Smith & Wesson Brands(SWBI) - 2024 Q3 - Quarterly Results

Financial Performance - Q3 net sales reached $137.5 million, an increase of $8.4 million or 6.5% compared to the same quarter last year[5] - Q3 gross margin was 28.7%, down from 32.4% in the comparable quarter last year[5] - GAAP net income for Q3 was $7.9 million, or $0.17 per diluted share, compared to $11.1 million, or $0.24 per diluted share, in the same quarter last year[5] - Non-GAAP net income for Q3 was $8.7 million, or $0.19 per diluted share, compared to $11.6 million, or $0.25 per diluted share, in the same quarter last year[5] - For the nine months ended January 31, 2024, net income decreased to $13,499,000 from $24,039,000 in the same period last year, representing a decline of 43.5%[16] - Non-GAAP net income for the nine months ended January 31, 2024, was $21,309,000, down from $28,627,000 in the same period last year, a decrease of 25.7%[17] - GAAP operating income for the nine months ended January 31, 2024, was $19,400,000, down from $30,579,000 in the same period last year, a decrease of 36.3%[17] - Non-GAAP Adjusted EBITDAS for the nine months ended January 31, 2024, was $58,327,000, down from $66,372,000 in the same period last year, a decrease of 12.1%[18] Cash Flow and Assets - Cash generated by operations was $25.4 million, an increase of $18.5 million from the previous year, primarily due to a $9.8 million decline in inventory[4] - The company reported a net cash provided by operating activities of $63,123,000 for the nine months ended January 31, 2024, compared to a net cash used of $(21,248,000) in the prior year[19] - Free cash flow for the nine months ended January 31, 2024, was $(22,065,000), a significant decline from $(86,000) in the same period last year[19] - Cash and cash equivalents at the end of the period were $47,367,000, compared to $44,596,000 at the end of the previous year[16] - The company reported a net decrease in cash and cash equivalents of $(6,189,000) for the nine months ended January 31, 2024, compared to $(76,132,000) in the prior year[16] - The company incurred $85,188,000 in payments to acquire property and equipment for the nine months ended January 31, 2024, an increase from $64,586,000 in the prior year[16] Shareholder Returns - The company repurchased nearly 71,000 shares during Q3, utilizing $916,000 of its $50 million authorization[4] - The board of directors authorized a quarterly dividend of $0.12 per share, payable on April 4, 2024[4] Market Outlook - The company expects healthy demand in the firearm market through the 2024 election cycle, supported by a deep pipeline of new products[9] Balance Sheet - Total assets as of January 31, 2024, were $570.6 million, an increase from $541.3 million as of April 30, 2023[12] - Total liabilities increased to $194.1 million as of January 31, 2024, compared to $156.7 million as of April 30, 2023[12] Gross Profit - GAAP gross profit for the three months ended January 31, 2024, was $39,424,000, accounting for 28.7% of sales, compared to $41,841,000 or 32.4% of sales in the prior year[17]