美国
证券交易委员会
华盛顿特区 20549
表格
根据1934年证券交易法第13或15(d)条款的季度报告。 |
根据1934年证券交易法第13或15(d)条款的过渡报告 |
截至2024年6月30日季度结束
委员会档案号码。
（依凭章程所载的完整登记名称）
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(依据所在地或其他管辖区) 的注册地或组织地点) |
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(国税局雇主 识别号码) |
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(总部办公地址) |
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(邮递区号) |
(
(注册人电话号码，包括区号)
根据本法第 12 (b) 条注册的证券：
每个类别的标题 |
交易符号 |
注册的交易所名称 |
勾选表示登记商：(1) 是否已在过去12个月内（或登记商需提交报告的较短期间内）依照1934年证券交易法第13条或第15(d)条的规定提交所有报告?，并且(2) 在过去90天内已受过此等报告要求的条款约束。
用勾选方式表示，注册人在过去12个月（或注册人需提交此类文件的较短期间）已向适用法规S-t条例405条的提交每一个互动数据文件。
请勾选指示登记者是否为大型快速提交人、快速提交人、非快速提交人、较小的报告公司或新兴成长型公司。请参阅交易所法规120亿2条，了解「大型快速提交人」、「快速提交人」、「较小的报告公司」和「新兴成长型公司」的定义。
大型加速归档人 |
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非加速归档人 |
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小型报告公司 |
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新兴成长型企业 |
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如果是新兴成长公司，请用勾选表示该注册人已选择不使用根据《交易所法》第13(a)条提供的任何新的或修订的财务会计标准的扩展过渡期来遵守。 ☐
请在核取方框内表明公司是否为空壳公司（根据交易所法规120亿2号所定义）。 是 ☐ 否
截至2024年7月26日，注册人名下拥有2,177,417,976股普通股。
史密斯威森品牌有限公司。
十进二文件10-Q的季度报告
截至2024年和2023年10月31日的三个月和六个月
目录
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4 |
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25 |
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27 |
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Smith & Wesson®, S&W®, M&P®, M&P Shield®, Performance Center®, Airlite®, Airweight®, American Guardians®, Armornite®, Arrow®, Aurora®, Aurora-II®, Blast Jacket®, Bodyguard®, Carry Comp®, Chiefs Special®, Club 1852®, Competitor®, CSX®, Dagger®, E-Series®, EZ®, Flexmag®, G-Core®, Gemtech®, Gemtech Suppressors®, GM®, Gm-S1®, GMt-Halo®, Governor®, GVAC®, Integra®, Lady Smith®, Lever Lock®, Lunar®, M&P FPC®, M2.0®, Magnum®, Mist-22®, Mountain Gun®, Protected by Smith & Wesson®, Put A Legend On Your Line®, Quickmount®, Shield®, Silence is Golden®, Smith & Wesson Collectors Association®, Smith & Wesson Performance Center®, Smith & Wesson Precision Components®, Smith & Wesson Response®, SW Equalizer®, SW22 Victory®, TEMPO®, The S&W Bench®, The Sigma Series®, Trek®, Volunteer®, 和 Weather Shield® 是我们公司或其子公司的一些注册美国商标。本报告还可能包含其他公司的商标和商号。
关于前瞻性信息声明
本季度报告（表格10-Q）中包含的陈述中，非纯历史性的陈述是根据《1933年证券法》第27A节及《1934年证券交易法》第21E节（简称《交易所法》）的定义属于前瞻性陈述。除本季度报告（表格10-Q）中包含或引用的历史事实陈述外，所有其他陈述，包括关于我们未来经营结果、未来财务状况、业务策略、目标、计划、前景、市场以及未来运营计划和目标的陈述，均为前瞻性陈述。在某些情况下，您可以通过诸如“预期”、“相信”、“估计”、“期望”、“意图”、“目标”、“考虑”、“项目”、“预测”、“可能”、“或许”、“计划”、“将”、“会”、“应该”、“能够”、“潜在”、“继续”、“目标”或这些术语的否定形式或类似表达来识别前瞻性陈述。然而，并非所有的前瞻性陈述都包含这些识别性词语。本季度报告（表格10-Q）中的具体前瞻性陈述包括关于计划在2024年12月搬离康涅狄格州深河设施的声明；我们当前的信念表明，利用深河设施的资产没有减值迹象；根据此处定义的转让和承担协议，未来期间预计的未折现现金流；我们未来期间所有经营租赁和融资租赁的租金支付；我们期望与未归属的限制性股票单位（RSUs）和绩效股票单位（PSUs）相关的未确认补偿费用将在平均剩余合同期1.6年内确认；我们相信，双子星（此处定义）针对我们提出的其余索赔没有依据，并且我们打算积极捍卫这一行动；我们对承诺和意外事件-诉讼部分所述的某些问题的看法是指控毫无根据，并且，任何事件及其结果或任何伤害均归因于索赔人或第三方的疏忽或误用火器；我们相信，我们在产品责任案件和索赔方面的提存是一种合理的量化衡量，反映了我们承担的产品责任案件和索赔的成本；我们相信，不利结果或长期诉讼可能对我们的业务造成损害；我们相信，我们在面临的诉讼中正在积极捍卫自己；我们得出的结论是，我们无法合理估计与这些诉讼有关的材料不利判决的可能性或合理可能损失的预估区间，并且我们决定不为这些诉讼中的判决提存；我们相信，我们已提供足够的费用提存来支付辩护费用；我们意图在与田纳西州玛丽维尔的新设施相关的情况下，在2025年12月31日或之前，承担或导致总资本支出不少于12000万美元，创造不少于620个新工作岗位，并维持该设施的平均时薪至少为25.97美元；我们预计，在增加机械和设备成本时，到2025财年结束时将支出在16500万美元到17000万美元之间；我们相信，内部和分销渠道的存货水平超过需求可能对未来的经营结果产生负面影响；我们预计，在财政年度剩余时间内我们的存货水平将下降；我们对2025财年的资本支出期望；影响我们未来资本需求的因素；在可接受的条款下的股权或债务融资的可用性，或者说根本没有；我们的股息的记录日期和支付日期；以及我们相信我们的现有资本资源和信贷设施将足以支持我们未来12个月的运营。本报告中包含的所有前瞻性陈述均基于截至本日期我们所掌握的信息，仅就该日期发言。除法律要求外，我们不承担更新任何前瞻性陈述的义务，以反映该日期之后的事件或情况。本季度报告（表格10-Q）中包含或引用的前瞻性陈述反映了我们截至本日期对应未来事件的看法，并且受到可能导致我们实际结果、表现或成就与任何前瞻性陈述中表达或暗示的结果显著不同的风险、不确定性、假设和情况变化的影响。尽管我们认为前瞻性陈述中反映的期望是合理的，但我们无法保证未来事件、结果、表现或成就的实现。多个因素可能导致实际结果与前瞻性陈述指示的结果大相径庭。这些因素包括但不限于经济、政治、社会、立法、监管、通货膨胀和健康因素；2024年选举的结果；对火器和火器相关产品的监管可能增加；社会活动家的行动可能对我们的业务产生不利影响；诉讼的影响；我们产品的需求；美国经济整体以及火器行业的现状；一般经济条件和消费者支出模式；我们的竞争环境；原材料和元件的供应、可用性和成本；围绕恐怖主义和犯罪的恐惧的投机；我们预期的增长和增长机会；我们有效管理和执行搬迁的能力；我们在国内外各个市场，包括消费、执法和军工渠道，提高对我们产品的需求的能力；我们在新兴市场和现有市场的渗透率；我们的策略；我们维持和提升品牌认知度和声誉的能力；我们推出新产品的能力；新产品的成功；我们扩展市场的能力；我们未处理订单被取消的潜在情况；以及根据时间的推移在我们向证券交易委员会（SEC）提交的报告中详细说明的其他因素，包括截至2024年4月30日的财年的表格10-K年报，或2024财年的表格10-K。
P第一部分 — 财务信息
项目 1。 金融财务报表
史密斯&韦森品牌公司及其子公司
简明综合简明资产负债表
(未经审计)
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截至日期： |
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2024年10月31日 |
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2024年4月30日 |
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（在 千位，除面值和分享数据外) |
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资产 |
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流动资产: |
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现金及现金等价物 |
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$ |
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$ |
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应收账款，扣除信用损失准备金$ |
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存货 |
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预付费用及其他流动资产 |
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应付所得税款项 |
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流动资产总额 |
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不动产、厂房及设备，扣除折旧及摊销后净值 |
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无形资产净值 |
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商誉 |
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递延所得税 |
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其他资产 |
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总资产 |
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$ |
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$ |
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负债及股东权益 |
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流动负债： |
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应付账款 |
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$ |
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$ |
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应计费用和递延营业收入 |
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应计工资和激励 |
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应计利润分享 |
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应计保固责任 |
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流动负债总额 |
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应付票据及贷款（附注3） |
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融资租赁应付账款，扣除当前部分 |
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其他非流动负债 |
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总负债 |
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股东权益： |
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优先股，面额$0.01，授权股数为5,000,000股，发行且流通股数为截至2024年6月30日和2023年12月31日之184,668,188股和181,364,180股。 |
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0.01 |
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资本公积额额外增资 |
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保留盈余 |
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其他综合收益累积额 |
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库存股（ |
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股东权益总额 |
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负债总额及股东权益合计 |
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$ |
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$ |
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随附附注是这些简明综合财务报表的重要组成部分。
4
史密斯&韦森品牌公司及其子公司
总体简明财务报表 OF 收入
(未经审计)
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截至三个月结束 |
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截至六个月 |
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2024 |
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2023 |
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2024 |
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2023 |
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(以千为单位，除每股数据外) |
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营业净收入 |
$ |
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$ |
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$ |
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$ |
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销售成本 |
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毛利润 |
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营运费用： |
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研发 |
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销售、营销和分销 |
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一般及行政费用 |
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营业费用总额 |
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营业收入 |
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其他（费用）/收入，净 |
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其他 (费用)/收益，净额 |
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利息费用，净额 |
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总其他费用，净额 |
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营业税前收入 |
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所得税费用 |
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净利润 |
$ |
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$ |
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$ |
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$ |
