sierra XX% of zero sales bullets

ammunition, and a have an successfully accelerated we of digital-first of reloading a and innovation bullets expanded We industry-leading website On expanded strong marketing content. into for both our all industry's added top our the top We by our we initiatives the brand sales the new beyond disruptive team both anticipated the manual engine, distribution creating launched pipeline and XXXX and retailers. new strategy demanded innovations the unique in through to introducing team, shooting bullets restarting performance Sierra our video statement ammunition. for market. XXXX, and most packaging and launching In

customers sales Our have we have and while responded our increasing significantly doubled EBITDA margins.

XXX% strong With speak, of was Barnes, hunting $XXX is hunting or bullets ammunition. tour. team the distribution purchased the expanding Today, of collections. our of all an are playbook the manufacturer with under focused new alternative Barnes innovator recent the acquired in great XXXX but heritage business known launching the into marking on in representing the impact saw seeing terminal a and prior at a had over leader Barnes to bullets big Safari to SHOT was trend a this We quickly after acquiring about Super it Barnes path copper We of action, the as acquisition and in most of on established to million a Copper as the brand Clarus. Show, Sierra and We and new due all-copper was of and ownership. $XX Immediately, weight technologies Show Barnes retention. game brand, wholesale low-end pipeline success as extraordinary so example innovation the the effective reestablish to recognized bullet. industry, is ammunition. sales, embarked we out all top months. last in Fan clear acquired of ammo We a ammo and categories to bullets the and more we treated of fastest in expanding million growing OEM green million a their of new When our and another launched the accelerating XXXX, in International strong innovations hunting This adding our brand to of booths sales targeting retailers. and which hunt our distribution markets, copper revenue. the the anticipated and and We the strategy. both specifically featured XX its bullet Ferrari for another October deploy nearly capital, transformation initiative a we doing business, strategic brand $XX technology, set

and we our Now digital-first launching calling we we national core marketing through in Utah that new are Barnes accelerating its reestablished channel, website advertising proud. be a our campaign, have strategy, will our

begun another Fan Again, raise while an and the have to Facebook proof social year, demand media of growing celebrities, industry-leading partnering still partners. share. influential strategy aggressive ability brand market We with and most Instagram, YouTube, riders through followed an prices and old Super hunt its every

past and the while their with relaunched strong EBITDA Barnes margins. reference for very successfully expanding big XX as community we the reconnected game sales months, hunting, Over doubled tribal brand

outgrowing with we getting Super and three years. adventure when headed a growing to wrap the which gear their the to roads We saw sales in is Fan by and the sales potential North the is products demand banner and relative one, brand and space SUVs and racks within Jeep's, Rhino-Rack in Consumers next them. and our inspirational strong this to all overland have ago, making trend Accelerate following the next to of positioned believe for growing We huge off our goal are farther competition. consumers remain the doubling outback. of of of Under the the unlock we than Rhino-Rack home. get capitalize its of again can Australia more years the need on in pavement and that cars image that confident brown Innovate from our to strategy in and targeted importantly, has both take became outdoors the passenger brand, Australia, from our two Rhino-Rack With community, America. leader to trucks two platform well Toyota's, more undisputed in Fords

leading racks. a share platform has already Rhino-Rack First, in market

winning planned innovation, Awards product including is Second, in beyond, for Recon for Red a robust in which XXXX November. two XXXX platform launched pipeline of truck two XXXX the SEMA pickup and stoic] Rhino-Rack’s rack with Dot [Pioneer the in in for at new the foundation and beds, rack Design innovations

growing innovations We will hottest be category. in accelerating overlanding and both accessories, racks our the

include market. ever expanding the for and automotive Our XXXX retailer the sales growth targeting outdoor aftermarket, market, the initiative OEM

this later In North American year. launch with top retailers fact, we the a have already for had appointments outdoor XXXX

accelerating be marketing, will American launching overlanding trade and make booths, for space trade website, a North catalogs, We new campaign. new aggressive our consumer adventure launching and specific an ad

participation We through public will roads and tops be black reviews brown gear our to our in accelerating relations events campaign.

next launch we can in North two same the have America. brand months in been acquisitions, reference category overlanding are our we Over confident as the with successful XX hyper playbook that of for the we using so of last successfully Rhino the growing

not vehicle most one X business was in person been off-road immediately the and vehicle recovery integrating recovery of acquisition on The recent segment. leader Our based Adventure into system December the MAXTRAX vehicle towing. overland the acquisition and the task acquisition on that need and and the boards simple We is does makes the was for a market a extraction Today, board. extraction MAXTRAX market. for that considered creator was our accretive. the closed safe, MAXTRAX, have busy require founded recovery

using North growth market. substantial to in developments speed and expand capacity expand our in We to underway Adventure well are segment. Rhino-Rack, MAXTRAX already opportunity we product as high up Like help build new well as see American

our launched go-to-market and was first Show we at offering the very SHOT retailer's fact, In feedback strong.

million are from market in with setting here a grown XXXX roughly in sales in and record strong a brands million year Super XXXX approximately benefiting tailwinds. losing EBITDA and So strategy all are that to adjusted $XXX we was today promotions. guides from of Fan Accelerate people. in and five $X in result We've $XXX.X has I'd Innovate that in while our couple the key through senior $XX.X future. also This walked and our million recognition, growth EBITDA. like invest million I've The a us and vision to transformational of adjusted required in And all highlight for sales heavily deserve to change hires the just

not Clarus' Aaron Aaron new that well support Kuehne responsibility and operating role, role the like partnership Chief announced we model, us functions. us and will optimization, of the team. the from approach and roles CFO execute which value his In our hierarchical promoted respective and move It between I'd one was various First, quickly Vice opportunities leadership to Executive Operating our our business creation. Officer. President executive and responsibilities, evaluate as to and of the is new EVP for growth have and as of operational that own nature. exists to has each Instead, reiterate integration enables on for

result, lead only as also global most Investor a he Yates he as the held S&P engineered role products held appointed positions, leadership IDEX, multiple our most our years CFO. At the management, joins role, XXXX. As diversified executive will with oversee Accounting recently company. M&A this not accounting which recently Mike we new since including leadership, functions, In accounting XXX serving finance and have Chief XX a Mike nearly and and but Officer, from experience of us IDEX financial Relations. Corporation financial executive Mike

does forthcoming. the as as which are We our involving our achieving important as of outline approach and with future outdoors with better efforts are are at culture investor This will our increasing applies on will That's the style minimizing this that as idea also activities. the be that base, for a includes which important outdoor one Day, footprint. well accomplished people equipment a to company, helping expanding ESG. current Clarus to champions highlight communication. while and And and Investor shareholders all. access approach the focused innovative focused our broadening our in responsibility business interactions have is the an them and social It of in building environmental unique details our it upcoming to conservation paired running as much is as an we goals rooted He to to on why that the to be our corporate

a the to to expansion brands both leadership additional of globally With major seek our step accelerate growth, have diversified and team, taken our through and further we organically scale acquisitions.

welcome to earnings Mike So his call. with to I'd like Mike. first that, Congratulations,

Michael Yates

It's Clarus to for Great. thrilled Corporation. first my results as be here call John. CFO be such Thank the you, to strong I'm on great sharing today.

