Smith & Wesson Holding Corporation Reports Fourth Quarter and Full Year Fiscal 2016 Financial Results
- Net Sales of $221.1 Million for Fourth Quarter, up 22.2% Year-Over-Year
- Fourth Quarter GAAP Net Income Per Diluted Share of $0.63
- Fourth Quarter Non-GAAP Net Income Per Diluted Share of $0.66
- Full Year Revenue of $722.9 Million
SPRINGFIELD, Mass., June 16, 2016 /PRNewswire/ -- Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC), a leader in firearm manufacturing and design, today announced financial results for the fiscal fourth quarter and full year ended April 30, 2016.
Fourth Quarter Fiscal 2016 Financial Highlights
- Quarterly net sales were $221.1 million, an increase of 22.2% over the fourth quarter last year. Firearms division net sales of $203.7 million increased by 22.4% over the comparable quarter last year. Accessories division net sales of $17.5 million increased by 19.8% over the comparable quarter last year.
- Gross margin for the quarter was 41.6% compared with 37.1% for the comparable quarter last year.
- Quarterly GAAP net income was $35.6 million, or $0.63 per diluted share, compared with $21.9 million, or $0.40 per diluted share, for the comparable quarter last year. Fourth quarter 2016 and 2015 GAAP net income per diluted share included an expense of $1.7 million and $1.5 million, respectively, for amortization, net of tax, related to the Battenfeld Technologies, Inc. (BTI) acquisition.
- Quarterly non-GAAP net income was $37.4 million, or $0.66 per diluted share, compared with $24.9 million, or $0.45 per diluted share, for the comparable quarter last year.
- Quarterly non-GAAP Adjusted EBITDAS was $68.7 million, or 31.1% of net sales.
Full Year Fiscal 2016 Financial Highlights
- Full year net sales totaled $722.9 million, an increase of 31.0% from last year. Firearms division net sales were $657.6 million, an increase of 23.8% from last year. Accessories division net sales were $65.3 million, an increase from $20.6 million from last year, a year in which the company acquired BTI and therefore reported only five months of accessories division sales in 2015.
- Full year gross margin was 40.6% compared with 35.3% last year.
- Full year GAAP income from continuing operations was $94.0 million, or $1.68 per diluted share, compared with $49.8 million, or $0.90 per diluted share, last year.
- Full year non-GAAP income from continuing operations was $1.83 per diluted share, compared with $1.02 per diluted share last year.
- Full year non-GAAP Adjusted EBITDAS from continuing operations was $202.4 million, or 28.0% of net sales.
James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer, commented, "Our solid fourth quarter and full year performance further validates our vision, which is to become the leading provider of quality products for the shooting, hunting, and rugged outdoor enthusiast. We continued to successfully execute on our long-term strategy, while delivering financial and operational results that set a number of new company records. In our firearms division, we made several important new product introductions and continued to leverage our flexible manufacturing model, allowing us to benefit from strong consumer demand. In our first full year of accessories revenue, we expanded our product portfolio organically as well as through a targeted acquisition, delivering double-digit top line revenue growth. Looking ahead to fiscal 2017, we expect that a strong balance sheet, combined with our track record of successful acquisitions, positions us well for an expanding role in the market for products for shooting, hunting, and rugged outdoor enthusiasts."
Jeff Buchanan, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, commented, "Gross margin performance remained strong throughout fiscal 2016, driven by robust volumes in our firearms division and favorably impacted by the strong gross margins in our accessories division. In fiscal 2016, we generated $168.6 million in operating cash flow, establishing a new company record. We ended the year with cash and cash equivalents totaling $191.3 million and total bank debt and Senior Notes of $175.3 million, leaving us with zero net debt. In fiscal 2017, we expect to use the strength of our balance sheet, including our unused $175 million revolving line of credit, to fuel growth opportunities, both organic and inorganic."
