Smith & Wesson Brands, Inc. Reports Second Quarter Fiscal 2025 Financial Results
Smith & Wesson (NASDAQ: SWBI) reported Q2 fiscal 2025 financial results with net sales of $129.7 million, showing a 3.8% increase year-over-year and a 46.8% sequential increase. The company achieved a gross margin of 26.6% and GAAP earnings per share of $0.09, compared to $0.05 in the previous year.
Despite outperforming the market with new products representing 44% of sales, the company faced demand normalization late in the quarter, primarily due to inflation affecting consumer discretionary spending. Management expects Q3 top line to be 10-15% lower than fiscal 2024. The Board authorized a new $50 million share repurchase program and declared a quarterly dividend of $0.13 per share.
Smith & Wesson (NASDAQ: SWBI) ha riportato i risultati finanziari per il secondo trimestre dell'anno fiscale 2025, con vendite nette di 129,7 milioni di dollari, registrando un aumento del 3,8% rispetto all'anno precedente e un incremento sequenziale del 46,8%. L'azienda ha raggiunto un margine lordo del 26,6% e un utile per azione GAAP di 0,09 dollari, contro 0,05 dollari dell'anno scorso.
Nonostante abbia superato il mercato con nuovi prodotti che rappresentano il 44% delle vendite, l'azienda ha affrontato una normalizzazione della domanda verso la fine del trimestre, principalmente a causa dell'inflazione che influisce sulle spese discrezionali dei consumatori. La direzione si aspetta che il fatturato del terzo trimestre sia inferiore del 10-15% rispetto all'anno fiscale 2024. Il Consiglio ha autorizzato un nuovo programma di riacquisto di azioni da 50 milioni di dollari e ha dichiarato un dividendo trimestrale di 0,13 dollari per azione.
Smith & Wesson (NASDAQ: SWBI) reportó los resultados financieros del segundo trimestre del año fiscal 2025, con ventas netas de 129,7 millones de dólares, mostrando un incremento del 3,8% en comparación con el año anterior y un aumento secuencial del 46,8%. La compañía logró un margen bruto del 26,6% y ganancias por acción GAAP de 0,09 dólares, en comparación con 0,05 dólares del año pasado.
A pesar de superar al mercado con nuevos productos que representan el 44% de las ventas, la compañía enfrentó una normalización de la demanda hacia el final del trimestre, principalmente debido a la inflación que afecta el gasto discrecional de los consumidores. La dirección espera que los ingresos del tercer trimestre sean un 10-15% menores que los del año fiscal 2024. La Junta autorizó un nuevo programa de recompra de acciones por 50 millones de dólares y declaró un dividendo trimestral de 0,13 dólares por acción.
스미스 & 웨슨 (NASDAQ: SWBI)은 2025 회계연도 2분기 재무 결과를 보고했으며, 순매출이 1억 2,970만 달러로 전년 대비 3.8% 증가하고, 전 분기 대비 46.8% 증가했습니다. 이 회사는 총 마진이 26.6%에 달했고, GAAP 주당 순이익은 0.09달러로, 지난해 0.05달러와 비교되었습니다.
신제품이 판매의 44%를 차지하며 시장을 초과 달성했음에도 불구하고, 회사는 분기 말에 수요의 정상화에 직면했으며, 이는 주로 소비자의 재량 지출에 영향을 미치는 인플레이션 때문입니다. 경영진은 3분기 매출이 2024 회계연도 대비 10-15% 낮을 것으로 예상하고 있습니다. 이사회는 5천만 달러 규모의 새로운 자사주 매입 프로그램을 승인하고, 주당 0.13달러의 분기 배당금을 선언했습니다.
Smith & Wesson (NASDAQ: SWBI) a annoncé les résultats financiers du deuxième trimestre de l'exercice 2025, avec des ventes nettes de 129,7 millions de dollars, montrant une augmentation de 3,8% par rapport à l'année précédente et une augmentation séquentielle de 46,8%. La société a réalisé une marge brute de 26,6% et un bénéfice par action GAAP de 0,09 dollar, contre 0,05 dollar l'année dernière.
