PART I [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for the three and nine months ended January 31, 2022 and 2021, including balance sheets, income, equity, and cash flows, with detailed notes Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Jan 31, 2022 | April 30, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $107,268 | $113,017 | | Inventories | $134,268 | $78,477 | | Total current assets | $300,676 | $268,253 | | Total assets | $469,305 | $446,388 | | Total current liabilities | $93,044 | $125,655 | | Total liabilities | $142,996 | $180,004 | | Total stockholders' equity | $326,309 | $266,384 | Condensed Consolidated Statements of Income Highlights (in thousands, except per share data) | Metric | Q3 FY2022 | Q3 FY2021 | YTD FY2022 | YTD FY2021 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $177,738 | $257,634 | $682,826 | $736,247 | | Gross profit | $70,399 | $109,679 | $302,336 | $303,174 | | Operating income from continuing operations | $39,722 | $80,381 | $205,001 | $203,500 | | Income from continuing operations | $30,542 | $62,263 | $158,359 | $154,679 | | Diluted EPS - continuing operations | $0.65 | $1.12 | $3.28 | $2.75 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Jan 31, 2022 | Nine Months Ended Jan 31, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $112,275 | $196,308 | | Net cash used in investing activities | ($15,211) | ($19,713) | | Net cash used in financing activities | ($102,813) | ($241,930) | | Net decrease in cash and cash equivalents | ($5,749) | ($65,335) | [Note 3 - Discontinued Operations](index=10&type=section&id=Note%203%20-%20Discontinued%20Operations) The company completed the spin-off of its outdoor products business (AOUT) on August 24, 2020, reporting its historical data as discontinued operations - The separation of the outdoor products and accessories business (AOUT) was completed on **August 24, 2020**, with AOUT becoming an independent, publicly traded company[29](index=29&type=chunk)[31](index=31&type=chunk) - For the nine months ended January 31, 2021, income from discontinued operations, net of tax, was **$8.3 million**[32](index=32&type=chunk)[34](index=34&type=chunk) [Note 9 - Stockholders' Equity](index=15&type=section&id=Note%209%20-%20Stockholders%27%20Equity) The company returned capital to shareholders through **$90.0 million** in stock repurchases, with diluted EPS from continuing operations at **$3.28** for the nine months - During the nine months ended January 31, 2022, the company completed two stock repurchase programs, buying back a total of **4,755,572 shares** for **$90.0 million** using cash on hand[56](index=56&type=chunk) Earnings Per Share (Continuing Operations) - Nine Months Ended Jan 31 | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Basic EPS | $3.32 | $2.79 | | Diluted EPS | $3.28 | $2.75 | [Note 10 - Commitments and Contingencies](index=17&type=section&id=Note%2010%20-%20Commitments%20and%20Contingencies) The company is involved in significant legal proceedings and is committed to a headquarters relocation to Tennessee, requiring substantial capital expenditures - The company is a defendant in multiple lawsuits, including actions by the Mexican Government and a putative class action regarding the M&P12 shotgun, believing the claims are without merit and intending to defend them aggressively[72](index=72&type=chunk)[73](index=73&type=chunk) - Announced a plan to move headquarters and significant operations to Maryville, Tennessee, committing to invest at least **$120.0 million** in capital expenditures by the end of 2025 and create no less than **620 new jobs**[79](index=79&type=chunk) - As part of the relocation, the company plans to vacate and sublease its Missouri distribution facility and relocate a portion of its Connecticut plastic injection molding operations[80](index=80&type=chunk)[81](index=81&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses decreased net sales, mixed gross margin performance, ongoing Tennessee relocation capital expenditures, and capital returns [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Net sales decreased in Q3 and the nine-month period due to normalizing firearm demand, with mixed gross margin performance and changes in operating expenses Net Sales by Product - Q3 (in thousands) | Product Line | Q3 FY2022 | Q3 FY2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Handguns | $132,921 | $183,106 | ($50,185) | -27.4% | | Long Guns | $29,459 | $61,581 | ($32,122) | -52.2% | | **Total Sales** | **$177,738** | **$257,634** | **($79,896)** | **-31.0%** | - The decrease in firearm demand from the prior year's quarter is attributed to a normalization following heightened demand driven by civil unrest, COVID restrictions, and fears of firearm restrictions in the prior period[89](index=89&type=chunk) Net Sales by Product - Nine Months (in thousands) | Product Line | YTD FY2022 | YTD FY2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Handguns | $488,303 | $509,315 | ($21,012) | -4.1% | | Long