Smith & Wesson Holding Corporation Reports Second Quarter Fiscal 2016 Financial Results
- Net Sales of $143.2 Million for Second Quarter, up 32.1% Year-Over-Year
- Second Quarter GAAP Net Income Per Diluted Share of $0.22
- Second Quarter Non-GAAP Net Income Per Diluted Share of $0.25
- Company Raises Full Year Fiscal 2016 Revenue and Net Income Outlook
SPRINGFIELD, Mass., Dec. 8, 2015 /PRNewswire/ -- Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC), a leader in firearm manufacturing and design, today announced financial results for the fiscal second quarter ended October 31, 2015.
Second Quarter Fiscal 2016 Financial Highlights
- Quarterly net sales were $143.2 million, an increase of 32.1% over the second quarter last year. Firearms division net sales of $124.9 million increased by 15.2% over the comparable quarter last year. Accessories division net sales of $18.4 million increased by 24.6% over the comparable quarter last year, which was prior to the company's acquisition of Battenfeld Technologies, Inc. (BTI) on December 11, 2014.
- Gross margin for the quarter was 39.2% compared with 32.1% in the comparable quarter last year.
- Quarterly GAAP net income was $12.5 million, or $0.22 per diluted share, compared with $5.1 million, or $0.09 per diluted share, for the comparable quarter last year. Second quarter 2016 GAAP net income per diluted share included an expense of $0.03 for amortization expense, net of tax, related to the acquisition of BTI.
- Quarterly non-GAAP net income was $14.2 million, or $0.25 per diluted share, compared with $5.2 million, or $0.10 per diluted share, for the comparable quarter last year.
- Quarterly non-GAAP Adjusted EBITDAS was $33.4 million, or 23.3% of net sales.
James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer, said, "The combined strength of our firearms and accessories divisions delivered results that exceeded our financial guidance for sales and net income, reflecting the successful implementation of our growth strategy. Based on our second quarter performance, we are raising our fiscal 2016 guidance for revenue as well as net income. Higher revenue in our firearms division was driven by increased orders for our Smith & Wesson SDVE polymer pistols, M&P® Shield™ and M&P BODYGUARD® polymer pistols, and our long guns, especially our Thompson/Center™ Venture™ bolt-action rifles. Our accessories division, which was established less than one year ago, also continued to deliver excellent results, with double-digit, year-over-year revenue growth and gross margins that came in above the year-ago quarter. During the second quarter, we introduced a range of new products including the new Thompson/Center Strike™ Muzzleloader; the M&P BODYGUARD 380 with Crimson Trace® Green Laserguard®; the M&P Shield pistol with tritium night sights, a new engraved SW1911 pistol from Smith & Wesson Custom Engraving; and from our Performance Center, the new ported M&P Shield in 9mm and 40S&W for enhanced performance. We look forward to showcasing these new products, and others, at SHOT Show in January."
Jeff Buchanan, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, said, "Our gross margin performance was strong in the second quarter, driven by the favorable impact of increased production volumes in our firearms division and by gross margins in our accessories division in excess of 50.0%. For the first half of fiscal 2016, we generated $22.8 million in operating cash flow and $8.6 million in free cash flow despite our seasonal inventory build in preparation for the hunting and holiday shopping seasons. Our balance sheet remains healthy as we ended the second quarter with cash of $54.1 million and no borrowings on our $175.0 million revolving line of credit."
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 January 31, 2016 |
Range for the Year Ending April 30, 2016 |
|||||||
|
Net sales (in thousands) |
$ 150,000 |
$ 155,000 |
$ 625,000 |
$ 635,000 |
||||
|
GAAP income per share - diluted |
$ 0.24 |
$ 0.26 |
$ 1.11 |
$ 1.16 |
||||
|
Amortization of acquired intangible assets |
0.05 |
0.05 |
0.19 |
0.19 |
||||
|
Debt extinguishment costs |
— |
— |
0.03 |
0.03 |
||||
|
Bond premium paid |
— |
— |
0.05 |
0.05 |
||||
|
Insurance recovery costs |
— |
— |
(0.03) |
(0.03) |
||||
|
Tax effect of non-GAAP adjustments |
(0.02) |
(0.02) |
(0.09) |
(0.09) |
||||
|
Non-GAAP income per share - diluted |
$ 0.27 |
$ 0.29 |
$ 1.26 |
$ 1.31 |
||||
Conference Call and Webcast
The company will host a conference call and webcast today, December 8, 2015, to discuss its second quarter 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 877-415-3182 and reference conference code 95372579. 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" and "Adjusted EBITDAS" 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) 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) DOJ and SEC costs, (xiv) payments for acquisitions, and (xv) receipts from note receivables; 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 U.S.-based leader in firearm manufacturing and design, delivering a broad portfolio of quality firearms, related products, and training to the global military, law enforcement, and consumer markets. The company's firearms division brands include Smith & Wesson®, M&P®, and Thompson/Center Arms™. As a leading provider of shooting, reloading, gunsmithing, and gun cleaning supplies, 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, and Hooyman® Premium Tree Saws. 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 belief regarding the successful implementation of our growth strategy; new products to be showcased at SHOT Show; and our expectations for net sales, GAAP net income per diluted share, and non-GAAP net income per diluted share for the third quarter of fiscal 2016 as well as net sales, GAAP net income per diluted share, and non-GAAP net income per diluted share for fiscal 2016. 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, 2015.
