Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2022 | Sep. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2022 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | American Outdoor Brands, Inc. | |
Entity Central Index Key | 0001808997 | |
Current Fiscal Year End Date | --04-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity File Number | 001-39366 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-4630928 | |
Entity Address, Address Line One | 1800 North Route Z | |
Entity Address, Address Line Two | Suite A | |
Entity Address, City or Town | Columbia | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 65202 | |
City Area Code | 800 | |
Local Phone Number | 338-9585 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 13,456,529 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | AOUT | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 17,469 | $ 19,521 |
Accounts receivable, net of allowance for credit losses of $137 on July 31, 2022 and $129 on April 30, 2022 | 23,920 | 28,879 |
Inventories | 120,638 | 121,683 |
Prepaid expenses and other current assets | 10,754 | 8,491 |
Income tax receivable | 1,072 | 1,231 |
Total current assets | 173,853 | 179,805 |
Property, plant, and equipment, net | 10,357 | 10,621 |
Intangible assets, net | 60,673 | 63,194 |
Right-of-use assets | 25,417 | 23,884 |
Other assets | 369 | 336 |
Total assets | 270,669 | 277,840 |
Current liabilities: | ||
Accounts payable | 13,495 | 13,563 |
Accrued expenses | 9,634 | 7,853 |
Accrued payroll and incentives | 2,983 | 2,788 |
Lease liabilities, current | 1,618 | 1,803 |
Accrued profit sharing | 820 | 998 |
Total current liabilities | 28,550 | 27,005 |
Notes and loans payable, net of current portion | 19,551 | 24,697 |
Lease liabilities, net of current portion | 24,739 | 23,076 |
Other non-current liabilities | 31 | 31 |
Total liabilities | 72,871 | 74,809 |
Commitments and contingencies (Note 12) | ||
Equity: | ||
Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares issued or outstanding | ||
Common stock, $0.001 par value, 100,000,000 shares authorized, 14,291,791 shares issued and 13,454,827 shares outstanding on July 31, 2022 and 14,240,290 shares issued and 19,403,326 outstanding on April 30, 2022 | 14 | 14 |
Additional paid in capital | 268,855 | 268,393 |
Retained earnings | (56,046) | (50,351) |
Treasury stock, at cost (836,964 shares on July 31, 2022 and April 30, 2022) | (15,025) | (15,025) |
Total equity | 197,798 | 203,031 |
Total liabilities and equity | $ 270,669 | $ 277,840 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 137 | $ 129 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 20,000,000 | 20,000,000 |
Preferred stock, Issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, Issued | 14,291,791 | 14,240,290 |
Common stock, outstanding | 13,454,827 | 13,403,326 |
Treasury stock, shares | 836,964 | 836,964 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 43,676,000 | $ 60,768,000 |
Cost of sales | 24,637,000 | 31,785,000 |
Gross profit | 19,039,000 | 28,983,000 |
Operating expenses: | ||
Research and development | 1,756,000 | 1,521,000 |
Selling, marketing, and distribution | 11,780,000 | 13,200,000 |
General and administrative | 11,064,000 | 10,039,000 |
Total operating expenses | 24,600,000 | 24,760,000 |
Operating (loss)/income | (5,561,000) | 4,223,000 |
Other income, net: | ||
Other income, net | 241,000 | 129,000 |
Interest expense, net | (186,000) | (46,000) |
Total other income, net | 55,000 | 83,000 |
(Loss)/income from operations before income taxes | (5,506,000) | 4,306,000 |
Income tax expense | 189,000 | 849,000 |
Net (loss)/income | $ (5,695,000) | $ 3,457,000 |
Net (loss)/income per share: | ||
Basic | $ (0.42) | $ 0.25 |
Diluted | $ (0.42) | $ 0.24 |
Weighted average number of common shares outstanding: | ||
Basic | 13,443 | 14,083 |
Diluted | 13,443 | 14,301 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock |
Balance at Apr. 30, 2021 | $ 279,905 | $ 14 | $ 265,362 | $ 14,529 | |
Balance, shares at Apr. 30, 2021 | 14,059,000 | ||||
Net income (loss) | 3,457 | 3,457 | |||
Stock-based compensation | 752 | 752 | |||
Proceeds from exercise of stock options | 5 | 5 | |||
Proceeds from exercise of stock options, shares | 3,000 | ||||
Issuance of common stock under restricted stock unit awards, net of tax | (312) | (312) | |||
Issuance of common stock under restricted stock unit awards, net of tax, shares | 38,000 | ||||
Balance at Jul. 31, 2021 | 283,807 | $ 14 | 265,807 | 17,986 | |
Balance, shares at Jul. 31, 2021 | 14,100,000 | ||||
Balance at Apr. 30, 2022 | $ 203,031 | $ 14 | 268,393 | (50,351) | $ (15,025) |
Balance, shares at Apr. 30, 2022 | 13,403,326 | 14,240,000 | 837,000 | ||
Net income (loss) | $ (5,695) | (5,695) | |||
Stock-based compensation | 714 | 714 | |||
Issuance of common stock under restricted stock unit awards, net of tax | (252) | (252) | |||
Issuance of common stock under restricted stock unit awards, net of tax, shares | 52,000 | ||||
Balance at Jul. 31, 2022 | $ 197,798 | $ 14 | $ 268,855 | $ (56,046) | $ (15,025) |
Balance, shares at Jul. 31, 2022 | 13,454,827 | 14,292,000 | 837,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Cash flows from operating activities: | ||
Net (loss)/income | $ (5,695) | $ 3,457 |
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | ||
Depreciation and amortization | 4,162 | 4,179 |
Loss on sale/disposition of assets | 127 | |
Provision for credit losses on accounts receivable | 7 | 23 |
Deferred income taxes | (110) | |
Stock-based compensation expense | 714 | 752 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,952 | 3,939 |
Inventories | 1,045 | (17,746) |
Prepaid expenses and other current assets | (2,263) | (1,924) |
Income taxes | 159 | 869 |
Accounts payable | 277 | 4,226 |
Accrued payroll and incentives | 195 | (3,532) |
Right of use assets | 426 | 403 |
Accrued profit sharing | (178) | 248 |
Accrued expenses | 1,781 | 2,479 |
Other assets | (33) | 39 |
Lease liabilities | (481) | (443) |
Other non-current liabilities | (151) | |
Net cash provided by/(used in) operating activities | 5,068 | (3,165) |
Cash flows from investing activities: | ||
Payments to acquire patents and software | (1,392) | (449) |
Payments to acquire property and equipment | (218) | (537) |
Net cash used in investing activities | (1,610) | (986) |
Cash flows from financing activities: | ||
Payments on notes and loans payable | (5,170) | |
Cash paid for debt issuance costs | (88) | |
Proceeds from exercise of options to acquire common stock, including employee stock purchase plan | 5 | |
Payment of employee withholding tax related to restricted stock units | (252) | (312) |
Net cash used in financing activities | (5,510) | (307) |
Net decrease in cash and cash equivalents | (2,052) | (4,458) |
Cash and cash equivalents, beginning of period | 19,521 | 60,801 |
Cash and cash equivalents, end of period | 17,469 | 56,343 |
Supplemental disclosure of cash flow information Cash paid for: | ||
Interest | 161 | 38 |
Income taxes | $ 32 | $ 85 |
Organization
Organization | 3 Months Ended |
Jul. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | (1) Organization: We (our “company,” “we,” “us,” or “our”) are a leading provider of outdoor lifestyle products and shooting sports accessories encompassing hunting, fishing, outdoor cooking, camping, shooting, and personal security and defense products for rugged outdoor enthusiasts. We conceive, design, source, and sell our outdoor lifestyle products, including premium sportsman knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; outdoor cooking products; and camping, survival, and emergency preparedness products. We conceive, design, produce or source, and sell our shooting sports accessories, such as rests, vaults, and other related accessories; electro-optical devices, including hunting optics, firearm aiming devices, flashlights, and laser grips; and reloading, gunsmithing, and firearm cleaning supplies. We develop and market our products at our facility in Columbia, Missouri and contract for the manufacture and assembly of most of our products with third-parties located in Asia. We also manufacture some of our electro-optics products at our facility in Wilsonville, Oregon. We focus on our brands and the establishment of product categories in which we believe our brands will resonate strongly with the activities and passions of consumers and enable us to capture an increasing share of our overall addressable markets. Our owned brands include BOG, BUBBA, Caldwell, Crimson Trace, Frankford Arsenal, Grilla Grills, Hooyman, Imperial, LaserLyte, Lockdown, MEAT! Your Maker, Old Timer, Schrade, Tipton, Uncle Henry, ust, and Wheeler, and we license for use in association with certain products we sell additional brands, including M&P, Smith & Wesson, Performance Center by Smith & Wesson, and T/C. In focusing on the growth of our brands, we organize our creative, product development, sourcing, and e-commerce teams into four brand lanes, each of which focuses on one of four distinct consumer verticals – Adventurer, Harvester, Marksman, and Defender – with each of our brands included in one of the brand lanes. • Our Adventurer brands include products that help enhance consumers’ fishing and camping experiences. • Our Harvester brands focus on the activities hunters typically engage in, including the activities to prepare for the hunt, the hunt itself, and the activities that follow a hunt, such as meat processing. • Our Marksman brands address product needs arising from consumer activities that take place primarily at the shooting range and where firearms are cleaned, maintained, and worked on. • Our Defender brands include products that help consumers aim their firearms more accurately, including situations that require self-defense, and products that help safely secure and store, as well as maintain connectivity to those possessions that many consumers consider to be high value or high consequence. