SPRINGFIELD, Mass.,
Dec. 1, 2016 /PRNewswire/
-- Smith & Wesson Holding Corporation (NASDAQ Global
Select: SWHC), one of the world's leading providers of firearms
and quality products for the shooting, hunting, and rugged outdoor
enthusiast, today announced financial results for the fiscal second
quarter 2017, ended October 31,
2016.
Second Quarter Fiscal 2017 Financial Highlights
- Quarterly net sales were $233.5
million compared with $143.2
million for the second quarter last year, an increase of
63.0%.
- Gross margin for the quarter was 41.8% compared with 39.2% for
the second quarter last year.
- Quarterly GAAP net income was $32.5
million, or $0.57 per diluted
share, compared with $12.5 million,
or $0.22 per diluted share, for the
comparable quarter last year.
- Quarterly non-GAAP net income was $39.1
million, or $0.68 per diluted
share, compared with $14.2 million,
or $0.25 per diluted share, for the
comparable quarter last year. GAAP to non-GAAP adjustments in net
income exclude a number of acquisition-related costs, including
amortization, one-time transaction costs, and inventory valuation
adjustments. For a detailed reconciliation, see the schedules
that follow in this release.
- Quarterly non-GAAP Adjusted EBITDAS was $72.4 million, or 31.0% of net sales.
- The company acquired substantially all of the net assets of
Taylor Brands, LLC ("Taylor Brands") and all of the issued and
outstanding stock of Crimson Trace Corporation ("Crimson Trace")
for an aggregate of $178.1 million,
subject to certain adjustments, utilizing cash on hand.
- The company's unsecured revolving credit line commitment was
increased to $500 million from
$225 million.
James Debney, Smith & Wesson
Holding Corporation President and Chief Executive Officer, said,
"We are very pleased with our second quarter results, which
exceeded our financial guidance. In our Firearms Segment, we
believe higher revenue was driven by strong consumer demand as
reflected in adjusted background checks from the National Instant
Criminal Background Check System (NICS) as well as our own market
share gains. In our Outdoor Products & Accessories
Segment, we completed the acquisitions of Taylor Brands and Crimson
Trace, both of which were accretive to our non-GAAP earnings."
"Subsequent to the end of the quarter, we completed the
acquisition of substantially all of the net assets of Ultimate
Survival Technologies, Inc. ("UST"), a provider of high-quality
survival and camping products. UST delivered compound annual
revenue growth of 49% from 2012 through 2015, maintained healthy
gross margins, and developed hundreds of high quality
products. We believe the UST distribution network will create
incremental opportunities for our existing accessory product
lines."
"Overall, we are well on our way to achieving our vision of
being a leading provider of high-quality products for the shooting,
hunting, and rugged outdoor enthusiast. By executing our
strategy, we have successfully grown from a single operating
division to four operating divisions that serve a large addressable
market and represent more than 18 respected consumer brands.
Accordingly, on January 1, 2017, our
holding corporation will become American Outdoor Brands
Corporation, pending shareholder approval. We believe this
name better represents our broad range of product offerings and our
plan to continue building upon our portfolio of strong American
brands. American Outdoor Brands Corporation will serve as the
holding corporation for Smith & Wesson Corp., Battenfeld
Technologies, Inc., and Crimson Trace Corporation, which represent
our company's firearms, manufacturing services, accessories, and
electro-optics divisions. With a commitment to creating,
preserving, and acquiring strong brands, we remain committed to our
future growth, focusing on brands and products that best meet the
needs and lifestyle of our target consumers," concluded Debney.
Jeffrey D. Buchanan, Executive
Vice President, Chief Financial Officer, and Chief Administrative
Officer, said, "During the quarter, we secured a commitment to
increase our revolving line of credit to $500 million from $225
million. This expansion of our unsecured credit line
provides us with greater opportunities to invest in our future
growth, both organically and through strategic acquisitions. Our
increased access to capital is a clear reflection of the confidence
our bankers have in our company as well as the overall strength of
our business."
