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 ...

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) Q1 2021 Earnings Conference Call September 3, 2020 5:00 PM ET Company Participants Robert Cicero - SVP, General Counsel, Chief Compliance Officer, and Secretary Mark Smith - President and Chief Executive Officer Deana McPherson - EVP and Chief Financial Officer Conference Call Participants Scott Stember - C.L. King Cai von Rumohr - Cowen James Hardiman - Wedbush Securities Steve Dyer - Craig-Hallum Mark Smith - Lake Street Capital Markets Operator Good day, everyone ...