Bien qu'elle ait dépassé le marché avec de nouveaux produits représentant 44% des ventes, l'entreprise a rencontré une normalisation de la demande à la fin du trimestre, principalement en raison de l'inflation affectant les dépenses discrétionnaires des consommateurs. La direction s'attend à ce que le chiffre d'affaires du troisième trimestre soit inférieur de 10 à 15% à celui de l'exercice 2024. Le Conseil a autorisé un nouveau programme de rachat d'actions de 50 millions de dollars et a déclaré un dividende trimestriel de 0,13 dollar par action.
Smith & Wesson (NASDAQ: SWBI) hat die finanziellen Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 veröffentlicht, mit Nettoverkäufen von 129,7 Millionen USD, was einer Steigerung von 3,8% im Jahresvergleich und einem sequenziellen Anstieg von 46,8% entspricht. Das Unternehmen erzielte eine Bruttomarge von 26,6% und einen GAAP-Gewinn pro Aktie von 0,09 USD, verglichen mit 0,05 USD im Vorjahr.
Trotz der Übertreffung des Marktes mit neuen Produkten, die 44% der Verkäufe ausmachten, sah sich das Unternehmen gegen Ende des Quartals einer Normalisierung der Nachfrage gegenüber, hauptsächlich aufgrund der Inflation, die die konsumbasierte Ausgaben beeinflusst. Das Management erwartet, dass der Umsatz im dritten Quartal 10-15% niedriger sein wird als im Geschäftsjahr 2024. Der Vorstand genehmigte ein neues Aktienrückkaufprogramm über 50 Millionen USD und erklärte eine vierteljährliche Dividende von 0,13 USD pro Aktie.
- Net sales increased 3.8% year-over-year to $129.7 million
- Gross margin improved to 26.6% from 25.4% year-over-year
- GAAP EPS increased to $0.09 from $0.05 year-over-year
- New $50 million share repurchase authorization approved
- New $175 million credit line secured, increasing available borrowings by $75 million
- Q3 revenue guidance projects 10-15% decline compared to fiscal 2024
- Non-GAAP net income decreased to $4.8 million from $6.5 million year-over-year
- Adjusted EBITDAS margin declined to 14.3% from 15.5% year-over-year
- Softer demand trends observed across the industry
- Consumer discretionary spending pressure due to inflation
Insights
Smith & Wesson's Q2 FY2025 results present a mixed picture. While net sales increased
The company's innovation strategy appears effective, with new products accounting for
The declining Adjusted EBITDAS margin (from
The firearms industry is showing signs of demand normalization, with SWBI's results reflecting broader market trends. Consumer discretionary spending remains under pressure from inflation, impacting purchase decisions for firearms. However, SWBI's market share gains and strong new product performance demonstrate effective product strategy execution.
The company's Bodyguard 380 pistol and lever action rifles are driving sales growth, indicating successful product positioning. The
The combination of market share gains, product innovation and financial flexibility positions SWBI well to weather current market conditions, though near-term growth may remain challenged by macroeconomic factors.
- Q2 Net Sales of
$129.7 Million ; Sequential Increase of46.8% - Q2 Gross Margin of
26.6% ; Non-GAAP Gross Margin of27.1% - Q2 EPS of
$0.09 /Share; Q2 Adjusted EPS of$0.11 /Share - Q2 Adjusted EBITDAS Margin of
14.3%
Maryville, Tennessee--(Newsfile Corp. - December 5, 2024) - Smith & Wesson Brands, Inc. (NASDAQ: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced financial results for the second quarter of fiscal 2025, ended October 31, 2024.
