Core Viewpoint - Smith & Wesson Brands, Inc. is set to release its second quarter fiscal 2025 financial results on December 5, 2024, after market close [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and webcast on the same day, featuring key executives including the President and CEO, Mark Smith, and CFO, Deana McPherson [2] - The conference call is scheduled to begin at 5:00 p.m. Eastern Time [2] Group 2: Participation Details - Interested parties in North America can join the call by dialing 1-877-704-4453, while international participants can call 1-201-389-0920 [3] - Participants are advised to dial in at least 10 minutes prior to the start of the call [3] Group 3: Company Overview - Smith & Wesson Brands, Inc. is a leader in firearm manufacturing and design, offering a wide range of products including handguns, long guns, and suppressors under the Smith & Wesson® and Gemtech® brands [4] - The company also provides manufacturing services such as forging, machining, and precision plastic injection molding [4]

It is time to return to the land of Americana. There are few brands that are more iconically American than Smith & Wesson Brands (NASDAQ: SWBI ). REITer's Digest is a discussion forum for my thoughts on investments. I spent more than ten years working in the real estate industry, including an S&P500 REIT and a Big Four consulting group. I am light-hearted, openminded, and a student of the game. Investing is not for the faint of heart and we're in this together... Analyst's Disclosure: I/we have no stock, op ...

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $88.3 million, down $25.9 million or 22.7% compared to the prior year [13] - Gross margin improved to 27.4%, up 0.8% from the same quarter last year, driven by increased production absorption and lower relocation costs [14] - Operating expenses were flat at $26.1 million compared to the prior year, but increased when excluding a prior year impairment [15] - The company reported a net loss of $2.1 million or $0.05 loss per share, with a non-GAAP loss per share of $0.02 [15] Business Line Data and Key Metrics Changes - ASPs for long guns increased nearly 32% year-over-year, primarily driven by the success of the 1854 lever action rifle [7] - Handgun ASPs decreased over 9% due to promotional activities and a shift towards lower-priced products [7] - New product introductions accounted for over 41% of sales in Q1, indicating strong performance in the new product portfolio [8] Market Data and Key Metrics Changes - Adjusted NICS was down 3% year-over-year, although there was a 4% increase in July, mainly driven by the hunting category [6] - Channel inventory remained stable, with overall inventory about 12% higher than last year but nearly 30% below two years ago [19] Company Strategy and Development Direction - The company aims to grow sales and earnings over fiscal 2024, despite a challenging environment [5] - A new $50 million share repurchase program was authorized to enhance shareholder value [11][18] - The company is focusing on innovation and operational excellence, with significant capacity expansion planned for popular new products [9][12] Management's Comments on Operating Environment and Future Outlook - Management noted that firearms demand was softer than anticipated but expected a rebound as the fall season approaches [5] - The company remains confident in achieving mid to high single-digit revenue growth for the full year compared to fiscal 2024 [19] - Management highlighted improved foot traffic in August, indicating a potential recovery in demand [19] Other Important Information - Cash used in operations was $30.8 million, compared to cash generated of $40.6 million in the prior year [16] - The company expects to achieve low 30s gross margins for the full year due to increased operating days in the second half [19] Q&A Session Summary Question: Inventory management and confidence in Q2 - Management indicated that the majority of the inventory increase was in finished goods and expressed confidence in moving inventory in Q2 due to strong August performance [21] Question: ASP increase in long guns - The increase in long gun ASPs was primarily driven by the 1854 model, with expectations for normalization in the second half of the year [22] Question: Competitive environment and pricing strategies - Management noted that promotional activity is expected to continue but is not anticipated to be as aggressive as during the summer [23] Question: Demand for different product categories - The Bodyguard product line has been well received, fitting into a barbell strategy alongside higher-end products like the 1854 [24] Question: Revenue outlook and growth confidence - Management expressed confidence in achieving mid to high single-digit growth, citing historical seasonal patterns and increased capacity coming online [27][29]