Financial Outlook
| SMITH & WESSON HOLDING CORPORATION |
||||||||
| NET SALES AND EARNINGS PER SHARE GUIDANCE, INCLUDING GAAP TO NON-GAAP RECONCILIATION |
||||||||
| Range for the Three Months Ending July 31, 2016 |
Range for the Year Ending April 30, 2017 |
|||||||
| Net sales (in thousands) |
$ 190,000 |
$ 200,000 |
$ 740,000 |
$ 760,000 |
||||
| GAAP income per share - diluted |
$ 0.46 |
$ 0.50 |
$ 1.71 |
$ 1.81 |
||||
| Amortization of acquired intangible assets |
0.05 |
0.05 |
0.19 |
0.19 |
||||
| Tax effect of non-GAAP adjustments |
(0.02) |
(0.02) |
(0.07) |
(0.07) |
||||
| Non-GAAP income per share - diluted |
$ 0.49 |
$ 0.53 |
$ 1.83 |
$ 1.93 |
||||
Conference Call and Webcast
The company will host a conference call and webcast today, June 16, 2016, to discuss its fourth quarter and full year fiscal 2016 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 will be webcast live and is scheduled to begin at 5:00 p.m. Eastern Time. The live audio broadcast and replay of the conference call can be accessed on Smith & Wesson's website at www.smith-wesson.com (Windows Media is required). Those interested in listening to the conference call via telephone may call directly at 844-309-6568 and reference conference code 26467969. No RSVP is necessary. 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) bond premium, (vii) debt extinguishment costs, (viii) the tax effect of non-GAAP adjustments, (ix) interest expense, (x) income taxes, (xi) depreciation and amortization, (xii) stock-based compensation expense, (xiii) payments for acquisitions, and (xiv) receipts from note receivable; 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 leading manufacturer of firearms and a provider of quality accessory products for the shooting, hunting, and rugged outdoor enthusiast, delivering a broad portfolio of quality firearms and shooting, hunting and outdoor accessories, to the global consumer and professional markets. The company's firearms division brands include Smith & Wesson®, M&P®, and Thompson/Center Arms™. As a leading provider of shooting, hunting, and outdoor accessories, including reloading, gunsmithing, gun cleaning supplies, tree saws, and vault accessories, the company's accessories division produces innovative, high-quality products under several brands, including Caldwell® Shooting Supplies, Wheeler® Engineering, Tipton® Gun Cleaning Supplies, Frankford Arsenal® Reloading Tools, Lockdown® Vault Accessories, Hooyman® Premium Tree Saws, BOG POD®, and Golden Rod® Moisture Control. The company's manufacturing services division provides forging, machining, and precision plastic service for outside businesses. Smith & Wesson facilities are located in Massachusetts, Maine, Connecticut, and Missouri. 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 vision, which is to become the leading provider of quality products for the shooting, hunting, and rugged outdoor enthusiast; our belief that we continued to successfully execute on our long-term strategy; our expectation for fiscal 2017 that a strong balance sheet, combined with our track record of successful acquisitons, positions us well for an expanding role in the market for products for shooting, hunting, and rugged outdoor enthusiasts; our expectation for fiscal 2017 to use the strength of our balance sheet, including our unused revolving line of credit, to fuel growth opportunities, both organic and inorganic; and our expectations for net sales, GAAP income per diluted share, amortization of acquired intangible assets, tax effect of non-GAAP adjustments, and non-GAAP income per diluted share for the first 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 firearm 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 |