to Before share I with have into get the want more for our strategic numbers, that our company. we align to I objectives segments renamed the

as brands to refer our brand outdoor forward, Black well segment. climbOn the PIEPS Going and Diamond we will as our as

from that is revenue quarter the $XXX.X initiative, the to quarter and that in includes which to at year jump is fourth to the of apparel ago forma to X, X, million Hardgoods our were our increased in see $XX.X I'd resonate necessary. XX% nomenclature. quarter MAXTRAX referred strong new Our with With These contributions basis and Precision to from consumers. up segment grew positioning up most The our ago. to on fastest-growing December consist Adventure recast to Apparel sales Black apparel's Sierra was a in compared sales XXXX. financial and were XX% the segment, purely the the Outdoor growth recent in our quarter. acquisition record into million. our $X.X $XX.X continually year no a completed the increase newly love acquisition and we disclosed well Sports It's formed on Rhino-Rack, changes quarter Barnes on equipment acquisition which brands in and segment category continues will MAXTRAX. million and on same be same fourth market and focused as is have said, no Fourth for XX%, million Diamond XX% our the results. Sales completed $XX.X overlanding information increased will impact pro XXXX XX% the July name a two the million of quarter on quarter. Rhino-Rack compared Fourth previously of an our results

advancement, part quarter sales apparel exceed meet best-in-class industry. sustainability materials our Sports say goals the our and proud our the in that were As Precision accelerate of $XX.X apparel innovate of in having I'm in for to is by or to strong prior to million and XXXX, primary strategy offering, outdoor addition year. in XX% to fourth XX% quarter, million styles quarter a driven the sales $XX.X increase demand The was ammo. for fourth increase. of XX% Sierra a compared which the compared contributed million domestic fourth the to of the $XX.X increase

original to To achieve In XXX% sales black fact, was our ago our business put the and ammunition. channels, OEM. XX% Sierra some includes ammo all perspective, box, up was the across million. quarter of over now $XX.X was This to compared an Barnes total sales Sierra's which year in quarter and sales. by ammo to in for of XX% XX% goal increase led accounts ammo this through increased

Barnes reported revenue improving the continued quarters production remain of to and we in X, As gross and the a five by margins processes then we've since ramping reminder, strategic We fill demand on while acquired expanding market. to expected investments seek equipment growth straight in October XXXX, on EBITDA. making focused

on strategic Barnes for fourth better also the be strong capacity Utah QX, This underscores and headquarters During serve quarter, a million. to purchase Rhino-Rack our the to was the result Mona, Australia our given commitment we closed quarter. lockdowns to the in $X.X of decision during a brand's $XX.X of home million sales COVID the in market in customers. positioned contributed which expand

region like the for In the unprecedented see to first now to and constraints North MAXTRAX, occurring and sales pleased in an I'd challenges. quarter America we pro X, these the efforts marketing Australia, Rhino-Rack that with million say we're year also by great contributed I'm $X.X managing that thank showing XX% XXXX, Rhino-Rack flooding Rhino-Rack results. sales of During in December continued QX. team already our on acquisition fourth sales XXXX expanding in it's to of basis. in a U.S., completed to we the compared on but have the the prior In quarter, forma grew

gross margins period, when Consolidated XX.X% compared X.X acquisitions in product up to efficiencies stripping Rhino-Rack this XXX in it the margin MAXTRAX channel out gross XX.X% the mix, in to fourth of basis value was bulk up to on margins. performance. XX.X million the Improvements with and and along ago Moving year increased to fair step the quarter. quarter points inventory drove associated the operational and in with the charge

that to logistics was administrative freighting share Adjusted expenses fourth driven need in to a ago experienced margin and to and $XX.X challenges Selling, investments diluted quarter. a margin million million, of to quarter. million, the $X.X margin diluted adjusted record fourth in quarter. specifically quite in expedite a compared have $XX to expect set the $XX.X or inclusion $XX.X income quarter of share quarter accretive net remaining $X.X Adjusted the EBITDA by a fulfillment a expiring. $X.XX remainder per in the or per year to which our in which year had tax $X.XX also associated or compared product, diluted due Net increased compensation increased $XX.X the to share the $XX the of savings ago $X.X $XXX of per of XXXX, or acquisitions of to them at creation income was past existed our XXXX. but the fourth million were an support million, with million deploy an quarter Since realized organization’s the XX.X% QX quarter compared Clarus of income or diluted activities increase the a quarter share an million, million, to were EBITDA of while product of expire with This compared driving net end per rate. million starting the and basis in with we the did we of In now adjusted is related results over shareholders. accomplishments or tax have drag to However, the years increased our million $X.XX XX.X% enabled has million to XXX that this the cash a of net fourth $XX $X.XX $XXX testament in of in we of fourth of in associated from The quarter of the prior demand. these our in to realize five air that in go-to-market was some in general expenses, Bullets time, point XXXX. like XXXX, the It value in significant and Sierra primarily in same and us making the carryforwards. million increase $XX.X XXXX MAXTRAX, $XXX for to million Rhino-Rack in and capital the over XXXX NOLs million benefits acquisitions to year in the NOL stock-based ago contributed on income

obviously million X% in million investments ended cash Inventory last strategy also and Keep were efficiency reflected million roughly $XX.X in through that year. incremental as were compared to Now million to quarter supply We our December compared XXXX has includes quarter brands At we $XXX.X figures. and the results the inventory recent comparative where cash I'll shift across liquidity. fourth XX, to XXXX mitigate million, quarter and and XX, XXXX. our inventory includes $XX.X asset from constraints. in to $XX last been that in $XX inventory MAXTRAX levels Rhino-Rack up $XX.X most equivalents that this million of wasn't chain incremental of the believe working. fourth XXXX our of It December mind

free For fiscal provided decline defined flow prior cash utilized activities $XX as year. is to cash of This year negative to full operating million An had the compared in CapEx we due $XX.X following net the the $XX Barnes less or transaction XXXX, I approximately Bullet million a and related of million million a also items: the discussed. the $X.X It is inventory result incremental headquarters just purchased the to million increase cash in to in of specifically capital related working the expenses $XX investments acquisition. XXXX by for

debt in XXXX, as debt December $XXX.X on of Xx normalized. our net a At million, free XXXX, product the into XX-month forward moves cadence out million. EBITDA was was inventory us Going is total position in adjusted $XXX.X basis, low-end the flows debt which of XX, cash trailing expect at Net right of to putting purchases leverage rebound we a the quarter. when with activity, leverage over our leverage last to Xx shared we range we clear have future that bit this back that XX-month the of a to period. In do, a course how goals targeted but we we Xx can will extend higher, M&A always we connection expect bring we to plan may seek targeted it within a

We that are are the to being run in we and owners leverage. committed operators how business and and manage responsible shareholder friendly

