AOUT - Earnings call transcript Q4 2021 | American Outdoor Brands, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by, and welcome to the American Outdoor Brands Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. And now I'd like to introduce your host for today's program, Liz Sharp, Vice President of Investor Relations. ahead. go Please

Liz Sharp

good and Thank afternoon. you,

Our comments forward-looking estimates other contain may predictions, statements. and today

of project, is Our should, like words use anticipate, believe those statements. other identify indicate, estimate, and similar to expressions intended forward-looking suggest, intend, expect,

growth products our in market Forward-looking development, and strategies related and opportunities evolution; market inventory focus, strategic general; demand market our product share statements conditions our statements and vision; and for objectives, industry include our also and in regarding our and our trends. to products;

Our represent and current uncertainties. about they described considerations actual judgment are and are our and different our that in factors forward-looking risks results securities our statements materially the to could cause subject future, to Risk be other various filings.

well on this as no call we replay You obligation only aob.com. is Today's and update those as our statements. time-sensitive at of any can call information that as assume to contains accurate documents of website time, a this find forward-looking

our have differ our call. could results to important comments on today. about a statements materially actual note items few today's Our from I

certain financial measures. we reference First, non-GAAP

website. as they fully we discussed when referencing well release, in earnings exclude today's on are on Also, as are adjustments. amortization GAAP measures results tax party to related we not stock financial the filings intangible press our or are of income acquired today's COVID-XX EPS. of found expenses, non-GAAP Our related compensation, call transition interest be reference our can all to whether diluted measures always effect The and which assets, reconciliations EPS, those costs, of non-GAAP financial posted

Andy to Brian I with is Brian. will on and turn today's Joining Murphy, And President over call that, and it CFO. us Fulmer, CEO;

Brian Murphy

a looked spin-off share our completed brands our and us. those in company, thanks, the company out year matter. We sharing adventures Today, exceeded to their as public building allow that consumers brands for people believe results was lifestyle that of sales most the pursue to consumers that help for passion XXXX was fiscal everyone, the to especially production. and and outdoor expectations that make as historic independent our sports, a they year increasingly timely public We that for moments Fiscal net company. to Thanks, demonstrate Liz, fishing, of and social became happy to in I'm report both and restrictions our and to an income. our such first interest in results activities for outdoor self as excited as hunting, camping shooting travel hiking I'm dedicated August an continue distancing authentic and response net to increased building XXXX joining

took turned with them for first people to brands these of for in proud time the long that time. journey. and them and so first very many Regardless, the their on we Some time pleased are activities others along a our

As fourth a and XX% which represents sales net growth the result, for quarter. year delivered we nearly the sales sales, growth $XXX XX% in for million

the new new Calendar in our deliver campers fishing, XXXX are outdoors believe us importantly, X holders. service or has employees, outstanding fishing customers over the new a owners, future. the to explore with personal each results work meaningful our resulting which growth. establish of many gave new the firearm million and us extremely industry, of consumer participation, new higher whose hard and outdoor million proud nearly X foundational a continue new will play the has million we one each markets brands X ushered license in in loyalty, participants of company, protection, who delivered new shooting pandemic. sports, helped camping, whether past for hunting believe the And welcomed exciting consistency uncertainty driven by and an We of our We despite in year year our level era has dedication

During & participation Dock drive consumer with strategy trends. fiscal were alignment, our our helped That 'XX, to brands combined U.S. fiscal positioned Unlock 'XX. strong uniquely these strong address our performance in

brand As lanes, Marksman, consumer each into line, a unlock is transformation Adventurer, known. type. begin leveraging true and brands the brand its potential including resources, X we a docked by Once begin Defender, reminder, organized respective niche on marketing, focused allowing distinct into brand Harvester our new a product to brand to particular the are its e-commerce and to its line’s development, from

it growth. results. drives 'XX, Our And in Dock & delivered Unlock strategy fiscal

