888-776-0942 from 8 AM - 10 PM ET
- Q4 Net Sales of $181.3 Million - Q4 Gross Margin of 39.8% - Q4 EPS of $0.79 /Share; Q4 Adjusted EBITDAS Margin of 31.8% - $120.7 Million of Cash on Hand - Board of Directors Authorized 25% Increase in Quarterly Dividend
SPRINGFIELD, Mass. , June 23, 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 fourth quarter and full fiscal year 2022, ended April 30, 2022 . Unless otherwise indicated, any reference to income statement items refers to results from continuing operations.
Fourth Quarter Fiscal 2022 Financial Highlights
Full Year Fiscal 2022 Financial Highlights
Mark Smith , President and Chief Executive Officer, commented, "Our fourth quarter and full year results speak to the quality and dedication of our employees, the strength of our iconic brand, and the resiliency of our flexible manufacturing model. We delivered strong financial results, including gross profit and Adjusted EBITDAS margins for fiscal 2022 that exceeded prior year levels despite continued moderation in demand for firearms that led to lower net sales. Although we expect inflationary pressures to persist and for firearm market conditions to return to more normalized levels in fiscal 2023, we are confident in our flexible manufacturing model and expect to benefit from the pricing and product portfolio adjustments that we made during the surge. In summary, we believe that we remain well positioned for long-term growth with an agile business model designed to quickly adapt to changes in the marketplace and deliver strong, consistent levels of profitability and drive long-term stockholder value."
Deana McPherson , Executive Vice President and Chief Financial Officer, commented "Our financial performance reflects tougher year-over-year comparisons due to the return to more normalized levels of demand following the surge. However, in spite of the lower demand, we are now realizing the benefits of the proactive steps we took during the surge to enhance our profitability profile. Fourth quarter gross margin was down on a year-over-year basis, as expected, but 760 basis points above the comparable quarter in fiscal 2020 despite a 6.1% decline in net sales. Our balance sheet remains strong with $120.7 million of cash and no debt, and we expect to continue generating strong cash flow for the foreseeable future. Accordingly, our Board of Directors has authorized a 25% increase in our quarterly dividend to $0.10 per share, which will be paid to stockholders of record on July 7, 2022 with payment to be made on July 21, 2022 ."
Conference Call and Webcast The company will host a conference call and webcast on June 23, 2022 , to discuss its fourth quarter and full fiscal 2022 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 may call directly at (844) 309-6568 and reference conference identification number 2371913. No RSVP is necessary. 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 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, our expectation that inflationary pressures will persist and firearm market conditions will return to more normalized levels in fiscal 2023; our confidence in our flexible manufacturing model; our expectation that we will benefit from the pricing and product portfolio adjustments that we made during the surge; our belief that we remain well positioned for long-term growth with an agile business model designed to quickly adapt to changes in the marketplace and deliver strong, consistent levels of profitability and drive long-term stockholder value; and our expectation that we will continue generating strong cash flow for the foreseeable future. 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.
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
(In thousands, except par value and share data)
Accounts receivable, net of allowances for credit losses of $36 on April 30, 2022 and $107 on April 30, 2021
Prepaid expenses and other current assets
Property, plant, and equipment, net
Accrued expenses and deferred revenue
Finance lease payable, net of current portion
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, 74,641,439 issued and 45,601,069 shares outstanding on April 30, 2022 and 74,222,127 shares issued and 49,937,329 shares outstanding on April 30, 2021
Treasury stock, at cost (29,040,370 shares on April 30, 2022 and 24,284,798 on April 30, 2021)
Total liabilities and stockholders' equity
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended April 30,
For the Years Ended April 30,
(In thousands, except per share data)
Operating income from continuing operations
Total other income/(expense), net
Income from operations before income taxes
Income/(loss) from discontinued operations, net of tax
Weighted average number of common shares outstanding:
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on sale/disposition of assets
Provision for losses/(recoveries) on notes and accounts receivable
Impairment of long-lived tangible assets
Changes in operating assets and liabilities:
Prepaid expenses and other current assets
Accrued expenses and deferred revenue
Cash provided by operating activities - continuing operations
Cash used in operating activities - discontinued operations
Net cash provided by operating activities
Cash flows from investing activities:
Refunds on machinery and equipment
Payments to acquire patents and software
Proceeds from sale of property and equipment
Payments to acquire property and equipment
Cash used in investing activities - continuing operations
Cash used in investing activities - discontinued operations
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from loans and notes payable
Cash paid for debt issuance costs
Payments on finance lease obligation
Payments on notes and loans payable
Payments to acquire treasury stock
Proceeds from exercise of options to acquire common stock, including employee stock purchase plan
Payment of employee withholding tax related to restricted stock units
Cash used in by financial activities - continuing operations
Cash used in financial activities - discontinued operations
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
Supplemental disclosure of cash flow information
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
Amortization of acquired intangible assets
Amortization of acquired intangible assets
Amortization of acquired intangible assets
Tax effect of non-GAAP adjustments
GAAP income from operations per share - diluted
Amortization of acquired intangible assets
Tax effect of non-GAAP adjustments
Non-GAAP income from operations per share - diluted
(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
For the Three Months Ended
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
Net cash provided by operating activities
Net cash used in investing activities
SOURCE Smith & Wesson Brands , Inc.
Cision Distribution 888-776-0942 from 8 AM - 9 PM ET