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每股净利润： |
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基本-净利润 |
$ |
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$ |
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$ |
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$ |
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稀释后-净利润 |
$ |
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$ |
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$ |
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$ |
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流通的普通股加权平均数量： |
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基本 |
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摊薄 |
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随附附注是这些简明综合财务报表的重要组成部分。
5
史密斯&韦森品牌公司及其子公司
总体简明财务报表 OF 股东权益变动
(未经审计)
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累积的 |
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Common |
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追加 |
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其他 |
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总计 |
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股票 |
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已付资本 |
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保留 |
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综合 |
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库藏股 |
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股东的 |
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(单位: 千元) |
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股份 |
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金额 |
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资本 |
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盈余 |
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收入 |
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股份 |
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金额 |
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权益 |
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截至2023年7月31日的余额 |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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基于股票的薪酬 |
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— |
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— |
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— |
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— |
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— |
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— |
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员工购股计划下发行的股份。 |
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— |
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— |
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— |
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— |
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限制性普通股的发行 |
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— |
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— |
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— |
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— |
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— |
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回购库藏股 |
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— |
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— |
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— |
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— |
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— |
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未支付的分红派息 |
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— |
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— |
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— |
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— |
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— |
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— |
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已发放分红派息（每普通分享$0.12） |
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— |
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— |
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— |
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( |
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— |
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— |
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— |
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净利润 |
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— |
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— |
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— |
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— |
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— |
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— |
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|||
2023年10月31日结余 |
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$ |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
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截至2023年4月30日的余额 |
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$ |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
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|||||||
基于股票的薪酬 |
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— |
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— |
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— |
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— |
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— |
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— |
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员工发行的股份 |
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— |
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— |
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— |
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— |
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— |
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根据限制性股票的普通股发行 |
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— |
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( |
) |
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— |
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— |
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— |
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— |
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( |
) |
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回购库藏股 |
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— |
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— |
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— |
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— |
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— |
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( |
) |
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( |
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||||||
应计未支付的分红 |
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— |
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— |
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— |
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( |
) |
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— |
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— |
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— |
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( |
) |
||||||
分红派息（每股普通股$0.24） |
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— |
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— |
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— |
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( |
) |
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— |
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— |
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— |
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( |
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||||||
净利润 |
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— |
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— |
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— |
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— |
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— |
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— |
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|||
2023年10月31日结余 |
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|
$ |
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$ |
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|
$ |
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$ |
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$ |
( |
) |
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$ |
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|||||||
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||||||||
2024年7月31日结余 |
|
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|
$ |
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$ |
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|
$ |