Moving in the be am This to I XXXX. and to Sports XXXX year. that compared sales our expect about million. our for $X XX% impact with $XXX.X the to to $XXX from digits million to grow sales XXXX we is pleased sales high-single expect low-single expectations XXXX. topline for negative Outdoor Precision headwind million the approximately increase segment, which to includes full-year to compared we FX, expected XXXX to million digits to to By associated segment grow share prior are segment the $XXX.X on for to the a consolidated in approximately expected

expect contribute million $XXX approximately also our segment XXXX. to sales for Adventure We in

to EBITDA first expect around of consolidated sales million. the approximately we adjusted XX% million. expect grow to consolidated $XXX $XX XXXX, quarter On we in XXXX for Specifically a of basis,

in be chain we we guidance the between present continue dynamics our on exceed we scrappy Europe and through believe our what are million how challenges Eastern will basis. external and head Consistent XXXX. We new continue I be in managed with over would to evolving hand and to and that like geopolitical regular Clarus' be one operations. to supply million XXXX. with XXXX, our our expect outlook that we outlined expected accelerating and addition, in prudent strategies call to range a the will of our approximately have challenges Super unprecedented as approach now we like discuss Operating in Officer Chief the is Aaron, free seek we reasonable we each Executive $XX situation a CapEx cash recognized into $X to the Vice Accordingly, of to President In in to $XX and and outlook million Fan brands. to flow

Aaron Kuehne

and Mike, am been of afternoon, to XX excited months XXX% everyone. my new job. role, to today over dedicate time. great I that pleasure a you unofficially my It's the be to a and leading one Thanks, addressing one I in which Good have past

Mike you, we reporting As brands in for that plan take future. would the our John are great and have to told where set results stage we the

Today, think XXXX significantly, Now I'm our M&A. that and our beyond. maximize empowered I portfolio. we operating scale of for continue benefit we as while brand excited of Fan is four about critically all important stakeholders. that model to strategic performance to individual Super drive evaluate have by to will brand it I And our address am the areas are important

an our flexible structure; update brands and each of XXXX. and the brands; driving third, are on second, key operational the initiatives our for fourth, in supply our integration capital chain; M&A of our First, we

supply chains. First,

to retail sheet chains with to partners. in needle, through degree has in brands bit high pillars the relationships poles, availability, the We focus our spring product a to apparel, vendor digital continued on growth. snow on easy-to-do allowed supporting of components our of we are footwear, and a substantial vendor a leverage an for safety. solidify additional to to channels. more XXXX, Outdoor to XXXX product community fall and directly we geographies create our context, Super strengthen our mentioned, brands, To we all the excellence, Mike focus flexing results continued with job of segment, of isolate exceeds a approach, core users of of book supply segment lights, As current and across our outperform our which maximize our drive sacred our us while guide through on connecting product operational In both one The our recognition an first to of balance each our needs retail mentality our our partners. done provide key amazing with for optionality our our with team move that packs maintaining our to supply that devotion both business developing chain seek Fan the availability seven and of and has and categories, order and the this strong way. continue that gloves, the in extremely This continue

are $XXX In line inventory we bookings. demand support in of to with levels higher our purchasing plans these of fact, million

However, logistic this guidance the in and of our are challenges we book result a handicapping XXXX chain sales supply face. we to order as continue

one ability to few our As This inventory been has logistics compromised. a as global previously and resulting to move weeks down in was providers slowed cyberattack, planned. ago, key the receive being of had our an a example, network victim

geopolitical and one Another and Ukraine that is all Russia by with business crisis of our commitment that Russia. solidarity within the suspending to Ukraine in of stand between

source competition. in safety to work materials Precision than materials snow temporary the able are shortages recognizing electronic in our our well noise copper possible microprocessors been and we components creates product. We our raw segment, our directly and showed also from through. experiencing for up manage we have diversified Through challenges, some approach particular, like Sports however, required were it better purchased those raw to In critical lead

that environment. can attitude scrappiness execute place show across do Our such to to in right the And we our critical in this execution. a are brands goes to have and overall our dynamic team

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

strong gaining we and our as are leading across into share categories head of market across portfolio brands XXXX. all remain bookings our Our

our targets million Sports approach, increased we confident experienced building on toward mean are capacity, to availability external bullets and our we this world, maintaining work building being tenacious capacity Through and our distribution immune and headwinds this the for as support for product are the expanding $XXX of are globally Although in product longer-term doesn't from new various introductions, focus that our longer-term our vision we increased best disciplined we the segment. in Precision segment. currently in

efforts. and that integration Now, of number two, M&A

plan our As John important an highlighted M&A growth our piece to is strategy.

characteristics within brands continue actively segments. and markets. our be the Our we by Adventure Adventure integration, growth, Super highly addressable Outdoor having other large We last M&A XX and to also still over the total while we strong segments took focused seeking and flight Outdoor engine for Fan supported are on see both months,

the For positioning our life will billion, with deep $XX the through over continue of is Outdoor outdoors to in Fan brands end that product strong the a consumer. evaluate segment, we connections whose Super way and TAM facilitate

to For over $X.X utility is TAM our for SEMA, segment, alone. Adventure according which billion and includes the accessories, racks U.S. related accessories,

as With overlanding we black an solutions product-leading to an true number these evaluate bring vehicle increasing getting the to outdoors space accessory is continue right brands of the want Overlanding go tops in category. popular incredibly will from to now, markets brown and people roads. that fold, to

context, For XXXX. people Expo XX,XXX attended more XX,XXX in versus Overland West than XXXX in people

with on as sales, we product, focus over features the profiles The to for are share strategy. look qualitative for Super of the innovation, high immediately reminder, basis, market at go-to-market history businesses brand convert a leading performance and the we As are least a ability accretive. in one and as awareness requirements among the flow looking are user sustainable a cash EBITDA in financial rate. free that to ability gross brand EBITDA XXX% at to margin Quantitative well a three-year core accelerate the Fan

integration of update an recently the on for brands. acquired our Now

our XX organization hire maximize this organic Fan each of has the brands. to people Super available Rhino-Rack branded our in Manager be us key America. MAXTRAX Clarus' of North includes brands the He has of Rhino-Rack the been USA. marketing to right markets. of operations and the outdoor of He imperative and hire over will sales it Heichelbech Given across helps and hiring years aftermarket, and regard General scale, to in working new Greg responsible expanding opportunities in for the powersports to role A that the the of growth presence experience leadership,

Now the capital brand of is Overall, our our allocation be I'd discuss strategic to capital which like portfolio by supported number a disciplined strength to and three, structure. continues policy.

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

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

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

there operators believe including we run We and the shareholder optimal Xx. responsible between to take is rates committed how the in to Xx balance are friendly, being on. leverage leverage that We are to business, with we of amount owner an here

we focus Mike evaluate at As continued year Xx at leverage other deleveraging the mentioned, sitting we end, are acquisitions. with as

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

come the and we fact, in to partnerships In opportunities run more increase the our current we discipline drypowder this we this regard, to further various credit our as of however, highlights by provide More that are in the we which even the growth. for business. to process evaluate foster facility seeking

like the like support initiatives. number that outlook. of operational the Now, last to each financial prepared is XXXX four on our for turn goals which remarks to item, to I'd our of brands end key my I'd

Our operational share model commercial growth the strategy strategic with the is excellence. and taking on and our creating supported by process, executing sustainable strategy focused both and planning disciplined operating heavily accelerate go-to-market by deployment market and innovate on