Contact: Liz Sharp, VP Investor Relations
Smith & Wesson Holding Corp.
(413) 747-6284
[email protected]
|
SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES | ||||||||
|
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
|
(Unaudited) | ||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||
|
October 31, 2015 |
October 31, 2014 |
October 31, 2015 |
October 31, 2014 | |||||
|
(In thousands, except per share data) | ||||||||
|
Net sales |
$ 143,242 |
$ 108,446 |
$ 291,005 |
$ 240,315 | ||||
|
Cost of sales |
87,027 |
73,606 |
175,920 |
156,357 | ||||
|
Gross profit |
56,215 |
34,840 |
115,085 |
83,958 | ||||
|
Operating expenses: |
||||||||
|
Research and development |
2,695 |
1,473 |
5,091 |
2,929 | ||||
|
Selling and marketing |
12,536 |
8,850 |
21,754 |
16,797 | ||||
|
General and administrative |
19,202 |
13,743 |
36,640 |
27,783 | ||||
|
Total operating expenses |
34,433 |
24,066 |
63,485 |
47,509 | ||||
|
Operating income |
21,782 |
10,774 |
51,600 |
36,449 | ||||
|
Other (expense)/income: |
||||||||
|
Other (expense)/income, net |
(5) |
(11) |
(12) |
(17) | ||||
|
Interest income |
27 |
20 |
77 |
44 | ||||
|
Interest expense |
(2,323) |
(2,914) |
(9,573) |
(4,898) | ||||
|
Total other (expense)/income, net |
(2,301) |
(2,905) |
(9,508) |
(4,871) | ||||
|
Income before income taxes |
19,481 |
7,869 |
42,092 |
31,578 | ||||
|
Income tax expense |
7,015 |
2,819 |
15,214 |
11,972 | ||||
|
Net income |
12,466 |
5,050 |
26,878 |
19,606 | ||||
|
Net income per share: |
||||||||
|
Basic |
$ 0.23 |
$ 0.09 |
$ 0.49 |
$ 0.36 | ||||
|
Diluted |
$ 0.22 |
$ 0.09 |
$ 0.48 |
$ 0.35 | ||||
|
Weighted average number of common shares outstanding: |
||||||||
|
Basic |
54,447 |
53,545 |
54,333 |
54,188 | ||||
|
Diluted |
55,668 |
54,651 |
55,621 |
55,435 | ||||
|
SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES |
||||
|
CONSOLIDATED BALANCE SHEETS |
||||
|
(Unaudited) |
||||
|
As of | ||||
|
October 31, 2015 |
April 30, 2015 |
|||
|
(In thousands, except par value and share data) |
||||
|
ASSETS |
||||
|
Current assets: |
||||
|
Cash and cash equivalents |
$ 54,064 |
$ 42,222 |
||
|
Accounts receivable, net of allowance for doubtful accounts of $669 on October 31, 2015 and $722 on April 30, 2015 |
50,153 |
55,280 |
||
|
Inventories |
100,897 |
76,895 |
||
|
Prepaid expenses and other current assets |
6,893 |
6,306 |
||
|
Deferred income taxes |
16,373 |
16,373 |
||
|
Income tax receivable |
6,476 |
— |
||
|
Total current assets |
234,856 |
197,076 |
||
|
Property, plant, and equipment, net |
138,396 |
133,844 |
||
|
Intangibles, net |
67,803 |
73,768 |
||
|
Goodwill |
76,057 |
75,426 |
||
|
Other assets |
6,704 |
10,811 |
||
|
$ 523,816 |
$ 490,925 |
|||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
|
Current liabilities: |
||||
|
Accounts payable |
$ 31,338 |
$ 32,360 |
||
|
Accrued expenses |
20,707 |
19,021 |
||
|
Accrued payroll |
13,428 |
7,556 |
||
|
Accrued income taxes |
— |
4,224 |
||
|
Accrued taxes other than income |
4,599 |
5,281 |
||
|
Accrued profit sharing |
3,652 |
6,165 |
||
|
Accrued warranty |
6,220 |
6,404 |
||
|
Current portion of notes payable |
6,300 |
— |
||
|
Total current liabilities |
86,244 |