Financial Performance - Net sales for the three months ended July 31, 2024, were $88.3 million, a decrease of $25.9 million, or 22.7%, compared to the same quarter last year[62] - The company reported a net loss of $2.1 million, or $0.05 per share, compared to net income of $3.1 million, or $0.07 per diluted share, in the prior year[62] - Operating loss for the quarter was $1.9 million, a decrease of $6.2 million from the prior year, resulting in an operating margin of -2.1%[69] Sales Performance - Handgun sales decreased by $32.8 million, or 38.1%, primarily due to lower consumer demand, despite new product shipments representing 36.1% of handgun sales[64] - Long gun sales increased by $5.9 million, or 31.6%, driven by new product shipments that accounted for 70.0% of long gun sales[65] Gross Margin and Expenses - Gross margin improved to 27.4% from 26.6% in the comparable quarter last year, attributed to favorable fixed-cost absorption and a price increase[66] - Research and development expenses rose by $716,000, or 39.8%, due to higher materials and testing costs associated with new product development[68] Cash Flow and Capital Expenditures - Cash used in operating activities was $30.8 million, significantly impacted by a $29.3 million increase in inventory[75] - The company expects to spend between $25 million and $30 million on capital expenditures in fiscal 2025[76] - Cash provided by financing activities was $10.2 million, primarily from $30 million in borrowings under the revolving line of credit[77] Debt and Financing - As of July 31, 2024, the company had $70.0 million of borrowings outstanding on the Revolving Line, bearing interest at an average rate of 7.19%[80] - The Missouri Lease amounts to $46.2 million with an effective interest rate of approximately 5.0%, payable in 240 monthly installments through fiscal 2039[78] - The company has an option to increase the Revolving Line by an aggregate amount not exceeding $50.0 million, subject to certain terms and conditions[79] - The credit agreement includes financial covenants related to maintaining maximum leverage and minimum debt service coverage, with compliance as of July 31, 2024[80] Shareholder Returns - The company repurchased 870,669 shares of common stock for $12.9 million during the three months ended July 31, 2024[81] - A regular quarterly dividend of $0.13 per share was authorized for stockholders, payable on October 3, 2024[81] Liquidity and Capital Resources - As of July 31, 2024, the company had $35.5 million in cash and cash equivalents on hand, indicating adequate capital resources for at least the next 12 months[83] - The company may face limitations on capital requirements due to factors such as net sales and product development spending[82] Lease Agreements - The company recognized $878,000 of related income from the Missouri Lease during the three months ended July 31, 2024[78] - The Missouri Sublease was terminated as of January 1, 2024, following an amendment in July 2022 that increased the subleased space to 64.7% of the facility[78]

Core Viewpoint - Smith & Wesson Brands, Inc. reported a decline in net sales for Q1 fiscal 2025, but the company remains optimistic about future growth due to a rebound in demand and new product launches [1][4]. Financial Performance - Q1 net sales were $88.3 million, a decrease of $25.9 million, or 22.7%, compared to the same quarter last year [2][3]. - Gross margin improved to 27.4% from 26.6% in the comparable quarter last year [2]. - The company reported a GAAP net loss of $2.1 million, or $0.05 per share, compared to a net income of $3.1 million, or $0.07 per diluted share, for the same quarter last year [2][3]. - Non-GAAP net loss was $1.0 million, or $0.02 per share, compared to non-GAAP net income of $6.1 million, or $0.13 per diluted share, for the same quarter last year [3][16]. - Adjusted EBITDAS was $9.9 million, representing an 11.2% margin, down from $17.5 million, or 15.3% margin, in the same quarter last year [3][18]. Strategic Initiatives - The Board of Directors authorized a new $50 million stock repurchase program to be executed over the next twelve months [1][4]. - The company plans to pay a quarterly dividend of $0.13 per share on October 3, 2024, to stockholders of record on September 19, 2024 [4][7]. Market Outlook - The CEO noted that while firearms demand was softer than expected in the summer, there are signs of recovery as the company enters the busy fall season [4]. - The launch of the Bodyguard 2.0 conceal carry pistol has exceeded expectations, contributing to a positive outlook for future sales [4]. - The CFO expressed confidence that Q2 sales will significantly grow compared to Q1, with full-year revenue expected to increase in the mid-to-high single digits compared to fiscal 2024 [4].

Smith & Wesson Brands, Inc. SWBI is set to release earnings results for its first quarter, after the closing bell on Thursday, Sept. 5. Analysts expect the Maryville, Tennessee-based company to report a quarterly loss at 2 cents per share, versus a year-ago profit of 7 cents per share. Smith & Wesson Brands projects to report quarterly revenue of $102.53 million for the quarter, according to data from Benzinga Pro. On June 20, Smith & Wesson reported quarterly earnings of 45 cents per share, which beat the ...