Second Quarter Fiscal 2025 Financial Highlights
Net sales were
$129.7 million , an increase of$4.7 million , or3.8% , over the comparable quarter last year and$41.3 million , or46.8% , over the prior quarter.Gross margin was
26.6% compared with25.4% in the comparable quarter last year.GAAP net income was
$4.1 million , or$0.09 per diluted share, compared with$2.5 million , or$0.05 per diluted share, for the comparable quarter last year.Non-GAAP net income was
$4.8 million , or$0.11 per diluted share, compared with$6.5 million , or$0.14 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for income exclude costs related to the relocation and an accrued legal settlement. For a detailed reconciliation, see the schedules that follow in this release.Non-GAAP Adjusted EBITDAS was
$18.5 million , or14.3% of net sales, compared with$19.3 million , or15.5% of net sales, for the comparable quarter last year.
Mark Smith, President and Chief Executive Officer, commented, "Second quarter results came in below our expectations as overall demand for firearms normalized late in the quarter. We believe that the primary driver of the demand pressure continued to be inflation. The consumer cautiousness with discretionary spend that we observed in recent quarters was more pronounced during the second quarter than we anticipated. Despite these headwinds, we continued to outperform the market and believe we gained share, led by our best-in-class innovation - with new products representing
Deana McPherson, Executive Vice President and Chief Financial Officer, commented, "Net sales for our second quarter were nearly
Conference Call and Webcast
The company will host a conference call and webcast on December 5, 2024 to discuss its second quarter fiscal 2025 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). Interested parties in North America are invited to participate by dialing 1-877-704-4453. Interested parties from outside North America are invited to participate by dialing 1-201-389-0920. Participants should dial in at least 10 minutes prior to the start of the call. 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) spin related stock-based compensation, (vi) an accrued legal settlement, (vii) relocation expense, and (viii) 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: 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® 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, that (i) we are well positioned to navigate a challenging demand environment; (ii) by remaining focused on executing against our flexible manufacturing model, we expect to preserve profitability and a strong balance sheet; (iii) we expect to maintain and gain share through innovation; and (iv) based on the softer demand trends we have seen across the industry in recent months, we have reduced our expectations for the second half of fiscal 2025, and for our third quarter, we expect our top line to be approximately 10
Contact:
investorrelations@smith-wesson.com
(413) 747-3448
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| As of: | ||||||
| October 31, 2024 | April 30, 2024 | |||||
| (In thousands, except par value and share data) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 39,093 | $ | 60,839 | ||
| Accounts receivable, net of allowances for credit losses of | ||||||
| October 31, 2024 and | 52,707 | 59,071 | ||||
| Inventories | 196,035 | 160,500 | ||||
| Prepaid expenses and other current assets | 10,112 | 4,973 | ||||
| Income tax receivable | 8,120 | 2,495 | ||||