Financial Outlook
SMITH & WESSON
HOLDING CORPORATION
|
NET SALES AND
EARNINGS PER SHARE GUIDANCE, INCLUDING GAAP TO NON-GAAP
RECONCILIATION
(Unaudited)
|
|
|
Range for the
Three Months Ending January 31, 2017
|
|
Range for the Year
Ending April 30, 2017
|
|
Net sales (in
thousands)
|
$
|
230,000
|
|
$
|
240,000
|
|
$
|
920,000
|
|
$
|
930,000
|
|
|
|
|
|
|
|
|
|
|
GAAP income per share
- diluted
|
$
|
0.44
|
|
$
|
0.49
|
|
$
|
2.11
|
|
$
|
2.16
|
|
Acquisition-related
costs
|
—
|
|
—
|
|
0.06
|
|
0.06
|
|
Amortization of
acquired intangible assets
|
0.10
|
|
0.10
|
|
0.32
|
|
0.32
|
|
Fair value inventory
step-up and backlog expense
|
0.01
|
|
0.01
|
|
0.08
|
|
0.08
|
|
Transition
costs
|
0.01
|
|
0.01
|
|
0.02
|
|
0.02
|
|
Tax effect of
non-GAAP adjustments
|
(0.04)
|
|
(0.04)
|
|
(0.17)
|
|
(0.17)
|
|
Non-GAAP income per
share - diluted
|
$
|
0.52
|
|
$
|
0.57
|
|
$
|
2.42
|
|
$
|
2.47
|
|
|
Conference Call and Webcast
The company will host a conference call and webcast today,
December 1, 2016, to discuss its
second quarter fiscal 2017 financial and operational results.
Speakers on the conference call will include James Debney, President and Chief Executive
Officer, and Jeffrey D. Buchanan,
Executive Vice President, Chief Financial Officer, and Chief
Administrative Officer. The conference call may include
forward-looking statements. The conference call and webcast will
begin at 5:00 p.m. Eastern Time
(2:00 p.m. Pacific Time). Those
interested in listening to the conference call via telephone may
call directly at (844) 309-6568 and reference conference code
22558234. No RSVP is necessary. The conference call
audio webcast can also be accessed live and for replay on the
company's website at www.smith-wesson.com, under the Investor
Relations section. The company will maintain an audio replay of
this conference call on its website for a period of time after the
call. No other audio replay will be available.
Reconciliation of U.S. GAAP to Non-GAAP Financial
Measures
In this press release, certain non-GAAP financial measures,
including "non-GAAP net income," "Adjusted EBITDAS," and "free cash
flow" are presented. From time-to-time, the company considers and
uses these supplemental measures of operating performance in order
to provide the reader with an improved understanding of underlying
performance trends. The company believes it is useful for
itself and the reader to review, as applicable, both (1) GAAP
measures that include (i) amortization of acquired intangible
assets, (ii) TCA accessories transition costs, (iii) discontinued
operations, (iv) DOJ and SEC costs including insurance recovery
costs, (v) acquisition-related costs, (vi) fair value inventory
step-up and backlog expense, (vii) bond premium paid, (viii) debt
extinguishment costs, (ix) the tax effect of non-GAAP adjustments,
(x) net cash provided by operating activities, (xi) net cash used
in investing activities, (xii) acquisition of businesses, net of
cash acquired, (xiii) receipts from note receivable, (xiv) interest
expense (xv) income tax expense, (xvi) depreciation and
amortization, and (xvii) stock-based compensation expense; and (2)
the non-GAAP measures that exclude such information. The company
presents these non-GAAP measures because it considers them an
important supplemental measure of its performance. The company's
definition of these adjusted financial measures may differ from
similarly named measures used by others. The company believes these
measures facilitate operating performance comparisons from period
to period by eliminating potential differences caused by the
existence and timing of certain expense items that would not
otherwise be apparent on a GAAP basis. These non-GAAP
measures have limitations as an analytical tool and should not be
considered in isolation or as a substitute for the company's GAAP
measures. The principal limitations of these measures are
that they do not reflect the company's actual expenses and may thus
have the effect of inflating its financial measures on a GAAP
basis.
About Smith & Wesson
Smith & Wesson Holding Corporation (NASDAQ Global Select:
SWHC) is a provider of quality products for shooting, hunting, and
rugged outdoor enthusiasts in the global consumer and professional
markets. The Company reports two segments: Firearms and Outdoor
Products & Accessories. Firearms manufactures handgun and
long gun products sold under the Smith & Wesson®, M&P®, and
Thompson/Center Arms™ brands as well as providing forging,
machining, and precision plastic injection molding services.