81,011 |
||
|
Deferred income taxes |
33,341 |
33,905 |
||
|
Notes payable, net of current portion of notes payable |
169,282 |
170,933 |
||
|
Other non-current liabilities |
9,618 |
10,706 |
||
|
Total liabilities |
298,485 |
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, 70,118,491 shares issued and 54,555,869 shares outstanding on October 31, 2015 and 69,625,081 shares issued and 54,062,459 shares outstanding on April 30, 2015 |
70 |
70 |
||
|
Additional paid-in capital |
223,587 |
219,198 |
||
|
Retained earnings |
174,230 |
147,352 |
||
|
Accumulated other comprehensive (loss)/income |
(233) |
73 |
||
|
Treasury stock, at cost (15,562,622 shares on October 31, 2015 and April 30, 2015) |
(172,323) |
(172,323) |
||
|
Total stockholders' equity |
225,331 |
194,370 |
||
|
$ 523,816 |
$ 490,925 |
|||
|
SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES | |||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
|
(Unaudited) | |||
|
For the Six Months Ended | |||
|
October 31, 2015 |
October 31, 2014 | ||
|
(In thousands) | |||
|
Cash flows from operating activities: |
|||
|
Net income |
$ 26,878 |
$ 19,606 | |
|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: |
|||
|
Depreciation and amortization |
21,066 |
12,983 | |
|
Loss/(gain) on sale/disposition of assets |
19 |
(86) | |
|
Provisions for/(recoveries of) losses on accounts receivable |
(72) |
230 | |
|
Stock-based compensation expense |
3,247 |
2,801 | |
|
Changes in operating assets and liabilities (net effect of acquisitions): |
|||
|
Accounts receivable |
5,199 |
6,873 | |
|
Inventories |
(24,002) |
(9,622) | |
|
Prepaid expenses and other current assets |
(587) |
(2,786) | |
|
Income tax payable |
(10,700) |
397 | |
|
Accounts payable |
(1,022) |
(14,206) | |
|
Accrued payroll |
5,872 |
(9,012) | |
|
Accrued taxes other than income |
(682) |
(988) | |
|
Accrued profit sharing |
(2,513) |
(8,560) | |
|
Accrued expenses |
1,671 |
(1,058) | |
|
Accrued warranty |
(184) |
(459) | |
|
Other assets |
(156) |
(137) | |
|
Other non-current liabilities |
(1,273) |
596 | |
|
Net cash provided by/(used in) operating activities |
22,761 |
(3,428) | |
|
Cash flows from investing activities: |
|||
|
Payments for the net assets of Tri-Town Precision Plastics, Inc. |
— |
(24,095) | |
|
Refunds of deposits on machinery and equipment |
4,222 |
1,204 | |
|
Receipts from note receivable |
41 |
40 | |
|
Payments to acquire patents and software |
(136) |
(84) | |
|
Proceeds from sale of property and equipment |
61 |
225 | |
|
Payments to acquire property and equipment |
(18,352) |
(21,200) | |
|
Net cash used in investing activities |
(14,164) |
(43,910) | |
|
Cash flows from financing activities: |
|||
|
Proceeds from loans and notes payable |
105,000 |
75,000 | |
|
Cash paid for debt issue costs |
(1,024) |
(2,333) | |
|
Payments on capital lease obligation |
(298) |
(298) | |
|
Payments on notes payable |
(101,575) |
— | |
|
Payments to acquire treasury stock |
— |
(30,040) | |
|
Proceeds from exercise of options to acquire common stock, including employee stock purchase plan |
1,758 |
1,432 | |
|
Payroll taxes paid as a result of restricted stock unit withholdings |
(1,690) |