||||||||
| CONSOLIDATED STATEMENTS OF INCOME |
||||||||
| For the Three Months Ended |
For the Years Ended |
|||||||
| April 30, 2016 (Unaudited) |
April 30, 2015 (Unaudited) |
April 30, 2016 |
April 30, 2015 |
|||||
| (In thousands, except per share data) |
||||||||
| Net sales |
$ 221,117 |
$ 180,997 |
$ 722,908 |
$ 551,862 |
||||
| Cost of sales |
129,049 |
113,853 |
429,096 |
356,936 |
||||
| Gross profit |
92,068 |
67,144 |
293,812 |
194,926 |
||||
| Operating expenses: |
||||||||
| Research and development |
2,393 |
2,113 |
10,005 |
6,943 |
||||
| Selling and marketing |
8,997 |
9,149 |
42,257 |
36,033 |
||||
| General and administrative |
23,781 |
18,558 |
82,907 |
62,322 |
||||
| Total operating expenses |
35,171 |
29,820 |
135,169 |
105,298 |
||||
| Operating income |
56,897 |
37,324 |
158,643 |
89,628 |
||||
| Other (expense)/income: |
||||||||
| Other (expense)/income, net |
(5) |
40 |
(22) |
39 |
||||
| Interest income |
37 |
119 |
176 |
395 |
||||
| Interest expense |
(1,991) |
(3,248) |
(13,704) |
(11,330) |
||||
| Total other (expense)/income, net |
(1,959) |
(3,089) |
(13,550) |
(10,896) |
||||
| Income from continuing operations before income taxes |
54,938 |
34,235 |
145,093 |
78,732 |
||||
| Income tax expense |
19,291 |
12,295 |
51,135 |
28,905 |
||||
| Income from continuing operations |
35,647 |
21,940 |
93,958 |
49,827 |
||||
| Discontinued operations: |
||||||||
| Loss from operations of discontinued security solutions division |
— |
(52) |
— |
(297) |
||||
| Income tax expense/(benefit) |
— |
1 |
— |
(83) |
||||
| Loss from discontinued operations |
— |
(53) |
— |
(214) |
||||
| Net income |
$ 35,647 |
$ 21,887 |
$ 93,958 |
$ 49,613 |
||||
| Net income per share: |
||||||||
| Basic - continuing operations |
$ 0.64 |
$ 0.41 |
$ 1.72 |
$ 0.92 |
||||
| Basic - total |
$ 0.64 |
$ 0.41 |
$ 1.72 |
$ 0.92 |
||||
| Diluted - continuing operations |
$ 0.63 |
$ 0.40 |
$ 1.68 |
$ 0.90 |
||||
| Diluted - total |
$ 0.63 |
$ 0.40 |
$ 1.68 |
$ 0.90 |
||||
| Weighted average number of common shares outstanding: |
||||||||
| Basic |
55,554 |
53,846 |
54,765 |
53,988 |
||||
| Diluted |
56,396 |
55,074 |
55,965 |
55,228 |
||||
| SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES |
||||
| CONSOLIDATED BALANCE SHEETS |
||||
| As of |
||||
| April 30, 2016 |
April 30, 2015 |
|||
| (In thousands, except par value and share data) |
||||
| ASSETS |
||||
| Current assets: |
||||
| Cash and cash equivalents |
$ 191,279 |
$ 42,222 |
||
| Accounts receivable, net of allowance for doubtful accounts of $680 on April 30, 2016 and $722 on April 30, 2015 |
57,792 |
55,280 |
||
| Inventories |
77,789 |
76,895 |
||
| Prepaid expenses and other current assets |
4,307 |
6,306 |
||
| Deferred income taxes |
— |
16,373 |
||
| Income tax receivable |
2,064 |
— |
||
| Total current assets |
333,231 |
197,076 |
||
| Property, plant, and equipment, net |
135,405 |
133,844 |
||
| Intangibles, net |
62,924 |
73,768 |
||
| Goodwill |
76,357 |
75,426 |
||
| Other assets |
11,586 |
10,811 |
||
| $ 619,503 |
$ 490,925 |
|||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
| Current liabilities: |
||||
| Accounts payable |
$ 45,513 |
$ 32,360 |
||
| Accrued expenses |
28,447 |
24,302 |
||
| Accrued payroll and incentives |
18,784 |
7,556 |
||
| Accrued income taxes |
5,960 |
4,224 |
||
| Accrued profit sharing |
11,459 |
6,165 |
||
| Accrued warranty |
6,129 |
6,404 |
||