Maryville, Tennessee--(Newsfile Corp. - August 22, 2024) - Smith & Wesson Brands, Inc. (NASDAQ: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced it plans to release its first quarter fiscal 2025 financial results on Thursday, September 5, 2024, after the close of the market. The full text of the press release will be available on the Smith & Wesson Brands, Inc. web site at www.smith-wesson.com under the Investor Relations section. The company will host a conference call and we ...

After a near-two-year bull market, we may be nearing the end. The Federal Reserve is still whistling past the graveyard of a recession, hoping to bring the economy in for a soft landing. So although the stock market might not crash, there is a good chance we see a decent pullback. After reaching a new all-time high two weeks ago, the S&P 500 is down 4%. While investors are crossing their fingers we don't have a correction, it is always prudent to plan for the worst and hope for the best. That suggests it is ...

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) Q4 2024 Earnings Conference Call June 21, 2024 5:00 PM ET Company Participants Kevin Maxwell - General Counsel Mark Smith - President & Chief Executive Officer Deana McPherson - Chief Financial Officer Conference Call Participants Mark Smith - Lake Street Capital Matthew Raab - Craig-Hallum Operator Good day, everyone, and welcome to Smith & Wesson Brands, Inc. Fourth Quarter and Full Fiscal 2024 Financial Results Conference Call. This call is being recorded. At thi ...

Financial Performance - Net sales for fiscal 2024 reached $535.8 million, an increase of $56.6 million, or 11.8%, compared to fiscal 2023[222]. - Gross profit increased by $3.6 million, or 2.3%, but gross margin decreased by 2.7% due to unfavorable fixed-cost absorption and inflation impacts[222][228]. - Net income for fiscal 2024 was $39.6 million, or $0.86 per diluted share, compared to $36.9 million, or $0.80 per diluted share, in the prior year[222]. - Operating income decreased by $3.6 million, or 7.5%, primarily due to an accrued legal settlement and increased promotional spending[231]. - Other income surged to $6.7 million, a significant increase of 4360.3%, mainly from the sale of intangible assets[232]. - Interest expense rose by $1.7 million, or 521.2%, due to higher average outstanding debt balances[233]. - The effective tax rate decreased to 19.8% from 23.5% in the prior year, influenced by a favorable adjustment related to foreign derived income deductions[234]. - Net income for fiscal year 2024 was $39.6 million, an increase of $2.7 million or 7.4% from 2023[235]. - Basic and diluted net income per share increased to $0.86, up 7.5% from $0.80 in the previous year[235]. Cash Flow and Investments - Cash provided by operating activities was $106.7 million, a significant increase of $90.0 million or 537.9% compared to fiscal 2023[236][238]. - Cash used in investing activities decreased by $8.3 million to $(81.5) million, primarily due to $6.5 million received from the sale of intangible assets[236][239]. - Cash used in financing activities was $(18.0) million, compared to cash provided of $5.9 million in fiscal 2023, mainly due to $22.0 million in dividend distributions[236][240]. - The company expects to spend between $25.0 million and $30.0 million on capital expenditures in fiscal 2025[239]. Capital Expenditures and Projects - The company incurred capital expenditures of approximately $157.0 million related to the relocation project, with total expected costs between $160.0 million and $170.0 million[222]. Sales Performance - Sales of handguns increased by $21.2 million, or 5.9%, while long guns saw a significant increase of $42.3 million, or 56.9%[224][226]. - New products accounted for 27.6% of net sales for the 12 months ended April 30, 2024, including one new pistol and three new long guns[227]. Debt and Credit Facilities - As of April 30, 2024, the company had $40.0 million in borrowings outstanding on its revolving line of credit, with an average interest rate of 7.18%[244]. - The company maintains compliance with all debt covenants as of April 30, 2024[244]. - The company has a $100.0 million revolving line of credit with variable interest rates based on the Base Rate or SOFR rate plus an applicable margin[268]. - The company amended its credit agreement on April 28, 2023, replacing LIBOR with SOFR as the interest rate benchmark[268]. - The amendment also changed the definition of "Consolidated Fixed Charge Coverage Ratio" to exclude unfinanced capital expenditures related to the Relocation[268]. Shareholder Actions - The company authorized a share repurchase program of $50.0 million, purchasing 793,551 shares for $10.2 million during fiscal 2024[245]. Economic and Operational Challenges - Inflationary pressures have increased costs for components and labor, expected to continue impacting operations in fiscal 2025[249].