Guns | $157,470 | $191,416 | ($33,946) | -17.7% | | **Total Revenue** | **$682,826** | **$736,247** | **($53,421)** | **-7.3%** | - Gross margin for the nine months ended Jan 31, 2022 increased by **310 basis points** to **44.3%**, primarily due to price increases, favorable fixed cost absorption, and a shift to higher-margin products[101](index=101&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow decreased due to increased inventory, with cash used for stock repurchases and dividends, and significant capital expenditures planned Cash Flow Summary - Nine Months Ended Jan 31 (in thousands) | Activity | 2022 | 2021 | $ Change | | :--- | :--- | :--- | :--- | | Operating activities | $112,275 | $198,437 | ($86,162) | | Investing activities | ($15,211) | ($18,570) | $3,359 | | Financing activities | ($102,813) | ($241,764) | $138,951 | - Cash from operations was negatively impacted by a **$75.1 million** incremental increase in inventory as the company replenished stock and built for potential demand increases[115](index=115&type=chunk) - The company expects to spend an aggregate of not less than **$120.0 million** on capital expenditures for the Tennessee relocation on or before December 31, 2025[117](index=117&type=chunk) - During the nine months ended January 31, 2022, the company repurchased **$90.0 million** of its common stock and distributed **$11.4 million** in dividends[118](index=118&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no engagement in or outstanding forward option contracts during the period ended January 31, 2022 - During the period ended January 31, 2022, the company did not enter into or have any outstanding forward option contracts[129](index=129&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of January 31, 2022, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that as of January 31, 2022, the company's disclosure controls and procedures were effective[130](index=130&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[131](index=131&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the detailed discussion of legal proceedings from Note 10 of the financial statements - Information regarding legal proceedings is incorporated by reference from Note 10—Commitments and Contingencies in the financial statements section of this report[134](index=134&type=chunk) [Risk Factors](index=30&type=section&id=Item%201.A%20Risk%20Factors) The company outlines significant risks associated with its planned relocation to Maryville, Tennessee, including budget overruns, delays, and workforce challenges - The company identifies several risks related to its planned relocation to Maryville, Tennessee, announced on September 30, 2021[135](index=135&type=chunk) - Key risks include not completing the relocation on time or within budget, failing to meet spending and hiring commitments required for incentives, and experiencing business disruption due to loss of historical knowledge and challenges in recruiting and retaining employees[137](index=137&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activities, including the completion of two programs totaling **$90.0 million** in buybacks during the nine months Share Repurchases - Nine Months Ended Jan 31, 2022 | Total Shares Purchased | Average Price Paid Per Share | Total Cost (in thousands) | | :--- | :--- | :--- | | 4,755,572 | $18.91 | $90,000 | - The company completed a **$100.0 million** stock repurchase program (authorized March 2021) and a subsequent **$50.0 million** program (authorized June 2021) during the nine months ended January 31, 2022[138](index=138&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section states that the exhibits filed with this Quarterly Report on Form 10-Q are listed in the accompanying Index to Exhibits - The exhibits filed with this report are listed on the Index to Exhibits[139](index=139&type=chunk)[141](index=141&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q2 was $230.5 million, a decrease of $18.3 million or 7.3% from the prior year, with nearly $13 million of this decline attributed to the discontinuation of the Thompson/Center product line [7][8] - Gross margin increased to 44.3%, up 370 basis points from 40.6% in the prior year, driven by price increases and a favorable product mix [10] - Net income increased by $1.8 million, resulting in GAAP earnings per share of $1.05 compared to $0.87 in the prior year, and non-GAAP earnings per share of $1.13 compared to $0.93 [11][12] Business Line Data and Key Metrics Changes - The decline in revenue reflects an easing of demand after an 18-month consumer surge, although revenue remains over 140% higher than two years ago [8] - Operating expenses were flat at $36.6 million, including $4.5 million related to the relocation to Tennessee [11] Market Data and Key Metrics Changes - Adjusted NICS background checks were the second highest ever, up 10% compared to the last big surge in Q2 of FY '17, indicating continued consumer interest in firearms [22] - Distributors currently