| Total current assets | 306,067 | 287,878 | | |||
| Property, plant, and equipment, net | 244,452 | 252,633 | ||||
| Intangibles, net | 2,523 | 2,598 | ||||
| Goodwill | 19,024 | 19,024 | ||||
| Deferred income taxes | 7,249 | 7,249 | ||||
| Other assets | 8,128 | 8,614 | ||||
| Total assets | $ | 587,443 | $ | 577,996 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 31,627 | $ | 41,831 | ||
| Accrued expenses and deferred revenue | 29,979 | 26,811 | ||||
| Accrued payroll and incentives | 13,198 | 17,147 | ||||
| Accrued profit sharing | 892 | 9,098 | ||||
| Accrued warranty | 1,485 | 1,813 | ||||
| Total current liabilities | 77,181 | 96,700 | ||||
| Notes and loans payable | 98,994 | 39,880 | ||||
| Finance lease payable, net of current portion | 34,578 | 35,404 | ||||
| Other non-current liabilities | 7,625 | 7,852 | ||||
| Total liabilities | 218,378 | 179,836 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Preferred stock, | ||||||
| or outstanding | - | - | ||||
| Common stock, | ||||||
| issued and 44,219,627 shares outstanding on October 31, 2024 and 75,395,490 | ||||||
| shares issued and 45,561,569 shares outstanding on April 30, 2024 | 76 | 75 | ||||
| Additional paid-in capital | 293,362 | 289,994 | ||||
| Retained earnings | 531,000 | 540,660 | ||||
| Accumulated other comprehensive income | 73 | 73 | ||||
| Treasury stock, at cost (31,458,221 shares on October 31, 2024 and | ||||||
| 29,833,921 shares on April 30, 2024) | (455,446 | ) | (432,642 | ) | ||
| Total stockholders' equity | 369,065 | 398,160 | ||||
| Total liabilities and stockholders' equity | $ | 587,443 | $ | 577,996 | ||
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
| For the Three Months Ended October 31, | For the Six Months Ended October 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (In thousands, except per share data) | ||||||||||||
| Net sales | $ | 129,679 | $ | 124,958 | $ | 218,013 | $ | 239,201 | ||||
| Cost of sales | 95,133 | 93,192 | 159,276 | 177,034 | ||||||||
| Gross profit | 34,546 | 31,766 | 58,737 | 62,167 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 2,221 | 1,724 | 4,736 | 3,522 | ||||||||
| Selling, marketing, and distribution | 9,574 | 10,952 | 19,411 | 20,993 | ||||||||
| General and administrative | 15,779 | 15,322 | 29,480 | 29,536 | ||||||||
| Total operating expenses | 27,574 | 27,998 | 53,627 | 54,051 | ||||||||
| Operating income | 6,972 | 3,768 | 5,110 | 8,116 | ||||||||
| Other (expense)/income, net: | ||||||||||||
| Other (expense)/income, net | (5 | ) | 141 | (11 | ) | 188 | ||||||
| Interest expense, net | (1,419 | ) | (646 | ) | (2,152 | ) | (492 | ) | ||||
| Total other expense, net | (1,424 | ) | (505 | ) | (2,163 | ) | (304 | ) | ||||
| Income from operations before income taxes | 5,548 | 3,263 | 2,947 | 7,812 | ||||||||
| Income tax expense | 1,414 | 765 | 921 | 2,196 | ||||||||
| Net income | $ | 4,134 | $ | 2,498 | $ | 2,026 | $ | 5,616 | ||||
| Net income per share: | ||||||||||||
| Basic - net income | $ | 0.09 | $ | 0.05 | $ | 0.05 | $ | 0.12 | ||||
| Diluted - net income | $ | 0.09 | $ | 0.05 | $ | 0.04 | $ | 0.12 | ||||
| Weighted average number of common shares outstanding: | ||||||||||||
| Basic | 44,523 | 45,977 | 44,922 | 46,042 | ||||||||
| Diluted | 44,935 | 46,361 | 45,404 | 46,458 | ||||||||
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Six Months Ended October 31, | ||||||
| 2024 | 2023 | |||||
| (In thousands) | ||||||
