- Q2 Net Sales of $121.0
Million
- Q2 Gross Margin of 32.4%; Non-GAAP Gross Margin of
33.9%
- Q2 EPS of $0.21/Share; Q2
Adjusted EBITDAS Margin of 21.1%
SPRINGFIELD, Mass., Dec. 6, 2022
/PRNewswire/ -- Smith & Wesson
Brands, Inc. (NASDAQ Global Select: SWBI), a U.S.-based
leader in firearm manufacturing and design, today announced
financial results for the second quarter fiscal year 2023, ended
October 31, 2022.
Second Quarter Fiscal 2023
Financial Highlights
- Net sales were $121.0 million, a
decrease of $109.4 million, or 47.5%,
from the comparable quarter last year, but $7.3 million, or 6.4%, higher than the comparable
quarter in fiscal 2020, which was the last pre-pandemic comparable
second quarter.
- Gross margin was 32.4% compared with 44.3% in the comparable
quarter last year and 28.4% in the comparable quarter in fiscal
2020. Excluding relocation costs, gross margin would have
been 33.9%.
- GAAP net income was $9.6 million,
or $0.21 per diluted share, compared
with $50.9 million, or $1.05 per diluted share, for the comparable
quarter last year, and $343,000, or
$0.01 per diluted share, for the
comparable quarter in fiscal 2020.
- Non-GAAP net income was $12.0
million, or $0.26 per diluted
share, compared with $55.3 million,
or $1.13 per diluted share, for the
comparable quarter last year, and with $520,000, or $0.01
per diluted share, for the comparable quarter in fiscal 2020. GAAP
to non-GAAP adjustments for income exclude costs related to the
planned relocation of our headquarters and certain manufacturing
and distribution operations to Tennessee, the spin-off of the outdoor
products and accessories business in fiscal 2021, COVID-19 related
expenses, and other costs. For a detailed reconciliation, see the
schedules that follow in this release.
- Non-GAAP Adjusted EBITDAS was $25.6
million, or 21.1% of net sales, compared with $80.4 million, or 34.9% of net sales, for the
comparable quarter last year, and $13.4
million, or 11.8% of net sales, for the comparable quarter
in fiscal 2020.
Mark Smith, President and Chief
Executive Officer, commented, "With firearm demand continuing to
normalize, our second quarter results once again demonstrated the
significant progress we've made over the past several years in
creating a highly adaptive and robust business model that
consistently delivers strong profitability, regardless of market
conditions. Consumer demand for firearms was
significantly down from a year earlier, coinciding with a broader
consumer slowdown driven by persistently high inflation, the
beginning of the winter heating season across the northern half of
the country, and rising interest rates. Nonetheless, compared
to the second quarter of fiscal 2020, our current quarter results
reflected a significant increase in profitability. While
fiscal 2023 continues to be a year of recalibration and adjustment
for our industry and Smith & Wesson, we expect to remain highly
profitable and continue delivering on our commitments to customers,
employees, and stockholders well into the future."
Deana McPherson, Executive Vice
President and Chief Financial Officer, commented, "An ongoing
inventory correction combined with the impact of promotional
activity by our competitors and the trading down by consumers to
lower priced products negatively affected our quarterly sales. On a
positive note, however, the discipline that we've exhibited in
promotions during the current quarter has improved our overall
profitability when compared with pre-pandemic levels, reflecting
average selling prices that were approximately 45% above fiscal
2020. We remain focused on managing the business for
long-term profitability, market share performance, and capital
returned to our stockholders. Consistent with our capital
allocation strategy, our board of directors has authorized a
$0.10 per share quarterly dividend,
which will be paid to stockholders of record on December 20, 2022 with payment to be made on
January 3, 2023."
Conference Call and
Webcast
The company will host a conference call and webcast on
December 6, 2022 to discuss its
second quarter fiscal 2023 financial and operational results.