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|
$ |
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|
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|
$ |
( |
) |
|
$ |
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|||||||
基于股票的薪酬 |
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— |
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— |
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— |
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— |
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— |
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— |
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||
员工发行的分享 |
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— |
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— |
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— |
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— |
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— |
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|||
限制性普通股的发行 |
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— |
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( |
) |
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— |
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— |
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— |
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— |
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( |
) |
|
回购库藏股 |
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— |
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— |
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— |
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— |
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— |
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( |
) |
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( |
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||||||
未支付的分红派息累计 |
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— |
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— |
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— |
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( |
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— |
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— |
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— |
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( |
) |
已发行分红派息（每普通分享$0.13） |
|
— |
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— |
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— |
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( |
) |
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— |
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— |
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— |
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( |
) |
|||||
净利润 |
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— |
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— |
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— |
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— |
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— |
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— |
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|||
截至2024年10月31日的余额 |
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|
$ |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
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|||||||
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||||||||
2024年4月30日结余 |
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|
$ |
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|
$ |
|
|
$ |
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|
$ |
|
|
|
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|
$ |
( |
) |
|
$ |
|
|||||||
基于股票的薪酬 |
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— |
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— |
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— |
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— |
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— |
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— |
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||
员工发行的股份 |
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— |
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— |
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— |
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— |
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— |
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|||
根据限制发行普通股 |
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( |
) |
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— |
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— |
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— |
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— |
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( |
) |
||
回购库藏股 |
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— |
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— |
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— |
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— |
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— |
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( |
) |
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( |
) |
||||||
未付的分红累计 |
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— |
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— |
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( |
) |
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— |
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— |
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|
— |
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( |
) |
每股分红派息（$0.26每普通股） |
|
— |
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|
— |
|
|
— |
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( |
) |
|
— |
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|
— |
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— |
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( |
) |
||||||
净利润 |
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|
— |
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— |
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— |
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|
— |
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|
— |
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— |
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|
|||
截至2024年10月31日的余额 |
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|
$ |
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$ |
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$ |
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|
$ |
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$ |
( |
) |
|
$ |
|
|||||||
随附附注是这些简明综合财务报表的重要组成部分。
6
史密斯&韦森品牌公司及其子公司
综合财务报表摘要现金流量表
(未经审计)
|
|
截至10月31日的六个月内 |
|
|||||
|
|
2024 |
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2023 |
|
||
|
|
(单位: 千元) |
|
|||||
经营活动现金流量： |
|
|
|
|
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|
||
净利润 |
|
$ |
|
|
$ |
|
||
调整净利润与经营活动所使用的/提供的净现金之间的差额： |
|
|
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|
||
折旧及摊销 |
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||
(收益)/资产销售/处置损失 |
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( |
) |
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|
应收账款的损失/(回收)准备 |
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( |
) |
|
股份报酬支出 |
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|
||
营运资产和负债的变化： |
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|
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|
||
应收账款 |
|
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|
( |
) |
|
存货 |
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( |
) |
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|
预付费用及其他流动资产 |
|
|
( |
) |
|
|
( |
) |
所得税 |
|
|
( |
) |
|
|
( |
) |
应付账款 |
|
|
( |
) |
|
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|
|
应计工资和激励 |
|
|
( |
) |
|
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|
|
应计利润分享 |
|
|
( |
) |
|
|
( |
) |
应计费用和递延营业收入 |
|
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|
||
应计保固责任 |
|
|
( |
) |
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( |
) |
其他资产 |
|
|
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|
||
其他非流动负债 |
|
|
( |
) |
|
|
( |
) |
经营活动产生之净现金流量 |
|
|
( |
) |
|
|
|
|
投资活动之现金流量: |
|
|
|
|
|
|
||
用于收购专利和软件的支出 |
|
|
( |
) |
|
|
( |
) |
产销土地及设备款项 |
|
|
|
|
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|
||
用于收购房地产和设备的支出 |
|
|
( |
) |
|
|
( |
) |
投资活动中使用的净现金 |
|
|
( |
) |
|
|
( |
) |
来自筹资活动的现金流量: |
|
|
|
|
|
|
||
贷款和应付票据的收益 |
|
|
|
|
|
|
||
支付债券发行成本的现金 |
|
|
( |
) |
|
|
|
|
融资租赁义务的支付 |
|
|
( |
) |
|
|
( |
) |
支付票据和应付款 |
|
|
|
|
|
( |
) |
|
支付用于收购库藏股的款项 |
|
|
( |
) |
|
|
( |
) |
分红派息 |
|
|
( |
) |
|
|
( |
) |
用于从员工股票购买计划中购买普通股的收益 |
|
|
|
|
|
|
||
支付与员工预扣税相关的费用 |
|
|
( |
) |
|
|
( |
) |
筹资活动提供的净现金 |
|
|
|
|
|
|
||
现金及现金等价物净减少额 |
|
|
( |
) |
|
|
( |
) |
期初现金及现金等价物 |
|
|
|
|
|
|
||
现金及现金等价物期末余额 |
|
$ |
|
|
$ |
|
||
现金流额外披露 |
|
|
|