Dock helps markets, of steel extractors we Electric within include our allowing line us Pro Knife. 'XX, drive share. Fillet fishing 'XX stainless growth Series us of Lithium-Ion These fiscal new take BUBBA XX%. accessories products to BUBBA hook products fiscal Unlock & our existing over in develop expanded shears, Cordless In helped in First, revenue to new market flyers,

accessories larger we Unlock and Dock access fiscal lower brands In higher to ASPF its lifestyle camping product categories. rebranded Second, a products, sleeping air category. 'XX, from & entirely provides new our which camping mattresses introduced of bags, including origins and existing brand, some a with to UST represent tents, new ASP we and

Unlock to In unmet identified we and in Third, line. an us new 'XX, allows need enter Dock Harvester our fiscal & markets. large brand consumer

us months. revenue developed we meat X processing its a launched became brand and Your new dollar brand within in first multimillion Maker, developed a MEAT! $XX So internally a market placed and that billion

In heart lies Dock product 'XX, development popular full a & tools new and a beginning distribution at now stores. with These Lastly, available the are to to products brand that home at new expanded hunters pipeline. management line saws fiscal land our access tree a traction Dock gain hardware of provides homeowners. Unlock and for channels. range of Unlock to offers Hooyman single & of we from

we over New the of for products, XX% as prior new introduced net define SKU period over 'XX. fiscal any represented X-year which sales our

the pipeline throughout all product new we robust brand quarter, Our X year. the across in remained introduced products new And fourth lanes.

year. Marksman Crimson cleaners, we and our corded Trace In we our launched XXX, complements the cordless. CMR one universal system. tactical ARXXX Nope the Tipton the new launched of stand, lane, a laser highlight all-timer launched launched and Rope, In one lithium-ion In bore we of electric few we Defender Harvester which knives, you. Caldwell me line our and brand last Let ARXXX those for full fillet a pull-through Target lane, our X lane, targets light

also which And lithium-ion launched Pro motor launched a Fillet of BUBBA full lane, work We technology line we new assortment H-Grip the which complements and our of our tools. our Hooyman Adventurer Electric brushless technology. the land Series Knife, integrates expanded management advanced gloves, Hooyman in

of finishing number of including we freshwater, product BUBBA's categories We into products entry untapped X also introduced that growth unveiling new be at the that on Dock Unlock potential a Nipper, saltwater these will flyfishing next fishing exciting long-term new We'll to our during several ICAST, & tuned. brands put markets. products touches Line premier for major has a trade products, the industry's have in of week BUBBA potential. spans many our And Stay that 'XX. and and product fiscal the Fishing believe significant represent manifest show. new quarter, most platform We built our been

ways. to brands time, at were fiscal aligned driven saw our results several capitalize in trends ability that on believe same we in we Our the consumer also demand well our the 'XX, by but certainly with

which whether they This brand increase online also established our wherever establish existing us effectively consumer our investments across successfully we our before significant websites allowed key First, each in-store. brands, consumer us long we consumer meet capabilities positioned new of in demand It began shop, began. from for the the making to benefited to strategic portfolio. relationships to We e-commerce or increased respond us engagement. and allowed pandemic to

grew we purchases. e-commerce and At towards by our sales direct-to-consumer in in channels sales the net result, sales in fiscal own as consumers sales nearly e-commerce channel 'XX, same customers time, online over grew traditional XXX% a As XX%. by our including shifted our net our

us Our since both strong through. capture what demand channels important matter comes and no allow channel are very it consumer to e-commerce traditional they