Speakers on the conference call will include Mark Smith, President and Chief Executive
Officer, and Deana McPherson,
Executive Vice President and Chief Financial 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
should click "here" to pre-register for the conference call and
obtain your dial-in number and unique PIN number. The
conference call audio webcast can also be accessed live on the
company's website at www.smith-wesson.com, under the Investor
Relations section.
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, we consider and use these
supplemental measures of operating performance in order to provide
the reader with an improved understanding of underlying performance
trends. We believe it is useful for us and the reader to
review, as applicable, both (1) GAAP measures that include (i)
interest expense, (ii) income tax expense, (iii) depreciation and
amortization, (iv) stock-based compensation expense, (v) COVID-19
expenses, (vi) transition costs, (vii) amortization of acquired
intangible assets, (viii) spin related stock-based compensation,
(ix) relocation expense, and (x) the tax effect of non-GAAP
adjustments; and (2) the non-GAAP measures that exclude such
information. We present these non-GAAP measures because we consider
them an important supplemental measure of our performance. Our
definition of these adjusted financial measures may differ from
similarly named measures used by others. We believe 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 our GAAP measures. The
principal limitations of these measures are that they do not
reflect our actual expenses and may thus have the effect of
inflating its financial measures on a GAAP basis.
About Smith & Wesson Brands, Inc.
Smith & Wesson Brands, Inc.
(NASDAQ Global Select: SWBI) is a U.S.-based leader in firearm
manufacturing and design, delivering a broad portfolio of quality
handgun, long gun, and suppressor products to the global consumer
and professional markets under the iconic Smith & Wesson®,
M&P®, and Gemtech® brands. The company also provides
manufacturing services including forging, machining, and precision
plastic injection molding services. For more information call
(800) 331-0852 or visit 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, among others, (i) our second quarter results once again
demonstrated the significant progress we've made over the past
several years in creating a highly adaptive and robust business
model that consistently delivers strong profitability, regardless
of market conditions, (ii) while fiscal 2023 continues to be a year
of recalibration and adjustment for our industry and Smith &
Wesson, we expect to remain highly profitable and continue
delivering on our commitments to customers, employees and
stockholders well into the future and (iii) we remain focused on
managing the business for long-term profitability, market share
performance, and capital returned to our stockholders. We
caution that these statements are qualified by important risks,
uncertainties, and other factors that could cause actual results to
differ materially from those reflected by such forward-looking
statements. Such factors include, among others, economic, social,
political, legislative, and regulatory factors; the potential for
increased regulation of firearms and firearm-related products;
actions of social activists that could have an adverse effect on
our business; the impact of lawsuits; the demand for our products;
the state of the U.S. economy in general and the firearm industry
in particular; general economic conditions and consumer spending
patterns; our competitive environment; the supply, availability,
and costs of raw materials and components; our anticipated growth
and growth opportunities; our strategies; our ability to maintain
and enhance brand recognition and reputation; our ability to
effectively manage and execute the planned relocation of our
headquarters and certain of our operations to Tennessee; our ability to introduce new
products; the success of new products; the potential for
cancellation of orders from our backlog; and other risks detailed
from time to time in our reports filed with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the fiscal year ended April 30,
2022.
