American Outdoor Brands, Inc. (NASDAQ:AOUT) Q3 2023 Earnings Call Transcript

Brian D. Murphy: No difference.

Matt Koranda : Got it. And then just last one, I mean strong balance sheet, loss of dry powder. Could you just give us an update, Brian, on how you’re thinking about M&A? What you are seeing in the pipeline, any new opportunities that are shaking those just given the more difficult environment to sort of macro wise?

Brian D. Murphy: Yes. So we have seen far fewer number of deals coming to market, so investment banker led deals has declined. As you’d expect I think you’ve got sellers that previously were trying to take advantage of the market six, nine months ago. And now are having to kind of reset expectations and make sure that they can show run rate improvement. That has not occurred yet. So we’re not seeing a whole lot coming to market. With that said, we have done a ton of work to try to cultivate a proprietary pipeline, which is how Grilla came about. And so we are seeing some of those deals where maybe a founder would like to exit that business. It’s just not the right time. They need more help, let’s say, with supply chain or in some cases, as I’ve alluded to in the past, there may be a distress situation where we could come in and help out.

So, certainly, there are opportunities, but it’s more on the smaller side and with founders and it depends on their circumstance. But overall activity is down.

Matt Koranda : Okay. Makes sense. I’ll leave it there guys. Thanks.

Brian D. Murphy: Thanks, Matt.

Operator: Ladies and gentlemen, this does conclude our question-and-answer session. I would like to turn the conference back over to Brian Murphy for any closing remarks.

Brian D. Murphy: Great. Thank you, operator. Before we close, I want to let everyone know, we’ll be participating in the ROTH Conference in California next week and hope to see some of you there. I want to thank our employees whose loyalty, hard work and dedication continues to move American Outdoor Brands forward on the path toward an exciting future. Thank you for joining us today. We look forward to speaking with you again next quarter.

Operator: And thank you. The conference has now concluded. Thank you for attending todays presentation. You may now disconnect.