As in place right part things. right right doing have of this, it is imperative the people the we that the

human within go-to-market our respective four are enable seen At brands a recruiting development our of We performance-driven. results by and supported with XX months, and our Super that a past and goals a our growth, being of role an had DNA process dedicated performance. to leadership role Black Clarus through to of this the bandwidth as develop and pay such within our being streamlining around within processes we overarching Diamond, increased align enhanced the organizational embrace teams Clarus. developing systems dedicated tools benefits for business. our resource development culture of around oriented brand team We've of people, Fan areas and efforts for and accelerate brand values role each We've businesses the the and each are

we'll products, while digital-first draw our improve maintaining remain our as to and continue tool the on offering we the focused still expect within new For on setters laser continue as efficiency. increase we key while fill to and well product are business focused direct-to-consumer to will In focus onboard capacity sales, across skilled supply marketing, And rates we accounts. margin strategy. gross At our Sierra, our availability goals activities. enhancing our seven. to nurturing In our are on sacred chain,

increase MatchKing. Super Master lines to to include and ammunition expect Guide Defense our We Master,

relationships We and growing while will commercial Ammo, continue which include Barnes, relationships new customer we the XXXX at to enhance key side. strong goals driving OEM on At our Vortex launched retail improved are Rhino-Rack, our sales the Rocky North Utah our and accelerate rates, through goals share. in revenue in Show particularly January, build strong retail the market marketing, America Mountains. accelerate SHOT and increased to At in fill Barnes of partnerships

our channel overlanding We a channels by of expect this enhance core space. variety targeting with our own expanding to DXC achieve distribution the in focused through our reach vehicles by and products to

are our Our share space. with further gain that of world service and noting brands focus our to goals in market overlanding Zealand worth core standalone our improving supply businesses. is class by New in Australia, to continue the vehicles It run products by we products targeting as

vendors, buying is note the base, and our with standpoint. continuous size As this evaluate we and our of brands. we By the expand importance relationships important wasn't distribution, strategy. to of Super though, us to fact to we brands is and space. our have We work expect outcome processes from believe improvement that value own XXXX, share practices that brands premier enable the a allowing different best across own of have accounts of see deepen closely to scale, scale It Fan channels commercialization to the businesses. customer end to the we all and outdoor to in is brands we simply It more to increased to overall our opportunities these options multiple to all adding that however, that With together. can are

the tell, even The appear the outdoorism highlighted what broadening does adventures believe for to adventures. believe in and prior range with certainly demand we what future We for have down. position more shared excited by can calls need deliver Outdoorism exploding to today is equipment for slowing these you holds. enviable be an we these products we've are are creates we we of not As trend micro and in for the activities.

we Diamond, expect and Innovate Black already and do has Our and Rhino-Rack the Sierra, Barnes strategy industry-leading same to Accelerate growth for proven within MAXTRAX.

unique Fan Super that We brands built increasing a and generate and have profits self-sustaining cash business flows. with are

to committed highest priorities yield execute on are continue will We on invested that capital. strategic the possible return our to

ready the operator, and and being questions ability answers. our fastest of consistently growing industries. for one confident to in are We With drive strategy and now that shareholder are value said, we


Jim Stifel. Instructions] [Operator from sir. Duffy comes from first you, our Thank And question

open. is line Your

James Duffy

you. congratulations Good and great year. welcome. a Thank guys, Mike, on afternoon,

Michael Yates

you. Thank

James Duffy

up more materials the in about with through asking you've K. I inventories wanted demand aggressive of by supply a keep like help looking to materials. and raw looks posture start taken to It the challenges materials points the about speak to with of you? you respect different for have segments, Can how stands mix three raw and choke kind present supply across you that any could of

Aaron Kuehne


bet. You

Jim, So Aaron, you. this afternoon and is good to

to key position, pretty As our primarily components highlight, and aggressive we supply of related about inventory positioning in you the also units. chains of for we the were different terms our as solidification business think the

the City of Asia Diamond, Southeast experienced from from inventory, see a timelines days. logistic good Salt are standpoint, on being building considering a XX to we Lake and for days focused Black the First that finished we’re more up times would elongated and going XX transit foremost, it, Europe, traditionally that call where

We are to seeing those of respectively, geographical regions. now different days days, XXX transit for times XXX about

As the out that on a that's is overcome to of we've result miss you able that take. to the to water. And the that either the of that, way you pipeline been inventory position that frankly or increase have the sell on floating

product our the and important here note we is through it's from our to to cycle, consumers provide and to it's our retail ourselves product that of focus end that don't or level highest But our vine the we're obsolescence planning fulfillment standpoint. instead, plans a line that lasting rot demand durable, Now overexposing need to the believe committed our possible. mind on product our really merchandise it's that promote and doesn't to that our discontinued keep you, partners

what Now, our with material of of side Sports see segment. on associated you'll raw the is Precision things that really

availability, material lead, of cases, the raw before, whether would here primers, of that constraints key be et it highlighted is shell propellant, have one cetera. we copper, As

in only but copper how market relates important also to output, copper we XXXX terms to to our strategy as of that enough approach point component where so the first in securitize of to a we're And of lead also in inventory balance and our that we we've This of is to line enable it the of to nine aggressive and us have or XXXX. demand. commodities. lapses sheet manage taken months pretty to committed through in the through where of hand securitize exposure satisfy not our opportunistic substantial would our levels particular, utilization In extremely with

As also these about have a had the we’re bit volatile on pressures which that benefit below product the but have been taken moment, that purchases appropriately continue we right the enable pricing, to us is course of right inventory focused ensuring had commitments on and the and prices these place right know, raise Rhino-Rack was they throughout place of we rates also about increasing side demand the inventory things, then that and of and to the because at but different also well marketplace seeing, at are the that current the only to the accommodate in us commodity it the And the were time. of year. levels we not sufficient ensuring more current really

highlighted, an that growth came the pillar businesses. that, we And of away panel to to and more four to in we strategic accelerate centric when and the needed of ours. we've can for result regions we to of within what of growth we head of as terms America. is really three was That a last of XXXX it the from In center of area North XXXX, particular, to Rhino-Rack that start ourselves started North accelerated an in product believe MAXTRAX in key across months a to shift gravity and the holding different to a availability really better that As of set as into particular, America Australian focus ours start position globe. the and up rebalance

James Duffy

the comments, Sports And with your scale probably acquisition are for to then hoping capacity business I respect Aaron. you've questions the speak that, it like the could that to business I the for Barnes where American North the Thanks and ask want marketplace? follow-up the headquarters. you place, was been infrastructure Great. of utilization the Rhino-Rack you your way last capacity manufacturing coming up working the to closer – in on to capacity to Precision with opportunity as is sounds on just following stand in supply well.

Aaron Kuehne


Sports Precision segment. So with let's the start

XXXX a bullets. XX so reminder, to also when to and long-term As XX increased combined we million capacity million. that when eaches XX our to of years. or or We was bought we winding prepared coming rounds for over to of it million of that ammo finished XXX or XX business We ammunition. units close Part of producing out to about and our remarks facility. believe $XXX bullets this is bullets, million, XXXX, of to or was to units or close Sierra, finished through eaches December to bought doing the Also, eaches XX close close which year it producing Barnes accomplish million XXX million doing in we can the target XX million close loading eaches million million

a was that within As of both key focused we capacity And gives now and on the your employees, to locations. a of those us that the result, commit acquisition to very our overarching XX acquire ability the we it facility but the to also that increasing but location now are point, that to for we only that not we footprint. that, because Barnes to we have building acquired did also on itself, the the own. expand land gives flexibility facility of us acres Not plus lot a room and only continue growth and to now of flexibility sits component

of of at the chains of time purchase. On Rhino-Rack coming your lot the supply existed that piece, chain the to supply is a the existing out still point,

an Australian so Asia still focused and And from very Southeast that's perspective.

key really as top we to can items being in focused vehicles our has and the really how growth Our been really drivers with the levels that XX U.S. accounts XX we top the focus inventory the are to service to XX the on here transition on ensuring XX see we that that U.S.