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (2) Basis of Presentation: Interim Financial Information Our unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the Securities and Exchange Commission, or SEC, for interim reporting. As permitted under those rules, certain disclosures and other financial information that normally are required by accounting principles generally accepted in the United States have been condensed or omitted. Our accounting policies are described in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for our fiscal year ended April 30, 2022. We are responsible for the condensed consolidated financial statements included in this report, which are unaudited but, in our opinion, include all adjustments necessary for a fair presentation of our condensed consolidated balance sheet as of July 31, 2022, our condensed consolidated statement of operations for the three months ended July 31, 2022 and 2021, and our condensed consolidated statement of cash flows for the three months ended July 31, 2022 and 2021. The consolidated balance sheet as of April 30, 2022 was derived from audited financial statements. The results reported in these condensed consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. Reclassification Certain immaterial reclassifications were made to the accompanying condensed consolidated statement of cash flows for the three months ended July 31, 2021 to reclassify payments to acquire property and equipment, to payments to acquire patents and software; however, the total amount of net cash used in investing activities remained unchanged. This reclassification had no impact on the previously reported net income. Revenue Recognition We recognize revenue for the sale of our products at the point in time when the control of ownership has transferred to the customer. The transfer of control typically occurs at a point in time based on consideration of when the customer has (i) a payment obligation, (ii) physical possession of goods has been received, (iii) legal title to goods has passed, (iv) risks and rewards of ownership of goods has passed to the customer, and (v) the customer has accepted the goods. The timing of revenue recognition occurs either on shipment or delivery of goods based on contractual terms with the customer. The duration of contractual arrangements with customers in our wholesale channels is typically less than one year. Payment terms with customers are typically between 20 and 90 days , with a discount available in certain cases for early payment. For contracts with discounted terms, we determine the transaction price upon establishment of the contract that contains the final terms of the sale, including the description, quantity, and price of each product purchased. We estimate variable consideration relative to the amount of cash discounts to which customers are likely to be entitled. In some instances, we provide longer payment terms, particularly as it relates to our hunting dating programs, which represent payment terms due in the fall for certain orders of hunting products received in the spring and summer. We do not consider these extended terms to be a significant financing component of the contract because the payment terms are less than one year. We have elected to treat all shipping and handling activities as fulfillment costs and recognize the costs as distribution expenses at the time we recognize the related revenue. Shipping and handling costs billed to customers are included in net sales. The amount of revenue we recognize reflects the expected consideration to be received for providing the goods or services to customers, which includes estimates for variable consideration. Variable consideration includes allowances for trade term discounts, chargebacks, and product returns. Estimates of variable consideration are determined at contract inception and reassessed at each reporting date, at a minimum, to reflect any changes in facts and circumstances. We apply the portfolio approach as a practical expedient and utilize the expected value method in determining estimates of variable consideration, based on evaluations of specific product and customer circumstances, historical and anticipated trends, and current economic conditions. We have co-op advertising program expense, which we record within advertising expense, in recognition of a distinct service that we receive from our customers at the retail level. Disaggregation of Revenue The following table sets forth certain information regarding trade channel net sales for the three months ended July 31, 2022 and 2021 (dollars in thousands): 2022 2021 $ Change % Change e-commerce channels $ 20,545 $ 16,608 $ 3,937 23.7 % Traditional channels 23,131 44,160 ( 21,029 ) - 47.6 % Total net sales $ 43,676 $ 60,768 $ ( 17,092 ) - 28.1 % Our e-commerce channels include net sales from customers that do not traditionally operate a physical brick and mortar store, but generate the majority of their revenue from consumer purchases at their retail websites. Our e-commerce channels also include our direct-to-consumer sales. Our traditional channels include customers that primarily operate out of physical brick and mortar stores and generate the large majority of their revenue from consumer purchases at their brick and mortar locations. We sell our products worldwide. The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the three months ended July 31, 2022 and 2021 (dollars in thousands): 2022 2021 $ Change % Change Domestic net sales $ 40,276 $ 56,530 $ ( 16,254 ) - 28.8 % International net sales 3,400 4,238 ( 838 ) - 19.8 % Total net sales $ 43,676 $ 60,768 $ ( 17,092 ) - 28.1 % Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, or ASU 2020-04, to provide temporary optional expedients and exceptions to the contract modifications, hedge relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04, which was effective upon issuance and may be applied through December 31, 2022, is applicable to all contracts and hedging relationships that reference the London Interbank Offered Rate (LIBOR) or any other reference rate expected to be discontinued. As a result of the amendment to the revolving line of credit agreement in fiscal year 2022, which uses SOFR as an interest rate option instead of LIBOR to calculate the applicable interest rate, see Note 8 - Debt, the new guidance will not have a material impact on our condensed consolidated financial statements and related disclosures. In December 2019, FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, or ASU 2019-12, an amendment of the FASB Accounting Standards Codification. ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions for intraperiod tax allocations and deferred tax liabilities for equity method investments and adds guidance regarding whether a step-up in tax basis of goodwill relates to a business combination or a separate transaction. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We adopted ASU 2019-12 on May 1, 2021 , and the cumulative effect of the adoption was no t material to our condensed consolidated financial statements and related disclosures. |
Acquisitions
Acquisitions | 3 Months Ended |
Jul. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | (3) Acquisitions: Grilla Grills Acquisition In fiscal year 2022, we acquired substantially all of the assets of the Grilla Grills business of Fahrenheit Technologies, Inc., or FTI, for $ 27 million, financed using a combination of existing cash balances and cash from a $ 25 million draw on our revolving line of credit. Based in Michigan, Grilla Grills is a provider of high-quality, barbecue grills; Wi-Fi-enabled wood pellet grills; smokers; accessories; and modular outdoor kitchens. We accounted for the acquisition as a business combination using the acquisition method of accounting. The purchase price allocation below was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. We expect to finalize the purchase price allocation as soon as practicable during the respective measurement periods, which will not exceed 12 months from the date of acquisition. The acquisition of Grilla Grills will necessitate the use of this measurement period to adequately analyze and assess a number of factors used in establishing the asset and liability fair values as of the acquisition date, including the significant contractual and operational factors underlying the tradename, intangible assets, and the related tax impacts of any changes made. The excess of the consideration transferred over the estimated fair value of the net assets received has been recorded as goodwill. The factors that contributed to the recognition of goodwill primarily relate to acquisition-driven anticipated cost savings and synergies. Assembled workforce is not recognized separate and apart from goodwill as it is neither separable nor contractual in nature. During the year ended April 30, 2022, we increased goodwill by $ 3.5 million as a result of valuations related to the Grilla Grills acquisition, which was subsequently written off as we recorded a full impairment of our goodwill on April 30, 2022. The goodwill related to the Grilla Grills acquisition is deductible for tax purposes. The following table summarizes the preliminary allocation of the purchase price for the Grilla Grills acquisition (in thousands): Grilla Grills Acquisition Inventories $ 5,956 Property, plant, and equipment 105 Intangibles 18,495 Goodwill 3,534 Total assets acquired 28,090 Accounts payable 894 Accrued expenses 46 Accrued warranty 150 Total liabilities assumed 1,090 $ 27,000 We recorded $ 646,000 of acquisition-related costs, including $ 47,000 of acquisition-related costs incurred in the three months ended July 31, 2022, which are recorded in general and administrative expenses. The Grilla Grills acquisition generat ed $ 5.2 m illion of net sales during the three months ended July 31, 2022. We determined the fair market value of the intangible assets acquired in accordance with ASC 805 - Business Combinations and ASC 820 - Fair Value Measurement and assigned a fair market value of $ 18.5 million to tradenames at the acquisition date. We amortize assets in proportion to expected yearly revenue generated from the intangibles that we acquire. The weighted average life of tradenames acquired is 6.5 years. Additionally, the following table reflects the unaudited pro forma results of operations assuming that the Grilla Grills acquisition had occurred on May 1, 2021 (in thousands, except per share data): For the Three Months Net sales $ 65,193 Income from operations 4,240 Net income per share - diluted 0.24 The unaudited pro forma income from operations for the three months ended July 31, 2021 has been adjusted to reflect increased cost of goods sold from the fair value step-up in inventory, which is expensed over the first inventory cycle, and the amortization of intangibles as if the Grilla Grills acquisition had occurred on May 1, 2021. The unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the actual results that would have been achieved had the Grilla Grills acquisition occurred as of May 1, 2021 or the results that may be achieved in future periods. |