(1,107) | |
|
Excess tax benefit of stock-based compensation |
1,074 |
197 | |
|
Net cash provided by financing activities |
3,245 |
42,851 | |
|
Net increase/(decrease) in cash and cash equivalents |
11,842 |
(4,487) | |
|
Cash and cash equivalents, beginning of period |
42,222 |
68,860 | |
|
Cash and cash equivalents, end of period |
$ 54,064 |
$ 64,373 | |
|
Supplemental disclosure of cash flow information |
|||
|
Cash paid for: |
|||
|
Interest |
$ 9,271 |
$ 3,106 | |
|
Income taxes |
24,936 |
11,682 | |
|
SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES | ||||||||||||||||
|
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||||
|
October 31, 2015 |
October 31, 2014 |
October 31, 2015 |
October 31, 2014 |
|||||||||||||
|
$ |
% of Sales |
$ |
% of Sales |
$ |
% of Sales |
$ |
% of Sales |
|||||||||
|
GAAP gross profit |
$ 56,215 |
39.2% |
$ 34,840 |
32.1% |
$ 115,085 |
39.5% |
$ 83,958 |
34.9% |
||||||||
|
Discontinued operations |
— |
— |
— |
— |
52 |
0.0% |
— |
— |
||||||||
|
Non-GAAP gross profit |
$ 56,215 |
39.2% |
$ 34,840 |
32.1% |
$ 115,137 |
39.6% |
$ 83,958 |
34.9% |
||||||||
|
GAAP operating expenses |
$ 34,433 |
24.0% |
$ 24,066 |
22.2% |
$ 63,485 |
21.8% |
$ 47,509 |
19.8% |
||||||||
|
Amortization of acquired intangible assets |
(2,656) |
-1.9% |
(215) |
-0.2% |
(4,729) |
-1.6% |
(215) |
-0.1% |
||||||||
|
TCA accessories transition costs |
(70) |
0.0% |
— |
— |
(151) |
-0.1% |
— |
— |
||||||||
|
Discontinued operations |
(24) |
0.0% |
(61) |
-0.1% |
(45) |
0.0% |
(157) |
-0.1% |
||||||||
|
Insurance recovery costs |
— |
— |
— |
— |
1,791 |
0.6% |
— |
— |
||||||||
|
Acquisition-related costs |
— |
— |
(7) |
0.0% |
— |
— |
(442) |
-0.2% |
||||||||
|
Non-GAAP operating expenses |
$ 31,683 |
22.1% |
$ 23,783 |
21.9% |
$ 60,351 |
20.7% |
$ 46,695 |
19.4% |
||||||||
|
GAAP operating income |
$ 21,782 |
15.2% |
$ 10,774 |
9.9% |
$ 51,600 |
17.7% |
$ 36,449 |
15.2% |
||||||||
|
Amortization of acquired intangible assets |
2,656 |
1.9% |
215 |
0.2% |
4,729 |
1.6% |
215 |
0.1% |
||||||||
|
TCA accessories transition costs |
70 |
0.0% |
— |
— |
151 |
0.1% |
— |
— |
||||||||
|
Discontinued operations |
24 |
0.0% |
61 |
0.1% |
45 |
0.0% |
157 |
0.1% |
||||||||
|
Insurance recovery costs |
— |
— |
— |
— |
(1,791) |
-0.6% |
— |
— |
||||||||
|
Acquisition-related costs |
— |
— |
7 |
0.0% |
4,729 |
1.6% |
442 |
0.2% |
||||||||
|
Non-GAAP operating income |
$ 24,532 |
17.1% |
$ 11,057 |
10.2% |
$ 59,463 |
20.4% |
$ 37,263 |
15.5% |
||||||||
|
GAAP net income |
$ 12,466 |
8.7% |
$ 5,050 |
4.7% |
$ 26,878 |
9.2% |
$ 19,606 |
8.2% |
||||||||
|
Bond premium paid |
— |
— |
— |
— |
2,938 |
1.0% |
— |
— |
||||||||
|
Amortization of acquired intangible assets |
2,656 |
1.9% |
215 |
0.2% |
4,729 |
1.6% |
215 |
0.1% |
||||||||
|
Debt extinguishment costs |
— |
— |
— |
— |
1,723 |
0.6% |
— |
0.0% |
||||||||
|
TCA accessories transition costs |
70 |
0.0% |
— |
— |
151 |
0.1% |
— |
— |
||||||||
|
Discontinued operations |
24 |
0.0% |
61 |
0.1% |
97 |
0.0% |
157 |
— |
||||||||
|
Insurance recovery costs |
— |
— |
— |
— |
(1,791) |
-0.6% |
— |
— |
||||||||
|
Acquisition-related costs |
— |
— |
7 |
0.0% |
— |
— |
442 |
0.2% |
||||||||
|
