Sportsman’s Warehouse(US:SPWH)2024-12-10 21:10Financial Performance - Net sales for Q3 2024 were $324.3 million, a decrease of 4.8% from $340.6 million in Q3 2023, primarily due to consumer inflationary pressures affecting discretionary spending [4]. - Same store sales decreased by 5.7% in Q3 2024 compared to Q3 2023, driven by inflation and recessionary concerns [4]. - Gross profit was $103.1 million, representing 31.8% of net sales, an increase from 30.3% in Q3 2023, attributed to improved product margins in apparel and footwear [4]. - For the first nine months of fiscal year 2024, net sales were $857.2 million, down 6.6% from $917.6 million in the same period of 2023 [6]. - Net sales for the thirteen weeks ended November 2, 2024, were $324,261, a decrease of 4.8% from $340,569 for the same period last year [23]. - For the thirty-nine weeks ended November 2, 2024, net sales were $857,235, down 6.6% from $917,593 in the prior year [25]. Expenses and Losses - SG&A expenses were $100.0 million, or 30.8% of net sales, slightly up from 29.4% in Q3 2023 [5]. - The net loss for Q3 2024 was $(0.4) million, an improvement from a net loss of $(1.3) million in Q3 2023 [5]. - Operating expenses decreased slightly to $99,973, representing 30.8% of net sales, compared to 29.4% last year [23]. - Net loss for the thirteen weeks ended November 2, 2024, was $(364), an improvement from a net loss of $(1,331) in the same period last year [23]. - Loss from operations for the thirty-nine weeks ended November 2, 2024, was $(21,835), compared to $(17,404) in the same period last year [25]. - The company reported a net loss of $364,000 for the period ending November 2, 2024, compared to a net loss of $1,331,000 for the period ending October 28, 2023 [32]. - The company reported an adjusted net loss of $1,351,000 for the period ending November 2, 2024, compared to an adjusted net loss of $(198,000) for the period ending October 28, 2023 [32]. EBITDA and Profitability - Adjusted EBITDA for Q3 2024 was $16.4 million, compared to $16.2 million in Q3 2023 [5]. - Adjusted EBITDA for the period ending November 2, 2024, was $16,380,000, slightly up from $16,231,000 for the period ending October 28, 2023 [36]. Debt and Liquidity - As of November 2, 2024, the company had net debt of $151.3 million and total liquidity of $150.8 million [7][9]. - Total liabilities increased to $724,115 as of November 2, 2024, from $621,649 as of February 3, 2024 [26]. - Cash and cash equivalents decreased to $2,666 as of November 2, 2024, from $3,141 at the beginning of the period [29]. - The company reported a net cash used in operating activities of $(18,671) for the thirty-nine weeks ended November 2, 2024, compared to $(16,637) in the prior year [29]. Future Outlook - The company expects fiscal year 2024 net sales to be between $1.18 billion and $1.20 billion, with adjusted EBITDA projected between $23 million and $29 million [10]. - The company plans to open one new store in fiscal year 2025, with no new store openings anticipated for the remainder of fiscal year 2024 [10]. Other Costs and Expenses - The company incurred $1,750,000 in legal settlement costs during the period ending November 2, 2024 [36]. - Director and officer transition costs amounted to $279,000 for the period ending November 2, 2024, down from $1,180,000 for the period ending October 28, 2023 [36]. - The company recognized $205,000 in expenses related to a cancelled contract for the period ending November 2, 2024 [36]. - The total depreciation and amortization expense was $9,984,000 for the period ending November 2, 2024, compared to $10,663,000 for the period ending October 28, 2023 [36]. - Interest expense decreased to $3,317,000 for the period ending November 2, 2024, from $3,944,000 for the period ending October 28, 2023 [36]. - The company implemented a cost reduction plan that resulted in $351,000 in severance expenses during the 13 weeks ended July 29, 2023 [33].