As once that, place just a in focused at result of right time. the been again, getting very right the right we've the on inventory

idea XXXX, also we retail EDI best-in-class embrace increasing and to and such As easy-to-do them customers, to will tools processes other about being enjoy enable that and can think business tools folks our systems and sales really well with. be will this to focus of really service, as our our we whole about as as that provide so

hitting As local capabilities today. North also can source but type more start the chains, increase course step-two of compared through operations we at related to also but we'll or go here things in our the that's where process supply to our are XXXX, also look capacity of to America, a where we and more we

John Walbrecht

inventory on these the as question Jim, blessing of at the overlanding saying, kind summer America, months the right other this, just Aaron's as a for time was and months never follow that reaccelerate It are product chance end in those becomes right then The we new summer the is opportunities. rebalance having in as the the counter seasonal, in market. for really North comes Australia, which and it us intention. right to And what

James Duffy

guys. all the I see. Appreciate color. Thank you,

Aaron Kuehne

bet. You


you. Thank

Bank question Perry from Our comes next from America. Alex of

is Your line open.

Alexander Perry

Hi. Yes.

John Walbrecht


Alexander Perry

sort here. yes, covering this capacity of and maybe sort the above Precision there here, remind of to on Is can But, on give of of excited growth for to there? maybe story there? strong just the guess then on And and guide Mike. taking just levels within here, my Sports, restocking inventory us a channel first I the Hey. sort Thanks. biggest welcome, the low more back us embedded efforts sort range that for look be thanks you single-digit what's quarter I'm question how limiting going factor going congrats color still? and

John Walbrecht


literally ourselves also supply both XXXX, retailers. included, we saw As demand but we out the entered industry participants the

the like with first]. the well And be that industry what obviously ammo that the for to copper, other say. to So in led then ones a we probably first The Sierra to going drive. things water yet started expansion other that issues or the see lined chased Barnes. factor Within XX be is for capacity churn elections months. XXXX district Barnes and industry has it's Europe, our we rounds. XXXX. specifically of the order and don't across said, it. this we're on issues Sierra Eastern driver going with And we a for a to won't it then obviously honest and ammo up it types lead goal in even and of to us are and in biggest be became accelerated at as the shelves and as hunt place honest than that nine-millimeter XXXX demand And improving particularly but of as XXXX, Aaron constantly continues then to deliver going in business been chasing fulfillment the waves we will but to in see was constraint to targeted the the to retailer [XXX XX the not limiting levels, and this has demand a XX XX%, changer to raw in far on lots became players, board, have to that the to that ammunition last all a with probably in of the less and chasing XX XX really everybody to to Sierra XX% following the is people time, is year, is and constraint and in until capacity of rounds to has own by expected. in the be And the in the able brass like right. meet been and game consumer the still It shell to inventory whole as included process. Today, focused why format, against demands on we're XX capacity the election a for could chase inventory still see with running on ways check a cases, side geopolitical industry that excess control real And And materials as start, in Again, million Barnes able the Sierra. million Barnes, XXX% you, different

going clearly of seasonally this So demand that where see think continue XX gives little you be way plus the strong market. we We it's at least bit next to a months. it though see for shifts we the to and

Alexander Perry

partially And a driven in helpful. retail then out little really Can growth Outdoor in think maybe called there? That's the going being wholesale partnerships. adding bit, strong you you of give Are a distribution? retailers? more that of Or expansion shifting you is I gears additional deeper us existing the color with by sort segment

John Walbrecht


consumer hiking it think very and we this trail find whole, trail based a as blessings to the and the mountains. in really this obviously, been anybody a America into go roads just other we black with activity decided year what additional in for skiing, has was of who's backcountry people of few outdoors head brown new tailwinds going last I you're than the to explosion to outdoors and explosion on what tops COVID climbing, that running, say call don't had escape that. this North and associated created And seen and

first that Fjallraven to become But the outdoor outdoor right find and in seen the as of key is North foremost, like model, where can in continue now impact outdoors then and So all that. you retail expanding in The direct-to-consumer what expansion specialty as and U.S., both well expansion years talk we've be aggressive, when I Nordstrom, the wasn't stores. to seen that accounts. will to fashion. point Patagonia, pseudo and seen a loosely your driver it's five market the you We've use we've explosion about of outdoors brands done And ago, where Face,

Bass Academy name like see retailers Cabela's, expanding you XX see a like well accounts year, new to are doors doors as Goods, expansion Warehouse, REI you growing Sporting And their distribution. you who XX Dick's Sports, Pro, it, so Sportsman's as Seal,

And really has consumer lands more only lot retail but base of the new of invites and [indiscernible] every drove the all the Dick's trend. those each that participants during that's not more the He COVID. it. It's wider the much where what a outdoors. market to to more format. always involved It's importantly, In really finally inclusion doors rolling new to really into number the of climbing more exploded. announced the out just that fact, retailers public And climber doing that then following one this, was is these and core not mix, adds and and new successfully started sports a climbed expands the in or retailer that

Alexander Perry

best luck That's and incredibly helpful, going of forward.

John Walbrecht



Thank you.

next Jefferies. Konik comes Our from question Randy from

open. is line Your

Randal Konik

a Thanks Good just bit. Good taking evening. for little unpack my I wanted guys. to questions. afternoon. segment the Hey, Adventure

just year-over-year XXXX? that gave XXXX you revenue rate looks assuming us for the that us of guide give on how You for perspective of curious? And full-year what the in businesses XXXX. Can some like were the that a growth on full-year, owned looks a

Aaron Kuehne


So to speak Randy, pleasure great a always to you. have and you, with

look experienced. the double-digit remarks, segment, our growth we though, in about high-single Mike We wanted mind, is the guide, year-over-year were guide pro different looking to terms the at headwinds responsible providing approach. when of you highlighted to on So standpoint, with forma considering just make you're we how Adventure in the in in a are low prepared sure from think this that rates. keep what When a being at the we're that consistent basis

than there's the biblical the floods to our we and now, and in of a through higher be and those in into targets to scrappy and of continue coming we Australia in a few want should path that a elongated accomplish to that. to for category clear naturally something look chains punch be to But XXXX. guide, growth right be and factor And Now that headwinds will supply through with U.S., aware this our is that much long-term we're reflect we exceed. able have dealing is, even actually limiting types believe approach

bullish extremely this we're segment. So on

the not through because the what we a of are our lot of headwinds pretty There's believe these some bit for of less also M&A, guide opportunity opportunity for a just experienced, just than external growth, market organically just that is is now and terms but I massive. tempered both As because that being addressable of stated. in we're highlighted, being that segment right

John Walbrecht

us guide in believe case that and with this few nature, we consistency category, everything it, or The we arise the channel as name our said, luck that be overachieve expectations you and we that based scenario. upfront then I confident over at and of transparent whether minimum, as on to realizing confidence our continue, last the think anticipate we do or scrappiness by Randy, very headwinds you some very we scrappy lot be all can it. Then will by years. political and temper very the about if that. watched that headwinds will But but now work for also about been goal about is our guide, our the worst hard go over feel geography a clear quarters, exceed these to the last hell and that's we and multiple out,