have approximately 15 weeks of supply in the channel, which is higher than the target of 8 weeks, reflecting a replenishment after last year's depletion [13][36] Company Strategy and Development Direction - The company is focused on long-term success and maintaining strong financial performance despite cyclical demand in the firearms industry [18] - Plans to relocate headquarters and certain operations to Tennessee are underway, with a new facility expected to enhance operational efficiency [24] Management's Comments on Operating Environment and Future Outlook - Management anticipates that third-quarter sales will be lower than the previous year due to normalized demand and higher inventory levels [14] - The company plans to continue investing in operations and returning capital to shareholders, maintaining a quarterly dividend [15] Other Important Information - The company did not repurchase any shares during the quarter and ended with $159.4 million in cash and no bank debt [12] Q&A Session Summary Question: Revenue slowdown and production-related delays - Management indicated that the revenue decline was primarily due to market normalization rather than production delays, with one week of shutdown included in Q2 [27][28] Question: Pricing outlook for the rest of the year - Management expects average selling prices (ASPs) to be influenced by product mix and recent price increases, projecting ASPs to be between Q2 and Q3 of the previous year [29] Question: Changes in pricing due to inventory replenishment - Management noted that while there is some normal activity, the focus remains on providing value rather than reducing prices [34] Question: Legal expenses and potential litigation risks - Management stated that legal expenses are consistent with previous years and do not anticipate any changes in litigation risks [37] Question: Impact of shotgun recall on product line expansion - Management confirmed that the recall did not alter plans for expanding the shotgun category, emphasizing a commitment to product quality [41] Question: Production decline and revenue modeling - Management advised that a 27% decline in production would likely correlate with a decrease in revenue, but inventory build-up would complicate the calculation [48]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2021 Commission File No. 001-31552 Smith & Wesson Brands, Inc. (Exact name of registrant as specified in its charter) Nevada 87-0543688 (State or other jurisdiction of incorporation or organization) 2100 Ro ...

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) Q1 2022 Earnings Conference Call September 1, 2021 5:00 PM ET Company Representatives Mark Smith - President, Chief Executive Officer Deana McPherson - Chief Financial Officer Chris Scott - Acting General Counsel Conference Call Participants Mark Smith - Lake Street Capital Scott Stember - CL King Cai von Rumohr - Cowen Operator Good day, everyone and welcome to Smith & Wesson Brands, Inc., First Quarter Fiscal 2022 Financial Results Conference Call. This call is be ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2021 Commission File No. 001-31552 Smith & Wesson Brands, Inc. (Exact name of registrant as specified in its charter) Nevada 87-0543688 (State or other jurisdiction of incorporation or organization) 2100 Roose ...

Financial Data and Key Metrics Changes - The company achieved record revenue of nearly $323 million in Q4 2021, marking a 67.3% increase year-over-year, and surpassed $1 billion in total revenue for the fiscal year, doubling the previous year's sales of $529 million [11][19] - Net income for Q4 was over $89 million, and for the full year, it reached nearly $244 million, both representing new high watermarks for the company [11][24] - Gross margin for Q4 was 45.1%, significantly up from 32.2% in the prior year, while the full year gross margin was 42.4%, compared to 31.3% in fiscal 2020 [20][21] Business Line Data and Key Metrics Changes - The company shipped nearly 2.5 million units in the last fiscal year, a 70% increase year-over-year, while the U.S. firearms market, as measured by NICS, grew by 42% [12] - The introduction of the Shield Plus contributed to strong performance in Q4, with significant sales recorded shortly after its launch [18] Market Data and Key Metrics Changes - The firearms market remains active, with May 2021 recording the second-highest adjusted NICS checks ever, indicating sustained consumer interest despite a deceleration compared to the previous year [51] - Distributor inventory levels are low, with only one week of supply remaining, indicating a need for restocking in the market [27][72] Company Strategy and Development Direction - The company is focused on being a pure-play firearms manufacturer, with plans to launch 12 new products in the upcoming year, indicating a strategic approach to product development [15][31] - A renewed emphasis on marketing and connecting with new firearm owners has been established, including the GUNSMARTS program and a