Clarus Corp, the parent company of Black Diamond and Pieps, announced that revenues in the fourth quarter surged by 24 percent to $75.9 million, or by 23 percent in constant currencies. This was mostly due to the company’s ammunition division, particularly gains in the Sierra Bullets business and an additional $6.6 million in sales at Barnes Bullets. Clarus acquired the Barnes bullet maker brand out of Remington’s bankruptcy in October. Excluding Barnes, the company’s fourth-quarter sales increased by 14 percent on an organic basis compared to the year-ago quarter.
Black Diamond revenues were flat at $55.8 million, led by apparel sales, which progressed by 19 percent. However, the Climb category declined by 15 percent and Mountain lost 12 percent, while Ski inched up by 3 percent, weighed down by supply chain challenges. Direct-to-consumer sales grew by 12 percent. The management said sales continued to improve. It experienced a recovery in consumer demand, following a difficult first half of the year, when stores were forced to close around the globe following the outbreak of the pandemic. Clarus avoided discounting Black Diamond during the most difficult period to preserve its equity.
Europe recorded a growth of 10 percent, led by apparel, climb and mountain, as markets reopened. However, this was offset by softness in the international distributor business due to the impact of the pandemic.
Meanwhile, Sierra soared by 167 percent due to continued sales improvements across most product channels and regions.
The gross margin remained flat at 35.5 percent, with improvements in product mix, low levels of discounting and foreign exchange benefits being offset by unfavorable impacts on the supply chain and logistics due to Covid-19. Excluding a fair value inventory step-up associated with the Barnes acquisition, adjusted gross margin increased by 0.5 percentage points to 36.0 percent.
Adjusted EBITDA reached $11.0 million in the fourth quarter, up by 56 percent. Net income was $7.1 million, compared with $12.4 million for the year‐ago quarter, when the company received a $10.4 million net benefit associated with the partial release of its valuation allowance on its deferred tax assets. Adjusted net income surged by 64 percent to $11.2 million.
Hit hard by the pandemic, Black Diamond saw its sales decline by 14 percent for the year. The ammunition division also drove full-year revenues, which fell to $224.0 million from $229.4 million. The gross margin inched down by 0.3 percentage points to 35.0 percent. Adjusted EBITDA for the year stood at $22.4 million, down from $22.7 million in 2019. Net income fell from $19.0 million to $5.5 million.
In 2021, Clarus anticipates sales to grow by about 25 percent to $280 million, including a 17 percent gain for Black Diamond to $200 million. It also expects adjusted EBITDA in 2021 to rise by 56 percent to $35 million.