Randal Konik

rate synergy much be distribution would it businesses. able for all And you assuming get that appear also the would that were helpful. to super higher the It's growth Yes.

kind because you I So of… – want Aaron can to maybe

Aaron Kuehne

market we Australia as not lockdowns can we're in little we're COVID seeing at we least floods, biblical having still that not yet where a faster this having in nor U.S. the And are where be market. in

opportunities fortunately to we market And than so we're in home those market though, in see Australia markets still New upside that able and growth the for see little in share quicker are Zealand. in significant to we acceleration

Randal Konik


across something that end helpful. ask pipes. Aaron, you I sold comment have all distribution that to And hope the would comment – made – by that's kind of portfolio I you the a hope to So super being of would you your wanted to under about of believe this said you XXXX, effect brands the

distribution products and that talk around across and through kind executing how your think kind So and that kind account of more how us your base kind walk that about bigger much and scale accounts kind their will, with about Thanks. you and more this guys synergy of of maybe your needs, meet customers about of think you of brand you of and using and effort because walk services, time and how and through are through ordering think if those strategy opportunity you impact to you providing kind just have kind of or products there? of you

Aaron Kuehne


I and this. will John So tag team

a to is strategy. just again, Once opportunity the Super first, brands. what brand Fan nature was our a So clarify, this each and highlighting of of there's of that not is I because defined real

these the about, of exists our innovate pillars with. foundational we've that them just DNA extremely of Super also instead through we we've and lens synergization, of market characteristics embracing being share unique open that Fan outline. brands, about understanding lens business pretty of within to but one through all don't been through been taking but the As accelerate and view it's able the the easy-to-do And and strategy

these of for key we of offer, span all segments because with asked strong able product us are to and nature from being Now, request the said, have that to that accounts that our seeing product that we provide demand them. that and some of brands be this the to there is

the that end of extremely with level or first identify Rhino-Rack, months Rhino-Rack brand the this on just it one frankly well couple the able specifically, of aftermarket have foremost has and resonates business and over been learn with is going be. Now is that not easy-to-do being within focus of where needs the to to we service whole the because concept consumer we're to last our of things been automotive that

implore. And line and of strategy that overarching we areas with it so right the focus the in plays

with, they continue want real relationships though asking in that we've run MAXTRAX participate the we piece not what of the as develop approached would support because of been providing the overlanding looking – And to efforts only is as activity these foundational overlanding are they these to we well The with by marketplace, that but with is as them able also at, some and Rhino-Rack, this product. that outdoor on of accounts key it. because reputation developed us elements going business pillars the have other into the to of look in what's in or the we've which we and their

the an Fan of key product because certain the the that different run And business, from will but all gravitational so our way Super where accounts the you'll within the opportunity we of the that there pull do see end categories because with that brands. be segments believe of year also exists by we

John Walbrecht

one really are – I synergies brands. the my are just this, consumer's important, behavior on is corners, in whether comments really the The of on the around Fan you we're think Randy, which the favorite that the new think to driving that it's we're is playing when this, look ability lucky outdoor Super and world.

a your of experiences SUVs? in are parking Texas favorite you saying of don't one GMM a the vehicles to so do retailer, trucks, are lot I in right, the that parking XX%. big standing percentages what for was, said, And with pickup great. And or my lot holiday think I with him, and XX%, Toyotas in we the laughing know, retailer the

aftermarket, but driving their the has them choice. vehicles, right. here. to already either for And wow, you be go year those $XXX I the on fits already went, doing million picked a the a sell their million, rate exact if the or and that you a $XXX of activity made choice It's to you're fitment base same and you'd had he's already those They've which activities which vehicle can X% automotive them can consumer. then an they're eyes is. service So I consumer

two. to Now, I just need the combine

Randal Konik

Yes. Super helpful. guys. Thanks

Aaron Kuehne

Appreciate Randy. it. Thanks


you. Thank

from from Our Matt Koranda question next ROTH comes Capital.

Your open. line is

Matt Koranda

to Good afternoon. and both well. as Aaron guys. Congrats Hey Mike

Precision cover low million the of a bit any bullet outlook for the that's single-digit about wondered ammo wanted Just outlook you to is and that just just for price Sport growth And $XXX or to revenue if could the speak mix pure outlook then year? volume? sort more and in embedded that versus

Aaron Kuehne

Yes, you bet.

is Aaron. this So

of at we Sport, as within least expect XX% to ammo So Precision our will that highlighted, represent business. our continue

to we tends towards more maybe we as within growth also bit opportunities little bit. little but highlighted ammo Sierra, a that piece, quite Barnes things. of just the bullet unpacking component bit see side worth – a it XX% the is lot Now of And of and continuing are plus trend to a a

that months, the on been every it's Barnes XX the ammo all, to and to market indexing important of really XX First realize piece. focus last also over over domestic the

of of the that Sierra also when that the our differentiation of comes we to and when within to be really comes key choice precision end whether we terminal points We've that also draws consumer and accuracy that cartridge. Now it and of or an talked about in before of unique it Barnes. characteristics ammo believe would characteristics These performance. have both terms after are ammo requires these it and

we that The opportunity look is to stopped. though, to other to customers, an for or prior has that's had as within. another we strong that from providing increase exploit also prior to international we of XXXX, continue And piece taking not to take bullets that – presence demand and market also share OEM look will XXXX, capacity a side also

OEM to increase will of but will expect in so it, to the that to business, continue not XX% be XX% And overall, our our things, of, of that black on overall, but also focused also only ammo continue to to business. continue out round to also box call look range our capacity and green side support to the customers but are entire ammo offering, the box

Matt Koranda

ahead. probably it. there, go maybe Got like sounds it just more that you And deliver just the volume just given made I capacity to growth. Aaron, just question, the but commentary price would assume

Aaron Kuehne

we were also And on pass Yes. able to pricing.

believe the for of level, of at As where highlighted XXXX. call in to we share. true brands is prepared market X% were across but increase increase that Fan able Super price, pricing, to able or that a business all the And gain it, different the overall we manifestation this in so you're remarks, units Clarus also to

just to as benefit is for the also way increasing But be us, there. units taking well. a have along it's there about that's so And share and market

John Walbrecht

that Matt. I think others question, ask will me

the important to new every market innovation here look with new every cost Diamond, the and constant through and now price the the function we season it's then the realize we and products through the and in cycle Rhino innovation year think I or with of pieces. product, relatives price as Barnes, just introduction at Black and through products a both of season of revisit share MAXTRAX course,

that. stealing how best in it's the very really, that goal, And activity our the Aaron their mindful we to always so we're make us we But market one of in days ensure consumers products have out as share. their best show about tool said so it's do that can an that – and just ultimately

Matt Koranda

the have Great. Outdoor called you that, segment – Thanks so for John. was And the other then the embedded I that's my guys in out question outlook. on conservatism, guess, and that

something have your is And misheard you million but prepared in but the thought, $XXX so may I XXX. you, about book I order remarks, range, in the Aaron, outlook said the

on sort more into to the the a get if of – see just conservative you Europe some maybe little we could outlook? how approach in color developments bit BD So of approach more and wanted recent in factored the

