American Outdoor Brands Corp (NASDAQ:AOBC) saw its shares dissolve Monday after the company reported worse-than-expected Q3 results.
The company, based in Springfield, Mass., reported late last week quarterly net sales were $166.7 million compared with $162.0 million for the third quarter last year, an increase of 2.9%.
It should be noted that a change required by the Tax and Trade Bureau related to the timing of federal excise tax assessment within the company's Firearms segment favorably impacted net sales in the quarter by $10.1 million.
That change had no impact on gross margin dollars or operating expenses
Gross margin for the quarter was 33.1% compared with 33.4% for the comparable quarter last year. Excluding the change required by the Tax and Trade Bureau related to the timing of federal excise tax assessment within the company's Firearms segment, gross margin for the quarter would have been 35.3%, or an increase of 190 basis points over the comparable quarter last year.
AOBC also said quarterly GAAP net income was $5.7 million, or $0.10 per diluted share, compared with a GAAP net loss of $5.7 million, or $(0.10) per diluted share, for the comparable quarter last year.
Results for the comparable quarter last year included a $10.4-million, non-cash impairment of goodwill in our Outdoor Products & Accessories segment, which had a $(0.19) impact on basic and diluted earnings per share.
During the quarter, the company’s Board of Directors named Mark P. Smith and Brian D. Murphy as co-Presidents and co-Chief Executive Officers, following the separation of former President and CEO, James Debney.
Shares dropped 78 cents, or 10.8%, to $6.44