Second, we supply earlier our investments benefited from capabilities. and chain distribution in

job here and chain job teams great in navigating a congestion. Asia a do continue Our to great and supply and constraints port did

job we we of our their did heard a a better on As of number products customers shelves. from competitors a that than result, keeping

fiscal team and benefited costs material year, unforeseen well, environment. terms in marketing related environment. to important note investments and our a high of in are multiple to demand did opportunities. bottom great performance, delivered here Lastly, of absence that challenges and increases 'XX, extraordinary in important and a from supply a managing the unprecedented industry that part necessary we cancellations chain was expenses travel trade an one as that selling also shows a of freight cost normalized It's Fiscal line more job 'XX

for in we the tremendous a became prepared that a new believe public an outdoor established we renaissance in successfully During company growth and that year profits time, consumer. and delivered for

consumers. relationships, we ahead environment strong Looking an robust includes plan costs, will increasing behavior platform to new to are our portfolio, deepen the brand established which fiscal platform, remain throughout and allow constraints, risks managing and materials the that supported to raw that upon a of products our 'XX, and we into and ongoing year, monitoring to our of us do to by leverage lineup build work When tariffs. a insight freight e-commerce we will our that, exciting diligently supply in our new likely the chain consumer

brands entered large number the play. many we about that look longer our the the we consumers As term, to are where excited have new of markets of

to we markets many the to beyond believe that, the outdoors. the potential ambition play authenticity, addition In the in have brands and our of

permission new new niche that increase Number by at our years, by XXXX. will the market That addressable one, beginning. growth double more that to organically consumer existing developed is distribution have expanded size our our believe to low market in just of that that the X launching permission our new we reflect and within end number believe business strategy four, expand between combined from products this by X large a growth product categories; a where sales and growth entering the fueling by over brands entirely increasing next known, organic have So in customers August rate have to market onboarding a growth play. of support our to acquisitions. new annual opportunity; the pathway play; a by the exclusive addressable implies brand's our total we And entering brands three, of compound broadening total our basis, ways: will and XX% X% since than share On we markets we any that at X take separation plan to categories our two, our

will As achieve to we on that long-term profitability. growth, focus work continue we to delivering

with fiscal in 'XX in profitability deliver Our as marketing infrastructure largely in record net fixed and costs, grew. a platform resulted distribution and our product investments have helping us sales development

the mid- the in believe high As margins our be we X well. to could as future. this teens X a deliver result, years over to We about the ability has to excited platform EBITDAS not more next

year established known. are With We proud on brands first company, foundation poised over to are the on from that taking have I'll it we in of sights Andy. foundation, public and and our niche to as a to turn setting growth we that, our build future our

Andy Fulmer

brands digits. fiscal products the grew in net those saw sales over QX approximately sales of X sales of increase were am which share Net Thanks, showed happy and by adjusted as million, increase represented $XXX.X in significant prior X This grew combined year And the across growth in growth our cash million net each more year Brian. year prior free consumer QX EBITDAS results, to QX was XX% last to of lanes. full the with brand were driven nearly and generation. overall compared for portfolio. a and the preference our strong one over selling X I 'XX, $XXX.X quarter. to an prior Net In demand in in X our half sales year our triple over We XX as market, similar sales in quarters, outdoor brands in of the flow XX% well over of brands. the our products our increase million an net year, for $XX.X the XX%. all the highest than higher

driven Our fiscal calls. slower promotional by XX.X% a increase inventory the 'XX that gross earlier and sales on XXX in mix I've The basis margins of percentage product offset was point favorable by lower mentioned gross moving spending, over discounted prior year. were increase margin

year, full were million, year. $XXX.X operating the last compared to million $XXX.X For GAAP expenses

consolidations expenses, certain impairment operating expenses stock in compensation-related year-over-year 'XX compensation amortization million were for sales. facility and Non-GAAP driven expenses and $X.X $XX.X fiscal goodwill million selling million exclude $XX.X and by increase fiscal variable $X.XX, our costs of distribution fiscal If Our impacted approximately fiscal $XX 'XX as an intangible they to were for year. occur. last $X million then by year. goodwill from Non-GAAP compared approximately approximately that net expenses 'XX a that nonrecurring XX.X%. included EPS decrease million. impairment, of EPS operating operating the by in netted charge million which $X.X completed EPS $X.XX exclude 'XX. fiscal of was we basis $XX.X was increased both loss expenses expenses Again, GAAP and higher with was intangible million on as of a amortization, by or significantly compared of last we operating 'XX from $XX.X impairment. million costs of resulted The These a