redesigned website [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in labor availability but noted that the HR team has successfully implemented creative strategies to attract workers [41] - The company intends to remain net cash positive and debt-free, with a strategy to reinvest in the business and return cash to shareholders through dividends and stock buybacks [43][44] Other Important Information - The company announced a 60% increase in its quarterly dividend and a new share repurchase program of up to $50 million [26] - The company has fully accrued for a special bonus of over $14 million to employees, reflecting its commitment to employee welfare [10] Q&A Session Summary Question: Additional details on new products, specifically Shield Plus - Management indicated that new products are strategically launched due to capacity constraints, with a healthy pipeline of new products planned for the upcoming year [31] Question: Insights on average selling price (ASP) increases - There has been no pushback on pricing, attributed to capacity constraints and inflation impacts, with ASP increases driven by a lack of promotional activity [32] Question: Availability of labor - Labor availability remains a challenge, but the HR team has been proactive in addressing this issue [41] Question: Balance sheet strategy in a cyclical industry - The company intends to remain net cash positive and debt-free, with a focus on reinvesting in the business and returning cash to shareholders [43][44] Question: Manufacturing capacity and shipment growth - Management clarified that Q4 shipment growth was supported by inventory preparations for new product launches, and future capacity will be influenced by demand levels [67][72] Question: Attitudes towards firearm usage among new owners - There is a strong interest among new firearm owners in using their products, with ongoing efforts to engage and educate them [57] Question: Impact of ammunition shortages on sales - The ammunition shortage remains a headwind for firearm sales, but it also indicates continued interest in shooting sports [60]

Part I [Business](index=5&type=section&id=Item%201.%20Business) Smith & Wesson, a leading U.S. firearms manufacturer, drives organic growth, quality, and efficiency, with strong FY21 demand [Introduction](index=5&type=section&id=Introduction) Smith & Wesson, a leading global firearms manufacturer, spun off its outdoor products business in August 2020 - The company is a major manufacturer of a wide array of firearms and related products for consumer, law enforcement, and military customers worldwide[13](index=13&type=chunk) - On **August 24, 2020**, the company completed the spin-off of its outdoor products and accessories business, now reported as discontinued operations[14](index=14&type=chunk) [Strategy](index=6&type=section&id=Strategy) The company seeks market leadership through organic growth, quality, efficiency, and maximizing capital returns - Core strategies include driving **organic growth** via brand leverage and new products, focusing on **high-quality firearms**, streamlining operations, and maximizing **return on invested capital** through investments, dividends, and share repurchases[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - In fiscal 2021, the company generated **$317.3 million** in cash from operations, used to repay all debt, invest in capacity, pay its first dividend, and repurchase **$110 million** of stock[23](index=23&type=chunk) [Products](index=7&type=section&id=Products) The company offers a broad firearms portfolio under Smith & Wesson and M&P, introducing new products and divesting Thompson/Center Arms - The company is a leader in the revolver market and a leader in the polymer pistol market with its **M&P brand**, introduced in **2005**[25](index=25&type=chunk) - In fiscal 2021, the **M&P Shield Plus**, a high-capacity micro-compact pistol for concealed carry, was a notable new product introduction[29](index=29&type=chunk) - The company plans to divest its **Thompson/Center Arms** brand, focusing hunting and long-range shooting under the **Smith & Wesson** brand[47](index=47&type=chunk) Financial Performance (Continuing Operations) | Fiscal Year Ended April 30 | Net Sales | Gross Profit | Total Assets (End of Period) | | :--- | :--- | :--- | :--- | | 2021 | $1.1 billion | $449.0 million | $446.4 million | | 2020 | $529.6 million | $165.7 million | $486.4 million | | 2019 | $481.3 million | $146.3 million | N/A | [Marketing, Sales, and Distribution](index=10&type=section&id=Marketing%2C%20Sales%2C%20and%20Distribution) The company uses multi-channel sales, with top distributors at **43.4%** of sales, and diverse marketing including **GUNSMARTS** - The top five U.S. commercial distributors accounted for **43.4%** of net sales from continuing operations in fiscal 2021[53](index=53&type=chunk) - International sales represented **2%** of net sales from continuing operations in fiscal 2021, a decrease from **4%** in 2020 and **5%** in 