Leases
Leases | 3 Months Ended |
Jul. 31, 2022 | |
Leases [Abstract] | |
Leases | (4) Leases: We lease real estate, as well as other equipment, under non-cancelable operating lease agreements. We recognize expenses under our operating lease assets and liabilities at the commencement date based on the present value of lease payments over the lease terms. Our leases do not provide an implicit interest rate. We use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Our lease agreements do not require material variable lease payments, residual value guarantees, or restrictive covenants. For operating leases, we recognize expense on a straight-line basis over the lease term. We record tenant improvement allowances as an offsetting adjustment included in our calculation of the respective right-of-use asset. Many of our leases include renewal options that can extend the lease term. These renewal options are at our sole discretion and are reflected in the lease term when they are reasonably certain to be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term. The amounts of assets and liabilities related to our operating leases as of July 31, 2022 are as follows (in thousands): July 31, 2022 April 30, 2022 Operating Leases Right-of-use assets $ 29,422 $ 27,475 Accumulated amortization ( 4,005 ) ( 3,591 ) Right-of-use assets, net $ 25,417 $ 23,884 Lease liabilities, current portion $ 1,618 $ 1,803 Lease liabilities, net of current portion 24,739 23,076 Total operating lease liabilities $ 26,357 $ 24,879 For the three months ended July 31, 2022, we recorded $ 1.0 million of operating lease costs, of which $ 47,000 were short-term operating lease costs. For the three months ended July 31, 2021, we recorded $ 901,000 of operating lease costs, of which $ 51,000 were short-term operating lease costs. As of July 31, 2022, our weighted average lease term and weighted average discount rate for our operating leases were 16.0 years and 5.4 %, respectively. The operating lease costs, weighted average lease term, and weighted average discount rate, are primarily driven by the sublease of our corporate office and warehouse facility in Columbia, Missouri through fiscal 2039. The depreciable lives of right-of-use assets are limited by the lease term and are amortized on a straight-line basis over the life of the lease. During the three months ended July 31, 2022, we amended the existing operating lease for our corporate office and warehouse facility in Columbia, Missouri to expand our usable square footage in our warehouse. The term of the lease remains unchanged, through fiscal 2039. During the three months ended July 31, 2022, we recorded a right-of-use asset and lease liability of $ 1.9 million. Future lease payments for all our operating leases for the remainder of fiscal 2023 and for succeeding fiscal years, as of July 31, 2022, are as follows (in thousands): Operating 2023 $ 2,411 2024 2,221 2025 2,228 2026 2,177 2027 2,207 2028 2,238 Thereafter 26,426 Total future lease payments 39,908 Less amounts representing interest ( 13,551 ) Present value of lease payments 26,357 Less current maturities of lease liabilities ( 1,618 ) Long-term maturities of lease liabilities $ 24,739 The cash paid for amounts included in the measurement of the liabilities and the operating cash flows was $ 481,000 and $ 443,000 for the three months ended July 31, 2022 and 2021, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Jul. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, Net | (5) Intangible Assets, net: The following table summarizes intangible assets as of July 31, 2022 and April 30, 2022 (in thousands): July 31, 2022 April 30, 2022 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 89,980 $ ( 69,476 ) $ 20,504 $ 89,980 $ ( 67,955 ) $ 22,025 Developed software and technology 26,451 ( 20,035 ) 6,416 25,812 ( 19,395 ) 6,417 Patents, trademarks, and trade names 68,706 ( 40,282 ) 28,424 68,663 ( 39,030 ) 29,633 185,137 ( 129,793 ) 55,344 184,455 ( 126,380 ) 58,075 Patents and software in development 4,899 — 4,899 4,689 — 4,689 Total definite-lived intangible assets 190,036 ( 129,793 ) 60,243 189,144 ( 126,380 ) 62,764 Indefinite-lived intangible assets 430 — 430 430 — 430 Total intangible assets $ 190,466 $ ( 129,793 ) $ 60,673 $ 189,574 $ ( 126,380 ) $ 63,194 We amortize intangible assets with determinable lives over a weighted-average period of approximately five years . The weighted-average periods of amortization by intangible asset class is approximately five years for customer relationships, five years for developed software and technology, and six years for patents, trademarks, and trade names. Amortization expense amounted to $ 3.4 million and $ 3.5 million for the three months ended July 31, 2022 and 2021, respectively. Future expected amortization expense for the remainder of fiscal 2023 and for succeeding fiscal years, as of July 31, 2022, are as follows (in thousands): Fiscal Amount 2023 $ 9,927 2024 12,294 2025 8,686 2026 7,396 2027 5,071 2028 3,787 Thereafter 8,183 Total $ 55,344 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Jul. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (6) Fair Value Measurement: We follow the provisions of ASC 820-10, Fair Value Measurements and Disclosures Topic , or ASC 820-10, for our financial assets and liabilities. ASC 820-10 provides a framework for measuring fair value under GAAP and requires expanded disclosures regarding fair value measurements. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. Financial assets and liabilities recorded on the accompanying condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1 — Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access at the measurement date (examples include active exchange-traded equity securities, listed derivatives, and most U.S. Government and agency securities). Our cash and cash equivalents, which are measured at fair value on a recurring basis, totaled $ 17.5 million as of July 31, 2022 and $ 19.5 million as of April 30, 2022. Cash and cash equivalents are reported at fair value based on market prices for identical assets in active markets, and therefore classified as Level 1 of the value hierarchy. Level 2 — Financial assets and liabilities whose values are based on quoted prices in markets in which trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 2 inputs include the following: • quoted prices for identical or similar assets or liabilities in non-active markets (such as corporate and municipal bonds which trade infrequently); • inputs other than quoted prices that are observable for substantially the full term of the asset or liability (such as interest rate and currency swaps); and • inputs that are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability (such as certain securities and derivatives). The carrying value of our revolving line of credit approximated the fair value, as of July 31, 2022, in considering Level 2 inputs within the hierarchy. Level 3 — Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our assumptions about the assumptions a market participant would use in pricing the asset or liability. We currently do no t have any Level 3 financial assets or liabilities as of July 31, 2022. |
Inventories
Inventories | 3 Months Ended |
Jul. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | (7) Inventories: The following table sets forth a summary of inventories, stated at lower of cost or net realizable value, as of July 31, 2022 and April 30, 2022 (in thousands): July 31, 2022 April 30, 2022 Finished goods $ 110,126 $ 110,650 Finished parts 3,785 4,353 Work in process 218 194 Raw material 6,509 6,486 Total inventories $ 120,638 $ 121,683 |
Debt