figures based compared $X.XX was compared approximately EBITDAS Fiscal increase second, million net XX was in the to restrictions. adjusted margin our year. EPS to and fiscal by sales and favorably shares. on Our 'XX, was absence and of by Full absence our of $X.XX prior and are driven was in $XX.X in count in-person increase XXX% impacted share travel year fixed fiscal shows last an leverage of resulting year. in the year of XX.X% over approximately X X.X% trade of These 'XX non-GAAP million pandemic-related market; promotions first, prior adjusted reduced the 'XX diluted fully costs; things: third, as the EBITDAS the significant the the the

lower the million accounting prior or spin-off calls, an lease treatment an changed as Had year from to mentioned operating EBITDAS our approximately of headquarters have would XX.X% Missouri the the $XXX,XXX lease. finance net on of been at a adjusted full we've lease, treated operating sales. $XX.X As been

Looking entirely ahead cost beyond, that to as rent treated will expense. annual be fiscal 'XX and

of and balance sheet borrowings ended cash flow. no year our the credit. with to the million line of Turning on cash We and $XX.X

very netted Our full for of $XX.X at CapEx expectations. year cash in was strong with million and costs and line outlays was cash patent from million, operations $X.X our by

for was flow cash free about result, the a million. As year $XX

Our strong pursue. in this acquisitions believe well balance tuck-in as is may support growth adequate point, it incredibly our as to organic and sheet to is at any investments we we choose

Now discussion our let a infrastructure. to me turn of IT

X company. we stand own that our recall former a services full agreement platform. provides spin-off years support X-year year of AOUT You'll last our That included IT our parent independent transition agreement while for with up

estimate capabilities million of meet and always implementation live, as As we and a the the we our a company's business-wide report exciting who strategy IT fiscal have into on designed a has our the and included future. IT to be from We has update, and result, enhance our $X August up I'm XX, our to specific to place an spin-off now our goal team, This leader growth. been by a now based have by IT this project set strategy developed future capable an infrastructure an a that analytical over XXXX. in tailored By in extremely approximately time chosen little platform to for needs year pleased us a way and will investment is go of and organic inorganic for look we company prepare 'XX. costs experienced

of expense. expect the as We million and million $X.X incur that balance $X.X of onetime to operating cost capitalize

of $X.X in to impact operating about $X.X be will fiscal detail will in bit specific a Let about onetime provide IT 'XX. IT million fiscal be CapEx million. fiscal and for spending me 'XX the for about expense cost 'XX

million side also side $X.X by approximately In and expenses expense, of go-live prior the $X.X the duplicative million run date. platform incur existing as we the of new to both onetime will addition to we

treat We $X.X when non-GAAP nonrecurring both million transition adjusted as $X.X the and EBITDAS. expense and will costs million the calculating operating

now to outside CapEx Turning of project. IT the

CapEx recap, million be other $X approximately in product and $X shows. show fiscal spend including mainly industry booths to our capital expect 'XX, $X.X all to To for million. CapEx, expenditures million expected for total We 'XX, $X.X IT to is tooling and million fiscal trade to for in

of QX, inventory, sequentially We bit Turning year expectations. somewhat to our from million a up $XX.X at ended inventory. below but the

to recall to product of and new ability congestion launches SKUs. preferred expected new our levels. levels chain port said safety supply quarter, as to said, stock team focused inventory That is these support chain high-volume we You'll mitigate increase support order build inventories to our constraints inventory Unfortunately, build supply 'XX hampered in on work hurdles, in risks. to overcoming fiscal our to to we increase in last mitigate we these in product risk, especially of launches, and our for up

with quarter availability available of $XX the the million line facility provides and This conditions. debt capacity certain million outstanding ended $XX our we of no on additional credit. Finally, bank full under an

provided end Our million Brian credit with coming number to and capacity with over our cash of of combined see capital of market. 'XX. to available of line acquisition $XXX targets high balance a the us at I continue fiscal

also very these We opportunities. our approach assessing in disciplined when remain

