Clarus (NASDAQ:CLAR) Corporation (NASDAQ:CLAR), a leader in the outdoor and consumer industries with a market capitalization of approximately $180 million, has announced the expansion of its Board of Directors and the amendment of indemnity agreements for certain officers and directors.
The company's stock has experienced a significant decline of nearly 29% over the past six months, though InvestingPro data shows strong recent momentum with positive returns over the last three months. Effective Thursday, the company appointed Mr. Mark M. Besca to the Board, increasing the number of directors from six to seven.
Besca, with over 40 years of accounting and financial expertise, including roles at EY LLP and Markel Group Inc. (NYSE:MKL), will also join the Audit Committee.
The appointment comes alongside the company's entry into amended and restated indemnity agreements with its Board members and several key officers, including Michael J. Yates, Neil Fiske, Mathew Hayward, and Zachary D. Michelson.
These agreements, updated as of Thursday, aim to bolster indemnification protections in accordance with Delaware law, encompassing expenses and liabilities incurred in their respective roles.
The revisions to the indemnity agreements ensure that, barring certain exceptions, the company will indemnify these individuals to the fullest extent permitted by law against various expenses and liabilities. Moreover, the agreements provide for the advancement of expenses, pending the legality of indemnification.
Mr. Besca's extensive background includes a tenure as Managing Partner of EY's New York City office and leadership in long-term value and stakeholder capitalism initiatives. His experience with Fortune 500 company audits and board memberships solidifies his qualifications for Clarus' Board. The NASDAQ Global Select Market has affirmed his status as an independent director.
According to InvestingPro analysis, Clarus maintains a strong liquidity position with a current ratio of 5.32 and holds more cash than debt on its balance sheet, suggesting sound financial management. For deeper insights into Clarus's financial health and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively on InvestingPro.
The company has disclosed that Mr. Besca will be compensated in line with its non-employee director compensation program, as outlined in the proxy statement filed on April 29, 2024.
While the company is currently not profitable over the last twelve months, analysts tracked by InvestingPro predict a return to profitability this year, with an EPS forecast of $0.09 for 2024. This announcement is based on a press release statement.
In other recent news, Clarus Corporation reported its Q3 results, revealing a revenue of $67.1 million that fell short of expectations. Despite this, the company achieved significant improvement in gross margins and maintained a strong cash position of over $36 million with no debt.
The company's Adventure segment experienced a slowdown, with an 11.9% decline in sales due to market softness and supply chain disruptions. However, the MAXTRAX brand, part of this segment, saw a 16% sales growth.
Clarus Corporation has adjusted its full-year sales guidance to $260 million to $266 million, with an anticipated adjusted EBITDA between $7 million and $9 million. The company is also aiming for net sales of $330 million and a 10% EBITDA margin by 2025. Clarus is strategically focusing on high-margin products, expecting to yield gross margins between 39% and 40% in Q4.
Despite the challenges, Clarus Corporation is committed to reinvesting in its segments, maintaining dividends, and exploring small mergers and acquisitions opportunities to boost the Adventure business. These recent developments highlight the company's resilience and strategic approach to navigate market challenges while setting the stage for potential growth in the future.
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