Debt | 3 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | (8) Debt: On August 24, 2020, we entered into a financing arrangement consisting of a $ 50.0 million revolving line of credit secured by substantially all our assets, maturing five years from the closing date, with available borrowings determined by a borrowing base calculation. The revolving line included an option to increase the credit commitment by an additional $ 15 million. The revolving line bore interest at a fluctuating rate equal to the Base Rate or LIBOR, as applicable, plus the applicable margin. On March 25, 2022, we amended our secured loan and security agreement, or the Amended Loan and Security Agreement, increasing the revolving line of credit to $ 75 million, secured by substantially all our assets, maturing in March 2027 , with available borrowings determined by a borrowing base calculation. The amendment also includes an option to increase the credit commitment by an additional $ 15 million. The amended revolving line bears interest at a fluctuating rate equal to the Base Rate or Secured Overnight Financing Rate, or SOFR, as applicable, plus the applicable margin. The applicable margin can range from a minimum of 0.25 % to a maximum of 1.75 % based on certain conditions as defined in the Amended Loan and Security Agreement. The financing arrangement contains covenants relating to minimum debt service coverage. As of July 31, 2022, we had $ 20.0 million of borrowings outstanding on the revolving line of credit, which bore interest at 2.85 %, equal to SOFR plus the applicable margin. The proceeds from the borrowings on our revolving line of credit were used to purchase the Grilla Grills branded products from FTI in fiscal year 2022. |
Equity
Equity | 3 Months Ended |
Jul. 31, 2022 | |
Equity [Abstract] | |
Equity | (9) Equity: Earnings per Share We compute diluted earnings per share by giving effect to all potentially dilutive stock awards that are outstanding. The computation of diluted earnings per share excludes the effect of the potential exercise of stock-based awards when the effect of the potential exercise would be anti-dilutive. There were no shares excluded from the computation of diluted earnings per share for the three months ended July 31, 2021. Due to the loss from operations for the three months ended July 31, 2022, there are no common shares added to calculate dilutive earnings per share because the effect would be antidilutive. The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended July 31, 2022 and 2021 (in thousands, except per share data): For the Three Months Ended July 31, 2022 2021 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic (loss)/earnings $ ( 5,695 ) 13,443 $ ( 0.42 ) $ 3,457 14,083 $ 0.25 Effect of dilutive stock awards — — — — 218 ( 0.01 ) Diluted (loss)/earnings $ ( 5,695 ) 13,443 $ ( 0.42 ) $ 3,457 14,301 $ 0.24 Incentive Stock and Employee Stock Purchase Plans We have a stock incentive plan, or 2020 Incentive Compensation Plan, under which we can grant new awards to our employees and directors. Our 2020 Incentive Compensation Plan authorizes the issuance of awards covering up to 1,397,510 shares of our common stock. The plan permits the grant of options to acquire common stock, restricted stock awards, restricted stock units, or RSUs, stock appreciation rights, bonus stock and awards in lieu of obligations, performance awards, and dividend equivalents. Our Board of Directors, or a committee established by our Board of Directors, administers the plan, selects recipients to whom awards are granted, and determines the grants to be awarded. Stock options granted under the plan are exercisable at a price determined by our Board of Directors or a committee thereof at the time of grant, but in no event, less than fair market value of our common stock on the date granted. Grants of options may be made to employees and directors without regard to any performance measures. All options issued pursuant to the plan are generally nontransferable and subject to forfeiture. Unless terminated earlier by our Board of Directors, our 2020 Incentive Compensation Plan will terminate at the earliest of (1) the tenth anniversary of the effective date of our 2020 Incentive Compensation Plan, or (2) such time as no shares of common stock remain available for issuance under the plan and we have no further rights or obligations with respect to outstanding awards under the plan. The date of grant of an award is deemed to be the date upon which our Board of Directors or a committee thereof authorizes the granting of such award. Except in specific circumstances, grants generally vest over a period of three or four years and grants of stock options are exercisable for a period of 10 years . Our 2020 Incentive Compensation Plan also permits the grant of awards to non-employees. We recognized $ 714,000 and $ 752,000 of stock-based compensation expense for the three months ended July 31, 2022 and 2021, respectively. We include stock-based compensation expense in the cost of sales, sales and marketing, research and development, and general and administrative expenses. We grant RSUs to employees and directors. The awards are made at no cost to the recipient. An RSU represents the right to receive one share of our common stock and does not carry voting or dividend rights. Except in specific circumstances, RSU grants to employees generally vest over a period of four years with one-fourth of the units vesting on each anniversary of the grant date. We amortize the aggregate fair value of our RSU grants to compensation expense over the vesting period. Awards that do not vest are forfeited. We grant performance stock units, or PSUs, to our executive officers and certain other employees from time to time. At the time of grant, we calculate the fair value of our PSUs using the Monte-Carlo simulation. We incorporate the following variables into the valuation model: For the Three Months Ended July 31, 2022 2021 Grant date fair market value American Outdoor Brands, Inc. $ 12.70 $ 26.44 Russell 2000 Index $ 1,882.91 $ 2,277.45 Volatility (a) American Outdoor Brands, Inc. 49.04 % 47.78 % Russell 2000 Index 31.75 % 30.69 % Correlation coefficient (b) 0.50 0.46 Risk-free interest rate (c) 2.91 % 0.33 % Dividend yield (d) 0 % 0 % (a) Expected volatility is calculated based on a peer group over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years . (b) The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions. (c) The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period. (d) We do not expect to pay dividends in the foreseeable future. The PSUs vest, and the fair value of such PSUs will be recognized, over the corresponding three-year performance period. Our PSUs have a maximum aggregate award equal to 200 % of the target unit amount granted. Generally, the number of PSUs that may be earned depends upon the total stockholder return, or TSR, of our common stock compared with the TSR of the Russell 2000 Index, or the RUT, over the three-year performance period. For PSUs, our stock must outperform the RUT by 5 % in order for the target award to vest. In addition, there is a cap on the number of shares that can be earned under our PSUs, which is equal to six times the grant-date value of each award. During the three months ended July 31, 2022, we granted an aggregate of 52,277 PSUs to our executive officers. We also granted 192,489 RSUs during the three months ended July 31, 2022, including 52,277 RSUs to executive officers and 140,212 to non-executive officer employees under our 2020 Incentive Compensation Plan. In addition, in connection with a 2019 grant, we vested 7,200 PSUs (i.e., the target amount granted), which achieved 200 % of the maximum aggregate award possible, resulting in awards totaling 14,400 shares to certain of our executive officers and employees of our former parent. During the three months ended July 31, 2022, we cancelled 2,225 RSUs as a result of the service condition not being met. In connection with the vesting of RSUs, during the three months ended July 31, 2022, we delivered common stock to our employees, including our executive officers, and directors with a total market value of $ 854,000 . During the three months ended July 31, 2021, we granted an aggregate of 26,809 market-condition PSUs to our executive officers. We also granted 60,276 service-based RSUs during the three months ended July 31, 2021, including 26,809 RSUs to executive officers and 33,467 to non-executive officer employees under our 2020 Incentive Compensation Plan. In addition, in connection with a 2018 grant, we vested 10,800 market-condition PSUs (i.e., the target amount granted), which achieved 200 % of the maximum aggregate award possible, resulting in awards totaling 21,600 shares to certain of our executive officers and employees of our former parent. During the three months ended July 31, 2021, we cancelled 360 service-based RSUs as a result of the service condition not being met. In connection with the vesting of RSUs, during the three months ended July 31, 2021, we delivered common stock to our employees, including our executive officers and directors with a total market value of $ 1.5 million. A summary of activity for unvested RSUs and PSUs under our 2020 Incentive Compensation Plan for the three months ended July 31, 2022 and 2021 is as follows: For the Three Months Ended July 31, 2022 2021 Weighted Weighted Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of period 349,774 $ 15.93 427,519 $ 11.75 Awarded 251,966 11.58 97,885 27.44 Vested ( 73,055 ) 14.77 ( 50,652 ) 12.35 Forfeited ( 2,225 ) 21.86 ( 360 ) 16.23 RSUs and PSUs outstanding, end of period 526,460 $ 13.99 474,392 $ 14.92 As of July 31, 2022, there was $ 3.6 million of unrecognized compensation expense related to unvested RSUs and PSUs. We expect to recognize this expense over a weighted average remaining contractual term of 1.7 years. We have an employee stock purchase plan, or ESPP, which authorizes the sale of up to 419,253 shares of our common stock to employees. All options and rights to participate in our ESPP are nontransferable and subject to forfeiture in accordance with our ESPP guidelines. Our current ESPP will be implemented in a series of successive offering periods, each with a maximum duration of 12 months . If the fair market value per share of our common stock on any purchase date is less than the fair market value per share on the start date of a 12-month offering period, then that offering period will automatically terminate and a new 12-month