Tax effect of non-GAAP adjustments |
(1,021) |
-0.7% |
(105) |
-0.1% |
(2,903) |
-1.0% |
(222) |
-0.1% |
||||||||
|
Non-GAAP net income |
$ 14,195 |
9.9% |
$ 5,228 |
4.8% |
$ 31,822 |
10.9% |
$ 20,198 |
8.4% |
||||||||
|
GAAP net income per share - diluted |
$ 0.22 |
$ 0.09 |
$ 0.48 |
$ 0.35 |
||||||||||||
|
Bond premium paid |
— |
— |
0.05 |
— |
||||||||||||
|
Amortization of acquired intangible assets |
0.05 |
0.01 |
0.09 |
0.00 |
||||||||||||
|
Debt extinguishment costs |
— |
— |
0.03 |
— |
||||||||||||
|
TCA accessories transition costs |
0.00 |
— |
0.00 |
— |
||||||||||||
|
Discontinued operations |
0.00 |
0.00 |
0.00 |
0.00 |
||||||||||||
|
Insurance recovery costs |
— |
— |
(0.03) |
— |
||||||||||||
|
Acquisition-related costs |
— |
0.00 |
— |
0.01 |
||||||||||||
|
Tax effect of non-GAAP adjustments |
(0.02) |
(0.00) |
(0.05) |
(0.00) |
||||||||||||
|
Non-GAAP net income per share - diluted |
$ 0.25 |
$ 0.10 |
$ 0.57 |
$ 0.36 |
||||||||||||
|
SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES | ||||||||
|
RECONCILIATION OF NET OPERATING CASH FLOW TO FREE CASH FLOW | ||||||||
|
For the Three Months Ended |
For the Six Months Ended |
|||||||
|
October 31, 2015 |
October 31, 2014 |
October 31, 2015 |
October 31, 2014 |
|||||
|
Net cash provided by/(used in) operating activities |
$ 6,136 |
$ (14,208) |
$ 22,761 |
$ (3,428) |
||||
|
Net cash used in investing activities |
(7,075) |
(5,214) |
(14,164) |
(43,910) |
||||
|
Payments for the net assets of Tri-Town Precision Plastics, Inc. |
— |
— |
— |
24,095 |
||||
|
Receipts from note receivable |
(20) |
(19) |
(41) |
(40) |
||||
|
Free cash flow |
$ (959) |
$ (19,441) |
$ 8,556 |
$ (23,283) |
||||
|
SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES |
||||
|
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS |
||||
|
For the Three Months Ended |
||||
|
October 31, 2015 |
October 31, 2014 |
|||
|
GAAP net income |
$ 12,466 |
$ 5,050 |
||
|
Interest expense |
2,323 |
2,914 |
||
|
Income tax expense |
7,015 |
2,819 |
||
|
Depreciation and amortization |
9,818 |
6,485 |
||
|
Stock-based compensation expense |
1,702 |
1,220 |
||
|
TCA accessories transition costs |
70 |
— |
||
|
Discontinued operations |
24 |
61 |
||
|
Acquisition-related costs |
— |
7 |
||
|
DOJ/SEC costs |
(20) |
258 |
||
|
Non-GAAP Adjusted EBITDAS |
$ 33,398 |
$ 18,814 |
||
|
SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES | |||
|
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS | |||
|
For the Six Months Ended | |||
|
October 31, 2015 |
October 31, 2015 | ||
|
GAAP net income |
$ 26,878 |
$ 19,606 | |
|
Interest expense |
9,573 |
4,898 | |
|
Income tax expense |
15,214 |
11,972 | |
|
Depreciation and amortization |
18,817 |
12,324 | |
|
Stock-based compensation expense |
3,247 |
2,801 | |
|
TCA Accessories transition costs |
151 |
— | |
|
Discontinued operations |
97 |
157 | |
|
Acquisition-related costs |
— |
442 | |
|
DOJ/SEC costs, including insurance recovery costs |
(1,790) |
691 | |
|
Non-GAAP Adjusted EBITDAS |
$ 72,187 |
$ 52,891 | |
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SOURCE Smith & Wesson Holding Corporation
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