Our portfolio strategy total finding for for focused complement and allow our runway on growth, build remains us value large current Dock strategy Unlock markets to in & addressable operate have that brands shareholders. apply our to and our

of to 'XX. fiscal expect to fiscal of the to between the activities those resumption would would a net of With our XX% normalized sales million $XXX to marketing selling the EBITDAS estimate range and We to be GAAP and in In $XXX we pandemic-related of 'XX that EPS $X EPS in also absence range to turning net full compared $X.XX. of non-GAAP activities more and see range for million. of of XX% expect with in will sales We in the adjusted full fiscal range, 'XX, Now we $X.XX year guidance. for that the restrictions $X.XX expect the levels. during year.

plan of costs costs and in Vegas. including travel we to week Las participation, to Florida trade SHOT and next Show ICAST related result, a in incur increased January As next show support business in

this of addition In as the to promotional well. market activity, to some we level see activity returning expect to

diluted count that, the analysts. Finally, approximately from effective rate will million expect and open our fully will share tax we're for call questions about to our our With be we ready operator, XX% be XX.X shares.

Operator

[Operator Instructions].

Our of Riley from the from B. line comes Securities. first Eric Wold question

Eric Wold

of fourth materially at questions, economy retail merely of I we retail off, e-commerce up? out I of how couple guess, that shaking there? versus the should shipments, 'XX impact Or the split year. of first in year-over-year there last looking the of back picking kind fiscal timing quarter about A is specifically, dropped else XX-XX year. mix something mix kind last fourth And the to if Is that think the a may. versus relative the quarter

Andy Fulmer

Andy. it's Eric, Great question.

call, So pandemic there when retail were was look and frame of -- time year over QX, and kind We was affect last starting that anomalies during orders at e-comm. you with year last to QX some noted QX the the sales. earnings in had brick-and-mortar when

trends think went traditional, saw quarter, well. I QX started XX-XX, split we in what you QX over as at almost X/X, that's look kind and e-comm back X/X if of to XX-XX the between in the you and QX,

Brian Murphy

as own speed more retailers -- to point. Eric. this have a online as doing we at this to up mean of get are lot captured that -- well, of part our just many retail year-over-year, I there Certainly, stores sales and be traditional Yes. saw those much think would offense their channel. storefronts hurry-up also I been is open Brian,

to X doors have So last had were compared closed. open over -- getting customers tracking up that at really think have good Obviously, job were to year, I I we more point are X,XXX there that retail a that the think some we doors set of we speed. done

it's in the back think I opening So general. economy up just

Eric Wold

kind a Perfect. X-parter chain. And the second question, then supply just of on

noted that chain? market did as period. reflected up? you products the changes on ability of lot impact competitors think be merely have possibly your into do know gains there? better this You chain -- or of some the in? possibly was inventory? shelf transited catches I on any Any kind share customers you safety Or your initially And of on how a job And specific, guidance out do as on in that supply issue there supply the dynamic a you around then would your retailers And categories specific you that assumed assume, stock product than what supply in keeping of the is chain a

Brian Murphy

is I Brian. can Yes, Eric. This start,

So all, that all team before first job 'XX. that some of the we introduced POS I've fiscal insights navigating between were of our definitely chain about in planning. here with our complexities and And relied into talked fantastic our a upon we more our strengthening did inventory and POS that

wanted forward, period. -- competitors, I looking mention to Andy And not or our had We about team make and we those -- see done said, QX, during competitor expectations we inventory ended analytics a levels. have certainly, to were some bought ahead. trends, we like think it that. below our sure that stock but probably our you said, in-house here, sufficient when they benefited So and I And we in can and own then have to safety here. share And from started made customers our chime of that we to we we that our We comes took where he we like noted so. our

of some asked -- part question the haven't by But has about product that is cases. So supply in categories strong we seen sell-through like brand. outstripped or you demand