offering period will begin on the next business day. Each offering period will begin on April 1 or October 1, as applicable, immediately following the end of the previous offering period. Payroll deductions will be on an after-tax basis, in an amount of not less than 1 % and not more than 20 % (or such greater percentage as the committee appointed to administer our ESPP may establish from time to time before the first day of an offering period) of a participant’s compensation on each payroll date. The option exercise price per share will equal 85 % of the lower of the fair market value on the first day of the offering period or the fair market value on the exercise date. The maximum number of shares that a participant may purchase during any purchase period is the greater of 2,500 shares, or a total of $ 25,000 in shares, based on the fair market value on the first day of the offering period. Our ESPP will remain in effect until the earliest of (a) the exercise date that participants become entitled to purchase a number of shares greater than the number of reserved shares available for purchase under our ESPP, (b) such date as is determined by our Board of Directors in its discretion, or (c) the tenth anniversary of the effective date. In the event of certain corporate transactions, each option outstanding under our ESPP will be assumed or an equivalent option will be substituted by the successor corporation or a parent or subsidiary of such successor corporation. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Jul. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (10) Accrued Expenses: The following table sets forth other accrued expenses as of July 31, 2022 and April 30, 2022 (in thousands): July 31, 2022 April 30, 2022 Accrued sales allowances $ 2,798 $ 2,392 Accrued freight 2,266 1,253 Accrued professional fees 1,206 951 Accrued warranty 905 786 Accrued commissions 865 1,175 Accrued taxes other than income 740 718 Accrued employee benefits 502 312 Accrued other 352 266 Total accrued expenses $ 9,634 $ 7,853 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (11) Income Taxes: The income tax expense included in the condensed consolidated statements of operations is based upon the estimated effective tax rate for the year, adjusted for the impact of discrete items which are accounted for in the period in which they occur. We recorded income tax expense of $ 189,000 and $ 849,000 for the three months ended July 31, 2022 and 2021, respectively. The effective tax rate for the three months ended July 31, 2022 and 2021 was ( 3.4 %) and 19.7 %, respectively. Income tax expense for the three months ended July 31, 2022 included a discrete tax benefit of $ 40,000 a ssociated with stock-based compensation. Income tax expense for the three months ended July 31, 2021 included a discrete tax benefit of $ 190,000 associated with stock-based compensation. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (12) Commitments and Contingencies: Litigation From time to time, we are involved in lawsuits, claims, investigations, and proceedings, including those relating to product liability, intellectual property, commercial relationships, employment issues, and governmental matters, which arise in the ordinary course of business. For the three months ended July 31, 2022 and 2021, respectively, we did not incur any material expenses in defense and administrative costs relative to product liability litigation. In addition, we did not incur any settlement fees related to product liability cases in those fiscal years. Gain Contingency In 2018, the United States imposed additional section 301 tariffs, of up to 25 %, on certain goods imported from China. These additional section 301 tariffs apply to our sourced products from China and have added additional cost to us. We are utilizing the duty drawback mechanism to offset some of the direct impact of these tariffs, specifically on goods that we sold internationally. We are accounting for duty drawbacks as a gain contingency and may record any such gain from a reimbursement in future periods if and when the contingency is resolved. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Jul. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | (13) Segment Reporting: We have evaluated our operations under ASC 280-10-50-1 – Segment Reporting and have concluded that we are operating as one segment based on several key factors, including the reporting and review process used by the chief operating decision maker, our Chief Executive Officer, who reviews only consolidated financial information and makes decisions to allocate resources based on those financial statements. We analyze revenue streams in various ways, including customer group, brands, product categories, and customer channels. However, this information does not include a full set of discrete financial information. In addition, although we currently sell our products under 21 distinct brands that are organized into four brand lanes and include specific product sales that have identified revenue streams, these brand lanes are focused almost entirely on product development and marketing activities and do not qualify as separate reporting units under ASC 280-10-50-1. Other sales and customer focused activities, operating activities, and administrative activities are not divided by brand lane and, therefore, expenses related to each brand lane are not accumulated or reviewed individually. Our business is evaluated based upon a number of financial and operating measures, including sales, gross profit and gross margin, operating expenses, and operating margin. Our business includes our outdoor products and accessories products, which we develop, source, market, and distribute from our facility in Columbia, Missouri, and our electro-optics products, which we assemble in our Wilsonville, Oregon facility. We report operating costs based on the activities performed. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jul. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Information | Interim Financial Information Our unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the Securities and Exchange Commission, or SEC, for interim reporting. As permitted under those rules, certain disclosures and other financial information that normally are required by accounting principles generally accepted in the United States have been condensed or omitted. Our accounting policies are described in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for our fiscal year ended April 30, 2022. We are responsible for the condensed consolidated financial statements included in this report, which are unaudited but, in our opinion, include all adjustments necessary for a fair presentation of our condensed consolidated balance sheet as of July 31, 2022, our condensed consolidated statement of operations for the three months ended July 31, 2022 and 2021, and our condensed consolidated statement of cash flows for the three months ended July 31, 2022 and 2021. The consolidated balance sheet as of April 30, 2022 was derived from audited financial statements. The results reported in these condensed consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. |
Reclassification | Reclassification Certain immaterial reclassifications were made to the accompanying condensed consolidated statement of cash flows for the three months ended July 31, 2021 to reclassify payments to acquire property and equipment, to payments to acquire patents and software; however, the total amount of net cash used in investing activities remained unchanged. This reclassification had no impact on the previously reported net income. |
Revenue Recognition | Revenue Recognition We recognize revenue for the sale of our products at the point in time when the control of ownership has transferred to the customer. The transfer of control typically occurs at a point in time based on consideration of when the customer has (i) a payment obligation, (ii) physical possession of goods has been received, (iii) legal title to goods has passed, (iv) risks and rewards of ownership of goods has passed to the customer, and (v) the customer has accepted the goods. The timing of revenue recognition occurs either on shipment or delivery of goods based on contractual terms with the customer. The duration of contractual arrangements with customers in our wholesale channels is typically less than one year. Payment terms with customers are typically between 20 and 90 days , with a discount available in certain cases for early payment. For contracts with discounted terms, we determine the transaction price upon establishment of the contract that contains the final terms of the sale, including the description, quantity, and price of each product purchased. We estimate variable consideration relative to the amount of cash discounts to which customers are likely to be entitled. In some instances, we provide longer payment terms, particularly as it relates to our hunting dating programs, which represent payment terms due in the fall for certain orders of hunting products received in the spring and summer. We do not consider these extended terms to be a significant financing component of the contract because the payment terms are less than one year. We have elected to treat all shipping and handling activities as fulfillment costs and recognize the costs as distribution expenses at the time we recognize the related revenue. Shipping and handling costs billed to customers are included in net sales. The amount of revenue we recognize reflects the expected consideration to be received for providing the goods or services to customers, which includes estimates for variable consideration. Variable consideration includes allowances for trade term discounts, chargebacks, and product returns. Estimates of variable consideration