Outdoor Products & Accessories provides shooting, hunting, and
outdoor accessories, including reloading, gunsmithing, and gun
cleaning supplies, tree saws, vault accessories, knives, laser
sighting systems, tactical lighting products, and survival and
camping equipment. Brands in Outdoor Products & Accessories
include Smith & Wesson®, M&P®, Thompson/Center Arms™,
Crimson Trace®, Caldwell® Shooting Supplies, Wheeler® Engineering,
Tipton® Gun Cleaning Supplies, Frankford Arsenal® Reloading Tools,
Lockdown® Vault Accessories, Hooyman® Premium Tree Saws, BOG POD®,
Golden Rod® Moisture Control, Schrade®, Old Timer®, Uncle Henry®,
UST®, and Imperial™. For more information on Smith &
Wesson, call (800) 331-0852 or log on to
www.smith-wesson.com.
Safe Harbor Statement
Certain statements contained in this press release may be deemed
to be forward-looking statements under federal securities laws, and
we intend that such forward-looking statements be subject to the
safe-harbor created thereby. Such forward-looking statements
include our belief that higher revenue was driven by strong
consumer demand as reflected in adjusted background checks from the
NICS system as well as our own market share gains; our belief that
the Taylor Brands and Crimson Trace acquisitions were accretive to
our non-GAAP earnings; our belief that the UST distribution network
will create incremental opportunities for our existing accessory
product lines; our belief that we are well on our way to achieving
our vision of being a leading provider of high-quality products for
the shooting, hunting, and rugged outdoor enthusiast; our
expectation that our holding corporation will become American
Outdoor Brands Corporation, pending shareholder approval; our
belief that this name better represents our broad range of product
offerings and our plan to continue building upon our portfolio of
strong American brands; our commitment to creating, preserving, and
acquiring strong brands and our commitment to our future growth,
focusing on brands and products that best meet the needs and
lifestyle of our target consumers; our belief that the expansion of
our unsecured credit line provides us with greater opportunities to
invest in our future growth, both organically and through strategic
acquisitions; our belief that our increased access to capital is a
clear reflection of the confidence our bankers have in our company
as well as the overall strength of our business; and our
expectations for net sales, GAAP income per diluted share,
acquisition-related costs, amortization of acquired intangible
assets, fair value inventory step-up and backlog expense, tax
effect of non-GAAP adjustments, and non-GAAP income per diluted
share for the third quarter of fiscal 2017 and for fiscal
2017. We caution that these statements are qualified by
important factors that could cause actual results to differ
materially from those reflected by such forward-looking
statements. Such factors include the demand for our products;
the costs and ultimate conclusion of certain legal matters; the
state of the U.S. economy in general and the firearm industry in
particular; general economic conditions and consumer spending
patterns; the potential for increased regulation of firearms and
firearm-related products; speculation surrounding fears of
terrorism and crime; our growth opportunities; our anticipated
growth; our ability to increase demand for our products in various
markets, including consumer, law enforcement, and military
channels, domestically and internationally; the position of our
hunting products in the consumer discretionary marketplace and
distribution channel; our penetration rates in new and existing
markets; our strategies; our ability to introduce new products; the
success of new products; our ability to expand our markets; our
ability to integrate acquired businesses in a successful manner;
the general growth of our outdoor products and accessories
business; the potential for cancellation of orders from our
backlog; and other risks detailed from time to time in our reports
filed with the SEC, including our Annual Report on Form 10-K for
the fiscal year ended April 30,
2016.