Contact:
investorrelations@smith-wesson.com
(413) 747-3448
SMITH & WESSON
BRANDS, INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
As
of:
|
|
October 31,
2022
|
|
April 30,
2022
|
|
|
(In thousands, except
par value and share data)
|
|
ASSETS
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
42,975
|
|
$
120,728
|
|
Accounts receivable,
net of allowances for credit losses of $24 on
October 31, 2022 and $36 on April 30,
2022
|
44,384
|
|
62,695
|
|
Inventories
|
196,474
|
|
136,660
|
|
Prepaid expenses and
other current assets
|
8,062
|
|
5,569
|
|
Income tax
receivable
|
10,988
|
|
1,945
|
|
Total current
assets
|
302,883
|
|
327,597
|
|
Property, plant,
and equipment, net
|
169,265
|
|
135,591
|
|
Intangibles,
net
|
3,688
|
|
3,608
|
|
Goodwill
|
19,024
|
|
19,024
|
|
Deferred income
taxes
|
1,221
|
|
1,221
|
|
Other
assets
|
9,914
|
|
10,435
|
|
Total
assets
|
505,995
|
|
497,476
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
45,178
|
|
$
30,042
|
|
Accrued expenses and
deferred revenue
|
23,845
|
|
23,482
|
|
Accrued payroll and
incentives
|
17,042
|
|
17,371
|
|
Accrued income
taxes
|
161
|
|
2,673
|
|
Accrued profit
sharing
|
5,628
|
|
13,543
|
|
Accrued
warranty
|
1,708
|
|
1,838
|
|
Total current
liabilities
|
93,562
|
|
88,949
|
|
Finance lease
payable, net of current portion
|
37,013
|
|
37,628
|
|
Other non-current
liabilities
|
8,780
|
|
10,385
|
|
Total
liabilities
|
139,355
|
|
136,962
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock,
$0.001 par value, 20,000,000 shares authorized, no shares
issued
or outstanding
|
—
|
|
—
|
|
Common stock,
$0.001 par value, 100,000,000 shares authorized,
74,934,815
issued and 45,894,445 shares outstanding on
October 31, 2022 and 74,641,439
shares issued and 45,601,069 shares outstanding on
April 30, 2022
|
75
|
|
75
|
|
Additional paid-in
capital
|
280,420
|
|
278,101
|
|
Retained
earnings
|
508,447
|
|
504,640
|
|
Accumulated other
comprehensive income
|
73
|
|
73
|
|
Treasury stock, at cost
(29,040,370 shares on October 31, 2022 and April 30,
2022)
|
(422,375)
|
|
(422,375)
|
|
Total stockholders'
equity
|
366,640
|
|
360,514
|
|
Total liabilities
and stockholders' equity
|
$
505,995
|
|
$
497,476
|
|
SMITH & WESSON
BRANDS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended October 31,
|
|
For the Six Months
Ended October 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(In thousands, except
per share data)
|
Net sales
|
|
$
121,035
|
|
$
230,479
|
|
$
205,429
|
|
$
505,088
|
Cost of
sales
|
|
81,773
|
|
128,484
|
|
134,696
|
|
273,151
|
Gross profit
|
|
39,262
|
|
101,995
|
|
70,733
|
|
231,937
|
Operating
expenses:
|
|
|
|
|
|
34.4 %
|
|
45.9 %
|
Research and
development
|
|
1,869
|
|
1,744
|
|
3,542
|
|
3,552
|
Selling, marketing, and
distribution
|
|
9,431
|
|
11,423
|
|
17,458
|
|
22,057
|
General and
administrative
|
|
15,435
|
|
23,436
|
|
33,288
|
|