are determined at contract inception and reassessed at each reporting date, at a minimum, to reflect any changes in facts and circumstances. We apply the portfolio approach as a practical expedient and utilize the expected value method in determining estimates of variable consideration, based on evaluations of specific product and customer circumstances, historical and anticipated trends, and current economic conditions. We have co-op advertising program expense, which we record within advertising expense, in recognition of a distinct service that we receive from our customers at the retail level. Disaggregation of Revenue The following table sets forth certain information regarding trade channel net sales for the three months ended July 31, 2022 and 2021 (dollars in thousands): 2022 2021 $ Change % Change e-commerce channels $ 20,545 $ 16,608 $ 3,937 23.7 % Traditional channels 23,131 44,160 ( 21,029 ) - 47.6 % Total net sales $ 43,676 $ 60,768 $ ( 17,092 ) - 28.1 % Our e-commerce channels include net sales from customers that do not traditionally operate a physical brick and mortar store, but generate the majority of their revenue from consumer purchases at their retail websites. Our e-commerce channels also include our direct-to-consumer sales. Our traditional channels include customers that primarily operate out of physical brick and mortar stores and generate the large majority of their revenue from consumer purchases at their brick and mortar locations. We sell our products worldwide. The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the three months ended July 31, 2022 and 2021 (dollars in thousands): 2022 2021 $ Change % Change Domestic net sales $ 40,276 $ 56,530 $ ( 16,254 ) - 28.8 % International net sales 3,400 4,238 ( 838 ) - 19.8 % Total net sales $ 43,676 $ 60,768 $ ( 17,092 ) - 28.1 % |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, or ASU 2020-04, to provide temporary optional expedients and exceptions to the contract modifications, hedge relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04, which was effective upon issuance and may be applied through December 31, 2022, is applicable to all contracts and hedging relationships that reference the London Interbank Offered Rate (LIBOR) or any other reference rate expected to be discontinued. As a result of the amendment to the revolving line of credit agreement in fiscal year 2022, which uses SOFR as an interest rate option instead of LIBOR to calculate the applicable interest rate, see Note 8 - Debt, the new guidance will not have a material impact on our condensed consolidated financial statements and related disclosures. In December 2019, FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, or ASU 2019-12, an amendment of the FASB Accounting Standards Codification. ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions for intraperiod tax allocations and deferred tax liabilities for equity method investments and adds guidance regarding whether a step-up in tax basis of goodwill relates to a business combination or a separate transaction. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We adopted ASU 2019-12 on May 1, 2021 , and the cumulative effect of the adoption was no t material to our condensed consolidated financial statements and related disclosures. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Trade Channel Net Sales | The following table sets forth certain information regarding trade channel net sales for the three months ended July 31, 2022 and 2021 (dollars in thousands): 2022 2021 $ Change % Change e-commerce channels $ 20,545 $ 16,608 $ 3,937 23.7 % Traditional channels 23,131 44,160 ( 21,029 ) - 47.6 % Total net sales $ 43,676 $ 60,768 $ ( 17,092 ) - 28.1 % |
Schedule of Geographic Makeup of Net Sales | The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the three months ended July 31, 2022 and 2021 (dollars in thousands): 2022 2021 $ Change % Change Domestic net sales $ 40,276 $ 56,530 $ ( 16,254 ) - 28.8 % International net sales 3,400 4,238 ( 838 ) - 19.8 % Total net sales $ 43,676 $ 60,768 $ ( 17,092 ) - 28.1 % |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Business Combinations [Abstract] | |
Summary of Preliminary Allocation of Purchase Price | The following table summarizes the preliminary allocation of the purchase price for the Grilla Grills acquisition (in thousands): Grilla Grills Acquisition Inventories $ 5,956 Property, plant, and equipment 105 Intangibles 18,495 Goodwill 3,534 Total assets acquired 28,090 Accounts payable 894 Accrued expenses 46 Accrued warranty 150 Total liabilities assumed 1,090 $ 27,000 |
Schedule of Unaudited Pro Forma Results of Operations Assumed | Additionally, the following table reflects the unaudited pro forma results of operations assuming that the Grilla Grills acquisition had occurred on May 1, 2021 (in thousands, except per share data): For the Three Months Net sales $ 65,193 Income from operations 4,240 Net income per share - diluted 0.24 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities Related to Operating Leases | The amounts of assets and liabilities related to our operating leases as of July 31, 2022 are as follows (in thousands): July 31, 2022 April 30, 2022 Operating Leases Right-of-use assets $ 29,422 $ 27,475 Accumulated amortization ( 4,005 ) ( 3,591 ) Right-of-use assets, net $ 25,417 $ 23,884 Lease liabilities, current portion $ 1,618 $ 1,803 Lease liabilities, net of current portion 24,739 23,076 Total operating lease liabilities $ 26,357 $ 24,879 |
Schedule of Future Lease Payments for Operating Leases | Future lease payments for all our operating leases for the remainder of fiscal 2023 and for succeeding fiscal years, as of July 31, 2022, are as follows (in thousands): Operating 2023 $ 2,411 2024 2,221 2025 2,228 2026 2,177 2027 2,207 2028 2,238 Thereafter 26,426 Total future lease payments 39,908 Less amounts representing interest ( 13,551 ) Present value of lease payments 26,357 Less current maturities of lease liabilities ( 1,618 ) Long-term maturities of lease liabilities $ 24,739 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Summary of Intangible Assets | The following table summarizes intangible assets as of July 31, 2022 and April 30, 2022 (in thousands): July 31, 2022 April 30, 2022 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 89,980 $ ( 69,476 ) $ 20,504 $ 89,980 $ ( 67,955 ) $ 22,025 Developed software and technology 26,451 ( 20,035 ) 6,416 25,812 ( 19,395 ) 6,417 Patents, trademarks, and trade names 68,706 ( 40,282 ) 28,424 68,663 ( 39,030 ) 29,633 185,137 ( 129,793 ) 55,344 184,455 ( 126,380 ) 58,075 Patents and software in development 4,899 — 4,899 4,689 — 4,689 Total definite-lived intangible assets 190,036 ( 129,793 ) 60,243 189,144 ( 126,380 ) 62,764 Indefinite-lived intangible assets 430 — 430 430 — 430 Total intangible assets $ 190,466 $ ( 129,793 ) $ 60,673 $ 189,574 $ ( 126,380 ) $ 63,194 |
Schedule of Future Expected Amortization Expense | Future expected amortization expense for the remainder of fiscal 2023 and for succeeding fiscal years, as of July 31, 2022, are as follows (in thousands): Fiscal Amount 2023 $ 9,927 2024 12,294 2025 8,686 2026 7,396 2027 5,071 2028 3,787 Thereafter 8,183 Total $ 55,344 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table sets forth a summary of inventories, stated at lower of cost or net realizable value, as of July 31, 2022 and April 30, 2022 (in thousands): July 31, 2022 April 30, 2022 Finished goods $ 110,126 $ 110,650 Finished parts 3,785 4,353 Work in process 218 194 Raw material 6,509 6,486 Total inventories $ 120,638 $ 121,683 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Schedule of Earnings per Share | The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended July 31, 2022 and 2021 (in thousands, except per share data): For the Three Months Ended July 31, 2022 2021 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic (loss)/earnings $ ( 5,695 ) 13,443 $ ( 0.42 ) $ 3,457 14,083 $ 0.25 Effect of dilutive stock awards — — — — 218 ( 0.01 ) Diluted (loss)/earnings $ ( 5,695 ) 13,443 $ ( 0.42 ) $ 3,457 14,301 $ 0.24 |
Share Based Payment Award Performance Shares Valuation Assumptions | We incorporate the following variables into the valuation model: For the Three Months Ended July 31, 2022 2021 Grant date fair market value American Outdoor Brands, Inc. $ 12.70 $ 26.44 Russell 2000 Index $ 1,882.91 $ 2,277.45 Volatility (a) American Outdoor Brands, Inc. 49.04 % 47.78 % Russell 2000 Index 31.75 % 30.69 % Correlation coefficient (b) 0.50 0.46 Risk-free interest rate (c) 2.91 % 0.33 % Dividend yield (d) 0 % 0 % (a) Expected volatility is calculated based on a peer group over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years . (b) The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions. (c) The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period. (d) We do not expect to pay dividends in the foreseeable future. |
RSUs and PSUs | 2020 Incentive Compensation Plan | |
Summary of Activity for Unvested RSUs and PSUs | A summary of activity for unvested RSUs and PSUs under our 2020 Incentive Compensation Plan for the three months ended July 31, 2022 and 2021 is as follows: For the Three Months Ended July 31, 2022 2021 Weighted Weighted Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of period 349,774 $ 15.93 427,519 $ 11.75 Awarded 251,966 11.58 97,885 27.44 Vested ( 73,055 ) 14.77 ( 50,652 ) 12.35 Forfeited ( 2,225 ) 21.86 ( 360 ) 16.23 RSUs and PSUs outstanding, end of period 526,460 $ 13.99 474,392 $ 14.92 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Jul. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | The following table sets forth other accrued expenses as of July 31, 2022 and April 30, 2022 (in thousands): July 31, 2022 April 30, 2022 Accrued sales allowances $ 2,798 $ 2,392 Accrued freight 2,266 1,253 Accrued professional fees 1,206 951 Accrued warranty 905 786 Accrued commissions 865 1,175 Accrued taxes other than income 740 718 Accrued employee benefits 502 312 Accrued other 352 266 Total accrued expenses $ 9,634 $ 7,853 |