| Cash flows from operating activities: | ||||||
| Net income | $ | 2,026 | $ | 5,616 | ||
| Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | ||||||
| Depreciation and amortization | 16,261 | 17,327 | ||||
| (Gain)/loss on sale/disposition of assets | (139 | ) | 682 | |||
| Provision for losses/(recoveries) on notes and accounts receivable | - | (1 | ) | |||
| Stock-based compensation expense | 3,722 | 2,759 | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | 6,364 | (4,619 | ) | |||
| Inventories | (35,535 | ) | 13,827 | |||
| Prepaid expenses and other current assets | (5,139 | ) | (4,953 | ) | ||
| Income taxes | (5,625 | ) | (5,178 | ) | ||
| Accounts payable | (10,135 | ) | 14,682 | |||
| Accrued payroll and incentives | (3,949 | ) | 1,324 | |||
| Accrued profit sharing | (8,206 | ) | (6,699 | ) | ||
| Accrued expenses and deferred revenue | 2,212 | 2,859 | ||||
| Accrued warranty | (328 | ) | (92 | ) | ||
| Other assets | 486 | 397 | ||||
| Other non-current liabilities | (227 | ) | (175 | ) | ||
| Net cash (used in)/provided by operating activities | (38,212 | ) | 37,756 | |||
| Cash flows from investing activities: | ||||||
| Payments to acquire patents and software | (112 | ) | (125 | ) | ||
| Proceeds from sale of property and equipment | 237 | 45 | ||||
| Payments to acquire property and equipment | (8,004 | ) | (66,983 | ) | ||
| Net cash used in investing activities | (7,879 | ) | (67,063 | ) | ||
| Cash flows from financing activities: | ||||||
| Proceeds from loans and notes payable | 60,000 | 50,000 | ||||
| Cash paid for debt issuance costs | (941 | ) | - | |||
| Payments on finance lease obligation | (89 | ) | (681 | ) | ||
| Payments on notes and loans payable | - | (10,000 | ) | |||
| Payments to acquire treasury stock | (22,620 | ) | (8,212 | ) | ||
| Dividend distribution | (11,652 | ) | (11,080 | ) | ||
| Proceeds to acquire common stock from employee stock purchase plan | 749 | 722 | ||||
| Payment of employee withholding tax related to | ||||||
| restricted stock units | (1,102 | ) | (806 | ) | ||
| Net cash provided by financing activities | 24,345 | 19,943 | ||||
| Net decrease in cash and cash equivalents | (21,746 | ) | (9,364 | ) | ||
| Cash and cash equivalents, beginning of period | 60,839 | 53,556 | ||||
| Cash and cash equivalents, end of period | $ | 39,093 | $ | 44,192 | ||
| Supplemental disclosure of cash flow information | ||||||
| Cash paid for: | ||||||
| Interest, net of amounts capitalized | $ | 2,353 | $ | 1,725 | ||
| Income taxes | $ | 6,785 | $ | 7,353 | ||
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, 2024 | October 31, 2023 | October 31, 2024 | October 31, 2023 | |||||||||||||||||||||
| $ | % of Sales | $ | % of Sales | $ | % of Sales | $ | % of Sales | |||||||||||||||||
| GAAP net sales | $ | 129,679 | $ | 124,958 | $ | 218,013 | $ | 239,201 | ||||||||||||||||
| Relocation | (2,554) | - | - | (4,213 | ) | - | - | |||||||||||||||||
| Settlement | - | - | 70 | - | ||||||||||||||||||||
| Non-GAAP net sales | $ | 127,125 | $ | 124,958 | $ | 213,870 | $ | 239,201 | | |||||||||||||||
| GAAP gross profit | $ | 34,546 | $ | 31,766 | $ | 58,737 | $ | 62,167 | ||||||||||||||||
| Relocation expenses | 552 | 409 | 1,734 | 1,312 | ||||||||||||||||||||
| Settlement | 70 | 3,200 | 70 | 3,200 | ||||||||||||||||||||
| Non-GAAP gross profit | $ | 35,168 | $ | 35,375 | $ | 60,541 | $ | 66,679 | ||||||||||||||||
| GAAP operating expenses | $ | 27,574 | $ | 27,998 | $ | 53,627 | $ | 54,051 | ||||||||||||||||