We seen mark. pockets haven't necessarily the within missing where portfolio we're our

with want demand, now. the add to board given Andy, demand I to strong portfolio our right the think just just is it's across you it's very strong that? anything

Andy Fulmer

invest in kind plan Brian those only The SKUs. forward, supply levels, of chain stock those add is would Yes. inventory, safety to high-turning going to sure, we make I invest especially to mitigate mentioned, risk, as thing

Operator

question the CL Stember from line Scott comes from next Your King.

Scott Stember

a a you a just seasonality typical walk you Going a or help through quarterly first third second. to forward, quarter on basis, us model what be us expect just quarter bit. fourth versus versus to little could In

is block this around through first that earnings you with given been that an we've perspective Just the from the guys? maybe walk us time

Brian Murphy

this Scott, is Sure. Brian.

in. Andy and can start I'll So chime

So quarter. and if started This year bit. we historically, QX. reopen to you saw shift a has look our our that of been a last pent-up in demand pre-FY 'XX, highest lot 'XX, FY back Obviously, typically stores QX as there was in little QX

'XX. And we're that say similar our was and our forward, so going actually, expecting I'd between a FY in hump QX peak QX QX.

our can of promotional between that to QX of -- about too do some about. Some we're kind retailers, shift level environment. those promotional talked do of that some overall, we sometimes had utilize that's hump We have talking and SKUs returning we and QX. But the

So to you QX, too But biggest hump whether to those it's would year. quarters, at to for QX, I anything going the looking happen the in early between tell. add? you're want X Andy, say,

Andy Fulmer

No, on. that's spot

Scott Stember

-- something lines? Or QX, then those So similar here? along to from a QX cadence and

Andy Fulmer

Yes.

if again, QX. that QX look at So it kind into starts you from 'XX, of drop when go fiscal kind to 'XX, you of hump historically between back it is and

Scott Stember

it's it get but be third -- work to But compare the inventories this headwind just a trying have -- in for QX QX? just at out, to going you through versus lost can dramatic, sales you quarter a forward, because whether happened happened talked lower quarter it the like, just least to and you sense this if it of also I'm sounds nothing guess obviously, that opportunities figure I it. about, going

Andy Fulmer

Yes.

as year-over-year I you the the that stat is of one in up backlog. can April think pick increase in XX-K

the $X.X of at that at and million fiscal backlog end $XX.X last April million, rose to end the our So 'XX. of was

-- So the I both good twofold. we if of think had of decent future-dated orders, we of have a that's that's a shipped kind chunk has indicator but inventory. orders also it That's could

Brian Murphy

over. been It's carried

Scott Stember

in it of lack on flying of just then just not forward, perfect storm and guidance. And that anywhere, you margins. travel back We're going a there? and I versus incredible generates there your Is items that sales obviously that the you're But throughput. it. traditional, expenses that had higher I well? certain question is any a retail a Got of e-comm I appreciate last as was know e-comm. going to getting into I and other know little guidance more bit guess, baked about. talked

Andy Fulmer

again. of really Yes. that. e-comm looks kind at contemplates Andy is of This all both our our guidance model Yes, traditional. Obviously,

really You the is on are e-comm that correct. past there. in fiscal generally some really investing fact 'XX, to then, in We continue We've in and for long-term shows saw that are and that travel, plan going in that good direct-to-consumer made into to because we of fiscal yes, we're trade the higher other margins investments investments. brand going 'XX, said invest our And we growth.