Organization - Additional Infor
Organization - Additional Information (Details) | 3 Months Ended |
Jul. 31, 2022 BrandLane | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of brand lanes | 4 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2022 | Apr. 30, 2021 | |
Background Description Of Business And Basis Of Presentation [Line Items] | ||
Impact on previously reported net income or comprehensive income | $ 0 | |
Accounting Standards Update [Extensible Enumeration] | ASU 2019-12 | |
Change in accounting principle, accounting standards update, adopted [true false] | true | |
Change in accounting principle accounting standards update adoption date | May 01, 2021 | |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | |
Minimum | ||
Background Description Of Business And Basis Of Presentation [Line Items] | ||
Product shipment days | 20 days | |
Maximum | ||
Background Description Of Business And Basis Of Presentation [Line Items] | ||
Product shipment days | 90 days |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Trade Channel Net Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 43,676 | $ 60,768 |
Change in Total net sales | $ (17,092) | |
% Change in Total net sales | (28.10%) | |
E-Commerce Channels | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 20,545 | 16,608 |
Change in Total net sales | $ (3,937) | |
% Change in Total net sales | (23.70%) | |
Traditional Channels | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 23,131 | $ 44,160 |
Change in Total net sales | $ (21,029) | |
% Change in Total net sales | (47.60%) |
Basis of Presentation - Sched_2
Basis of Presentation - Schedule of Geographic Makeup of Net Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 43,676 | $ 60,768 |
Change in Total net sales | $ (17,092) | |
% Change in Total net sales | (28.10%) | |
Domestic Net Sales | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 40,276 | 56,530 |
Change in Total net sales | $ (16,254) | |
% Change in Total net sales | (28.80%) | |
International Net Sales | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 3,400 | $ 4,238 |
Change in Total net sales | $ (838) | |
% Change in Total net sales | (19.80%) |
Recently Adopted and Issued Acc
Recently Adopted and Issued Accounting Standards - Additional Information (Details) | 3 Months Ended |
Jul. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Update [Extensible Enumeration] | ASU 2019-12 |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle accounting standards update adoption date | May 01, 2021 |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 15 Months Ended |
Jul. 31, 2022 | Apr. 30, 2022 | Jul. 31, 2022 | |
Business Acquisition [Line Items] | |||
Weighted average life of tradename acquired | 5 years | ||
Revolving Line of Credit | |||
Business Acquisition [Line Items] | |||
Revolving line of credit | $ 20,000,000 | $ 20,000,000 | |
Grilla Grills Acquisition | |||
Business Acquisition [Line Items] | |||
Payments for assets acquired | $ 27,000,000 | ||
Increased goodwill | $ 3,500,000 | ||
Revenue from acquisition | 5,200,000 | ||
Weighted average life of tradename acquired | 6 years 6 months | ||
Grilla Grills Acquisition | Tradenames | |||
Business Acquisition [Line Items] | |||
Fair market value of assets acquired | $ 18,500,000 | ||
Grilla Grills Acquisition | General and Administrative | |||
Business Acquisition [Line Items] | |||
Acquisition-related costs | $ 47,000 | $ 646,000 | |
Grilla Grills Acquisition | Revolving Line of Credit | |||
Business Acquisition [Line Items] | |||
Revolving line of credit | $ 25,000,000 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Allocation of Purchase Price (Details) - Grilla Grills Acquisition $ in Thousands | Apr. 30, 2022 USD ($) |
Business Acquisition [Line Items] | |
Inventories | $ 5,956 |
Property, plant, and equipment | 105 |
Intangibles | 18,495 |
Goodwill | 3,534 |
Total assets acquired | 28,090 |
Accounts payable | 894 |
Accrued expenses | 46 |
Accrued warranty | 150 |
Total liabilities assumed | 1,090 |
Total assets, net | $ 27,000 |
Acquisitions - Schedule of Unau
Acquisitions - Schedule of Unaudited Pro Forma Results of Operations Assumed (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Jul. 31, 2021 USD ($) $ / shares | |
Business Combinations [Abstract] | |
Net sales | $ 65,193 |
Income from operations | $ 4,240 |
Net income per share - diluted | $ / shares | $ 0.24 |
Leases - Schedule of Assets and
Leases - Schedule of Assets and Liabilities Related to Operating Leases (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 |
Operating Leases | ||
Right-of-use assets | $ 29,422 | $ 27,475 |
Accumulated amortization | (4,005) | (3,591) |
Right-of-use assets, net | 25,417 | 23,884 |
Lease liabilities, current portion | 1,618 | 1,803 |
Lease liabilities, net of current portion | 24,739 | 23,076 |
Total operating lease liabilities | $ 26,357 | $ 24,879 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2022 | |
Lessee Lease Description [Line Items] | |||
Operating lease cost | $ 1,000,000 | $ 901,000 | |
Short-term operating lease costs | $ 47,000 | 51,000 | |
Operating lease, weighted average lease term | 16 years | ||
Operating lease, weighted average discount rate | 5.40% | ||
Operating right-of-use lease asset | $ 25,417,000 | $ 23,884,000 | |
Operating lease, liability | 26,357,000 | $ 24,879,000 | |
Cash paid for amounts included in measurement of liabilities and operating cash flows | 481,000 | $ 443,000 | |
Corporate Office and Warehouse | |||
Lessee Lease Description [Line Items] | |||
Operating right-of-use lease asset | 1,900,000 | ||
Operating lease, liability | $ 1,900,000 |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments for Operating Leases (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 |
Operating | ||
2023 | $ 2,411 | |
2024 | 2,221 | |
2025 | 2,228 | |
2026 | 2,177 | |
2027 | 2,207 | |
2028 | 2,238 | |
Thereafter | 26,426 | |
Total future lease payments | 39,908 | |
Less amounts representing interest | (13,551) | |
Total operating lease liabilities | 26,357 | $ 24,879 |
Less current maturities of lease liabilities | (1,618) | (1,803) |
Long-term maturities of lease liabilities | $ 24,739 | $ 23,076 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 |
Intangible Assets Excluding Goodwill [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | $ 190,036 | $ 189,144 |
Total definite-lived intangible assets, Accumulated Amortization | (129,793) | (126,380) |
Total definite-lived intangible assets, Net Carrying Amount | 60,243 | 62,764 |
Indefinite-lived intangible assets, Net Carrying Amount | 430 | 430 |
Total Intangible assets, Gross Carrying Amount | 190,466 | 189,574 |
Total Intangible assets, Net Carrying Amount | 60,673 | 63,194 |
Customer Relationships | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 89,980 | 89,980 |
Total definite-lived intangible assets, Accumulated Amortization | (69,476) | (67,955) |
Total definite-lived intangible assets, Net Carrying Amount | 20,504 | 22,025 |
Developed Technology | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 26,451 | 25,812 |
Total definite-lived intangible assets, Accumulated Amortization | (20,035) | (19,395) |
Total definite-lived intangible assets, Net Carrying Amount | 6,416 | 6,417 |
Patents, Trademarks, and Trade Names | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 68,706 | 68,663 |
Total definite-lived intangible assets, Accumulated Amortization | (40,282) | (39,030) |
Total definite-lived intangible assets, Net Carrying Amount | 28,424 | 29,633 |
Definite-lived Intangible Assets Excluding Patents in Progress | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 185,137 | 184,455 |
Total definite-lived intangible assets, Accumulated Amortization | (129,793) | (126,380) |
Total definite-lived intangible assets, Net Carrying Amount | 55,344 | 58,075 |
Patents in Progress | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 4,899 | 4,689 |
Total definite-lived intangible assets, Net Carrying Amount | $ 4,899 | $ 4,689 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense of intangible assets | $ 3.4 | $ 3.5 |
Weighted-average period for amortization of intangible assets | 5 years | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average period for amortization of intangible assets | 5 years | |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average period for amortization of intangible assets | 5 years | |
Patents, Trademarks, and Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average period for amortization of intangible assets | 6 years |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Future Expected Amortization Expense (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Net Carrying Amount | $ 60,243 | $ 62,764 |
Definite-lived Intangible Assets Excluding Patents in Progress | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 | 9,927 | |
2024 | 12,294 | |
2025 | 8,686 | |
2026 | 7,396 | |
2027 | 5,071 | |
2028 | 3,787 | |
Thereafter | 8,183 | |
Total definite-lived intangible assets, Net Carrying Amount | $ 55,344 | $ 58,075 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) | Jul. 31, 2022 | Apr. 30, 2022 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial assets | $ 0 | |
Financial liabilities | 0 | |
Fair Value, Recurring Basis | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 17,500,000 | $ 19,500,000 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 110,126 | $ 110,650 |
Finished parts | 3,785 | 4,353 |
Work in process | 218 | 194 |
Raw material | 6,509 | 6,486 |
Total inventories | $ 120,638 | $ 121,683 |
Debt - Additional Information (