| Current portion of notes payable |
6,300 |
— |
||
| Total current liabilities |
122,592 |
81,011 |
||
| Deferred income taxes |
12,161 |
33,905 |
||
| Notes payable, net of current portion |
166,564 |
170,933 |
||
| Other non-current liabilities |
10,370 |
10,706 |
||
| Total liabilities |
311,687 |
296,555 |
||
| 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, 71,558,633 shares issued and 55,996,011 shares outstanding on April 30, 2016 and 69,625,081 shares issued and 54,062,459 shares outstanding on April 30, 2015 |
72 |
70 |
||
| Additional paid-in capital |
239,505 |
219,198 |
||
| Retained earnings |
241,310 |
147,352 |
||
| Accumulated other comprehensive (loss)/income |
(748) |
73 |
||
| Treasury stock, at cost (15,562,622 shares on April 30, 2016 and April 30, 2015) |
(172,323) |
(172,323) |
||
| Total stockholders' equity |
307,816 |
194,370 |
||
| $ 619,503 |
$ 490,925 |
|||
| SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES |
|||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
| For the Years Ended |
|||
| April 30, 2016 |
April 30, 2015 |
||
| (In thousands) |
|||
| Cash flows from operating activities: |
|||
| Net income |
$ 93,958 |
$ 49,613 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|||
| Depreciation and amortization |
41,237 |
30,893 |
|
| Loss on sale/disposition of assets |
256 |
267 |
|
| Provision for losses on notes and accounts receivable |
511 |
122 |
|
| Deferred income taxes |
(4,448) |
2,341 |
|
| Stock-based compensation expense |
6,472 |
5,808 |
|
| Changes in operating assets and liabilities (net effect of acquisitions): |
|||
| Accounts receivable |
(2,254) |
10,983 |
|
| Inventories |
(804) |
25,662 |
|
| Prepaid expenses and other current assets |
1,999 |
(569) |
|
| Income tax payable |
(328) |
8,965 |
|
| Accounts payable |
13,048 |
(7,345) |
|
| Accrued payroll and incentives |
11,228 |
(9,525) |
|
| Accrued profit sharing |
5,294 |
(4,895) |
|
| Accrued expenses |
3,929 |
1,361 |
|
| Accrued warranty |
(275) |
891 |
|
| Other assets |
(237) |
(348) |
|
| Other non-current liabilities |
(1,029) |
583 |
|
| Net cash provided by operating activities |
168,557 |
114,807 |
|
| Cash flows from investing activities: |
|||
| Payments for the net assets of Tri-Town Precision Plastics, Inc. |
— |
(23,805) |
|
| Payments to acquire Battenfeld Technologies, Inc., net of cash acquired |
— |
(135,437) |
|
| Payments to acquire PowerTech, Inc. |
(1,220) |
— |
|
| (Deposits)/refunds on machinery and equipment |
(1,128) |
1,431 |
|
| Receipts from note receivable |
84 |
81 |
|
| Payments to acquire patents and software |
(315) |
(392) |
|
| Proceeds from sale of property and equipment |
61 |
264 |
|
| Payments to acquire property and equipment |
(29,474) |
(28,199) |
|
| Net cash used in investing activities |
(31,992) |
(186,057) |
|
| Cash flows from financing activities: |
|||
| Proceeds from loans and notes payable |
105,000 |
175,000 |
|
| Cash paid for debt issuance costs |
(1,024) |
(2,558) |
|
| Payments on capital lease obligation |
(596) |
(596) |
|
| Payments on notes payable |
(104,725) |
(100,000) |
|
| Proceeds from Economic Development Incentive Program |
— |
640 |
|
| Payments to acquire treasury stock |
— |
(30,040) |
|
| Proceeds from exercise of options to acquire common stock, including employee stock purchase plan |
11,265 |
3,103 |
|
| Payment of employee withholding tax related to restricted stock units |
(2,646) |
(1,708) |
|
| Excess tax benefit of stock-based compensation |
5,218 |
771 |
|
| Net cash provided by financing activities |
12,492 |