SMITH & WESSON
HOLDING CORPORATION AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(Unaudited)
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
October 31,
2016
|
|
October 31,
2015
|
|
October 31,
2016
|
|
October 31,
2015
|
|
|
|
(In thousands, except
per share data)
|
Net sales
|
|
$
233,528
|
|
$
143,242
|
|
$
440,479
|
|
$
291,005
|
|
Cost of
sales
|
|
135,923
|
|
87,027
|
|
255,305
|
|
175,920
|
|
Gross
profit
|
|
97,605
|
|
56,215
|
|
185,174
|
|
115,085
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
2,698
|
|
2,695
|
|
4,851
|
|
5,091
|
|
Selling and
marketing
|
|
12,527
|
|
12,536
|
|
21,721
|
|
21,754
|
|
General and
administrative
|
|
30,229
|
|
19,202
|
|
53,926
|
|
36,640
|
|
Total operating
expenses
|
|
45,454
|
|
34,433
|
|
80,498
|
|
63,485
|
|
Operating
income
|
|
52,151
|
|
21,782
|
|
104,676
|
|
51,600
|
|
Other
(expense)/income:
|
|
|
|
|
|
|
|
|
|
Other
(expense)/income
|
|
(30)
|
|
(5)
|
|
(30)
|
|
(12)
|
|
Interest
(expense)/income
|
|
(2,175)
|
|
(2,296)
|
|
(4,188)
|
|
(9,496)
|
|
Total other
(expense)/income, net
|
|
(2,205)
|
|
(2,301)
|
|
(4,218)
|
|
(9,508)
|
|
Income from
operations before income taxes
|
|
49,946
|
|
19,481
|
|
100,458
|
|
42,092
|
|
Income tax
expense
|
|
17,463
|
|
7,015
|
|
32,752
|
|
15,214
|
|
Net income
|
|
32,483
|
|
12,466
|
|
67,706
|
|
26,878
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.58
|
|
$
0.23
|
|
$
1.21
|
|
$
0.49
|
|
Diluted
|
|
$
0.57
|
|
$
0.22
|
|
$
1.18
|
|
$
0.48
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
56,231
|
|
54,447
|
|
56,140
|
|
54,333
|
|
Diluted
|
|
57,136
|
|
55,668
|
|
57,145
|
|
55,621
|
|
SMITH & WESSON
HOLDING CORPORATION AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
As
of
|
|
October 31,
2016
|
|
April 30,
2016
|
|
|
(In thousands, except
par value and share data)
|
|
ASSETS
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
73,896
|
|
$
191,279
|
|
Accounts receivable,
net of allowance for doubtful accounts of $805 on October 31,
2016 and $680 on April 30, 2016
|
69,959
|
|
57,792
|
|
Inventories
|
116,497
|
|
77,789
|
|
Prepaid expenses and
other current assets
|
7,360
|
|
4,307
|
|
Income tax
receivable
|
6,000
|
|
2,064
|
|
Total current
assets
|
273,712
|
|
333,231
|
|
Property,
plant, and equipment, net
|
151,499
|
|
135,405
|
|
Intangibles,
net
|
139,152
|
|
62,924
|
|
Goodwill
|
157,250
|
|
76,357
|
|
Other
assets
|
6,643
|
|
11,586
|
|
|
$
728,256
|
|
$
619,503
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
52,767
|
|
$
45,513
|
|
Accrued
expenses
|
33,627
|
|
28,447
|
|
Accrued payroll and
incentives
|
14,745
|
|
18,784
|
|
Accrued income
taxes
|
223
|
|
5,960
|
|
Accrued profit
sharing
|
6,760
|
|
11,459
|
|
Accrued
warranty
|
6,343
|
|
6,129
|
|
Current portion of
notes payable
|
6,300
|
|
6,300
|
|
Total current
liabilities
|
120,765
|
|
122,592
|
|
Deferred income
taxes
|
32,953
|
|
12,161
|
|
Notes payable,
net of current portion
|
188,323
|
|
166,564
|
|
Other
non-current liabilities
|
9,718
|
|
10,370
|
|
Total
liabilities
|
351,759
|
|
311,687
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock,
$.001 par value, 20,000,000 shares authorized, no shares
issued or outstanding
|
—
|
|
—
|
|
|
|
|
|
|
Common stock,
$.001 par value, 100,000,000 shares authorized,
71,839,096 shares issued and 56,276,463 shares outstanding on
October 31, 2016 and 71,558,633 shares issued and
55,996,011 shares outstanding on April 30, 2016
|
72
|
|
72
|
|
Additional paid-in
capital
|
240,208
|
|
239,505
|
|
Retained
earnings
|
309,016
|
|
241,310
|
|
Accumulated other
comprehensive loss
|
(476)
|
|
(748)
|
|
Treasury stock, at
cost (15,562,622 shares on October 31, 2016 and April 30,
