Slide 1: Q3 Earnings Presentation
Q3 EARNINGS PRESENTATION — NOVEMBER 7, 2024 ; _— ,
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements Please note that in this presentation we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of
Slide 3: Today's Presenters
TODAY’S PRESENTERS CLARUS | ~ >», y SON Warren Kanders Mike Yates Neil Fiske Mat Hayward EXECUTIVE CHAIRMAN CFO PRESIDENT MANAGING DIRECTOR Clarus Clarus Black Diamond Equipment Adventure
Slide 4: The New Clarus: Q3 2024
THE NEW CLARUS: Q3 2024 CLARUS. Positioned for long-term sustainable growth > Strategic roadmap continued to guide execution in Q3 . a Improved quality and composition of inventory focusing pba Nall sells > on best and most profitable styles; 70% of inventory is Simplify and focus on the core now “A
Slide 5: Q3 2024 revenue, margin and EBITDA summary
Revenue Adventure Revenue Outdoor Revenue Adj. Gross Margin Adj. EBITDA - 17% Y/Y - 12% Y/Y - 19% Y/Y +420 BPS Y/Y - 33% Y/Y Adventure Outdoor Adj. EBITDA: Adj. EBITDA: $0.25m $4.4m
Slide 6: Adventure - Strategic Priorities: Q3 2024 Highlights
ADVENTURE - STRATEGIC PRIORITIES: Q3 2024 HIGHLIGHTS ADVENTURE BUILDING BLOCKS IN FOCUS * Strategic roadmap established guiding execution INVESTMENT INTO U.S. AND ROW + Q3presented unique events that had material impact on business and results SSeS Se SS Se SUSU SS So Ue EESoeerseooeers + Largest OE
Slide 7: Outdoor - Strategic Priorities: Q3 2024 Highlights
OUTDOOR - STRATEGIC PRIORITIES: Q3 2024 HIGHLIGHTS BUILDING BLOCKS IN FOCUS * Successful execution of strategic initiatives in Q3 SIMPLIFICATION EXECUTION * While revenue down 19% y/y, consistent with expectations, adjusted EBITDA up 25% eee ee nn ee ee ne ee eee ee ee eee ee * Gross margins lifting
Slide 8: Q3 2024 Financial Results
Q3 2024 FINANCIAL RESULTS CLARUS.
Slide 9: Full Year Guidance
FULL YEAR GUIDANCE CLARUS | * Consistent with historical seasonal pattern, Q4 sales, adjusted EBITDA and cash flow are expected to be quarterly highs for 2024 * Q4 guidance: net sales of approx. $70M; adj. EBITDA of $5-7M PAGES
Slide 10: Appendix
APPENDIX
Slide 11: Condensed Consolidated Balance Sheets
CLARUS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except per share amounts) September 30, 2024 December 31, 2023 Assets Current assets Cash $ 36,399 $ 11,324 Accounts receivable, less allowance for credit losses of $1,569 and $1,412 54,337 53,971 Inventories 93,147
Slide 12: Condensed Consolidated Statements of Loss
CLARUS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Unaudited) (In thousands, except per share amounts) Three Months Ended September 30, 2024 September 30, 2023 Sales Domestic sales $ 24,365 $ 30,423 International sales 42,750 50,879 Total sales 67,115 81,302 Cost of goods sold 43,618 54,0
Slide 13: Condensed Consolidated Statements of Income (Loss)
CLARUS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) (In thousands, except per share amounts) Nine Months Ended September 30, 2024 September 30, 2023 Sales Domestic sales $ 75,583 $ 80,545 International sales 117,327 128,972 Total sales 192,910 209,517 Cost of goods sold
Slide 14: Gross Profit to Adjusted Gross Profit and Margin
CLARUS CORPORATION RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN THREE MONTHS ENDED September 30, 2024 September 30, 2023 Sales $ 67,115 Sales $ 81,302 Gross profit as reported $ 23,497 Gross profit as reported $ 27,284 Plus impact of PFAS inventory reserve 1,87
Slide 15: Loss from Continuing Operations to Adjusted Income (Three Months)
CLARUS CORPORATION RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED INCOME FROM CONTINUING OPERATIONS AND RELATED EARNINGS PER DILUTED SHARE (In thousands, except per share amounts) Three Months Ended September 30, 2024 Total Gross Operating Income tax Tax (Loss) income from Diluted s
Slide 16: Loss from Continuing Operations to Adjusted Income (Nine Months)
CLARUS CORPORATION RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED INCOME FROM CONTINUING OPERATIONS AND RELATED EARNINGS PER DILUTED SHARE (In thousands, except per share amounts) Nine Months Ended September 30, 2024 Total Gross Operating Income tax Tax (Loss) income from Diluted sa
Slide 17: Loss from Continuing Operations to EBITDA and Adjusted EBITDA (Three Months)
CLARUS CORPORATION RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN (In thousands) Three Months Ended September 30, 2024 September 30, 2023 Loss from continuing
Slide 18: Loss from Continuing Operations to EBITDA and Adjusted EBITDA (Nine Months)
CLARUS CORPORATION RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN (In thousands) Nine Months Ended September 30, 2024 September 30, 2023 Loss from continuing o
Slide 19: Operating Loss to Segment EBITDA (Three Months)
CLARUS CORPORATION RECONCILIATION FROM OPERATING LOSS TO SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA (In thousands) Three Months Ended September 30, 2024 Outdoor Adventure Corporate Segment Segment Costs Total Operating loss $ 1,210 $ (2,507) $ (4,061) $ (5,358) Depreciation 640 340 - 980 Amortizatio
Slide 20: Operating Loss to Segment EBITDA (Nine Months)
CLARUS CORPORATION RECONCILIATION FROM OPERATING LOSS TO SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA (In thousands) Nine Months Ended September 30, 2024 Outdoor Adventure Corporate Segment Segment Costs Total Operating loss $ (2,896) $ (4,544) $ (12,829) $ (20,269) Depreciation 1,974 1,077 - 3,051 Am