SUBSCRIBE    ARCHIVES   
FRIDAY, MARCH 8, 2019

- TOP STORY -
American Outdoor Brands Corporation (NASDAQ Global Select: AOBC) announces that Lane Tobiassen has been promoted to the role of President of the company’s Firearms Division. AOB’s Electro-Optics Division, formerly headed by Tobiassen, will be combined with the company’s existing Outdoor Products & Accessories Division.
- EDITOR'S NOTE -
At 2:00 a.m. whatever your local time zone Sunday morning (unless you’re reading in Hawaii and Arizona) Daylight Savings Time will begin. Yep, it’s “spring forward” time again. DST will end on the first Sunday in November (November 2, 2019). Don’t say we didn’t warn you.
- COMPETITION -
Team Beretta shooters recently achieved 10 podium honors in 5 different events at last week’s 2019 Seminole Cup in Woodbine, Georgia. Team Beretta shooters will continue their season at the upcoming 2019 ISSF World Cup in Acapulco, Mexico from March 15-March 26, 2019 and the 2019 ACUI Collegiate Clay Targets Championship at the National Shooting Complex in San Antonio, Texas from March 25-March 30, 2019.

Bald Mountain Shooting Range in Lake Orion will host a National Sporting Clays Association-registered tournament Saturday, March 16.
Bald Mountain Shooting Range in Lake Orion will host a National Sporting Clays Association-registered tournament Saturday, March 16.
- CONSERVATION -
New York Sea Grant (NYSG) is among the most recent recipients of support from the Disney Conservation Fund (DCF) for its work to support lake sturgeon recovery efforts in New York and lead outreach and education programs to inspire appreciation for this prehistoric freshwater fish and state Threatened Species.
- EARNINGS -
Following the close of the stock markets yesterday, American Outdoor Brands Corporation (NASDAQ Global Select: AOBC announced financial results for the third quarter fiscal 2019, ended January 31, 2019. The company reported Q3 2019 net sales of $162.0 million, a 2.9% increase over Q3 2018. The company also announced its decision to restructure and combine the Electro-Optics division into the Outdoor Products & Accessories unit “in order to drive efficiencies and increase operating performance.”

- EVENTS -
Hundreds of children will get a first chance to experience the thrill that comes with the feel of a fish on the line during Bassmaster Get Hooked on Fishing presented by Toyota, Shakespeare and TakeMeFishing.org at the 2019 GEICO Bassmaster Classic presented by DICK’S Sporting Goods.
- FISHERIES -
NOAA Fisheries published a final rule to increase the commercial and recreational annual catch limits and recreational annual catch targets for Gulf of Mexico red snapper, as well as reduce the stock annual catch limit for west Florida hogfish, based on recent stock assessments.
The 2019 red snapper fishing season for federally permitted for-hire vessels is 62 days in federal waters of the Gulf of Mexico.
- FISHING TIPS -
Spring is a prime fishing time for bass, bream and black crappie in Mississippi--here are some expected hot spots this month.

- GEAR -
Built on a solid aluminum chassis with a no-glare matte black finish, the Coyote Light comes with a 1-inch scope mount and an integrated Picatinny rail, allowing for multiple mounting options on a scope, gun rail, or monopod.
- HUNTING -
On Friday, March 1st, the Pope and Young Club convened a Special Panel of Judges in Omaha, Nebraska for a potential P&Y World Record non-typical whitetail, shot in Illinois by Luke Brewster.
The Nebraska Game and Parks Commission will consider 2019 waterfowl hunting season recommendations at its March 15 meeting in Nebraska City.
Public hearings on the status of waterfowl populations and proposed waterfowl hunting seasons for the State of Vermont and Lake Champlain zone in New York will be held Tuesday, March 12, in Whitehall, New York and March 14 in Winooski, Vermont.

The Florida Fish and Wildlife Conservation Commission (FWC) is offering free hunter safety courses in four counties in March (list follows). Hunter safety courses are designed to help students become safe, responsible and knowledgeable hunters plus learn about conservation.
- INDUSTRY -
Modular Driven Technologies will introduce their latest products to the European and international market as they prepare to exhibit at the IWA Outdoor Classics show this weekend in Germany. New products include the ACC (Adjustable Core Competition) Chassis as well as second generation chassis designs for LSS, LSS-RF (rimfire) and the TAC-21.
Streamlight® Inc. is the first outside organization to receive Team One Network’s “Make It Happen (MIH) Award” designed to recognize special organizations and individuals who have gone the extra mile to support Team One Network’s mission of law enforcement and military survival training.
John Phillips, founder and president of Poway Weapons & Gear, an NSSF 5-Star range and retail gun store will present at this year’s Firearms Industry Compliance Conference (FICC), to be co-hosted by Orchid Advisors and the National Shooting Sports Foundation.

