 SALT LAKE CITY, Aug. 10, 2020 GLOBE NEWSWIRE -- Clarus Corporation NASDAQ: CLAR Clarus andor the Company, a company focused on the outdoor and consumer industries, reported financial results for the second quarter ended June 30, 2020. Second Quarter 2020 Financial Summary vs. Same YearAgo Quarter Sales were 30.0 million compared to 47.0 million. Gross margin increased 140 basis points to 35.4 compared to 34.0. Net loss was 2.7 million, or 0.09 per diluted share, compared to a net loss of 0.7 million, or 0.02 per diluted share. Adjusted net loss before noncash items was 1.2 million, or 0.04 per diluted share, compared to an adjusted net income of 1.5 million, or 0.05 per diluted share. Adjusted EBITDA was 1.3 million compared to 1.6 million. Free cash flow net cash provided by operating activities less capital expenditures increased more than two-fold to 10.2 million compared to 3.0 million.Management CommentaryDespite a challenging consumer environment amidst a global pandemic, the strength of our well-diversified brand portfolio and multi-channel distribution platform was apparent in our second quarter results, said Clarus President John Walbrecht. For Black Diamond, the impact of COVID-19 caused our retail partners to close their doors, freezing pre-season and replenishment orders. However, demand improved each month in the quarter, particularly in regions that have shown marked progress in the recovery, like Europe. We also showed resilience with various key accounts who were able to serve their customers in other ways, such as online or curbside pickup. Sales in our direct-to-consumer channel were also resilient, growing 7 in the quarter with a 25 increase in sales through our own website.In our Sierra business, domestic growth continued to accelerate in both our Greenbox and OEM channels. This was partially offset by prolonged softness internationally, as those markets had retail ordinances preventing their opening and the absence of unique demand-drivers being experienced in the U.S., like the upcoming election.Since the end of the second quarter, however, sales trends in both brands have continued to improve. Black Diamond is benefiting from partner retail doors beginning to open and our ability to fulfil orders has been largely unaffected. The fact that 86 of the brands sales are non-perishable equipment that is deemed as a necessity to our activity-based consumer is a unique asset during these uncertain times. In fact, we are quite optimistic by the early indications of interest for our backcountry products, especially in snow safety, as our consumer looks to get back outdoors. For Sierra, domestic strength has continued, including strong reception to our recently launched ammo initiative, and we have now started to see signs of recovery in our international markets. Importantly, we have the capacity to fulfill what we expect to be a strong second half of the year.Assessing our expectations for 2020, we believe we are still well on track to achieve the goals laid out last quarter. These include liquidity improvements, cost-saving measures, key sales assumptions and current demand trends, which all underscore the optionality that we have created in our brands to adapt to the changing consumer landscape.Second Quarter 2020 Financial ResultsSales in the second quarter were 30.0 million compared to 47.0 million in the same yearago quarter. Black Diamond sales were down 47 and Sierra sales were up 7. The decrease in Black Diamond was primarily due to the COVID-related retail demand freeze during the quarter. The increase in Sierra was due to sustained improvements in the domestic demand environment for bullets throughout the second quarter. Sales in the Companys direct-to-consumer channel were up 7. On a constant currency basis, total sales were down 36.Gross margin in the second quarter increased 140 basis points to 35.4 compared to 34.0 in the yearago quarter due to favorable channel and product mix. In addition, compared to last year, foreign currency changes and the new tariffs each had a negative impact on gross margins of 30-basis points. Selling, general and administrative expenses in the second quarter decreased 16 to 14.5 million compared to 17.2 million in the yearago quarter. The decrease reflects the cost-saving initiatives the Company implemented in response to COVID-19.Net loss in the second quarter was 2.7 million, or 0.09 per diluted share, compared to 0.7 million or 0.02 per diluted share, in the yearago quarter. The decrease included 1.4 million of noncash charges and 0.2 million in transaction costs, compared to 2.2 million of noncash charges and minimal transaction and restructuring costs in the same yearago quarter.Adjusted net loss in the second quarter, which excludes the noncash items and transaction costs, was 1.2 million or 0.04 per diluted share, compared to an adjusted net income of 1.5 million or 0.05 per diluted share in the same yearago quarter.Adjusted EBITDA in the second quarter was 1.3 million compared to 1.6 million in the same yearago quarter. The decline was primarily due to the aforementioned COVID-driven retail demand freeze for Black Diamond products during the quarter.Net cash provided by operating activities for the second quarter ended June 30, 2020 was 10.9 million compared to 4.0 million in the prior year. Capital expenditures in the second quarter were 0.7 million compared to 0.9 million in the same yearago period. Free cash flow for the quarter ended June 30, 2020 was 10.2 million compared to 3.0 million in the same yearago period.Liquidity at June 30, 2020 Cash and cash equivalents totaled 21.5 million compared to 1.7 million at the end of 2019. Total debt of 30.5 million compared to 22.7 million at the end of 2019. Remaining access to 50.4 million on the Companys revolving line of credit. Net debt leverage ratio of 0.6x compared to 0.9x at the end of 2019.Net Operating Loss NOLThe Company estimates that it has available NOL carryforwards for U.S. federal income tax purposes of approximately 132 million. The Companys common stock is subject to a rights agreement dated February 7, 2008 that is intended to limit the number of 5 or more owners and therefore reduce the risk of a possible change of ownership under Section 382 of the Internal Revenue Code of 1986, as amended. Any such change of ownership under these rules would limit or eliminate the ability of the Company to use its existing NOLs for federal income tax purposes. However, there is no guaranty that the rights agreement will achieve the objective of preserving the value of the NOLs.Conference CallThe Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2020 results.Date: Monday, August 10, 2020 Time: 5:00 p.m. Eastern time 3:00 p.m. Mountain time Toll-free dial-in number: 1-877-511-3707 International dial-in number: 1-786-815-8672 Conference ID: 2437648Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.The conference call will be broadcast live and available for replay here and on the Companys website at replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through August 24, 2020.Toll-free replay number: 1-855-859-2056 International replay number: 1-404-537-3406 Replay ID: 2437648About Clarus CorporationHeadquartered in Salt Lake City, Utah, Clarus Corporation is a leading developer, manufacturer and distributor of best-in class outdoor equipment and lifestyle products focused on the climb, ski, mountain, and sport markets. With a strong reputation for innovation, style, quality, design, safety and durability, Clarus portfolio of iconic brands includes Black Diamond, Sierra, PIEPS, and SKINourishment sold through specialty and online retailers, distributors and original equipment manufacturers throughout the U.S. and internationally. For additional information, please visit or the brand websites at or of NonGAAP MeasuresThe Company reports its financial results in accordance with U.S. generally accepted accounting principles GAAP. This press release contains the nonGAAP measures: i adjusted gross margin and adjusted gross profit, ii net loss income before noncash items and related income per diluted share, and adjusted net income before noncash items and related income per diluted share, iii earnings before interest, taxes, other income or expense, depreciation and amortization EBITDA, and adjusted EBITDA, and iv free cash flow. The Company believes that the presentation of certain nonGAAP measures, i.e.: i adjusted gross margin and adjusted gross profit, ii net loss income before noncash items and related income per diluted share, and adjusted net income before noncash items and related income per diluted share, iii EBITDA and adjusted EBITDA, and iv free cash flow, provide useful information for the understanding of its ongoing operations and enables investors to focus on period overperiod operating performance, and thereby enhances the users overall understanding of the Companys current financial performance relative to past performance and provides, along with the nearest GAAP measures, a baseline for modeling future earnings expectations. NonGAAP measures are reconciled to comparable GAAP financial measures within this press release. 