Debt - Additional Information (Details) - Revolving Line of Credit - USD ($) | 3 Months Ended | ||
Mar. 25, 2022 | Aug. 24, 2020 | Jul. 31, 2022 | |
Debt Instrument [Line Items] | |||
Revolving line of credit, borrowing capacity | $ 75,000,000 | $ 50,000,000 | |
Revolving line of credit maturing term | 5 years | ||
Additional increase in credit commitment | $ 15,000,000 | $ 15,000,000 | |
Interest rate, description | The amended revolving line bears interest at a fluctuating rate equal to the Base Rate or Secured Overnight Financing Rate, or SOFR, as applicable, plus the applicable margin. | ||
Revolving line of credit maturity date | Mar. 31, 2027 | ||
Revolving line of credit | $ 20,000,000 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, spread on variable rate | 0.25% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, spread on variable rate | 1.75% | ||
SOFR | |||
Debt Instrument [Line Items] | |||
Borrowings interest rate | 2.85% |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares excluded from computation of diluted earnings per share | 0 | |
Percentage of maximum aggregate award granted | 200% | |
Percentage of stock outperform in order for target award to vest | 5% | |
Common Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares excluded from computation of diluted earnings per share | 0 | |
2020 Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Implementation of employee stock purchase plan duration | 12 months | |
Option exercise price per share as a percentage of fair market value | 85% | |
Number of shares an employee may purchase under the stock purchase plan | 2,500 | |
Shares issued under employee stock purchase plan | $ 25,000 | |
PSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted, vesting period | 3 years | |
Service-based RSUs and PSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unvested awards, unrecognized compensation expense | $ 3,600,000 | |
Unvested awards, unrecognized compensation expense recognition period | 1 year 8 months 12 days | |
Employees and Directors | Restricted Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted, description | We grant RSUs to employees and directors. The awards are made at no cost to the recipient. An RSU represents the right to receive one share of our common stock and does not carry voting or dividend rights. | |
Awards granted, vesting period | 4 years | |
Awards granted, vesting description | RSU grants to employees generally vest over a period of four years with one-fourth of the units vesting on each anniversary of the grant date. | |
Cost of Sales, Sales and Marketing, Research and Development, and General and Administrative Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 714,000 | $ 752,000 |
2020 Incentive Compensation Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares of common stock remain available for issuance | 0 | |
Stock options exercisable period | 10 years | |
2020 Incentive Compensation Plan | Service-based RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted | 60,276 | |
Awards cancelled | 360 | |
2020 Incentive Compensation Plan | RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards cancelled | 2,225 | |
2020 Incentive Compensation Plan | Service-based RSUs and PSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted | 251,966 | 97,885 |
Awards vested | 73,055 | 50,652 |
Awards cancelled | 2,225 | 360 |
2020 Incentive Compensation Plan | Executive Officers | Service-based RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted | 26,809 | |
2020 Incentive Compensation Plan | Executive Officers | PSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted | 52,277 | 26,809 |
2020 Incentive Compensation Plan | Executive Officers | RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted | 52,277 | |
2020 Incentive Compensation Plan | Executive Officers and Non-Executive Officer Employees | RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted | 192,489 | |
2020 Incentive Compensation Plan | Non-executive Officer Employees | Service-based RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted | 33,467 | |
2020 Incentive Compensation Plan | Non-executive Officer Employees | RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted | 140,212 | |
2020 Incentive Compensation Plan | Directors | Service-based RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Market value of awards delivered in connection with vesting of RSUs | $ 1,500,000 | |
2020 Incentive Compensation Plan | Employees, Executive Officers and Directors | RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Market value of awards delivered in connection with vesting of RSUs | $ 854,000 | |
2018 Grant | PSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards vested | 10,800 | |
Maximum aggregate award percentage achieved | 200% | |
2018 Grant | Executive Officers and Employees | PSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards cancelled | 21,600 | |
2019 Grant | PSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards vested | 7,200 | |
Maximum aggregate award percentage achieved | 200% | |
2019 Grant | Executive Officers and Employees | PSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted | 14,400 | |
Maximum | 2020 Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Authorized sale of shares of common stock | 419,253 | |
Payroll deduction of participant's compensation | 20% | |
Maximum | 2020 Incentive Compensation Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares authorized to be issued | 1,397,510 | |
Awards granted, vesting period | 4 years | |
Minimum | 2020 Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Payroll deduction of participant's compensation | 1% | |
Minimum | 2020 Incentive Compensation Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards granted, vesting period | 3 years |
Equity - Schedule of Earnings p
Equity - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Equity [Abstract] | ||
Basic (loss)/earnings, Net income | $ (5,695) | $ 3,457 |
Diluted (loss)/earnings, Net income | $ (5,695) | $ 3,457 |
Basic (loss)/earnings, shares | 13,443 | 14,083 |
Effect of dilutive stock awards, shares | 218 | |
Diluted (loss)/earnings, shares | 13,443 | 14,301 |
Basic (loss)/earnings, per shares | $ (0.42) | $ 0.25 |
Effect of dilutive stock awards, per shares | (0.01) | |
Diluted (loss)/earnings, per shares | $ (0.42) | $ 0.24 |
Equity - Share Based Payment Aw
Equity - Share Based Payment Award Performance Shares Valuation Assumptions (Details) - PSUs | 3 Months Ended | ||
Jul. 31, 2022 CorrelationCoefficient $ / shares | Jul. 31, 2021 CorrelationCoefficient $ / shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Correlation coefficient | CorrelationCoefficient | [1] | 0.50 | 0.46 |
Risk-free interest rate | [2] | 2.91% | 0.33% |
Dividend yield | [3] | 0% | 0% |
American Outdoor Brands, Inc. | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Grant date fair market value | $ 12.70 | $ 26.44 | |
Volatility | [4] | 49.04% | 47.78% |
Russell 2000 Index | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Grant date fair market value | $ 1,882.91 | $ 2,277.45 | |
Volatility | [4] | 31.75% | 30.69% |
[1] The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions. The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period. We do not expect to pay dividends in the foreseeable future. Expected volatility is calculated based on a peer group over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years . |
Equity - Share Based Payment _2
Equity - Share Based Payment Award Performance Shares Valuation Assumptions (Parenthetical) (Details) - PSUs | 3 Months Ended |
Jul. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted, vesting period | 3 years |
Volatility | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted, vesting period | 3 years |
Equity - Summary of Activity fo
Equity - Summary of Activity for Unvested RSUs and PSUs (Details) - 2020 Incentive Compensation Plan - Service-based RSUs and PSUs - $ / shares | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
RSUs and PSUs outstanding, beginning of period, Total # of restricted stock units | 349,774 | 427,519 |
Awarded, Total # of restricted stock units | 251,966 | 97,885 |
Vested, Total # of restricted stock units | (73,055) | (50,652) |
Forfeited, Total # of restricted stock units | (2,225) | (360) |
RSUs and PSUs outstanding, end of period, Total # of restricted stock units | 526,460 | 474,392 |
Weighted average grant date fair value, beginning of period | $ 15.93 | $ 11.75 |
Weighted average grant date fair value, Awarded | 11.58 | 27.44 |
Weighted average grant date fair value, Vested | 14.77 | 12.35 |
Weighted average grant date fair value, Forfeited | 21.86 | 16.23 |
Weighted average grant date fair value, end of period | $ 13.99 | $ 14.92 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jul. 31, 2022 | Apr. 30, 2022 |
Payables and Accruals [Abstract] | ||
Accrued sales allowances | $ 2,798 | $ 2,392 |
Accrued freight | 2,266 | 1,253 |
Accrued professional fees | 1,206 | 951 |
Accrued warranty | 905 | 786 |
Accrued commissions | 865 | 1,175 |
Accrued taxes other than income | 740 | 718 |
Accrued employee benefits | 502 | 312 |
Accrued other | 352 | 266 |
Total accrued expenses | $ 9,634 | $ 7,853 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 189,000 | $ 849,000 |
Effective tax rate | (3.40%) | 19.70% |
Discrete tax benefit | $ 40,000 | $ 190,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 12 Months Ended |
Apr. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum percentage of additional section tariffs imposed on certain goods | 25% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Jul. 31, 2022 BrandLane Brand Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | Segment | 1 |
Number of distinct brands | Brand | 21 |
Number of brand lanes | BrandLane | 4 |