The Outdoor Writers Association of America® is once again hosting the Norm Strung Youth Writing Awards to allow promising young writers to showcase their skills and win cash prizes.
- JOBS -
The Murray Road Agency is looking for an experienced communicator with a proven track record of success in public relations, communications and marketing. Planning, creating and delivering engaging messaging and content aligned with client priorities will be essential. Day-to-day interaction with clients is also a key aspect of this position.
- NEW PRODUCTS -
Taurus has expanded the 856 line by introducing a concealed hammer version designed for discrete everyday carry or home defense.
Big & J's Headrush is a granular product that contains several key trace

New for 2020, St. Croix has reimagined the Mojo Bass Glass series—and what you’ll find is the addition of IPC mandrel technology and designs to meet the needs of anglers that know and understand the value of a premium moderate action glass rod...at a Mojo Bass price point.
- RADIO -
Getting involved in long range competition shooting, introducing college students to hunting, a look at important lawsuits in Hawaii and D.C., and more, this week on Tom Gresham's Gun Talk Radio.
This week’s show host Rob Keck talks with the fourth generation of a true institution in the outdoor world; Buck Knives CEO and Chairman, CJ Buck.
- RETAIL -
RSR Group, Inc. is pleased to announce the addition of a select Oakley SI assortment to its product offering. Oakley SI Ballistic Eyewear as well as an assortment of Oakley hats, boots, gloves and packs will soon be in stock and available to purchase from RSR Group.

Bushnell announces its AR Optics Rebate. This limited-time offer lets consumers purchase a Bushnell AR Optics riflescope (excluding red-dot) and receive $40 back. The offer began March 1 and runs through March 31, with an April 30 redemption deadline.
- SCHOLARSHIPS -
A key initiative to its ‘Varsity Program’ focusing on high school and college age anglers, Shimano will again award more than $20,000 to both graduating high school seniors and those already enrolled in undergrad and graduate programs.
- SHOWS -
The National Shooting Sports Foundation®’s (NSSF®’s) SHOT Show® will be in a new exhibit space this week at the IWA OutdoorClassics show taking place in Nuremberg, Germany, March 8-11.
Take advantage scoping out the latest in thermal surveillance technology by visiting at Pulsar’s booth at the Oklahoma Sheriffs and Peace Officers Association Conference and Vendor show 2019 (OSPOA). The show is scheduled for March 26-27 at the Choctaw Resort and Casino in Durant, Oklahoma.

- STATES -
The Missouri Department of Conservation (MDC) will host a public meeting on March 18, from 6 to 8 p.m. in Gypsy, Missouri, to discuss the Castor River watershed.
The Division of Boating and Waterways (DBW) is set to begin this year’s efforts to control aquatic invasive plants in the Sacramento-San Joaquin Delta region and Suisun Marsh
The Idaho Department of Fish and Game’s final proposals for the 2019-20 big game seasons are now available, and Fish and Game Commission is expected to vote on them March 13. People can see them at idfg.idaho.gov.
The Nebraska Game and Parks Commission will consider 2019 waterfowl hunting season recommendations at its March 15 meeting in Nebraska City.

The Louisiana Department of Wildlife and Fisheries will hold a public information meeting on Caney Creek Reservoir to discuss aquatic vegetation issues, angler trends following the recent regulation change, and future management recommendations.
- TELEVISION -
This week on MOJO TV, Terry continues his trip with John Wiles of Best Wingshooting in Northern Argentina. The guys meet up with Edwardo Martinez for two more hunts of fast action pigeon shooting on the plains.
This weekend on Discovery Channel, don't miss new programming from Addictive Fishing, Chasin’ The Sun, Sportfishing Television, Sportsman’s Adventures and more.
Each episode of Silver Kings Season 5, which airs until March 31 on the Discovery Channel, will feature a segment on BTT's science-based efforts to conserve the flats fishery
Trev Gowdy and his team travel the world looking to catch some of the biggest fish on Earth in Trev Gowdy’sMonster Fish on Sundays at 8:30 p.m. on Outdoor Channel.
 