2016)
|
(172,323)
|
|
(172,323)
|
|
Total stockholders'
equity
|
376,497
|
|
307,816
|
|
|
$
728,256
|
|
$
619,503
|
|
SMITH & WESSON
HOLDING CORPORATION AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
For the Six Months
Ended
|
|
October 31,
2016
|
|
October 31,
2015
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
67,706
|
|
$
26,878
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
23,772
|
|
21,066
|
Loss on
sale/disposition of assets
|
104
|
|
19
|
Provision
for/(recoveries of) losses on notes and accounts
receivable
|
308
|
|
(72)
|
Stock-based
compensation expense
|
3,918
|
|
3,247
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(3,538)
|
|
5,199
|
Inventories
|
(14,349)
|
|
(24,002)
|
Prepaid expenses and
other current assets
|
(2,775)
|
|
(587)
|
Income
taxes
|
(9,676)
|
|
(10,700)
|
Accounts
payable
|
1,111
|
|
(1,022)
|
Accrued payroll and
incentives
|
(4,728)
|
|
5,872
|
Accrued profit
sharing
|
(4,699)
|
|
(2,513)
|
Accrued
expenses
|
4,235
|
|
989
|
Accrued
warranty
|
116
|
|
(184)
|
Other
assets
|
(183)
|
|
(156)
|
Other non-current
liabilities
|
52
|
|
(1,273)
|
Net cash provided by
operating activities
|
61,374
|
|
22,761
|
Cash flows from
investing activities:
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
(178,059)
|
|
—
|
Refunds on machinery
and equipment
|
5,083
|
|
4,222
|
Receipts from note
receivable
|
43
|
|
41
|
Payments to acquire
patents and software
|
(425)
|
|
(136)
|
Proceeds from sale of
property and equipment
|
—
|
|
61
|
Payments to acquire
property and equipment
|
(23,312)
|
|
(18,352)
|
Net cash used in
investing activities
|
(196,670)
|
|
(14,164)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from loans
and notes payable
|
50,000
|
|
105,000
|
Cash paid for debt
issuance costs
|
(525)
|
|
(1,024)
|
Payments on capital
lease obligation
|
(298)
|
|
(298)
|
Payments on notes
payable
|
(28,150)
|
|
(101,575)
|
Proceeds from
Economic Development Incentive Program
|
101
|
|
—
|
Proceeds from
exercise of options to acquire common stock
|
948
|
|
1,758
|
Payment of employee
withholding tax related to restricted stock units
|
(4,163)
|
|
(1,690)
|
Excess tax benefit of
stock-based compensation
|
-
|
|
1,074
|
Net cash (used
in)/provided by financing activities
|
17,913
|
|
3,245
|
Net
increase/(decrease) in cash and cash equivalents
|
(117,383)
|
|
11,842
|
Cash and cash
equivalents, beginning of period
|
191,279
|
|
42,222
|
Cash and cash
equivalents, end of period
|
$
73,896
|
|
$
54,064
|
Supplemental
disclosure of cash flow information
|
|
|
|
Cash paid
for:
|
|
|
|
Interest
|
$
3,802
|
|
$
9,271
|
Income
taxes
|
42,609
|
|
24,936
|
RECONCILIATION OF
GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share data)
(Unaudited)
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
October 31,
2016
|
|
October 31,
2015
|
|
October 31,
2016
|
|
October 31,
2015
|
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
GAAP gross
profit
|
$
97,605
|
|
41.8%
|
|
$56,215
|
|
39.2%
|
|
$185,174
|
|
42.0%
|
|
$115,085
|
|
39.5%
|
|
Fair value inventory
step-up and backlog expense
|
3,824
|
|
1.6%
|
|
—
|
|
—
|
|
3,824
|
|
0.9%
|
|
—
|
|
—
|
|
Discontinued
operations
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
52
|
|
0.0%
|
|
Non-GAAP gross
profit
|
$101,429
|
|
43.4%
|
|
$56,215
|
|
39.2%
|
|
$188,998
|
|
42.9%
|
|
$115,137
|
|
39.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
45,454
|
|
19.5%
|
|
$34,433
|
|
24.0%
|
|
$
80,498
|
|
18.3%
|
|
$
63,485
|
|
21.8%
|
|
Amortization of
acquired intangible assets
|
(4,566)
|
|
-2.0%
|
|
(2,656)
|
|
-1.9%
|
|
(7,110)
|
|
-1.6%
|
|
(4,729)
|
|
-1.6%
|
|
TCA accessories
transition costs