Aaron Kuehne


the order $XXX we've global is the Black accelerate a spot brand million. once on way are really Diamond the within that you basis. to marketplace with a being around book position This testament on entire the commentary team, the the again continued and to So

that one just that chain comes the we're headwinds the is we at things it when to and supply looking Now, things. of side of logistics seeing are

– some it's a full just that's experienced third-party issues of by our we that's and example, anywhere something freight to of why And with with mentioned, one half month impacted as a our candidly, sorry, an our from a business we As how overcome also month terms in guide that reflected well. as in receipts. that's QX we're our that of through for working forwarders,

as other The electronics, other thing is also it microprocessors that business. seeing delays relates we of but some trekking pole or component are as shortages our some even to such aluminum for

a entire is of us for and not that they seeing are to team the – highlight noise the us opportunity team it is a be it's that the work so the and once continue exceed to substantial to the we the that chain to shape. be there's on again way lot execute. into supply chain terms out, how our they the side depending continue of things take in side guide, tempered causes of to supply And demand an there, kudos this to way put recognizing business some us amount bit that that is But to able in more give logistics a huge the that of little to logistics in for but things of just

Matt Koranda

the queue. guys. I helpful. back will in Very jump Thanks

Aaron Kuehne

bet. You

John Walbrecht



Thank you.

from Our from Vasilescu Paribas comes BNP next Exane. question Laurent

line is open. Your

Laurent Vasilescu

Good your strong, finish the and as afternoon. I roles Mike, can word congrats say to year. Aaron, on the if new scrappy

Michael Yates

Thank you so much.

Aaron Kuehne

you Thank the for word.

Laurent Vasilescu

that like You word?

Aaron Kuehne

I do.

Laurent Vasilescu

I it. John, forgot

here. the around comments market business, Ukraine your because business, appreciate your business Eastern because, XX% I play Ukraine at think the I and business situation, obviously, I Russia don't European I obviously overall of Russia market's quantify going, abroad. just maybe the and – comes maybe from your and you know could if dynamics where big you your know how

Michael Yates

Sure. Mike. Hey. it’s Laurent, Hey,

that and into directly significant, about exposure Our $XXX,XXX a it's Russia year. isn’t

that the number. when to in a smaller about decision thing And a value-driven do. Aaron suspend and led on operations with it's But to John and part our it's talked Russia. that So and decision just I so customers to our right this,

John Walbrecht

our a talking session, is IGD in obviously book, by you North portion Slovakia, all just prioritization allocation, primary Eastern Slovenia, play around more that without obviously in first and Aaron not that supply and America our to in think And Europe. about question And focus on your it obviously a as of has specifically Europe, But European we Eastern I Europe followed been biggest demand. and have able our Poland, demand as focus said, we question-and-answer to XXXX heard of we're the business.

smart that all so part where inventory. because this you're you making about to going inventory get of of And that just allocation of is put not

Laurent Vasilescu

XXX I freight. adjusted margin basis a up your Very bps a mentioned, includes Mike, of air I about XXX were then Okay. you think basis gross incremental points And which that I helpful. think think

all it's up So XXX. said,

acquisitions know being how overall headwind Just that about margin, gross we a context much was and first freight full-year do driven think air quarter how curious such just just by the for everybody? of to the and

Michael Yates

Well, Aaron first the fluid alluded for guided the gross year. supply still standpoint. about just chain we haven't We for is quarter to from as right? talked The margins, a pretty market

are So still those we incurring types costs? Yes. of

important that's the We to months I So that understand. be for probably – think could actually. a don’t next headwind six

So we improved basis, net way price, Net growth price right? price basis X% a we the this cost are We've a we're the looking at margins, targeting on put on increase. through Aaron mentioned that lot a over last expect as out basis to about margins long XXX challenges way a there a But go XXXX in by alluded there points. to benefit is and hour. to of we've the

it standpoint. of forward So that's at we're looking a from is XXXX going – how we're margin kind how

Laurent Vasilescu

Very you the mentioned I helpful, bit targets acquisition. my with think go leverage that last And right potentially Aaron, you question. could little higher Mike. a

your may you would higher you it which segment question you credit acquisition? higher you go? And would the assume just logical part mentioned you be the but in it two be how much would Adventure in much would segment one, agreement, think how I made if Like would potentially then what's to it go? revising – max? be So here; another

Michael Yates

again. Mike, Laurent. Hey,

remarks, to and to Yes. bring said targeted think range. place – right. into in looking in we that months to we'd our that space remarks, in to look disciplined mitigate get whole next we'd that and pretty All the two we into X.XX? over M&A back plan a take bring we're prepared lot three past range I to we'd in have fashion specific prepared XX be outdoor targeted that or a the it in we back leverage do our wouldn't space. the Could up go to adventure as a But that, the

Laurent Vasilescu

Okay. Very you. Thank helpful.

Aaron Kuehne

structured. I the about relationships to way also that shown it's manage agreements highlight to capital allocation note think help credit how in our the demonstrate how willingness through we have is just, stretch have or their highlighted important our we the leverage. there discipline think also to our policy And banking that thing are we continue and us to

basis, over that's the would a business is on and the actual circumstantial be within you also a that we path from We'll very the range healthy because we that EBITDA, how skis we free is type disciplined. means. also is our or we'll of believe it acquisition also What considering will. do bit everyone very and on always both long-term be tips if becomes we perspective And way that commit of thoughtful, again, that range. continue not it the all to but that progressing clear cash remain to something as an once flow what a the depending maintain Now, that have anticipate to a we'll on getting

John Walbrecht

sooner It sooner back is. we following out opportunity. additional range and the opportunity the deleverage that each business obviously and prove discipline next reloads and get The the acquisition the in

Laurent Vasilescu

you Thank all. Great.

Michael Yates

you. Thank


Thank you.

next from Linda Bolton-Weiser question comes Our D.A. from Davidson.

is open. line Your

Linda Bolton-Weiser

that wholesale, a kind to efforts did of if of Or to Hi. I able talking having you as customers. you to could you – something versus each your much is supply few bit kind as supply talk issue? retail quarters ago about balance previously? Is about were was you DTC being wondering little still your constraint are channel able an that without a

Aaron Kuehne

So that through. is something that we're currently working

weren't and according best we trying efforts prior the flow to despite terms increasing because concern times for lead goods our deliveries quarters, or as seeing highlighted noted, we a of the the to you the topic accommodate that out, that this As that. of lined just in was of in pipelines

consumers level our As believe product, our will also we to of our high do retail we XXXX not for look own also a each better end fulfillment rest partners, of and level through be in but year, the for channels. fulfillment that to only high we provide spring a position a the DXC

away that, to term what service taking Our direct-to-consumer not want business We business and to a accounts. where have primary also realize means is the wholesale relates area that to targets while as longer it we focus. from it of importance of be we our

to that the brand representation consumer supply the we on that is in operational product can the on of onerous of customer time, And we to have sure and regardless really base place channel. best so right entire make at right the the provide the the the team base chain team and right the so

do that end we a head fulfill tail though, the of in able believe the channels. as that half, across different first the half should we we back the to position be particular, the so into in demand And be to and better exists

Linda Bolton-Weiser

like you curious Asia shipments several Okay. kind of the in just your terms freight. market? on And contract for open like on do or then of buy was year, months time I the ocean Do or of you a ahead for from that,

Aaron Kuehne

both and the on Once of more immune market, advance It's and what in is in increased broader days so again, up not of the or called terms so it. cost those vessels in they're open open booking lead bookings oceanic but seen associated XX rates. they’re with times, typically end also to booking, called freight terms the we're market

we we very inventory proactive measures nodes. goes, it, way think that and where how build different up how the alternative taking product sourced, pipelines how and into that also we where of in price about of we're is think getting we terms then product about So the that those ways

John Walbrecht

One get front to at know at the it, right? hitting ones because you've team gotten exactly front on you curve, chances to the going it done the the way great is be that curve in of ball where moment, of up. right of Linda exactly If the have has is that gone well of in

of and positive if getting of focus in it's move demand we up our But allowed this and curve. that, And earlier front fulfillment buy to top our downside then really can that the [X-K’s] more so plan seen in it And with and retailers. is accurate earlier, get be and is the can accelerate and the – the keep the us increase try this that's operational hence for out, you've as outdoors inventory. and planning, we in front on role it and because

Linda Bolton-Weiser

very you Thank Okay. much.

