American Outdoor Brands, Inc.

Good afternoon, and welcome to the American Outdoor Brand's second quarter fiscal 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Liz Sharp, Vice President of Investor Relations. Please go ahead.

Thank you and good afternoon. Our comments today may contain predictions, estimates, and other forward-looking statements. Our use of words like anticipate, project, estimate, expect, intend, should, could, indicate, suggest, believe, and other similar expressions is intended to identify those forward-looking statements. Forward-looking statements also include statements regarding our product development, focus, objectives, strategies, and vision, our strategic evolution, our market share and market demand for our products, market and inventory conditions related to our products, and in our industry in general. and growth opportunities and trends. Our forward-looking statements represent our current judgment about the future, and they are subject to various risks and uncertainties. Risk factors and other considerations that could cause our actual results to be materially different are described in our securities filings. You can find those documents, as well as a replay of this call, on our website at AOB.com. Today's call contains time-sensitive information that is accurate only as of this time and we assume no obligation to update any forward-looking statements. Our actual results could differ materially from our statements today. I have a few important items to note about our comments on today's call. First, we reference certain non-GAAP financial measures. Our non-GAAP results exclude amortization of acquired intangible assets, stock compensation, technology implementation, non-recurring inventory reserve adjustments, other costs, and income tax adjustments. The reconciliation of GAAP financial measures to non-GAAP financial measures, whether they are discussed on today's call, can be found in our filings as well as today's earnings press release, which are posted on our website. Also, when we reference EPS, we are always referencing fully diluted EPS. Joining us on today's call is Brian Murphy, President and CEO, and Andy Fulmer, CFO. And with that, I'll turn the call over to Brian.

Thanks, Liz. Thanks, everyone, for joining us. I'm very pleased to share that our second quarter performance surpassed our expectations, showcasing the strength of our strategy. More specifically, we believe our results validate the long-term commitment we've made to being an innovation company yielding differentiation in a highly dynamic environment. We believe our ability to innovate year after year has given us a unique and compelling advantage. Our goal is to leverage that innovation advantage to widen our distribution, expand our brand's awareness, and increase our profitability while staying agile and asset-like, allowing us to seize new opportunities while adapting to evolving market conditions. We successfully achieved our objectives in the second quarter. Here are some examples. We delivered net sales of over $60 million, a 4% increase over last year and higher than our expectations. We grew international net sales by nearly 15% year-over-year. We achieved our highest single shipping month ever in October out of our Columbia facility. We delivered year-over-year growth in adjusted EBITDAs of 43%. We achieved year-over-year net sales growth in both the outdoor lifestyle and shooting sports categories. Importantly, we delivered positive growth across every single sales channel, including traditional, e-commerce, domestic, and international. And it is especially notable that our growth in the quarter was driven entirely by in-line products. Well ahead of the new product launches that we have planned for the second half of our fiscal year. Our innovation-driven strategy continues to foster new and expanded relationships with our retailers and consumers, strengthening our foundation for future growth. This innovation advantage comes in three forms, our consistent pipeline of new products, our distinctive merchandising solutions, and our role as a cross-category innovation partner Let me quickly touch on these advantages, each of which serves as a part of a mosaic that we envisioned years ago and which together represents strategic investments over time, which are now coming to fruition. First, new products. A steady stream of new breakthrough products not only excites consumers, but also offers a solution to retailers' demand for traffic-driving products. Our new product pipeline is evergreen, keeping our retail partners and their customers engaged with our brands. I'll shed more light on this shortly, but I believe our existing pipeline contains what will become some of our most revolutionary products ever. Second, distinctive merchandising solutions that tell our brand story. We've modernized and rebranded all of our key brands, such as Bubba, Caldwell, and Vox. With updated logos, modern and sleek packaging, and impactful displays, our brands stand out on shelves and command attention, making it easier for retailers to present them prominently. And third, a cross-category innovation partner. Our ability to offer retailers a diverse menu of brands made relevant by high-quality and innovative products makes us a single, reliable, turnkey partner of choice. We can deliver a steady stream of exciting new products across multiple categories on a consistent basis. And what we hear from our retail partners is that while some providers can occasionally deliver on one or another of these forms of innovation, it's extremely rare to see one vendor partner who can consistently deliver on all three. I guess you could say we're sort of a shortcut for retailers. who want immediate and ongoing access to a suite of high-quality, in-demand brands known for innovation. The advantage is fueling our expansion into new accounts and deepening our reach with existing customers. This is a fundamental driver for this quarter's outperformance and what gives us a higher degree of visibility into the future, which I'll discuss in a bit. All three elements of our innovation advantage will be on full display in January at the world's largest B2B trade show focused on shooting, hunting, and outdoor products, otherwise known as SHOT Show. Imagine a show that spans not one, but two convention centers, bringing together all major retailers and brands at one time. While many of the exhibitors often seem to be fitting in with more of the same products year after year, We actually see the show as an opportunity to stand out. I can't tell you how many times retailers have come into our booth and instead of sitting down right away to review performance, they're giddy to see our brands in one place and immediately ask, can we go walk the booth and see everything that's new? But there's something really interesting that happens on these walks. We're not just showcasing new shooting and hunting products. It's an opportunity for our retail partners to be introduced to new brands all together. Last year, we introduced two new brands that were previously available direct-to-consumer only. Meat Your Maker, a groundbreaking line of meat processing equipment, and Grilla, a first-of-its-kind provider of modular outdoor kitchens and cooking solutions. While these products are unconventional for the show, having them on display opened doors to an entirely new audience, while presenting retailers with an opportunity to bundle together cross-category innovation for their customers with our growing portfolio of brands. Now, Meet Your Maker products are beginning to pop up at several large retailers across the US and Canada, and Gorilla products are right behind them. As we have indicated previously, our new product pipeline is extremely robust, and our teams have finalized plans for a significant number of very exciting new products from a number of our brands that we will begin introducing next month. I can't wait for everyone to see one particularly quite revolutionary new product from our Caldwell brand. It's truly a new spin on Shotgun Sports. From meaningful updates to existing lines to revolutionary new products, we're confident these launches will deliver significant value for our retail partners. In fact, we had the opportunity to preview many of these upcoming new products with our retailers during the second quarter, a time when many of them are planning their assortments for the coming year. The reception was overwhelmingly positive, and retailers provided us with strong early order indications and commitments for expanded shelf space. These indications give us a degree of visibility that extends beyond fiscal 2025. Because of that, we're increasing our guidance for FY25 and providing our initial net sales outlook for FY26. Looking ahead, the enthusiastic reception from retailers underscores the strength of our strategy. In addition, our results in the current quarter demonstrate the discipline, patience, and execution that we believe is required to build a company ready for the future. Going forward, We'll continue leveraging our innovation advantage to widen distribution, expand our brand's awareness, and enhance profitability. Doing so in this dynamic and ever-changing environment will require us to remain agile. This means keeping things simple with a flexible asset-like platform and maintaining a strong balance sheet. We have both of these things today. With that said, I'm excited about what lies ahead and look forward to sharing more. With that, I'll turn it over to Andy to discuss our financial results.