|
—
|
|
—
|
|
(70)
|
|
0.0%
|
|
—
|
|
—
|
|
(151)
|
|
-0.1%
|
|
Discontinued
operations
|
(23)
|
|
0.0%
|
|
(24)
|
|
0.0%
|
|
(44)
|
|
0.0%
|
|
(45)
|
|
0.0%
|
|
DOJ/SEC costs
including insurance recovery costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,791
|
|
0.6%
|
|
Acquisition-related
costs
|
(1,824)
|
|
-0.8%
|
|
—
|
|
—
|
|
(3,156)
|
|
-0.7%
|
|
—
|
|
—
|
|
Non-GAAP operating
expenses
|
$
39,041
|
|
16.7%
|
|
$31,683
|
|
22.1%
|
|
$
70,188
|
|
15.9%
|
|
$
60,351
|
|
20.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
52,151
|
|
22.3%
|
|
$21,782
|
|
15.2%
|
|
$104,676
|
|
23.8%
|
|
$
51,600
|
|
17.7%
|
|
Fair value inventory
step-up and backlog expense
|
3,824
|
|
1.6%
|
|
—
|
|
—
|
|
3,824
|
|
0.9%
|
|
—
|
|
—
|
|
Amortization of
acquired intangible assets
|
4,566
|
|
2.0%
|
|
2,656
|
|
1.9%
|
|
7,110
|
|
1.6%
|
|
4,729
|
|
1.6%
|
|
TCA accessories
transition costs
|
—
|
|
—
|
|
70
|
|
0.0%
|
|
—
|
|
—
|
|
151
|
|
0.1%
|
|
Discontinued
operations
|
23
|
|
0.0%
|
|
24
|
|
0.0%
|
|
44
|
|
0.0%
|
|
97
|
|
0.0%
|
|
DOJ/SEC costs
including insurance recovery costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,791)
|
|
-0.6%
|
|
Acquisition-related
costs
|
1,824
|
|
0.8%
|
|
—
|
|
—
|
|
3,156
|
|
0.7%
|
|
—
|
|
—
|
|
Non-GAAP operating
income
|
$
62,388
|
|
26.7%
|
|
$24,532
|
|
17.1%
|
|
$118,810
|
|
27.0%
|
|
$
54,786
|
|
18.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
32,483
|
|
13.9%
|
|
$12,466
|
|
8.7%
|
|
$
67,706
|
|
15.4%
|
|
$
26,878
|
|
9.2%
|
|
Bond premium
paid
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,938
|
|
1.0%
|
|
Fair value inventory
step-up and backlog expense
|
3,824
|
|
1.6%
|
|
—
|
|
—
|
|
3,824
|
|
0.9%
|
|
—
|
|
—
|
|
Amortization of
acquired intangible assets
|
4,566
|
|
2.0%
|
|
2,656
|
|
1.9%
|
|
7,110
|
|
1.6%
|
|
4,729
|
|
1.6%
|
|
Debt extinguishment
costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,723
|
|
0.6%
|
|
TCA accessories
transition costs
|
—
|
|
—
|
|
70
|
|
0.0%
|
|
—
|
|
—
|
|
151
|
|
0.1%
|
|
Discontinued
operations
|
23
|
|
0.0%
|
|
24
|
|
0.0%
|
|
44
|
|
0.0%
|
|
97
|
|
0.0%
|
|
DOJ/SEC costs
including insurance recovery costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,791)
|
|
-0.6%
|
|
Acquisition-related
costs
|
1,824
|
|
0.8%
|
|
—
|
|
—
|
|
3,156
|
|
0.7%
|
|
—
|
|
—
|
|
Tax effect of
non-GAAP adjustments
|
(3,583)
|
|
-1.5%
|
|
(1,021)
|
|
-0.7%
|
|
(4,611)
|
|
-1.0%
|
|
(2,903)
|
|
-1.0%
|
|
Non-GAAP net
income
|
$
39,137
|
|
16.8%
|
|
$14,195
|
|
9.9%
|
|
$
77,229
|
|
17.5%
|
|
$
31,822
|
|
10.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per
share - diluted
|
$ 0.57
|
|
|
|
$ 0.22
|
|
|
|
$ 1.18
|
|
|
|
$ 0.48
|
|
|
|
Bond premium
paid
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.05
|
|
|
|
Fair value inventory
step-up and backlog expense
|
0.07
|
|
|
|
—
|
|
|
|
0.07
|
|
|
|
—
|
|
|
|
Amortization of
acquired intangible assets
|
0.08
|
|
|
|
0.05
|
|
|
|
0.12
|
|
|
|
0.09
|
|
|
|
Debt extinguishment
costs
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.03
|
|
|
|
TCA accessories
transition costs
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Discontinued
operations
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
DOJ/SEC costs
including insurance recovery costs
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.03)
|
|
|
|
Acquisition-related
costs
|
0.03
|
|
|
|
—
|
|
|
|
0.06
|
|
|
|
—
|
|
|
|
Tax effect of
non-GAAP adjustments
|
(0.06)
|
|
|
|
(0.02)
|
|
|
|
(0.08)
|
|
|
|
(0.05)
|
|
|
|
Non-GAAP net income
per share - diluted
|
$ 0.68
|
(a)
|
|
$ 0.25
|
|
|
|
$ 1.35
|
|
|
|
$ 0.57
|
|
|
|
|
|
(a)
|
Non-GAAP net
income per share does not foot due to rounding.