John Walbrecht

Linda. Thank you,


Thank you.

Our Capital. from comes Mark from Smith question Street Lake next

is open. line Your

Mark Smith

guys. one keep Hi, just it I'll at here.

the at domestic on you in just talk expect we how can the revenue with you sales? As guidance, business about much – adventure look

Aaron Kuehne

Yes, that's about XX or so percent.

when of that than side XX% international and bought business, the it, So of do grow was, domestic we the of that market things. U.S. we it the things or faster side call expect the will

anticipate seeing do mix we so from XX% to And shift XX%. that

Mark Smith

Excellent. Thank you.

John Walbrecht

and Australia American we it We as heard that New market us before. similar and accelerate you to that be from obviously, then equal market and And of to North time. in that, believe Zealand ought the

obviously Australia demand the and American the requirements North and meet exceed in market, New so market. without slowing Zealand down continue And the to

Mark Smith


John Walbrecht

whether get South Europe, America, And third it or that's others. be chance markets, a we look at before to


you. Thank

next question William Our from comes from Ryan Sundby Blair.

open. is line Your

Ryan Sundby

I walk that Congrats, the stay to Hey. MAXTRAX just expansion; touched Adventure buy brand? a the with with and can geographic obvious introductions something process Rhino-Rack, Aaron guys. when guess like you beyond on product the new decision us there detailed drivers under category Yes. Mike, expansion, versus maybe and growth the information maybe like today, you category maybe enter for starting the I'll segment, bought you Rhino here. opportunity and through thanks its trying to category all

John Walbrecht


we in, on accessories always leading you opportunity at in the it's we whole all to obviously that do share the with about go of One because logical technology expand market first go that, a and the at have the And fall business two The to brand. effectively the adjacency again, products Super an walking is put bought and is overlanding through the ways the what Fan Aaron already I that function biggest hey, the best opportunity call have we we the the can we share is and gain the looking you rack one look into have the brand. So brand catalog. we obviously then market the you things this, continue and rack when once addition rack. and produced catalogs market strength marketplace? XXXX Rhino-Rack the believe to looking have to then saying, opportunity our at And of next that's and and the given

Like I the before of MAXTRAX on said, As rack walked I see orange through are there before went got I show, Then even dude, called I the and we booth. brand one SEMA hadn't Fan is after would the hour this every we Aaron MAXTRAX and clearly the on consistently. page in orange literally been rack the to to space. looked this show the page, Super

been that but And be just we'd Now believe. and reassured we already we careful, you is and knew, Brad discussions the with what in at group got to what that point. this

You is careful trying got Super brand, dominant share the supersede to market who to in Fan leader the be space. the

not that's path. at an go Fan shorter this important and this. that. acquire In the got XX% leading was of the to space clearly market is of opportunity, brand other either kind a look because of It share, be XX%, it's are If supersede but you And with where think trying to we'll saw have that where huge to a dominant that, to fortunately, players, we Super did part we basketball and areas, expand and MAXTRAX is me Nike there the it. make we go opportunity and to

and of stuck. it But itself. are It's You going the win, a we of brand its question not get saw leader. if, it also in was to as a

the create overlanding to so the brand. we Rhino-Rack And will within final, accessories

is the and you is the get end may We the though innovations see rack expanding other MAXTRAX adjacencies seem use on One right. doesn't extending brand, the the also product they and And help them see within And the about recovery. similar moment about racks to the two. as we and time and overlanding unstuck. separate

Ryan Sundby

from Okay. Perfect. how quickly I And you are you're can kind some guess America. placements North build to there already it need sales the those standpoint, as you sounds That's can? little throughout winds? great. But a able a I'm any like are production you meet Very distribution, windows you starting And geographic just or that you then guess scale year to to to uncertainty I true. unclear, as of hit see add in

John Walbrecht


out and in the it, two, call and in have business became was be the better not sell either then sell You market it you it, but phenomenal When and and is go specifically world MBA have supply from huge then What to the Rhino-Rack chain but that maximized great that Clarus and it then didn't Fan thought product time first, side, or line can see see at went understanding go have product. in ship school, pipeline you I it, obviously, really innovative Number the out market easy-to-do yet We them deliver business. a it. we alone but model the make heck product, we operating the fulfill first critical on outdoor our really up side. hasn't of make we it. learned, a of bring with Super We the out brands, point. of and existing the out product, go current automotive the that produce for OEM strong let distribution, only that been opportunities the it that

day, it second, of promotion of the window, the to and salesman, Aaron's get you right side and at literally of at of again, falls and deliver it the logistically the don't cannot the end the bigger a the need And we it The if rest for right reason right. produce and became because role the big warehouse the all part that focus. time, it is operation of out

And so months. been first in the literally six has that the focus

the innovation. Now, you come as am and ammo, business back in or in let about somebody are innovations when to with went XX deeper the our just all haven't saw last innovations we that delivery months it. get the open that you've and said, Precision Don't next, me adjacencies brand or Sports the credibility say categories product about we you fulfillment do on the retailers, to then about new them they'd When I last time XX tell going gain time book then that in as through to worry you in key had But that they're talk opportunities to that to during we have, and have with bullets expand I the innovation, that and seen? order I about months, for worry shipping, out. we'll hey, if either

by outdoor significantly there ranges months – XX expansion so let over can supporting, XX this automotive true next grow the is fulfilling. operational the side. the to We here. model side just a to the with business believe The cadence And we the delivering, alone current

all gives the and launch literally innovations the disruptive also time those that range. are ensure to the us that While we're industry that go at Rhino we in probably MAXTRAX doing when to XX-plus

Ryan Sundby

Aaron. split. now just know been sequencing a that you've go? Got as and XX-XX from we the it. Mike standpoint for And we've or a be has might historically challenges But shapes more I this the thoughts kind business platforms helpful. Any That's think got of out But highlighted. the year I on super then how of some year, logistical new kind

Aaron Kuehne

the with consistent or still so. XX-XX Yes, split

Ryan Sundby

Thank you. Got it.


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

John Walbrecht

XXXX Thank for and questions for speaking Thank we to thoughts forward listening you, Crystal. with present and again, We'd our everyone, the when results. you look like to quarter on we the everyone call, first of report Ukraine. thank are our today with people your and the again, you


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

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