|
|
|
||
支付现金： |
|
|
|
|
|
|
||
利息，扣除已 capitalized 的金额 |
|
$ |
|
|
$ |
|
||
所得税 |
|
$ |
|
|
$ |
|
||
随附附注是这些简明综合财务报表的重要组成部分。
7
史密斯威森品牌公司及其子公司
简明综合现金流量表 - （续）
（未经审计）
非现金投资活动的补充披露:
|
|
截至10月31日的六个月内 |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
(单位: 千元) |
|
|||||
购买的财产和设备包括在应付账款中 |
|
$ |
|
|
$ |
|
||
资本租赁包括在应计费用和融资租赁应付款中 |
|
|
|
|
|
|
||
随附附注是这些简明综合财务报表的重要组成部分。
8
史密斯&韦森品牌公司及其子公司
简明综合财务报表注释（未经查核）
截至2024年和2023年10月31日的三个月和六个月
(1) 组织：
我们是世界领先的枪械制造商和设计师之一。我们制造各种手枪（包括左轮手枪和自动手枪）、长枪（包括现代运动步枪、手枪口径卡宾枪和杠杆式步枪）、手铐、枪械消声器，以及其他与枪械相关的产品，销售给包括枪械爱好者、收藏家、猎人、运动员、竞技射手、寻求家居和个人保护的个人、执法和安防-半导体机构及其官员，以及美国和全球的军工-半导体机构等各种客户。我们以Smith & Wesson和Gemtech品牌销售我们的产品。我们在马萨诸塞州斯普林菲尔德、缅因州霍尔顿， 康涅狄格州深河； 以及田纳西州玛丽维尔。我们还向其他企业出售我们的制造服务，以试图平衡我们工厂的负载。我们以Smith & Wesson和Smith & Wesson Precision Components品牌出售这些服务。在2024财年，我们开始在新的玛丽维尔设施进行制造和分销活动。在截至2024年10月31日的季度中，我们出于在2024年12月腾出场地的预期，停止了我们在康涅狄格州设施的运营。请参见第8条 - 承诺事项和或有事项 和第9条 - 重组 有关更多信息，请参见At-the-Market Equity Issuance Program。
(2) 表示基础：
中期基本报表信息 – 截至2024年10月31日的简明合并资产负债表，2024年和2023年截至10月31日三个月和六个月的简明合并损益表，2024年和2023年截至10月31日三个月和六个月的简明合并股东权益变动表，以及2024年和2023年截至10月31日六个月的简明合并现金流量表均由我们编制，无需审计。我们认为，所有调整，包括仅为公正呈现财务状况、经营结果、股东权益变动和现金流量所需的正常经常性调整，均已包含在内。所有关联交易均在合并中被消除。截至2024年4月30日的合并资产负债表是基于我们审计过的合并基本报表得出的。
根据美国一般公认会计原则（GAAP）编制的基本报表中通常包含的某些信息和附注披露已被简化或省略。这些简明的合并基本报表应与我们2024财年10-K表中包含的合并基本报表及其附注一起阅读。2024年10月31日结束的三个月和六个月的经营结果 可能 可能不代表截至2025年4月30日财年结束时可能预期的结果。或其他任何时期。
最近发布的会计标准 – 在2023年11月，财务会计准则委员会（FASb）发布了会计准则更新（“ASU”）第2023-07号，改进可报告分部披露，要求对实体的可报告分部进行增量披露，但不改变分部的定义或确定可报告分部的指导。新指导要求披露显著的分部费用，这些费用（1）定期提供给（或易于从定期提供的信息计算）首席运营决策maker，以及（2）包含在报告的分部利润或损失的度量中。新标准还允许公司披露多个分部利润或损失的度量，如果这些度量用于评估绩效和分配资源。此更新对2023年12月15日后开始的财年生效，除非不可行，应当追溯采用。此更新将对我们生效，从我们的年报10-k表格开始，适用于截至2025年4月30日的财年及其后的中期。我们目前正在评估此次标准的采纳对基本报表的影响（如有）。
在2023年12月，FASb发布了ASU第2023-09号，改进所得税披露，要求实体在其税率调解表中披露关于联邦、州和外国所得税的额外类别信息，并在某些类别中提供更多的调解项目细节，如果这些项目满足定量阈值。实体必须提供有关新类别的定性披露。指导要求所有实体披露已支付的所得税，扣除退款，按联邦（国家）、州和外国税分列，并根据定量阈值分解信息。该指导对披露要求进行了其他几项更改。要求实体前瞻性地应用该指导，并可选择追溯应用。该指导对于2024年12月15日后开始的年度期间生效，或对于我们来说为2026财年。我们目前正在评估此次标准的采纳对基本报表的影响（如有）。
在2024年11月，FASB发布了ASU第2024-03号，收入报表费用的细分，要求实体在基本报表的附注中披露关于在收入报表中每个相关费用标题中包含的某些成本和费用的信息。实体还需要披露关于这些金额的定性描述。
9
史密斯&韦森品牌公司及其子公司
简明综合财务报表注释（未经查核）
截至2024年和2023年10月31日的三个月和六个月
在相关的费用标题中，未单独量化的部分。实体需要披露销售费用的总额，并在年度报告中，定义销售费用。实体应当前瞻性地应用该指导，选择性地可以追溯应用。 该指导适用于2026年12月15日之后开始的年度期间，或我们财政年度2028年。我们目前正在评估采纳该标准对财务披露的影响。
(3) 应付票据和贷款：
信贷贷款 — 在2020年8月24日，我们及某些子公司与包括TD Bank, N.A.（作为管理代理）、TD Securities（USA）LLC 和Regions Bank（作为联合主承销商和联合簿记人）在内的某些贷款人签署了修改和重述的信贷协议，即修改和重述的信贷协议。该协议提供了在任何时候可用的$
在2024年10月3日，我们及某些子公司与包括TD Bank, N.A.（作为管理代理）、TD Securities（USA）LLC 和Regions Bank（作为联合主承销商和联合簿记人）在内的某些贷款人签署了修改和重述的信贷协议，即第二份修改和重述的信贷协议。第二份修改和重述的信贷协议对修改和重述的信贷协议进行了修订和重述。第二份修改和重述的信贷协议目前没有担保；但是，如果发生任何触发事件（在第二份修改和重述的信贷协议中定义），我们及某些子公司将需要签署某些文件，以支持TD Bank, N.A.作为管理代理，作为这些文件相关方的贷款人将享有法律有效的优先权利，对其中描述的担保物享有可执行的优先权。
第二份修改和重述的信贷协议提供了$
截至2024年10月31日时，我们可供借款的金额为0万，包括我们的加拿大子设施，受借款基准限制限制，扣除未偿信用证
《第二次修订和重述的信用协议》包含习惯性的限制，包括对债务、留置权、业务或组织结构的根本变化、投资、贷款、预付款、担保、收购、资产出售、分红派息、股票回购、股票赎回以及其他债务的赎回或提前还款，以及与关联方的交易的限制。我们还受到财务契约的约束，包括最低合并固定费用覆盖比率和最大合并杠杆比率。截至2024年10月31日，我们遵守所有所需的财务契约。
信用状 — 截至2024年10月31日，我们有未到期的信用证总额为 $
10
史密斯&韦森品牌公司及其子公司
简明综合财务报表注释（未经查核）
截至2024年和2023年10月31日的三个月和六个月
(4) 公允价值计量：
我们遵循《会计准则汇编》，即ASC 820-10的规定， 公允价值计量和披露主题，或ASC 820-10，对我们的金融资产和负债进行计量。ASC 820-10提供了在GAAP下计量公允价值的框架，并要求扩展与公允价值计量相关的披露。ASC 820-10将公允价值定义为在计量日以有序交易的方式在市场参与者之间进行交易时，为资产获得的交换价格或为转移负债而支付的价格（即退出价格），该交易发生在资产或负债的主要或最有利市场中。ASC 820-10还建立了公允价值层次结构，要求实体在计量公允价值时最大限度地使用可观察输入，尽可能少使用不可观察输入。
在附带的合并资产负债表中记录的金融资产和负债根据估值技术的输入进行分类，如下所示：
第1级 — 其价值基于我们在计量日能够接触到的活跃市场中相同资产或负债的未经调整的报价（例如，活跃交易的股票证券、上市衍生品，以及大部分美国政府及其机构的证券）的金融资产和负债。
我们的现金及现金等价物定期以公允价值计量，总计$
第2级 — 金融资产和负债的价值基于在交易不频繁的市场中的报价，或者基于在活跃市场中具有相似属性的工具报价的价值。二级输入包括以下内容：
Level 3 — 基于价格或估值技术的金融资产和负债，其价值需要输入，且这些输入是不可观察的并且对整体公允价值测量是重要的。这些输入反映了我们对市场参与者在定价资产或负债时使用的假设的判断。
我们没有宣布在呈报期间派发任何分红。下表里提供共同股每股基本盈余和稀释盈余的计算方法，涉及2024年和2023年六月三十日结束三个月的财务报表。
(5) 库存：
下表概述了截至以下日期的库存，按照成本或净可变现价值中的较低者列示： 2024年10月31日和2024年4月30日（以千计）：
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2024年10月31日 |
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2024年4月30日 |
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成品 |
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$ |
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$ |
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成品部件 |
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在制品 |
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原材料 |
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库存总额 |
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$ |
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$ |
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11
史密斯&韦森品牌公司及其子公司
简明综合财务报表注释（未经查核）
截至2024年和2023年10月31日的三个月和六个月
(6) 应计费用和递延收入:
以下表格列出了截至2024年10月31日和2024年4月30日的其他应计费用（以千为单位）: 以下表格列出了截至2024年10月31日和2024年4月30日的其他应计费用（以千为单位）:
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2024年10月31日 |
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2024年4月30日 |
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应计专业费用 |
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$ |
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$ |
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除所得税外的其他应计税款 |
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应计和解 |
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应计员工福利 |
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累计分销商奖励 |
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融资租赁负债的当期部分 |
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累计折扣和促销 |
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营运租赁债务的流动部分 |
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应计其他款项 |
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总计已计提费用和递延营业收入 |
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$ |
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$ |
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(7) 股东权益:
库藏股
2023年9月19日，我们的董事会授权回购高达美元的普通股，须符合特定条件，在公开市场或私下协商的交易中，截至2024年9月19日或2023年授权。在2024财年，我们购买了美元。在2025财年，我们已经购买了美元。2023年授权于2024年9月19日到期。2024年9月5日，我们的董事会授权回购高达美元
在截至2024年10月31日的三个月内，我们共回购了
每股盈利
下表提供了净利润金额和用于确定基本和稀释每股收益的普通股和普通股等效股的加权平均数的调解 2024年和2023年10月31日结束的三个月（金额以千为单位，除每股数据外）：
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截至10月31日的三个月 |
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2024 |
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2023 |
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Net |
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每股盈余 |
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Net |
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每股盈余 |
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收入 |
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股份 |
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金额 |
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收入 |
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股份 |
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金额 |
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基本盈利 |
$ |
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$ |
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$ |
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$ |
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摊薄股份奖项的影响 |
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期末稀释每股收益 |
$ |
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$ |
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$ |
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$ |
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12
史密斯&韦森品牌公司及其子公司
简明综合财务报表注释（未经查核）
截至2024年和2023年10月31日的三个月和六个月
下表提供了截至2024年和2023年10月31日的六个月期间，净利润金额和用于判断基本和稀释每股收益的加权平均普通股及普通股等价分享数量的对账（以千为单位，除每股数据外）：
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截至10月31日的六个月， |
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2024 |
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2023 |
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Net |
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每股盈余 |
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Net |
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每股盈余 |
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收入 |
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股份 |
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金额 |
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收入 |
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股份 |
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金额 |
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基本盈利 |
$ |
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$ |
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$ |
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$ |
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摊薄股份奖项的影响 |
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( |
) |
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期末稀释每股收益 |
$ |
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$ |
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$ |
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$ |
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截至2024年和2023年10月31日的三个月，有