2019[55](index=55&type=chunk) - The **SMITH & WESSON GUNSMARTS** program, a YouTube video series, was launched to educate new firearm owners on safety and usage[59](index=59&type=chunk) [Human Capital](index=15&type=section&id=Human%20Capital) As of **May 31, 2021**, the company employed **2,240** individuals, demonstrating strong safety and a diverse workforce - As of **May 31, 2021**, the company employed **2,240** people, with voluntary turnover less than **2%** and an average tenure of **7.6 years**[101](index=101&type=chunk)[93](index=93&type=chunk) - The company's safety performance is strong, with a calendar year **2020 Total Recordable Incident Rate (TRIR)** of **1.1**, below the OSHA industry average of **2.1** for 2019[97](index=97&type=chunk) Workforce Demographics (as of April 30, 2021) | Category | Percentage | | :--- | :--- | | **Gender** | | | Male | 76% | | Female | 24% | | **Ethnicity** | | | Caucasian | 59% | | Hispanic/Latino/Latina | 27% | | Black | 10% | | Other/Undisclosed | 4% | [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks from economic, regulatory, social, political, operational, legal, and spin-off challenges - The business is highly sensitive to economic, social, political, and legislative factors, with demand surges and softening periods influenced by election concerns and potential gun control legislation[111](index=111&type=chunk)[112](index=112&type=chunk) - Extensive regulation by the **ATF** and various state and local laws poses significant risk, with legislative changes like magazine capacity restrictions or **PLCAA** repeal potentially harming the business[115](index=115&type=chunk)[119](index=119&type=chunk) - Critical dependence on the **Springfield, Massachusetts** manufacturing facility and **Columbia, Missouri** distribution center means any disruption could severely impact operations[133](index=133&type=chunk)[136](index=136&type=chunk) - Social activist pressure on financial institutions, vendors, and customers to cease business with firearms manufacturers poses risks to relationships and brand reputation[204](index=204&type=chunk) - The **AOUT** spin-off may not achieve expected benefits, resulting in a smaller, less diversified company, with potential risk of substantial tax liability if deemed a taxable event[214](index=214&type=chunk)[215](index=215&type=chunk) [Properties](index=37&type=section&id=Item%202.%20Properties) Principal properties include owned manufacturing plants in MA and ME, a leased plant in CT, and a leased distribution center in MO Principal Operating Properties | Location | Facility Type | Ownership | | :--- | :--- | :--- | | Springfield, MA | Executive Offices & Plant | Owned | | Houlton, ME | Plant | Owned | | Deep River, CT | Plant | Leased | | Columbia, MO | Office & Warehouse | Leased | Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=38&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) SWBI common stock trades on Nasdaq; the company initiated a **$8.2 million** dividend and repurchased **$110 million** in shares in FY21 - The company's common stock trades on the **Nasdaq Global Select Market** under the ticker **SWBI**[226](index=226&type=chunk) - A quarterly dividend policy was initiated post-spin-off, with total dividends of **$8.2 million** paid in fiscal 2021[228](index=228&type=chunk) Fiscal 2021 Common Stock Repurchases | Period | Total Shares Purchased | Average Price Per Share | Total Cost | | :--- | :--- | :--- | :--- | | Dec 1, 2020 - Jan 31, 2021 | 2,737,489 | $18.24 | ~$50.0M | | Mar 1, 2021 - Apr 30, 2021 | 3,380,447 | $17.73 | ~$60.0M | | **Total** | **6,117,936** | **$17.96** | **~$110.0M** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=41&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY21 was a record year with net sales doubling to **$1.1 billion**, gross margin at **42.4%**, and net income surging to **$243.6 million**, enabling debt repayment and shareholder returns [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Net sales doubled to **$1.1 billion** in FY21 due to consumer demand, improving gross margin to **42.4%** and surging operating income to **$319.6 million** Net Sales by Product Category (in thousands) | Product Category | FY 2021 | FY 2020 | % Change | | :--- | :--- | :--- | :--- | | Handguns | $755,735 | $390,711 | 93.4% | | Long Guns | $253,340 | $101,540 | 149.5% | | Other Products & Services | $50,120 | $37,367 | 34.1% | | **Total Revenue** | **$1,059,195** | **$529,618** | **100.0%** | Profitability Metrics | Metric | FY 2021 | FY 2020 | | :--- | :--- | :--- | | Gross Profit | $449.0M | $165.7M | | Gross Margin | 42.4% | 31.3% | | Operating Income | $319.6M | $50.3M | | Operating Margin | 30.2% | 9.5% | - Increased sales and margins were driven by heightened consumer demand, attributed to concerns over the **COVID-19 pandemic**, personal protection, and potential new firearm regulations[242](index=242&type=chunk) - New products accounted for **17.3%** of net sales for fiscal 