|
SMITH & WESSON
HOLDING CORPORATION AND SUBSIDIARIES
|
RECONCILIATION OF
NET OPERATING CASH FLOW TO FREE CASH FLOW
|
(In
thousands)
|
(Unaudited)
|
|
|
For the Three
Months Ended
|
|
For the Six
Months Ended
|
|
|
October 31,
2016
|
|
October 31,
2015
|
|
October 31,
2016
|
|
October 31,
2015
|
|
Net cash provided by
operating activities
|
$
20,764
|
|
$
6,136
|
|
$
61,374
|
|
$
22,761
|
|
Net cash used in
investing activities
|
(185,555)
|
|
(7,075)
|
|
(196,670)
|
|
(14,164)
|
|
Acquisition of
businesses, net of cash acquired
|
178,059
|
|
—
|
|
178,059
|
|
—
|
|
Receipts from note
receivable
|
(22)
|
|
(20)
|
|
(43)
|
|
(41)
|
|
Free cash
flow
|
$
13,246
|
|
$
(959)
|
|
$
42,720
|
|
$
8,556
|
|
SMITH & WESSON
HOLDING CORPORATION AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS
|
(In
thousands)
|
(Unaudited)
|
|
|
For the Three
Months Ended
|
|
|
October 31,
2016
|
|
|
October 31,
2015
|
|
|
|
|
|
|
GAAP net
income
|
|
$
32,483
|
|
|
$
12,466
|
Interest
expense
|
|
2,313
|
|
|
2,323
|
Income tax
expense
|
|
17,463
|
|
|
7,015
|
Depreciation and
amortization
|
|
12,384
|
|
|
9,818
|
Stock-based
compensation expense
|
|
2,126
|
|
|
1,702
|
Fair value inventory
step-up and backlog expense
|
|
3,824
|
|
|
—
|
Acquisition-related
costs
|
|
1,824
|
|
|
—
|
Discontinued
operations
|
|
23
|
|
|
24
|
TCA accessories
transition costs
|
|
—
|
|
|
70
|
DOJ/SEC costs,
including insurance recovery costs
|
|
—
|
|
|
(20)
|
Non-GAAP Adjusted
EBITDAS
|
|
$
72,440
|
|
|
$
33,398
|
|
|
|
|
|
|
|
|
|
|
|
|
SMITH & WESSON
HOLDING CORPORATION AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS
|
(In
thousands)
|
(Unaudited)
|
|
|
For Six Months
Ended
|
|
|
October 31,
2016
|
|
|
October 31,
2015
|
|
|
|
|
|
|
GAAP net
income
|
|
$
67,706
|
|
|
$
26,878
|
Interest
expense
|
|
4,367
|
|
|
9,573
|
Income tax
expense
|
|
32,752
|
|
|
15,214
|
Depreciation and
amortization
|
|
22,488
|
|
|
18,817
|
Stock-based
compensation expense
|
|
3,918
|
|
|
3,247
|
Fair value inventory
step-up and backlog expense
|
|
3,824
|
|
|
—
|
Acquisition-related
costs
|
|
3,156
|
|
|
151
|
Discontinued
operations
|
|
44
|
|
|
97
|
TCA accessories
transition costs
|
|
—
|
|
|
—
|
DOJ/SEC costs,
including insurance recovery costs
|
|
—
|
|
|
(1,791)
|
Non-GAAP Adjusted
EBITDAS
|
|
$
138,255
|
|
|
$
72,186
|
|
|
|
|
|
|
Contact: Liz Sharp, VP
Investor Relations
Smith & Wesson Holding Corp.
(413) 747-6284
lsharp@smith-wesson.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/smith--wesson-holding-corporation-reports-second-quarter-fiscal-2017-financial-results-300371687.html
SOURCE Smith & Wesson Holding Corporation