44,612 |
|
| Net increase/(decrease) in cash and cash equivalents |
149,057 |
(26,638) |
|
| Cash and cash equivalents, beginning of period |
42,222 |
68,860 |
|
| Cash and cash equivalents, end of period |
$ 191,279 |
$ 42,222 |
|
| Supplemental disclosure of cash flow information |
|||
| Cash paid for: |
|||
| Interest |
$ 13,007 |
$ 8,617 |
|
| Income taxes |
50,924 |
16,926 |
|
| RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES |
||||||||||||||||
| For the Three Months Ended |
For the Years Ended |
|||||||||||||||
| April 30, 2016 |
April 30, 2015 |
April 30, 2016 |
April 30, 2015 |
|||||||||||||
| $ |
% of Sales |
$ |
% of Sales |
$ |
% of Sales |
$ |
% of Sales |
|||||||||
| GAAP gross profit |
$ 92,068 |
41.6% |
$ 67,144 |
37.1% |
$ 293,812 |
40.6% |
$ 194,926 |
35.3% |
||||||||
| Fair value inventory step-up and backlog expense |
— |
— |
2,398 |
1.3% |
— |
— |
4,404 |
0.8% |
||||||||
| Discontinued operations |
— |
— |
— |
— |
52 |
0.0% |
— |
— |
||||||||
| Non-GAAP gross profit |
$ 92,068 |
41.6% |
$ 69,542 |
38.4% |
$ 293,864 |
40.7% |
$ 199,330 |
36.1% |
||||||||
| GAAP operating expenses |
$ 35,171 |
15.9% |
$ 29,820 |
16.5% |
$ 135,169 |
18.7% |
$ 105,298 |
19.1% |
||||||||
| Amortization of acquired intangible assets |
(2,686) |
-1.2% |
(2,324) |
-1.3% |
(10,067) |
-1.4% |
(3,748) |
-0.7% |
||||||||
| TCA accessories transition costs |
— |
— |
— |
— |
(161) |
0.0% |
— |
— |
||||||||
| Discontinued operations |
(25) |
0.0% |
— |
— |
(90) |
0.0% |
— |
— |
||||||||
| DOJ/SEC costs including insurance recovery costs |
6 |
0.0% |
— |
— |
1,787 |
0.2% |
— |
— |
||||||||
| Acquisition-related costs |
(27) |
0.0% |
(48) |
0.0% |
(27) |
0.0% |
(2,090) |
-0.4% |
||||||||
| Non-GAAP operating expenses |
$ 32,439 |
14.7% |
$ 27,448 |
15.2% |
$ 126,611 |
17.5% |
$ 99,460 |
18.0% |
||||||||
| GAAP operating income |
$ 56,897 |
25.7% |
$ 37,324 |
20.6% |
$ 158,643 |
21.9% |
$ 89,628 |
16.2% |
||||||||
| Fair value inventory step-up and backlog expense |
— |
— |
2,398 |
1.3% |
— |
— |
4,404 |
0.8% |
||||||||
| Amortization of acquired intangible assets |
2,686 |
1.2% |
2,324 |
1.3% |
10,067 |
1.4% |
3,748 |
0.7% |
||||||||
| TCA accessories transition costs |
— |
— |
— |
— |
161 |
0.0% |
— |
— |
||||||||
| Discontinued operations |
25 |
0.0% |
— |
— |
142 |
0.0% |
— |
— |
||||||||
| DOJ/SEC costs including insurance recovery costs |
(6) |
0.0% |
— |
— |
(1,787) |
-0.2% |
— |
— |
||||||||
| Acquisition-related costs |
27 |
0.0% |
48 |
0.0% |
27 |
0.0% |
2,090 |
0.4% |
||||||||
| Non-GAAP operating income |
$ 59,629 |
27.0% |
$ 42,094 |
23.3% |
$ 167,253 |
23.1% |
$ 99,870 |
18.1% |
||||||||
| GAAP net income |
$ 35,647 |
16.1% |
$ 21,940 |
12.1% |
$ 93,958 |
13.0% |
$ 49,827 |
9.0% |
||||||||
| Bond premium paid |
— |
— |
— |
— |
2,938 |
0.4% |
— |
— |
||||||||
| Fair value inventory step-up and backlog expense |
— |
— |
2,398 |
1.3% |
— |
— |
4,404 |
0.8% |
||||||||
| Amortization of acquired intangible assets |
2,686 |
1.2% |
2,324 |
1.3% |
10,067 |
1.4% |
3,748 |
0.7% |
||||||||
| Debt extinguishment costs |
— |
— |
— |
— |
1,723 |
0.2% |
— |
— |
||||||||
| TCA accessories transition costs |
— |
— |
— |
— |
161 |
0.0% |
— |
— |
||||||||
| Discontinued operations |
25 |
0.0% |
— |
— |
142 |
0.0% |
— |
— |
||||||||
| DOJ/SEC costs including insurance recovery costs |
(6) |
0.0% |
— |
— |
(1,787) |
-0.2% |
— |
— |
||||||||
| Acquisition-related costs |
27 |
0.0% |
48 |
0.0% |
27 |
0.0% |
2,090 |
0.4% |
||||||||
| Tax effect of non-GAAP adjustments |
(945) |
-0.4% |
(1,765) |
-1.0% |
(4,685) |
-0.6% |
(3,790) |
-0.7% |