41,049
|
Total operating
expenses
|
|
26,735
|
|
36,603
|
|
54,288
|
|
66,658
|
Operating
income
|
|
12,527
|
|
65,392
|
|
16,445
|
|
165,279
|
Other income/(expense),
net:
|
|
|
|
|
|
|
|
|
Other income/(expense),
net
|
|
790
|
|
833
|
|
1,463
|
|
1,493
|
Interest expense,
net
|
|
(420)
|
|
(466)
|
|
(854)
|
|
(1,011)
|
Total other
income/(expense), net
|
|
370
|
|
367
|
|
609
|
|
482
|
Income from operations
before income taxes
|
|
12,897
|
|
65,759
|
|
17,054
|
|
165,761
|
Income tax
expense
|
|
3,249
|
|
14,824
|
|
4,094
|
|
37,944
|
Net income
|
|
$
9,648
|
|
$
50,935
|
|
$
12,960
|
|
$
127,817
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic - net
income
|
|
$
0.21
|
|
$
1.06
|
|
$
0.28
|
|
$
2.65
|
Diluted - net
income
|
|
$
0.21
|
|
$
1.05
|
|
$
0.28
|
|
$
2.63
|
Weighted average number
of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
45,815
|
|
48,147
|
|
45,777
|
|
48,270
|
Diluted
|
|
46,106
|
|
48,692
|
|
46,104
|
|
48,524
|
SMITH & WESSON
BRANDS, INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
October 31,
2022
|
|
October 31,
2021
|
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
12,960
|
|
$
127,817
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
15,171
|
|
15,210
|
|
(Gain)/loss on
sale/disposition of assets
|
(43)
|
|
57
|
|
Provision for
(recoveries)/losses on notes and accounts receivable
|
(13)
|
|
781
|
|
Impairment of
long-lived tangible assets
|
—
|
|
86
|
|
Stock-based
compensation expense
|
2,605
|
|
2,366
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
18,324
|
|
22,435
|
|
Inventories
|
(59,814)
|
|
(41,800)
|
|
Prepaid expenses and other
current assets
|
(2,493)
|
|
87
|
|
Income taxes
|
(11,555)
|
|
(243)
|
|
Accounts payable
|
5,889
|
|
(8,514)
|
|
Accrued payroll and
incentives
|
(329)
|
|
(6,313)
|
|
Accrued profit
sharing
|
(7,915)
|
|
(6,668)
|
|
Accrued expenses and
deferred revenue
|
307
|
|
(1,205)
|
|
Accrued warranty
|
(130)
|
|
(57)
|
|
Other assets
|
521
|
|
2,030
|
|
Other non-current
liabilities
|
(1,650)
|
|
(705)
|
|
Net cash (used
in)/provided by operating activities
|
(28,165)
|
|
105,364
|
|
Cash flows from
investing activities:
|
|
|
|
|
Payments to acquire
patents and software
|
(256)
|
|
(156)
|
|
Proceeds from sale of
property and equipment
|
85
|
|
70
|
|
Payments to acquire
property and equipment
|
(39,419)
|
|
(10,113)
|
|
Net cash used in
investing activities
|
(39,590)
|
|
(10,199)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Payments on finance
lease obligation
|
(559)
|
|
(531)
|
|
Payments to acquire
treasury stock
|
—
|
|
(40,000)
|
|
Dividend
distribution
|
(9,153)
|
|
(7,692)
|
|
Proceeds from exercise
of options to acquire common stock, including employee stock
purchase plan
|
753
|
|
831
|
|
Payment of employee
withholding tax related to restricted stock units
|
(1,039)
|
|
(1,399)
|
|
Net cash used in
financing activities
|
(9,998)
|
|