With their normal third quarter earnings announcement yesterday American Outdoor Brands (NASDAQ Global Select: AOBC) tossed a couple of unexpected surprises into what is normally a fairly formal (and boring) SEC required event for publicly-traded companies.

First, the company announced that as a result of unexpectedly poor results in their Electro-Optics division, they were restructuring their business units.

Essentially, AOBC is dismantling their Electro-Optics Division (and taking a subsequent hit in the goodwill value thereof) and rolling it into their Outdoor Products & Accessories operating unit. In its earnings release and subsequent analysts call, AOBC President and CEO James Debney explained the move as one that would “drive efficiencies and increase operating performance.”

Seems that 2015’s surprise acquisition of Crimson Trace, the Wilsonville, Oregon company that has dominated the laser sighting market it essentially created it nearly 20 years ago, hasn’t been performing nearly as well as had been expected. Having watched C-T routinely outpace its competition, that announcement was eye-opening for me. Granted, I’ve watched since the 2015 acquisition as companies that had formerly shared new product information with Crimson Trace quietly moved away from those collaboration. But I had dismissed that as a blend of semi-sour grapes or paranoia.

It was doubly surprising considering AOBC has continued a move into “electro-optics” via a major rollout of optics (including riflescopes and red dots) and the most recent acquisition: LaserLyte.

Granted, I’ve listened since 2015 as companies that routinely shared new product information with Crimson Trace before the acquisition told me they were moving away from the company.

But yesterday’s announcement confirmed that AOBC’s Electro-Optics business unit was faltering - to the point that Debney felt the need to make some fairly radical changes.

As was explained on an analyst call, the change would allow AOBC to focus on “improving corporate efficiencies via their existing supply chain while continuing to deliver the innovation and quality that our industry-leading Crimson Trace brand has earned under the leadership of Lane Tobiassen.”

Tobiassen, unlike the business group he’d led, wasn’t rolled up in the restructuring; he was promoted to President of the Firearms Division.

In that promotion, Tobiassen moves into the division that’s the primary contributor to overall corporate revenue, but also finds itself facing a softening market with increasing pricing pressures as nervous consumers go “bargain shopping.”

In fact, Debney not only recognized the challenge of softening demand, he cited the latest NICS numbers (down 12% over the comparable period last year) as the primary contributor to declining revenues at Crimson Trace and the Electro-Optics division.

That, however, may be where the overall variety of the AOBC portfolio can help counter the softening demand.

The gun companies in the AOBC portfolio have found success “bundling” products into packages.

While firearm margins remain thin, the ability to combine AOBC firearms with AOBC accessories (and their considerably wider margins) can enable the overall company to continue to sell guns - even in the soft marketplace - and enjoy healthy revenues.


Factor in Smith & Wesson’s continued success with their Shield and M&P 2.0 products and you can see why Debney’s optimistic going forward.

Those long-term positives, however, weren’t enough to sway investors caught off-guard and expecting a profit rather than a $5.7 million Q3 loss (about ten cents per share).

After-hours trading AOBC stock dropped 6.7% to $10.60/share.

AOBC doesn’t appear overly concerned over the Q3 changes, and “guidance” says they should be looking at net sales between $162-172 million, generating an “expected” GAAP diluted income between 3 and 7 cents per share.

As was demonstrated last night, the market expects those results- at a minimum.

It’s a challenging time across the outdoor industry, but especially in the firearms category.

And listening to analysts’ questions yesterday made me even more aware of a question that appears to be on everyone’s minds.

What will 2020 and the next election cycle mean for the industry?

Unfortunately, my crystal ball seems fogged up when it comes to answering that question with any confidence.

But as always, we’ll keep you posted.

—Jim Shepherd

OUTDOOR WIRE
Event Calendar

APRIL 10-13
Pope and Young Club 31st Biennial Convention

La Vista Hotel and Conference Center - Omaha, Nebraska https://pope-young.org/convention/default.asp

 
Outfitter Wire - 2271 N Upton St., Arlington, VA 22207
Copyright © 2018, All Rights Reserved.