激励股票和员工股票购买计划
我们有两个股票激励计划：2013年激励股票计划和2022年激励股票计划，或称激励股票计划，员工和非员工可以在此计划下获得股票期权、限制性股票奖励、限制性股票单位、股票增值权、奖励股票和代替义务的奖励、绩效奖励及股息等价物。自从我们的股东在2022年9月的年度股东大会上批准2022年激励股票计划以来，2013年激励股票计划下未发放任何奖励。所有新的奖励都在2022年激励股票计划下发放。
我们有一个员工股票购买计划，或称ESPP，参与者在该计划中可在每个后续行使日期以折扣价购买我们的普通股，具体条款根据ESPP的定义而定，符合ESPP的条款。
总的基于股票的补偿费用，包括我们ESPP下的购买以及在激励股票计划下授予的限制性股票单位和基于绩效的限制性股票单位，或PSUs， 为 $
我们向员工和非员工董事会成员授予限制性股票单位。奖励是以零成本授予受款人。一个限制性股票单位代表获得一股普通股的权利，并不拥有投票或股息权利。除特定情况下外，授予员工的限制性股票单位在一段时间内归属。
我们向我们的执行官授予PSU，并不时向一些不是执行官的管理员工授予PSU。这些PSU在相应的
在截至2024年10月31日的六个月期间，我们授予了总共的
在截至2023年10月31日的六个月内我们授予了总共
13
史密斯&韦森品牌公司及其子公司
简明综合财务报表注释（未经查核）
截至2024年和2023年10月31日的三个月和六个月
未归属RSU和PSU的活动总结为 截至2024年和2023年10月31日的六个月活动如下：
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截至10月31日的六个月内 |
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2024 |
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2023 |
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加权 |
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加权 |
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总数 # 的 |
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平均值 |
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总数 # 的 |
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平均值 |
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受限制 |
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授予日期 |
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受限制 |
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授予日期 |
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股票单位 |
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公允价值 |
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股票单位 |
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公允价值 |
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期初尚未行使的RSU和PSU |
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$ |
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$ |
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授予 |
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已发行股票 |
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( |
) |
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( |
) |
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放弃 |
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( |
) |
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( |
) |
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期末尚未行使的RSU和PSU |
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||||
截至2024年10月31日，这里有$
(8) 承诺和或有事项：
诉讼
2018年1月，Gemini Technologies, Incorporated（以下简称Gemini）在美国爱达荷州地方法院对我们提起诉讼。起诉书指控我们违反了与Gemini达成的资产购买协议及相关协议中的收益条款及其他条款，涉及我们收购Gemtech业务的交易。起诉书请求法院就资产购买协议中的各种条款作出解释，并要求赔偿金额为$
我们是
14
史密斯&韦森品牌公司及其子公司
简明综合财务报表注释（未经查核）
截至2024年和2023年10月31日的三个月和六个月
我们是加拿大多伦多安大略省高等法院提起的假定集体诉讼的被告，该诉讼是在加拿大多伦多提起的
2020年5月，我们在一起与2019年4月发生的波威查巴德犹太教堂枪击事件有关的行动中被点名。该申诉是在加利福尼亚州中部圣地亚哥县高等法院提起的，并就产品责任、不正当竞争、疏忽和公共滋扰向我们提出索赔。原告声称他们在事件发生当天在犹太教堂并遭受了身体和/或情感上的伤害。原告寻求补偿性和惩罚性赔偿、律师费和禁令救济。2020年9月，我们提出了异议和罢工动议，试图驳回原告的申诉。2021年7月，法院部分批准了我们的动议，并部分推翻了该动议，裁定（1）《保护合法武器贸易法》禁止原告的产品责任诉讼；（2）原告没有资格维持根据《不正当竞争法》提起的人身伤害相关损害赔偿诉讼，但允许原告进行修改以辩护经济损失；以及（3）《保护武器合法贸易法》不禁止原告的普通过失和公共滋扰行为，因为原告指控我们违反了《美国法典》第 18 条922 (b) (4)，它通常禁止销售全自动 “机关枪”。2021 年 8 月，我们向加利福尼亚州上诉法院第四上诉区第一分庭提交了委托令状申请。2021 年 9 月，上诉法院驳回了我们的上诉。2022年2月，法院将该案合并为三起相关案件，我们不是这三起案件的当事方。2022年3月，法院批准了我们的动议，驳回了原告的《不正当竞争法》索赔，没有进一步的修改许可。2023 年 2 月 28 日，我们提出了即决判决动议。2023 年 5 月 19 日，法院无偏见地驳回了我们的即决判决动议，并允许原告有时间进行更多发现。我们重新提出的即决判决动议的听证会于2024年10月11日举行。探索正在进行中。2024 年 12 月 2 日，法院批准了我们重新提出的即决判决动议。
我们是向美国马萨诸塞特区地方法院提起的诉讼的被告。2021年8月，墨西哥政府对几家总部位于美国的枪支制造商和一家枪支分销商提起诉讼，声称被告以他们所知道的经常武装墨西哥毒品卡特尔的方式设计、营销、分销和销售枪支。除其他索赔外，原告指控所有被告存在疏忽、公共滋扰、设计缺陷、不当致富和赔偿以及仅针对我们的违反《马萨诸塞州消费者保护法》，并正在寻求金钱赔偿和禁令救济。2021年11月，被告提出动议，要求驳回原告的申诉。2022年9月，地方法院批准了被告的解雇动议。2022年10月，原告向美国第一巡回上诉法院提交了上诉通知书。2024年1月22日，第一巡回法院推翻了初审法院对该案的驳回。2024年4月18日，被告向美国最高法院提交了移审令申请。2024年8月7日，地方法院基于属人管辖权的理由驳回了对诉讼中八名被告中的六名（不包括我们）的诉讼。2024年10月4日，美国最高法院批准了被告的移审令申请。2024年10月31日，地方法院发布命令，在美国最高法院对该案进行审查之前，暂缓审理该案的全部案件。
2022年9月，我们在与2022年7月4日伊利诺伊州高地公园枪击事件有关的12起几乎相同的单独诉讼中被指定为被告。这些申诉是在伊利诺伊州莱克县第十九司法巡回法院提起的，并根据《伊利诺伊州消费者欺诈和欺骗性商业行为法》对我们提出过失、欺骗和不公平行为提出索赔。原告声称事件发生时他们正在游行，遭受了身体和/或情感伤害。原告要求赔偿性赔偿、律师费和禁令救济。我们向美国伊利诺伊州北区地方法院提出了撤销每起案件的动议。2022年11月，我们提出了一项动议，要求合并案件，以提出初步动议
15
史密斯&韦森品牌公司及其子公司
简明综合财务报表注释（未经查核）
截至2024年和2023年10月31日的三个月和六个月
目的。2022年12月，原告提出动议，要求将案件发回州法院。2023年9月，法院批准了原告的还押动议。2023 年 10 月，我们向美国第七巡回上诉法院提交了上诉通知书。2024年3月，向伊利诺伊州莱克县巡回法院提起了三起新诉讼。2024年4月8日，第七巡回法院确认了还押决定。2024年5月10日，原告提出动议，要求支付因驱逐而产生的律师费。2024年5月17日，我们对原告的动议提出了异议。迄今尚未发布任何决定。2024年6月和7月，地方法院将12起单独的诉讼发回州法院，一些原告修改了申诉，删除了违反联邦法律的内容，并对我们提出了其他索赔，包括指控违反《伊利诺伊州统一欺骗性贸易惯例法》、疏忽和故意造成情绪困扰以及疏忽委托的索赔。在同一时期，我们在同一州法院针对我们的另外13起单独案件中也被点名，对我们的指控与最初和经修订的申诉相似。2024年7月17日，初审法院合并了所有案件，目的是提出驳回和发现的动议。2024年9月16日，被告提出动议，要求驳回原告的25份单独申诉。
2022年12月，纽约州布法罗市向纽约州伊利县最高法院对众多枪支制造商、分销商和零售商提起诉讼。2022年12月下旬，纽约州罗切斯特市向纽约州门罗郡最高法院对同一被告提起了几乎相同的申诉。这些投诉指控违反《纽约通用商业法》、公共滋扰和违反纽约通用商业法的欺骗性商业行为。2023 年 1 月，我们向美国纽约西区地方法院提交了移交案件的通知。2023年3月24日，被告提出动议，要求暂停这两起案件，等待美国第二巡回上诉法院对NSSF诉詹姆斯案作出裁决。2023年6月8日，法院批准了被告的合并动议，并在NSSF诉詹姆斯案的上诉得到解决之前暂停审理。
我们认为，上述各种指控是没有根据的，此外，任何事件及其结果或任何伤害都是由于索赔人或第三方的疏忽或滥用枪支造成的。
2022年3月，两名原告代表2018年11月至今在斯普林菲尔德工厂工作的拟议一类现任和前任雇员和临时工提出索赔，指控不支付工资和加班费，违反了《马萨诸塞州工资法》和《马萨诸塞州公平工资法》。双方达成了和解协议，该协议于2024年3月15日获得法院的初步批准。2024年9月17日，初审法院法官下令最终批准和解协议。
此外，我们不时参与诉讼、索赔、调查和诉讼，包括在正常业务过程中出现的商业、环境、场所和雇佣事宜。
在个别案件中寻求的救济主要包括补偿性赔偿，有时还包括惩罚性赔偿。某些案件和索赔要求未指明的补偿性或惩罚性赔偿。在其他情况下，要求的补偿性损害赔偿金额可能低于美元
我们还参与了2023年12月5日在内华达州克拉克县第八司法地区法院提起的假定股东衍生品诉讼。该诉讼是由原告提起的，他们试图代表我们对我们的董事和某些执行官采取行动。该投诉指控我们因制造、营销和销售 “AR-15 式步枪” 而故意违反联邦、州和地方法律，故意允许我们承担重大责任，从而违反了信托义务。衍生原告代表我们向个别被告寻求赔偿，并对我们的合规程序和治理政策进行改革和改进。2024年3月19日，法院批准了我们根据内华达州法律要求提供担保的动议。2024年5月6日，法院无偏见地驳回了原告的诉讼，理由是他们未能根据法院的命令交纳按金。2024年7月10日和11日，原告分别对无偏见解雇令和案件上诉陈述提出了上诉通知书。2024年7月25日，原告在上诉时提交了保释通知书。2024年11月21日，内华达州最高法院发布命令，根据双方的规定驳回上诉。
在我们面临的诉讼中，我们正在大力为自己辩护。不利的结果或旷日持久的诉讼可能会损害我们的业务。这种性质的诉讼也既昂贵又耗时，并且会转移我们管理层的时间和注意力。
我们监控已知索赔的状况和相关的产品应计负债，其中包括已申诉和未申报的索赔的辩护费用金额。在咨询了诉讼律师并审查了每项索赔的案情之后，我们得出的结论是，我们无法合理估计与重大不利相关的合理可能损失的概率或估计范围
16
史密斯&韦森品牌公司及其子公司
简明综合财务报表注释（未经查核）
截至2024年和2023年10月31日的三个月和六个月
与此类索赔有关的判决，因此，我们没有累积任何此类判决。将来，如果我们确定损失（或超过应计损失的额外损失）至少是合理可能的和实质性的，那么如果可以做出这样的估计，我们将披露对可能损失的估计值或损失范围，或者披露无法作出估计。我们认为，我们已经为国防费用提供了足够的应计款项。
目前，无法估算出与不利结果有关的合理可能的额外损失。
承诺
20年9月30日21 日，我们宣布计划在2023年将总部和重要业务部分迁至田纳西州的玛丽维尔或搬迁。关于搬迁，我们与布朗特工业发展委员会签订了项目协议或项目协议
在截至2023年10月31日的六个月中，我们确定密苏里州配送中心的某些配送设备将不予使用，也无法完全收回此类设备的账面净值。因此，我们记录了美元的减值
此外，我们将部分塑料注射成型业务迁至玛丽维尔工厂。截至 2024 年 10 月 31 日，我们在深河工厂使用的注塑成型机械和设备已搬迁到玛丽维尔工厂，或者已被处置。我们认为没有任何减值迹象表明深河设施使用的资产存在减值。
(9) Restructuring:
As a result of the Relocation, $
The following table summarizes restructuring charges by line item for the three and six months ended October 31, 2024 and 2023 (in thousands):
17
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the Three and Six Months Ended October 31, 2024 and 2023
|
|
For the Three Months Ended October 31, |
|
|
For the Six Months Ended October 31, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Cost of sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Selling, marketing, and distribution |
|
|
|
|
|
|
|
|
|
|
|
|
||||
General and administrative |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Total restructuring charges, net |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The components of the restructuring charges recorded in our condensed consolidated statements of income were as follows (in thousands):
|
|
For the Three Months Ended October 31, |
|
|
For the Six Months Ended October 31, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Severance and employee-related benefits (a) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
Relocation (a) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Public relations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Freight |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consulting services |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Employee relations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Office rent and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total restructuring charges, net |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The following table summarizes the activity in the severance and employee-related benefits and relocation accruals for the six months ended October 31, 2024 (in thousands):
|
|
Severance and employee-related benefits |
|
|
Relocation |
|
|
Total (a) |
|
|||
Accrual at April 30, 2024 |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Charges |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Cash payments and settlements |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Accrual at October 31, 2024 |
|
$ |
|
|
$ |
|
|
$ |
|
|||
18
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
Please refer to the Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Fiscal 2024 Annual Report and our unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q. This section sets forth key objectives and performance indicators used by us as well as key industry data tracked by us.
Second Quarter Fiscal 2025 Highlights
Our operating results for the three months ended October 31, 2024 included the following:
During the three months ended October 31, 2024, we purchased 753,631 shares of our common stock for $9.8 million.
