Smith & Wesson Q2 Sales Hit $120.5M

TL;DR

SWBI Q2 sales $120.5M. Stock and exec comp details.

AI Summary

Smith & Wesson Brands, Inc. reported its second quarter results for the period ending October 31, 2024. The company's net sales for the quarter were $120.5 million. This filing also details changes in treasury stock and common stock values, as well as performance shares related to executive compensation.

Why It Matters

This report provides insight into the financial performance of a major firearms manufacturer, impacting investors and the broader outdoor recreation market.

Risk Assessment

Risk Level: medium — The firearms industry is subject to significant regulatory and political risks, which can impact sales and profitability.

Key Numbers

• $120.5M — Net Sales (Second quarter ended October 31, 2024)

Key Players & Entities

• SMITH & WESSON BRANDS, INC. (company) — Filer
• 20241031 (date) — Period of Report
• $120.5 million (dollar_amount) — Net Sales for the quarter ending October 31, 2024

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share SWBI Nasdaq Global Select
• $0 — 2,703 shares of common stock, par value $0.001, outstanding as of December 3, 2024
• $120.0 million — , or cause to be incurred, no less than $120.0 million in aggregate capital expenditures on or
• $25.97 — tain an average hourly wage of at least $25.97 at the facility; our expectation, when
• $165.0 million — chinery and equipment, to spend between $165.0 million and $170.0 million through the end of f
• $170.0 million — nt, to spend between $165.0 million and $170.0 million through the end of fiscal 2025; our bel
• $0.12 — — — ( 38 ) Dividends issued ($0.12 per common share) — — — ( 5,544
• $0.24 — — — ( 38 ) Dividends issued ($0.24 per common share) — — — ( 11,08
• $0.13 — — — ( 14 ) Dividends issued ($0.13 per common share) — — — ( 5,767
• $0.26 — — — ( 34 ) Dividends issued ($0.26 per common share) — — — ( 11,65

Filing Documents

• swbi-20241031.htm (10-Q) — 1904KB
• swbi-ex31_1.htm (EX-31.1) — 14KB
• swbi-ex31_2.htm (EX-31.2) — 14KB
• swbi-ex32_1.htm (EX-32.1) — 9KB
• swbi-ex32_2.htm (EX-32.2) — 9KB
• img126818207_0.jpg (GRAPHIC) — 5KB
• 0000950170-24-133685.txt ( ) — 6774KB
• swbi-20241031.xsd (EX-101.SCH) — 1127KB
• swbi-20241031_htm.xml (XML) — 964KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 4

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 25

Controls and Procedures

Item 4. Controls and Procedures 26

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 27

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27

Other Information

Item 5. Other Information 27

Exhibits

Item 6. Exhibits 27

Signatures

Signatures 28 EX-31.1 EX-31.2 EX-32.1 EX-32.2 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, and Weather Shield are some of the registered U.S. trademarks of our company or one of our subsidiaries. This report also may contain trademarks and trade names of other companies. The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical facts contained or incorporated herein by reference in this Quarterly Report on Form 10-Q, including statements regarding our future operating results, future financial position, business strategy, objectives, goals, plans, prospects, markets, and plans and objectives for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "anticipates," "believes," "estimates," "expects," "intends," "targets," "contemplates," "projects," "predicts," "may," "might," "plan," "will," "would," "should," "could," "may," "can," "potential," "continue," "objective," or the negative of

Financi al Statements

Item 1. Financi al Statements SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDAT ED BALANCE SHEETS (Unaudited) As of: October 31, 2024 April 30, 2024 (In thousands, except par value and share data) ASSETS Current assets: Cash and cash equivalents $ 39,093 $ 60,839 Accounts receivable, net of allowances for credit losses of $ 5 on October 31, 2024 and $ 0 on April 30, 2024 52,707 59,071 Inventories 196,035 160,500 Prepaid expenses and other current assets 10,112 4,973 Income tax receivable 8,120 2,495 Total current assets 306,067 287,878 Property, plant, and equipment, net 244,452 252,633 Intangibles, net 2,523 2,598 Goodwill 19,024 19,024 Deferred income taxes 7,249 7,249 Other assets 8,128 8,614 Total assets $ 587,443 $ 577,996 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 31,627 $ 41,831 Accrued expenses and deferred revenue 29,979 26,811 Accrued payroll and incentives 13,198 17,147 Accrued profit sharing 892 9,098 Accrued warranty 1,485 1,813 Total current liabilities 77,181 96,700 Notes and loans payable (Note 3) 98,994 39,880 Finance lease payable, net of current portion 34,578 35,404 Other non-current liabilities 7,625 7,852 Total liabilities 218,378 179,836 Commitments and contingencies (Note 8) Stockholders' equity: Preferred stock, $ 0.001 par value, 20,000,000 shares authorized, no shares issued or outstanding — — Common stock, $ 0.001 par value, 100,000,000 shares authorized, 75,677,848 issued and 44,219,627 shares outstanding on October 31, 2024 and 75,395,490 shares issued and 45,561,569 shares outstanding on April 30, 2024 76 75 Additional paid-in capital 293,362 289,994 Retained earnings 531,000 540,660 Accumulated other comprehensive income 73 73 Treasury stock, at cost ( 31,458,221 shares on October 31,

View Full Filing

View this 10-Q filing on SEC EDGAR