||||||||
| Non-GAAP net income |
$ 37,434 |
16.9% |
$ 24,945 |
13.8% |
$ 102,544 |
14.2% |
$ 56,279 |
10.2% |
||||||||
| GAAP net income per share - diluted |
$ 0.63 |
$ 0.40 |
$ 1.68 |
$ 0.90 |
||||||||||||
| Bond premium paid |
— |
— |
0.05 |
— |
||||||||||||
| Fair value inventory step-up and backlog expense |
— |
0.04 |
— |
0.08 |
||||||||||||
| Amortization of acquired intangible assets |
0.05 |
0.04 |
0.18 |
0.07 |
||||||||||||
| Debt extinguishment costs |
— |
— |
0.03 |
— |
||||||||||||
| TCA accessories transition costs |
— |
— |
0.00 |
— |
||||||||||||
| Discontinued operations |
0.00 |
— |
0.00 |
— |
||||||||||||
| DOJ/SEC costs including insurance recovery costs |
(0.00) |
— |
(0.03) |
— |
||||||||||||
| Acquisition-related costs |
0.00 |
0.00 |
0.00 |
0.04 |
||||||||||||
| Tax effect of non-GAAP adjustments |
(0.02) |
(0.03) |
(0.08) |
(0.07) |
||||||||||||
| Non-GAAP net income per share - diluted |
$ 0.66 |
$ 0.45 |
$ 1.83 |
$ 1.02 |
||||||||||||
| SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES |
||||||||
| RECONCILIATION OF NET OPERATING CASH FLOW TO FREE CASH FLOW |
||||||||
| For the Three Months Ended |
For the Years Ended |
|||||||
| April 30, 2016 |
April 30, 2015 |
April 30, 2016 |
April 30, 2015 |
|||||
| Net cash provided by operating activities |
$ 94,814 |
$ 84,860 |
$ 168,557 |
$ 114,807 |
||||
| Net cash used in investing activities |
(13,150) |
(3,410) |
(31,992) |
(186,057) |
||||
| Payments for the net assets of Tri-Town Precision Plastics, Inc. |
— |
— |
— |
23,805 |
||||
| Payments to acquire Battenfeld Technologies, Inc., net of cash acquired |
— |
(715) |
— |
135,437 |
||||
| Payments to acquire PowerTech, Inc. |
1,220 |
— |
1,220 |
— |
||||
| Receipts from note receivable |
(28) |
(21) |
(84) |
(81) |
||||
| Free cash flow |
$ 82,856 |
$ 80,714 |
$ 137,701 |
$ 87,911 |
||||
| SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES |
|||||
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS |
|||||
| For the Three Months Ended |
|||||
| April 30, 2016 |
April 30, 2015 |
||||
| GAAP net income |
$ 35,647 |
$ 21,887 |
|||
| Interest expense |
1,991 |
3,248 |
|||
| Income tax expense |
19,291 |
12,296 |
|||
| Depreciation and amortization |
10,186 |
9,295 |
|||
| Stock-based compensation expense |
1,587 |
1,560 |
|||
| Fair value inventory step-up and backlog expense |
— |
2,398 |
|||
| Discontinued operations |
25 |
— |
|||
| DOJ/SEC costs |
(6) |
4 |
|||
| Acquisition-related costs |
27 |
48 |
|||
| Non-GAAP Adjusted EBITDAS |
$ 68,748 |
$ 50,736 |
|||
| SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES |
|||||
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS |
|||||
| For the Years Ended |
|||||
| April 30, 2016 |
April 30, 2015 |
||||
| GAAP net income |
$ 93,958 |
$ 49,613 |
|||
| Interest expense |
13,704 |
11,330 |
|||
| Income tax expense |
51,135 |
28,822 |
|||
| Depreciation and amortization |
38,558 |
29,435 |
|||
| Stock-based compensation expense |
6,472 |
5,808 |
|||
| Fair value inventory step-up and backlog expense |
— |
4,404 |
|||
| TCA Accessories transition costs |
161 |
— |
|||
| Discontinued operations |
142 |
— |
|||
| DOJ/SEC costs, including insurance recovery costs |
(1,787) |
711 |
|||
| Acquisition-related costs |
27 |
2,090 |
|||
| Non-GAAP Adjusted EBITDAS |
$ 202,370 |
$ 132,213 |
|||
Contact: Liz Sharp, VP Investor Relations
Smith & Wesson Holding Corp.
(413) 747-6284
[email protected]
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SOURCE Smith & Wesson Holding Corporation
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