Our operating results for the six months ended October 31, 2024 included the following:
During the six months ended October 31, 2024, we purchased 1,624,300 shares of our common stock for $22.6 million.
Results of Operations
Net Sales and Gross Profit – For the Three Months Ended October 31, 2024
The following table sets forth certain information regarding net sales and gross profit for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|||
Handguns |
$ |
93,810 |
|
|
$ |
88,347 |
|
|
$ |
5,463 |
|
|
6.2% |
Long guns |
|
25,132 |
|
|
|
28,120 |
|
|
|
(2,988 |
) |
|
-10.6% |
Other products & services |
|
10,737 |
|
|
|
8,491 |
|
|
|
2,246 |
|
|
26.5% |
Total net sales |
$ |
129,679 |
|
|
$ |
124,958 |
|
|
$ |
4,721 |
|
|
3.8% |
Cost of sales |
|
95,133 |
|
|
|
93,192 |
|
|
|
1,941 |
|
|
2.1% |
Gross profit |
$ |
34,546 |
|
|
$ |
31,766 |
|
|
$ |
2,780 |
|
|
8.8% |
% of net sales (gross margin) |
|
26.6 |
% |
|
|
25.4 |
% |
|
|
|
|
|
|
The following table sets forth certain information regarding firearm units shipped by trade channel for the three months ended October 31, 2024 and 2023 (units in thousands):
Total Units Shipped |
|
2024 |
|
|
2023 |
|
|
# Change |
|
|
% Change |
|||
Handguns |
|
|
229 |
|
|
|
191 |
|
|
|
38 |
|
|
19.9% |
Long guns |
|
|
46 |
|
|
|
56 |
|
|
|
(10 |
) |
|
-17.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Sporting Goods Channel Units Shipped |
|
2024 |
|
|
2023 |
|
|
# Change |
|
|
% Change |
|||
Handguns |
|
|
211 |
|
|
|
177 |
|
|
|
34 |
|
|
19.2% |
Long guns |
|
|
39 |
|
|
|
53 |
|
|
|
(14 |
) |
|
-26.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Professional Channel Units Shipped |
|
2024 |
|
|
2023 |
|
|
# Change |
|
|
% Change |
|||
Handguns |
|
|
18 |
|
|
|
14 |
|
|
|
4 |
|
|
28.6% |
Long guns |
|
|
7 |
|
|
|
3 |
|
|
|
4 |
|
|
133.3% |
19
Sales of our handguns increased $5.5 million, or 6.2%, over the comparable quarter last year, primarily as a result of increased shipments of newly introduced products (defined as any new SKU not shipped in the comparable quarter last year), which represented 46.8% of handgun sales in the period, and a 2% to 5% price increase that became effective in the third quarter of fiscal 2024, partially offset by a shift in product mix to lower priced models. Handgun unit shipments into the sporting goods channel increased by 19.2% over the comparable quarter last year while overall consumer handgun demand remained relatively flat (as indicated by adjusted background checks reported in the National Instant Criminal Background Check System, or NICS).
Sales of our long guns decreased $3.0 million, or 10.6%, from the comparable quarter last year, primarily as a result of the timing of new product launches in the comparable quarter last year, partially offset by a shift in product mix to higher priced models, as well as a 2% to 5% price increase on select products that became effective in the third quarter of fiscal 2024. Shipments of newly introduced products represented 54.4% of long gun sales in the period. Long gun unit shipments into our sporting goods channel decreased 26.4% from the comparable quarter last year while overall consumer demand for long guns increased 3.6% (as indicated by NICS).
Other products and services revenue increased $2.2 million, or 26.5%, over the comparable quarter last year, primarily because of increased suppressor and component parts sales.
Newly introduced products represented 44.4% of net sales for the three months ended October 31, 2024 and included six new pistols, three new long guns, and many new product line extensions.
Gross margin for the three months ended October 31, 2024 was 26.6% compared with 25.4% for the comparable quarter last year, primarily because of a $3.2 million legal settlement recognized in the prior year comparable quarter. Excluding the impact of the prior year legal settlement, gross margin was lower by 130 basis points due to higher labor and overhead costs, partially offset by lower inventory adjustments (including standard cost revaluations, shrink, and excess inventory write downs) and favorable fixed-cost absorption from higher production volumes.
Inventory balances increased $35.5 million between April 30, 2024 and October 31, 2024 as a result of a slowdown in demand combined with level loading of our manufacturing facilities to ensure our ability to satisfy anticipated future demand. While inventory levels, both internally and in the distribution channel, in excess of demand may negatively impact future operating results, it is difficult to forecast the potential impact of distributor inventories on future revenue and income as demand is impacted by many factors, including seasonality, new product introductions, news events, political events, and consumer tastes. We expect our inventory levels to decline during the remainder of the fiscal year.
Net Sales and Gross Profit – For the Six Months Ended October 31, 2024
The following table sets forth certain information regarding net sales and gross profit for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|||
Handguns |
$ |
147,087 |
|
|
$ |
174,452 |
|
|
$ |
(27,365 |
) |
|
-15.7% |
Long guns |
|
49,853 |
|
|
|
46,903 |
|
|
|
2,950 |
|
|
6.3% |
Other products & services |
|
21,073 |
|
|
|
17,846 |
|
|
|
3,227 |
|
|
18.1% |
Total net sales |
$ |
218,013 |
|
|
$ |
239,201 |
|
|
$ |
(21,188 |
) |
|
-8.9% |
Cost of sales |
|
159,276 |
|
|
|
177,034 |
|
|
|
(17,758 |
) |
|
-10.0% |
Gross profit |
$ |
58,737 |
|
|
$ |
62,167 |
|
|
$ |
(3,430 |
) |
|
-5.5% |
% of net sales (gross margin) |
|
26.9 |
% |
|
|
26.0 |
% |
|
|
|
|
|
|
20
The following table sets forth certain information regarding firearm units shipped by trade channel for the six months ended October 31, 2024 and 2023 (units in thousands):
Total Units Shipped |
|
2024 |
|
|
2023 |
|
|
# Change |
|
|
% Change |
|||
Handguns |
|
|
349 |
|
|
|
365 |
|
|
|
(16 |
) |
|
-4.4% |
Long guns |
|
|
85 |
|
|
|
95 |
|
|
|
(10 |
) |
|
-10.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Sporting Goods Channel Units Shipped |
|
2024 |
|
|
2023 |
|
|
# Change |
|
|
% Change |
|||
Handguns |
|
|
323 |
|
|
|
339 |
|
|
|
(16 |
) |
|
-4.7% |
Long guns |
|
|
71 |
|
|
|
86 |
|
|
|
(15 |
) |
|
-17.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Professional Channel Units Shipped |
|
2024 |
|
|
2023 |
|
|
# Change |
|
|
% Change |
|||
Handguns |
|
|
26 |
|
|
|
26 |
|
|
|
- |
|
|
0.0% |
Long guns |
|
|
14 |
|
|
|
9 |
|
|
|
5 |
|
|
55.6% |
Sales of our handguns decreased $27.4 million, or 15.7%, from the comparable period last year, primarily as a result of lower consumer demand within the industry and a shift in product mix to lower priced models, partially offset by increased shipments of newly introduced products, which represented 43.0% of handgun sales in the period, and a 2% to 5% price increase that became effective in the third quarter of fiscal 2024. Handgun unit shipments into the sporting goods channel decreased by 4.7% from the comparable period last year while overall consumer handgun demand decreased 2.5% (as indicated by adjusted background checks reported by NICS).
Sales of our long guns increased $3.0 million, or 6.3%, over the comparable period last year, primarily as a result of increased shipments of newly introduced products, which represented 62.1% of long gun sales in the period, a shift in product mix to higher priced models, as well as a 2% to 5% price increase on select products that became effective in the third quarter of fiscal 2024. Long gun unit shipments into our sporting goods channel decreased 17.4% from the comparable period last year while overall consumer demand for long guns increased 1.8% (as indicated by NICS).
Other products and services revenue increased $3.2 million, or 18.1%, over the comparable period last year, primarily because of increased suppressor and component parts sales, partially offset by lower handcuff and business-to-business sales.
Newly introduced products represented 43.2% of net sales for the six months ended October 31, 2024 and included six new pistols, four new long guns, and many new product line extensions.
Gross margin for the six months ended October 31, 2024 was 26.9% compared with 26.0% for the comparable period last year, primarily because of a $3.2 million legal settlement recognized in the prior year comparable period. Excluding the impact of the prior year legal settlement, gross margin was lower by 40 basis points due to higher labor and overhead costs, partially offset by favorable fixed-cost absorption from higher production volumes, lower inventory adjustments, as described above, and lower Relocation costs.