| Spin related stock-based | ||||||||||||||||||||||||
| compensation | - | (3 | ) | - | (7 | ) | ||||||||||||||||||
| Relocation expenses | (312) | - | (1,652 | ) | - | (437 | ) | - | (4,661 | ) | - | |||||||||||||
| Non-GAAP operating expenses | $ | 27,262 | $ | 26,343 | $ | 53,190 | $ | 49,383 | | |||||||||||||||
| GAAP operating income | $ | 6,972 | $ | 3,768 | $ | 5,110 | $ | 8,116 | ||||||||||||||||
| Settlement | 70 | 3,200 | 70 | 3,200 | ||||||||||||||||||||
| Spin related stock-based | ||||||||||||||||||||||||
| compensation | - | 3 | - | 7 | ||||||||||||||||||||
| Relocation expenses | 864 | 2,061 | 2,171 | 5,973 | ||||||||||||||||||||
| Non-GAAP operating income | $ | 7,906 | $ | 9,032 | $ | 7,351 | $ | 17,296 | ||||||||||||||||
| GAAP net income | $ | 4,134 | $ | 2,498 | $ | 2,026 | $ | 5,616 | ||||||||||||||||
| Settlement | 70 | 3,200 | 70 | 3,200 | ||||||||||||||||||||
| Spin related stock-based | ||||||||||||||||||||||||
| compensation | - | 3 | - | 7 | ||||||||||||||||||||
| Relocation expenses | 864 | 2,061 | 2,171 | 5,973 | ||||||||||||||||||||
| Tax effect of non-GAAP | ||||||||||||||||||||||||
| adjustments | (238) | - | (1,234 | ) | - | (700 | ) | - | (2,580 | ) | - | |||||||||||||
| Non-GAAP net income | $ | 4,830 | $ | 6,528 | $ | 3,567 | $ | 12,216 | ||||||||||||||||
| GAAP net income per share - diluted | $ | 0.09 | $ | 0.05 | $ | 0.04 | $ | 0.12 | ||||||||||||||||
| Settlement | - | 0.07 | - | 0.07 | ||||||||||||||||||||
| Spin related stock-based | ||||||||||||||||||||||||
| compensation | - | - | - | - | ||||||||||||||||||||
| Relocation expenses | 0.02 | 0.04 | 0.05 | 0.13 | ||||||||||||||||||||
| Tax effect of non-GAAP | ||||||||||||||||||||||||
| adjustments | (0.01) | (0.03 | ) | (0.02 | ) | (0.06 | ) | |||||||||||||||||
| Non-GAAP net income per | ||||||||||||||||||||||||
| share - diluted | $ | 0.11 | (a) | $ | 0.14 | (a) | $ | 0.08 | (a) | $ | 0.26 | |||||||||||||
| (a) Non-GAAP net income per share does not foot due to rounding. | ||||||||||||||||||||||||
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS
(in thousands)
(Unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||
| October 31, 2024 | October 31, 2023 | October 31, 2024 | October 31, 2023 | |||||||||
| GAAP net income | $ | 4,134 | $ | 2,498 | $ | 2,026 | $ | 5,616 | ||||
| Interest expense | 2,081 | 1,233 | 3,527 | 1,788 | ||||||||
| Income tax expense | 1,414 | 765 | 921 | 2,196 | ||||||||
| Depreciation and amortization | 8,181 | 7,972 | 16,206 | 17,203 | ||||||||
| Stock-based compensation expense | 1,869 | 1,484 | 3,722 | 2,759 | ||||||||
| Settlement | 70 | 3,200 | 70 | 3,200 | ||||||||
| Relocation expense | 738 | 2,195 | 1,913 | 4,113 | ||||||||
| Non-GAAP Adjusted EBITDAS | $ | 18,487 | $ | 19,347 | $ | 28,385 | $ | 36,875 | ||||
| Non-GAAP Adjusted EBITDAS Margin | ||||||||||||
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(In thousands)
(Unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||
| October 31, 2024 | October 31, 2023 | October 31, 2024 | October 31, 2023 | |||||||||
| Net cash (used in)/provided by operating activities | $ | (7,397 | ) | $ | (2,874 | ) | $ | (38,212 | ) | $ | 37,756 | |
| Payments to acquire property and equipment | (3,302 | ) | (34,926 | ) | (8,004 | ) | (66,983 | ) | ||||
| Free cash flow | $ | (10,699 | ) | $ | (37,800 | ) | $ | (46,216 | ) | $ | (29,227 | ) |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232540
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