(48,791)
|
|
Net (decrease)/increase
in cash and cash equivalents
|
(77,753)
|
|
46,374
|
|
Cash and cash
equivalents, beginning of period
|
120,728
|
|
113,017
|
|
Cash and cash
equivalents, end of period
|
$
42,975
|
|
$
159,391
|
|
Supplemental disclosure
of cash flow information
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
Interest
|
$
1,089
|
|
$
1,116
|
|
Income taxes
|
$
15,721
|
|
$
38,186
|
|
|
SMITH & WESSON
BRANDS, INC. AND SUBSIDIARIES
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,
2022
|
|
October 31,
2021
|
|
October 31,
2022
|
|
October 31,
2021
|
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
$
|
|
% of
Sales
|
|
GAAP gross
profit
|
$
39,262
|
|
32.4 %
|
|
$
101,995
|
|
44.3 %
|
|
$
70,733
|
|
34.4 %
|
|
$ 231,937
|
|
45.9 %
|
|
Relocation
expenses
|
1,735
|
|
1.4 %
|
|
1,087
|
|
0.5 %
|
|
2,978
|
|
1.4 %
|
|
1,087
|
|
0.2 %
|
|
COVID-19
|
—
|
|
—
|
|
3
|
|
0.0 %
|
|
—
|
|
—
|
|
31
|
|
0.0 %
|
|
Non-GAAP gross
profit
|
$
40,997
|
|
33.9 %
|
|
$
103,085
|
|
44.7 %
|
|
$
73,711
|
|
35.9 %
|
|
$ 233,055
|
|
46.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
26,735
|
|
22.1 %
|
|
$ 36,603
|
|
15.9 %
|
|
$
54,288
|
|
26.4 %
|
|
$
66,658
|
|
13.2 %
|
|
Amortization of
acquired intangible assets
|
—
|
|
—
|
|
(70)
|
|
0.0 %
|
|
—
|
|
—
|
|
(142)
|
|
0.0 %
|
|
Transition
costs
|
—
|
|
—
|
|
80
|
|
0.0 %
|
|
—
|
|
—
|
|
80
|
|
0.0 %
|
|
COVID-19
|
—
|
|
—
|
|
(52)
|
|
0.0 %
|
|
—
|
|
—
|
|
(100)
|
|
0.0 %
|
|
Spin related
stock-based compensation
|
(25)
|
|
0.0 %
|
|
10
|
|
0.0 %
|
|
(54)
|
|
0.0 %
|
|
(62)
|
|
0.0 %
|
|
Relocation
expenses
|
(1,354)
|
|
-1.1 %
|
|
(4,461)
|
|
-1.9 %
|
|
(2,330)
|
|
-1.1 %
|
|
(4,461)
|
|
-0.9 %
|
|
Non-GAAP operating
expenses
|
$
25,356
|
|
20.9 %
|
|
$ 32,110
|
|
13.9 %
|
|
$
51,904
|
|
25.3 %
|
|
$
61,973
|
|
12.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
12,527
|
|
10.3 %
|
|
$ 65,392
|
|
28.4 %
|
|
$
16,445
|
|
8.0 %
|
|
$ 165,279
|
|
32.7 %
|
|
Amortization of
acquired intangible assets
|
—
|
|
—
|
|
70
|
|
0.0 %
|
|
—
|
|
—
|
|
142
|
|
0.0 %
|
|
Transition
costs
|
—
|
|
—
|
|
(80)
|
|
0.0 %
|
|
—
|
|
—
|
|
(80)
|
|
0.0 %
|
|
COVID-19
|
—
|
|
—
|
|
55
|
|
0.0 %
|
|
—
|
|
—
|
|
131
|
|
0.0 %
|
|
Spin related
stock-based compensation
|
25
|
|
0.0 %
|
|
(10)
|
|
0.0 %
|
|
54
|
|
0.0 %
|
|
62
|
|
0.0 %
|
|
Relocation
expenses
|
3,088
|
|
2.6 %
|
|
5,548
|
|
2.4 %
|
|
5,308
|
|
2.6 %
|
|
5,548
|
|
1.1 %
|
|
Non-GAAP operating
income
|
$
15,640
|
|
12.9 %
|
|
$ 70,975
|
|
30.8 %
|
|
$
21,807
|
|
10.6 %
|
|
$ 171,082
|
|
33.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$ 9,648
|
|
8.0 %
|
|
$ 50,935
|
|
22.1 %
|
|
$
12,960
|
|
6.3 %
|
|
$ 127,817
|
|
25.3 %
|
|
Amortization of
acquired intangible assets
|
—
|
|
—
|
|
70
|
|
0.0 %
|
|
—
|
|
—
|
|
142
|
|
0.0 %
|
|
Transition
costs
|
—
|
|
—
|
|
(80)
|
|
0.0 %
|
|
—
|
|
—
|
|
(80)
|
|
0.0 %
|
|
COVID-19
|
—
|
|
—