Operating Expenses
The following table sets forth certain information regarding operating expenses for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Research and development |
$ |
2,221 |
|
|
$ |
1,724 |
|
|
$ |
497 |
|
|
|
28.8 |
% |
Selling, marketing, and distribution |
|
9,574 |
|
|
|
10,952 |
|
|
|
(1,378 |
) |
|
|
-12.6 |
% |
General and administrative |
|
15,779 |
|
|
|
15,322 |
|
|
|
457 |
|
|
|
3.0 |
% |
Total operating expenses |
$ |
27,574 |
|
|
$ |
27,998 |
|
|
$ |
(424 |
) |
|
|
-1.5 |
% |
% of net sales |
|
21.3 |
% |
|
|
22.4 |
% |
|
|
|
|
|
|
||
Research and development expenses increased $497,000 over the prior year comparable quarter because of higher materials and testing costs associated with new product development. Selling, marketing, and distribution expenses decreased $1.4 million from the prior year comparable quarter, primarily as a result of one-time costs related to our grand opening event at our Maryville facility in the prior year comparable quarter and lower spending on promotions. General and administrative expenses increased $457,000 over the prior year comparable quarter, primarily because of higher legal costs, partially offset by lower compensation-related expense and lower professional services.
21
The following table sets forth certain information regarding operating expenses for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Research and development |
$ |
4,736 |
|
|
$ |
3,522 |
|
|
$ |
1,214 |
|
|
|
34.5 |
% |
Selling, marketing, and distribution |
|
19,411 |
|
|
|
20,993 |
|
|
|
(1,582 |
) |
|
|
-7.5 |
% |
General and administrative |
|
29,480 |
|
|
|
29,536 |
|
|
|
(56 |
) |
|
|
-0.2 |
% |
Total operating expenses |
$ |
53,627 |
|
|
$ |
54,051 |
|
|
$ |
(424 |
) |
|
|
-0.8 |
% |
% of net sales |
|
24.6 |
% |
|
|
22.6 |
% |
|
|
|
|
|
|
||
Research and development expenses increased $1.2 million over the prior year comparable period because of higher materials and testing costs associated with new product development and higher compensation-related costs. Selling, marketing, and distribution expenses decreased $1.6 million from the prior year comparable period, primarily as a result of a $1.9 million impairment on distribution equipment related to the Relocation and one-time costs related to our grand opening event at our Maryville facility in the prior year comparable period. Excluding the impact of these one-time prior year charges, selling, marketing, and distribution expenses increased $1.2 million, primarily as a result of the timing of certain industry events and higher spending on promotions. General and administrative expenses decreased $56,000 from the prior year comparable period, primarily because of lower Relocation costs, lower profit sharing expense, and lower compensation-related expense, partially offset by higher legal costs.
Operating Income
The following table sets forth certain information regarding operating income for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Operating income |
$ |
6,972 |
|
|
$ |
3,768 |
|
|
$ |
3,204 |
|
|
|
85.0 |
% |
% of net sales (operating margin) |
|
5.4 |
% |
|
|
3.0 |
% |
|
|
|
|
|
|
||
Operating income for the three months ended October 31, 2024 increased $3.2 million over the comparable quarter last year, primarily for the reasons outlined above.
The following table sets forth certain information regarding operating income for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Operating income |
$ |
5,110 |
|
|
$ |
8,116 |
|
|
$ |
(3,006 |
) |
|
|
-37.0 |
% |
% of net sales (operating margin) |
|
2.3 |
% |
|
|
3.4 |
% |
|
|
|
|
|
|
||
Operating income for the six months ended October 31, 2024 decreased $3.0 million from the comparable period last year, primarily for the reasons outlined above.
Interest Expense, net
The following table sets forth certain information regarding interest expense, net for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Interest expense, net |
$ |
(1,419 |
) |
|
$ |
(646 |
) |
|
$ |
773 |
|
|
|
119.7 |
% |
Interest expense increased by $773,000 over the comparable quarter last year as a result of higher average debt balances, lower capitalized interest, and lower average cash balances during the three months ended October 31, 2024 compared with the comparable quarter last year.
The following table sets forth certain information regarding interest expense, net for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Interest expense, net |
$ |
(2,152 |
) |
|
$ |
(492 |
) |
|
$ |
1,660 |
|
|
|
337.4 |
% |
22
Interest expense increased by $1.7 million over the comparable period last year as a result of higher average debt balances, lower capitalized interest, and lower average cash balances during the six months ended October 31, 2024 compared with the comparable period last year.
Income Taxes
The following table sets forth certain information regarding income tax expense for the three months ended October 31, 2024 and 2023 (dollars in thousands):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Income tax expense |
$ |
1,414 |
|
|
$ |
765 |
|
|
$ |
649 |
|
|
|
84.8 |
% |
% of income from operations (effective tax rate) |
|
25.5 |
% |
|
|
23.4 |
% |
|
|
|
|
|
2.1 |
% |
|
Income tax expense increased $649,000 from the comparable quarter last year, primarily as a result of higher operating income. Before adjusting for discrete items related to stock-based compensation, the effective tax rate is 26.0% in the current quarter and 23.5% in the prior year comparable quarter. The increase in the effective tax rate was due to changes in state apportionment and a decrease in pre-tax profitability.
The following table sets forth certain information regarding income tax expense for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Income tax expense |
$ |
921 |
|
|
$ |
2,196 |
|
|
$ |
(1,275 |
) |
|
|
-58.1 |
% |
% of income from operations (effective tax rate) |
|
31.3 |
% |
|
|
28.1 |
% |
|
|
|
|
|
3.1 |
% |
|
Income tax expense decreased $1.3 million from the comparable period last year, primarily as a result of lower operating income. Before adjusting for discrete items related to stock-based compensation, the effective tax rate was 26.4% in the current period and 24.2% in the prior year comparable period. The increase in the effective tax rate was due to changes in state apportionment and a decrease in pre-tax profitability.
Net Income
The following table sets forth certain information regarding net income and the related per share data for the three months ended October 31, 2024 and 2023 (dollars in thousands, except per share data):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Net income |
$ |
4,134 |
|
|
$ |
2,498 |
|
|
$ |
1,636 |
|
|
|
65.5 |
% |
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
$ |
0.09 |
|
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
|
80.0 |
% |
Diluted |
$ |
0.09 |
|
|
$ |
0.05 |
|
|
$ |
0.04 |
|
|
|
80.0 |
% |
Net income for the three months ended October 31, 2024 was $4.1 million compared with $2.5 million for the comparable quarter last year for the reasons outlined above.
The following table sets forth certain information regarding net income and the related per share data for the six months ended October 31, 2024 and 2023 (dollars in thousands, except per share data):
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Net income |
$ |
2,026 |
|
|
$ |
5,616 |
|
|
$ |
(3,590 |
) |
|
|
-63.9 |
% |
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
$ |
0.05 |
|
|
$ |
0.12 |
|
|
$ |
(0.07 |
) |
|
|
-58.3 |
% |
Diluted |
$ |
0.04 |
|
|
$ |
0.12 |
|
|
$ |
(0.08 |
) |
|
|
-66.7 |
% |
Net income for the six months ended October 31, 2024 was $2.0 million compared with $5.6 million for the comparable period last year for the reasons outlined above.
23
Liquidity and Capital Resources
Our principal cash requirements are to finance the growth of our operations, including working capital and capital expenditures, and return capital to stockholders. Capital expenditures for new product development, and repair and replacement of equipment represent important cash needs.
The following table sets forth certain cash flow information for the six months ended October 31, 2024 and 2023 (dollars in thousands):
|
|
2024 |
|
|
2023 |
|
|
$ Change |
|
|
% Change |
|
||||
Operating activities |
|
$ |
(38,212 |
) |
|
$ |
37,756 |
|
|
$ |
(75,968 |
) |
|
|
-201.2 |
% |
Investing activities |
|
|
(7,879 |
) |
|
|
(67,063 |
) |
|
|
59,184 |
|
|
|
88.3 |
% |
Financing activities |
|
|
24,345 |
|
|
|
19,943 |
|
|
|
4,402 |
|
|
|
-22.1 |
% |
Total cash flow |
|
$ |
(21,746 |
) |
|
$ |
(9,364 |
) |
|
$ |
(12,382 |
) |
|
|
132.2 |
% |
Operating Activities
Cash used in operating activities was $38.2 million for the six months ended October 31, 2024 compared with $37.8 million of cash provided for the six months ended October 31, 2023. Cash used in operating activities for the six months ended October 31, 2024 was unfavorably impacted by a $35.5 million increase in inventory compared with a $13.8 million decrease in inventory in the prior comparable period, a $10.1 million decrease in accounts payable compared with a $14.7 million increase in accounts payable in the prior comparable period, and a $3.9 million decrease in accrued payroll and incentives compared with a $1.3 million increase in accrued payroll and incentives in the prior comparable period. Cash used in operating activities for the six months ended October 31, 2024 was favorably impacted by a $6.4 million decrease in accounts receivable compared with a $4.6 million increase in accounts receivable in the prior comparable period.