Brian Murphy

could the want to I the expects That find made if we -- be before, this is too, Brian. Scott, Yes. comment we consumer wherever add to us.

offense And in some so said, hurry-up capability. put of certainly, of out were have kind had own to Like customers that make online. done FY I 'XX, they a going increasingly traditional they their the have sites, sure that

to expects e-comm. Direct-to-consumer to So part also be find us. where a to is consumer big again, continue of we the want

we're stages believe growth. early We that that of continue the seeing to in

would So as I for would expect continue well. that, us that

Operator

Street from Our of Mark Lake line next the question Capital. Smith comes from

Mark Smith

looking fully Correct? infrastructure. Andy, the First that is $X.XX question for at IT IT transition me is at just cost the transition, clarifying, the

Andy Fulmer

is That correct.

If I $X.XX $X.X the roughly the that Mark, about. talked is math, million that you do

So it's duplicative about of $X.X costs. $X.X and million million of then onetime

Mark Smith

we And Okay. as before -- a we full fiscal that roll transition to then look at 'XX expect little continue in August? to should of the into bit

Andy Fulmer

assumption. Yes. a Yes, great that's

the expect to ramp would I to start So duplicative down.

agreement more of we less So types services infrastructure. our date, the we're of IT using go-live where less -- transition to those and are things as of own that we and closer get the

Mark Smith

That's a basis in you promotional just kind of just of Okay. the today And ramp about -- looking then kind year? promotional of environment kind to rate great. you've environment. what in the at expecting talked you're Can you're what a the later little bit seeing versus

Brian Murphy

at is you, point. lot, a of customers seeing is not what from about. talked to to be This heard Mark. we've have with off Brian, what our companies going we're who Sure. customers our be this We're honest public whole and happen What other

QX, and calendar of alluded calendar they've to lot part year, QX whole that a and now. -- it, not in maybe of QX. their So we're But right or year sort of that seeing call

we what that year. customers just But off in later the of remains demand our I think the us, for that are going And robust. this again, could moment. at I'm see planning

Mark Smith

last Okay. Costco. and some That's increasing looking maybe UST that And over had stuff distribution talk you distribution has channels, that, about we've Can at any positive then the impact at fair. seen year?

Brian Murphy

I'm of formula. march our to for & seen our it's Dock path continued a glad down niche Yes, we've Mark, Unlock tremendous as Brian. you the Sure. using asked, brands to Yes, acceptance they've now

we're and showing now hardware the very large. which Costco management cases, even making are being which tool even BUBBA even land of up way great some distribution getting we So those UST channels other channels mentioned into some is which and some into address category, our fantastic. Obviously, like of distribution you in well like is stores, broader as the their Yes, some home the pulled And kitchen. home hardware, products of into is places REI, in as and

be our portfolio that continuation think we'll to we'll of across share with I you see excited forward. brand So that a going

Mark Smith

M&A what include for one can me. any guidance, talk acquisitions. last just front about assume, there But the I The seeing out And on you're the Perfect. does you today? not

Brian Murphy

is this Brian. Mark, Sure,

mergers saw lot banker. of M&A. lot time. advisor an in was for a seeing I a started of an banking, investment I investment and been when -- And kind M&A -- thought of There period of I've acquisitions, are I We a I was

a of on volume see And two side, reasons. we due uptick, ton particular, sellers we're last got tax reasons. I good of just is And a market. think saw categories. to pop of in sense slight coming founder, their the year. are that they one did this Number and pick one, Now nice now, who right then a that COVID maybe second performed in for to And a an particular before who well pretty seeing

higher that with I some maybe for of tax hit is think preparing that code sellers rate. change founder there are or if tax are they the expecting be to going in a

teens It's not of uncommon in double valuation. that market for said, assets, digits, beat say, us some would So to With they're -- to created deals done a getting higher trying which lot also low even there's for see floor. cases. that to the a I in to and has competition sooner these

we're So to there. But very that had diligent. making diligent, deal. it's we're criteria, remarks, prepared very we're remain right like the It said very, -- again, fits and finding his in sure going Andy we're out remaining our

Operator

[Operator Instructions].

next from question of the line from comes John Kernan Our Cowen.