2021[248](index=248&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) FY21 liquidity strengthened with **$317.3 million** operating cash flow, used to repay debt, fund a distribution, and repurchase **$110.0 million** in stock, resulting in no outstanding debt Cash Flow Summary (in thousands) | Cash Flow Activity | FY 2021 | FY 2020 | | :--- | :--- | :--- | | Operating Activities | $317,260 | $80,835 | | Investing Activities | ($22,261) | ($12,084) | | Financing Activities | ($303,758) | $3,380 | - Cash used in financing activities primarily consisted of a net repayment of **$160.0 million** on its credit facility and **$110.0 million** in share repurchases[277](index=277&type=chunk) - As of **April 30, 2021**, the company had no outstanding indebtedness and maintained a **$100.0 million** unsecured revolving line of credit[280](index=280&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%209A.%20Controls%20and%20Procedures) Disclosure controls were effective as of **April 30, 2021**, with a prior material weakness in goodwill impairment analysis successfully remediated in FY21 - Management concluded that disclosure controls and procedures were effective as of **April 30, 2021**[301](index=301&type=chunk) - A material weakness in goodwill impairment analysis, disclosed in fiscal **2020**, was remediated as of **April 30, 2021**[307](index=307&type=chunk)[308](index=308&type=chunk) Part III [Directors, Executive Officers, Compensation, Security Ownership, and Accountant Fees](index=52&type=section&id=Items%2010-14) Information for Items 10-14, covering directors, executive compensation, security ownership, and accountant fees, is incorporated by reference from the **2021 Proxy Statement** - Information for **Items 10, 11, 12, 13, and 14** is incorporated by reference from the company's definitive Proxy Statement for the **2021 Annual Meeting of Stockholders**[316](index=316&type=chunk)[317](index=317&type=chunk)[318](index=318&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=53&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits filed with the Form 10-K, including key **AOUT** spin-off and credit facility agreements - Lists all exhibits filed with the Form 10-K, including key agreements related to the **AOUT** spin-off and the company's credit facility[324](index=324&type=chunk)[325](index=325&type=chunk) Consolidated Financial Statements [Notes to Consolidated Financial Statements](index=65&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the **AOUT** spin-off, debt repayment, significant share repurchases, dividend initiation, and ongoing litigation, supplementing financial statements - **Discontinued Operations:** The spin-off of the outdoor products and accessories business (**AOUT**) was completed on **August 24, 2020**, with historical financial data presented as discontinued operations, including a **$25.0 million** cash distribution to **AOUT**[409](index=409&type=chunk)[412](index=412&type=chunk) - **Financing:** As of **April 30, 2021**, the company had no outstanding borrowings on its **$100.0 million** revolving line of credit[432](index=432&type=chunk) - **Share Repurchases:** In fiscal 2021, the company repurchased **6,117,936 shares** for **$110.0 million**, and an additional **1,967,420 shares** for **$40.0 million** post-fiscal year-end[457](index=457&type=chunk) - **Litigation:** The company is a defendant in multiple product liability cases, a dispute with **Gemini Technologies** over the **Gemtech** acquisition earn-out, and co-defendant in cases related to shootings in **Gary, Indiana**, **Parkland, Florida**, **Toronto, Canada**, and **Poway, California**[498](index=498&type=chunk)[499](index=499&type=chunk)[500](index=500&type=chunk)

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) Q3 2021 Earnings Conference Call March 4, 2021 5:00 PM ET Company Participants Robert Cicero - General Counsel Mark Smith - Chief Executive Officer Deana McPherson - Chief Financial Officer Conference Call Participants Cai von Rumohr - Cowen & Company Mark Smith - Lake Street Capital Scott Stember - CL King Rommel Dionisio - Aegis Capital Operator Good day, everyone, and welcome to Smith & Wesson Brands Inc. Third Quarter Fiscal 2021 Financial Results Conference Cal ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2021 Commission File No. 001-31552 Smith & Wesson Brands, Inc. (Exact name of registrant as specified in its charter) Nevada 87-0543688 (State or other jurisdiction of incorporation or organization) 2100 Ro ...

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) Q2 2021 Earnings Conference Call December 3, 2020 5:00 PM ET Company Participants Robert Cicero - General Counsel Mark Smith - CEO Deana McPherson - CFO Conference Call Participants Scott Stember - CL King Steve Dyer - Craig-Hallum Mark Smith - Lake Street Capital Rommel Dionisio - Aegis Capital Scott McCrery - Cowen James Hardiman - Wedbush Securities Operator Good day, everyone, and welcome to Smith & Wesson Brands, Inc. Second Quarter Fiscal 2021 Financial Result ...