Investing Activities
Cash used in investing activities decreased $59.2 million for the six months ended October 31, 2024 compared with the prior year comparable period. We paid $8.0 million for capital expenditures for the six months ended October 31, 2024, $58.9 million lower than the prior year comparable period, primarily as a result of payments related to the Relocation in the prior year period.
We currently expect to spend $25.0 million to $30.0 million on capital expenditures in fiscal 2025.
Financing Activities
Cash provided by financing activities was $24.3 million for the six months ended October 31, 2024 compared with $19.9 million of cash provided in financing activities for the six months ended October 31, 2023. Cash provided by financing activities during the six months ended October 31, 2024 was primarily the result of $60 million in borrowings under our revolving line of credit, partially offset by $22.6 million of share repurchases and $11.7 million in dividend distributions.
Credit Facilities — We entered into the Second Amended and Restated Credit Agreement on October 3, 2024. The Second Amended and Restated Credit Agreement provides for a revolving line of credit of $175.0 million at any one time, or the Revolving Line. The Revolving Line bears interest at either the Base Rate (as defined in the Second Amended and Restated Credit Agreement) or the SOFR rate, plus an applicable margin based on our consolidated leverage ratio. The Second Amended and Restated Credit Agreement also provides a swingline facility in the maximum amount of $5.0 million at any one time (subject to availability under the Revolving Line). Each Swingline Loan (as defined in the Amended and Restated Credit Agreement) bears interest at the Base Rate, plus an applicable margin based on our Adjusted Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement). Subject to the satisfaction of certain terms and conditions described in the Second Amended and Restated Credit Agreement, we have an option to increase the Revolving Line by an aggregate amount not exceeding $50.0 million. The Revolving Line matures on the earlier of October 3, 2029 or the date that is six months in advance of the earliest maturity of any Permitted Notes (as defined in the Second Amended and Restated Credit Agreement) under the Second Amended and Restated Credit Agreement.
As of October 31, 2024, we had $100.0 million of borrowings outstanding on the Revolving Line, bearing interest at an average rate of 6.92%, which was equal to the SOFR rate plus an applicable margin.
The credit agreement for our credit facility contains financial covenants relating to maintaining maximum leverage and minimum debt service coverage. We were in compliance with all debt covenants as of October 31, 2024.
24
Share Repurchase Programs — On September 19, 2023, our Board of Directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions through September 19, 2024, or the 2023 Authorization. During fiscal 2024, we purchased 793,551 shares of our common stock for $10.2 million under the 2023 Authorization. During fiscal 2025, we purchased 1,531,763 shares of our common stock for $21.4 million under the 2023 Authorization. The 2023 Authorization expired on September 19, 2024. On September 5, 2024, our Board of Directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions from September 20, 2024 through September 20, 2025, or the 2024 Authorization. During fiscal 2025, we have repurchased 92,537 shares of our common stock for $1.2 million under the 2024 Authorization.
During the three months ended October 31, 2024, we repurchased a total of 753,631 shares of our common stock for $9.8 million. During the six months ended October 31, 2024, we repurchased a total of 1,624,300 shares of our common stock for $22.6 million.
Dividends — In June 2024, our Board of Directors authorized a regular quarterly dividend for stockholders of $0.13 per share. The next dividend will be for stockholders of record as of market close on December 19, 2024 and will be payable on January 2, 2025.
Our future capital requirements will depend on many factors, including net sales, the timing and extent of spending to support product development efforts, the expansion of sales and marketing activities, the timing of introductions of new products and enhancements to existing products, the costs to ensure access to adequate manufacturing capacity, and costs related to the Relocation. Further equity or debt financing may not be available to us on acceptable terms or at all. If sufficient funds are not available or are not available on acceptable terms, our ability to take advantage of unexpected business opportunities or to respond to competitive pressures could be limited or severely constrained.
As of October 31, 2024, we had $39.1 million in cash and cash equivalents on hand. Based upon our current working capital position, current operating plans, and expected business conditions, we believe that our existing capital resources and credit facilities will be adequate to fund our operations for at least the next 12 months.
Other Matters
Critical Accounting Policies
The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant accounting policies are disclosed in Note 2 of the Notes to the Consolidated Financial Statements in our Fiscal 2024 Annual Report. The most significant areas involving our judgments and estimates are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Fiscal 2024 Annual Report, to which there have been no material changes. Actual results could differ from our estimates.
Recent Accounting Pronouncements
The nature and impact of recent accounting pronouncements, if any, is discussed in Note 2—Basis of Presentation to our condensed consolidated financial statements included elsewhere in this report, which is incorporated herein by reference.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
During the period ended October 31, 2024, we did not enter into or transact any forward option contracts nor did we have any forward contracts outstanding.
25
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of October 31, 2024, our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act was recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
There was no change in our internal control over financial reporting during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
26
PART II — OTHER INFORMATION
Item 1. Legal Proceedings
The nature of legal proceedings against us is discussed in Note 8—Commitments and Contingencies to our condensed consolidated financial statements included elsewhere in this report, which is incorporated herein by reference.
Item 1A. Risk Factors
Investors should carefully review and consider the information regarding certain factors that could materially affect our business, results of operations, financial condition, and cash flows as set forth under Part I, Item 1A “Risk Factors” of our Fiscal 2024 Form 10-K. Additional risks and uncertainties not presently known to us or that we currently believe not to be material may also adversely impact our business, results of operations, financial position, and cash flows. We are aware of no material changes to the Risk Factors discussed in our Fiscal 2024 Form 10-K.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table sets forth certain information relating to the purchases of our common stock by us and any affiliated purchasers within the meaning of Rule 10b-18(a)(3) under the Exchange Act during the three months ended October 31, 2024 (dollars in thousands, except per share data):
|
|
|
|
|
|
|
|
Total # of Shares |
|
|
Maximum Dollar |
|
||||
|
|
|
|
|
|
|
|
Purchased as |
|
|
Value of Shares |
|
||||
|
|
|
|
|
|
|
|
Part of Publicly |
|
|
that May Yet Be |
|
||||
|
|
Total # of |
|
|
Average |
|
|
Announced |
|
|
Purchased |
|
||||
|
|
Shares |
|
|
Price Paid |
|
|
Plans or |
|
|
Under the Plans |
|
||||
Period |
|
Purchased |
|
|
Per Share (1) |
|
|
Programs (2) |
|
|
or Programs |
|
||||
August 1 to August 31, 2024 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
26,949 |
|
September 1 to September 30, 2024 |
|
|
753,631 |
|
|
$ |
12.94 |
|
|
|
753,631 |
|
|
|
48,752 |
|
October 1 to October 31, 2024 |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
48,752 |
|
|
Total |
|
|
753,631 |
|
|
|
12.94 |
|
|
|
753,631 |
|
|
|
|
|
Item 5. Other Information
Rule 10b5-1 Trading Plans
The adoption or termination of contracts, instructions, or written plans for the purchase and sale of our securities by our Section 16 officers and directors for the three months ended October 31, 2024, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, or a Rule 10b5-1 Plan, were as follows:
Name |
|
Title |
|
Action |
|
Date Adopted |
|
Termination Date |
|
|
|
Termination of |
|
|
27
INDEX TO EXHIBITS
Item 6. Exhibits
The exhibits listed on the Index to Exhibits (immediately preceding the signatures section of this Quarterly Report on Form 10-Q) are included herewith or incorporated herein by reference.
10.126** |
|
|
|
|
|
31.1* |
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer |
|
|
|
31.2* |
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer |
|
|
|
32.1* |
|
|
|
|
|
32.2* |
|
|
|
|
|
101.INS |
|
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
|
|
|
101.SCH |
|
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
|
|
|
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
|
|
|
* Filed herewith.
** Certain schedules and exhibits have been omitted from this filing pursuant to Item 601(a) (5) of Regulation S-K. We agree to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request.
(1) Incorporated by reference to the Registrant's Current Report on Form 8-K filed with the SEC on October 4, 2024.
28
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
SMITH & WESSON BRANDS, INC. a Nevada corporation |
||
|
|
|
||
Date: December 5, 2024 |
|
By: |
|
/s/ Mark P. Smith |
|
|
|
|
Mark P. Smith |
|
|
|
|
President and Chief Executive Officer |
Date: December 5, 2024 |
|
By: |
|
/s/ Deana L. McPherson |
|
|
|
|
Deana L. McPherson |
|
|
|
|
Executive Vice President, Chief Financial Officer, Treasurer, and Assistant Secretary |
29