American Outdoor Brands Corporation (NASDAQ:AOBC) Q2 2020 Earnings Conference Call - Final Transcript

Dec 05, 2019 • 05:00 pm ET

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American Outdoor Brands Corporation (NASDAQ:AOBC) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Jeffrey D. Buchanan

of the fiscal year. Second the change in federal excise tax will increase our full year revenue by $34 million to $36 million. Thus we now expect total company full year revenue to be in the range of $680 million to $700 million.

As James indicated earlier, in connection with our planned spin-off, we are providing revenue guidance for each separate business for the balance of the fiscal year to provide stockholders with enhanced visibility for each business. Accordingly, we expect full year revenue for firearms to be $520 million to $530 million and full year revenue for OP&A to be $180 million to $190 million. Intercompany eliminations between the two businesses are expected to be approximately $20 million.

Regarding EPS, we are maintaining our full year GAAP EPS guidance of between $0.41 and $0.49 despite the following impact items: one, the beat in Q2 and our improved demand outlook which have a favorable impact; and two, the expenses associated with the spin-off which have an unfavorable impact. It should be noted that the spin-off expenses will not be included in our non-GAAP EPS. Thus, based on our beat in Q2 and the improved demand outlook, we are raising our full year non-GAAP EPS guidance to between $0.76 and $0.84.

So turning to third quarter guidance and applying the adjustments that I just discussed, we expect total company revenue of $180 million to $190 million GAAP EPS of between $0.11 and $0.15 and non-GAAP EPS of between $0.20 and $0.24. All of these estimates are based on our current fully diluted share count of 55 million shares and a tax rate for the full fiscal year of approximately 30%. James?

Executive
James Debney

Thank you, Jeff. With that, operator, please open up the call for questions from our analysts.