Krista Zuber

on This takes and anticipated costs is around well John. drivers for levels? and I tariff the on Could you commented puts on, inventory freight touched know some gross Krista Zuber for on and fiscal of 'XX? as margin provide what some input you sort us promotions as that and you've like

Andy Fulmer

it's Great question. Andy. Krista,

to promotional the those some in of look other And been in costs, no later margins in. pipeline forward, fiscal percentage. additional margin the kind year, are of 'XX, mid-XXs mentioned respect typically we've baked to historically, change guidance of respect kind our 'XX Brian margin, don't So when you of with if into certainly really going tariffs. With come that. on anything kind in down the assumes -- the We don't know pieces

Krista Zuber

just sales the anticipate the you run touching then And a talk or this percent Great. CapEx you on the over dollar of broadly hike sort to years big maybe how next the of rate can year, of kind coming several as that's CapEx, amount? with for Okay.

Andy Fulmer

Yes.

Another good question.

as year off attend trade booths. under for a after chunk spun of we'll we COVID parent million a And because year, these really, $X.X more investing that's former This now as have parent under booths. company cost also in shows, guided show our were of booths we to kind that $X.X we're look, So those million our show we company, trade IT. big with onetime trade this in and

see a respect So at $X tooling. product we Back is you low or a that business that as if fiscal in 'XX, also or so would relatively to more we It we million growing, CapEx as can will of new is most as roughly tooling. because million product remainder it, look variable the And be and back, the our business million in of net company. rest sales. look of invest you were -- with to the at related $XXX $XXX revenue obviously, of of kind CapEx products

Krista Zuber

promotion Officer. Curtis finally, Chief I Marketing Great. Smith May to then in think announced just Okay. And your of you the

from initiatives retention? OpEx, to evolving acquisition as sort of you see 'XX marketing kind do Just your fiscal in costs to here relation and customer relates of how in it

Brian Murphy

Brian. is again this Yes,

So in Chief Unlock and & been a have that and yes, worked really our Curtis have. promoted Officer. was long very we I to our process for helped together. establish team Curtis Marketing excited. time Curtis friends previous lives the Dock with senior

really involved brands. the me of got experience a of and team unlock power there. very along to lot the So with these of the he's He's rest been

acquisitions we the continue how to that to could platform. our find the in as underserved, companies for in that but do be potential And And potential we have. so believe unlock to these brands we make also, are unlocked going XX and the these we marketing we'll investments forward look acquisitions,

QX, a So time and that. like things customer of shows you if -- savings for We from and our that look reinvested of with marketing. you spent our over kind trade ton into example, had of -- that also the year, the at shows that we mentioned trade that. last some of at we and looking some spend on acquisition, the And took

have and really have good we platform, incredible some -- new from that. an get e-comm insights We we

really those going mentioned, retain that money that we plug It products. we're insights into existing with continue attracted with to we're we products XXX new So year. going new It as year, our leverage last as consumer consumers helps we've this out with us But that to over helps only new to launch to base. products. come into we not and

So about excited we're very that.

Operator

program. to remarks. hand question-and-answer of I'd program conclude Murphy does to Brian the back the for today's this any like further And session

Brian Murphy

our especially In first tremendous to Yes. Thank want thank you. make to employees success. I our helping for year closing,

who call. have We actually this people are lot to of listening a here

want I you next us speaking We much. So to to again here joining look forward thank you everyone, very for quarter. with Thanks, today.

Operator

today's gentlemen, you, your in and program. conclude the Thank does ladies conference. This for participation

day. now disconnect. may Good You

American Outdoor Brands (AOUT) 15 Jul 212021 Q4 Earnings call transcript