|
|
55
|
|
0.0 %
|
|
—
|
|
—
|
|
131
|
|
0.0 %
|
|
Spin related
stock-based compensation
|
25
|
|
0.0 %
|
|
(10)
|
|
0.0 %
|
|
54
|
|
0.0 %
|
|
62
|
|
0.0 %
|
|
Relocation
expenses
|
3,088
|
|
2.6 %
|
|
5,548
|
|
2.4 %
|
|
5,308
|
|
2.6 %
|
|
5,548
|
|
1.1 %
|
|
Tax effect of non-GAAP
adjustments
|
(778)
|
|
-0.6 %
|
|
(1,258)
|
|
-0.5 %
|
|
(1,287)
|
|
-0.6 %
|
|
(1,328)
|
|
-0.3 %
|
|
Non-GAAP net
income
|
$
11,983
|
|
9.9 %
|
|
$ 55,260
|
|
24.0 %
|
|
$
17,035
|
|
8.3 %
|
|
$ 132,292
|
|
26.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per
share - diluted
|
$
0.21
|
|
|
|
$
1.05
|
|
|
|
$
0.28
|
|
|
|
$
2.63
|
|
|
|
Amortization of
acquired intangible assets
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Transition
costs
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
COVID-19
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Spin related
stock-based compensation
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Relocation
expenses
|
0.07
|
|
|
|
0.11
|
|
|
|
0.12
|
|
|
|
0.11
|
|
|
|
Tax effect of non-GAAP
adjustments
|
(0.02)
|
|
|
|
(0.03)
|
|
|
|
(0.03)
|
|
|
|
(0.03)
|
|
|
|
Non-GAAP net income per
share - diluted
|
$
0.26
|
|
|
|
$
1.13
|
|
|
|
$
0.37
|
|
|
|
$
2.73
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Non-GAAP net income
per share does not foot due to rounding.
|
|
SMITH & WESSON
BRANDS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP INCOME FROM OPERATIONS TO NON-GAAP ADJUSTED EBITDAS
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
|
October 31,
2022
|
|
October 31,
2021
|
|
October 31,
2022
|
|
October 31,
2021
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
$
9,648
|
|
$
50,935
|
|
$
12,960
|
|
$
127,817
|
Interest
expense
|
|
566
|
|
516
|
|
1,135
|
|
1,101
|
Income tax
expense
|
|
3,249
|
|
14,824
|
|
4,094
|
|
37,944
|
Depreciation and
amortization
|
|
7,599
|
|
7,724
|
|
15,126
|
|
15,166
|
Stock-based
compensation expense
|
|
1,428
|
|
914
|
|
2,605
|
|
2,366
|
COVID-19
|
|
—
|
|
55
|
|
—
|
|
131
|
Transition
costs
|
|
—
|
|
(80)
|
|
—
|
|
(80)
|
Relocation
expense
|
|
3,088
|
|
5,548
|
|
5,308
|
|
5,548
|
Non-GAAP Adjusted
EBITDAS
|
|
$
25,578
|
|
$
80,436
|
|
$
41,228
|
|
$
189,993
|
|
|
|
|
|
|
|
|
|
|
|
21.1 %
|
|
34.9 %
|
|
20.1 %
|
|
37.6 %
|
SMITH & WESSON
BRANDS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
OPERATING CASH FLOW FROM OPERATIONS TO FREE CASH FLOW
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
|
October 31,
2022
|
|
October 31,
2021
|
|
October 31,
2022
|
|
October 31,
2021
|
|
Net cash (used
in)/provided by operating activities
|
$
(35,310)
|
|
$
(3,723)
|
|
$
(28,165)
|
|
$
105,364
|
|
Net cash used in
investing activities
|
(28,004)
|
|
(4,431)
|
|
(39,590)
|
|
(10,199)
|
|
Free cash
flow
|
$
(63,314)
|
|
$
(8,154)
|
|
$
(67,755)
|
|
$
95,165
|
|
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SOURCE Smith & Wesson Brands,
Inc.