Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2021 | Aug. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Smith & Wesson Brands, Inc. | |
Entity Central Index Key | 0001092796 | |
Current Fiscal Year End Date | --04-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-31552 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 87-0543688 | |
Entity Address, Address Line One | 2100 Roosevelt Avenue | |
Entity Address, City or Town | Springfield | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01104 | |
City Area Code | 800 | |
Local Phone Number | 331-0852 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 48,053,927 | |
Title of each Class | Common Stock, par value $0.001 per share | |
Trading Symbol | SWBI | |
Name of exchange on which registered | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 171,413 | $ 113,017 |
Accounts receivable, net of allowances for credit losses of $52 on July 31, 2021 and $107 on April 30, 2021 | 41,198 | 67,442 |
Inventories | 97,140 | 78,477 |
Prepaid expenses and other current assets | 8,504 | 8,408 |
Income tax receivable | 909 | |
Total current assets | 318,255 | 268,253 |
Property, plant, and equipment, net | 139,626 | 141,612 |
Intangibles, net | 4,360 | 4,417 |
Goodwill | 19,024 | 19,024 |
Other assets | 11,405 | 13,082 |
Assets, Total | 492,670 | 446,388 |
Current liabilities: | ||
Accounts payable | 54,583 | 57,337 |
Accrued expenses and deferred revenue | 33,554 | 33,136 |
Accrued payroll and incentives | 8,267 | 17,381 |
Accrued income taxes | 22,236 | 1,157 |
Accrued profit sharing | 18,279 | 14,445 |
Accrued warranty | 1,902 | 2,199 |
Total current liabilities | 138,821 | 125,655 |
Deferred income taxes | 904 | 904 |
Finance lease payable, net of current portion | 38,509 | 38,786 |
Other non-current liabilities | 14,377 | 14,659 |
Total liabilities | 192,611 | 180,004 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, $.001 par value, 20,000,000 shares authorized, no shares issued or outstanding | ||
Common stock, $.001 par value, 100,000,000 shares authorized, 74,298,308 issued and 48,046,090 shares outstanding on July 31, 2021 and 74,222,127 shares issued and 49,937,329 shares outstanding on April 30, 2021 | 74 | 74 |
Additional paid-in capital | 274,068 | 273,431 |
Retained earnings | 398,219 | 325,181 |
Accumulated other comprehensive income | 73 | 73 |
Treasury stock, at cost (26,252,218) shares on July 31, 2021 and 24,284,798 on April 30, 2021) | (372,375) | (332,375) |
Total stockholders’ equity | 300,059 | 266,384 |
Liabilities and Equity, Total | $ 492,670 | $ 446,388 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 |
Statement Of Financial Position [Abstract] | ||
Allowances for credit losses | $ 52 | $ 107 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 74,298,308 | 74,222,127 |
Common stock, shares outstanding | 48,046,090 | 49,937,329 |
Treasury stock, shares | 26,252,218 | 24,284,798 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income/(Loss) and Comprehensive Income/(Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 274,609 | $ 229,885 |
Cost of sales | 144,667 | 137,461 |
Gross profit | 129,942 | 92,424 |
Operating expenses: | ||
Research and development | 1,808 | 1,906 |
Selling, marketing, and distribution | 10,634 | 9,995 |
General and administrative | 17,614 | 21,780 |
Total operating expenses | 30,056 | 33,681 |
Operating income from continuing operations | 99,886 | 58,743 |
Other income/(expense), net: | ||
Other income/(expense), net | 660 | 67 |
Interest expense, net | (544) | (1,316) |
Total other income/(expense), net | 116 | (1,249) |
Income from continuing operations before income taxes | 100,002 | 57,494 |
Income tax expense | 23,120 | 14,193 |
Income from continuing operations | 76,882 | 43,301 |
Discontinued operations: | ||
Income from discontinued operations, net of tax | 5,084 | |
Net income | $ 76,882 | $ 48,385 |
Net income per share: | ||
Basic - continuing operations | $ 1.59 | $ 0.78 |
Basic - net income | 1.59 | 0.87 |
Diluted - continuing operations | 1.57 | 0.77 |
Diluted - net income | $ 1.57 | $ 0.86 |
Weighted average number of common shares outstanding: | ||
Basic | 48,394 | 55,494 |
Diluted | 49,050 | 56,277 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Treasury Stock |
Balance at Apr. 30, 2020 | $ 387,118 | $ 74 | $ 267,630 | $ 341,716 | $ 73 | $ (222,375) |
Balance (in shares) at Apr. 30, 2020 | 73,527,000 | |||||
Treasury stock, shares at Apr. 30, 2020 | 18,167,000 | |||||
Proceeds from exercise of employee stock options | 1,518 | 1,518 | ||||
Proceeds from exercise of employee stock options (in shares) | 191,000 | |||||
Stock-based compensation - continuing operations | 884 | 884 | ||||
Stock-based compensation - discontinuedoperations | 157 | 157 | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (997) | (997) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | (147,000) | |||||
Net income | 48,385 | 48,385 | ||||
Balance at Jul. 31, 2020 | 437,065 | $ 74 | 269,192 | 390,101 | 73 | $ (222,375) |
Balance (in shares) at Jul. 31, 2020 | 73,865,000 | |||||
Treasury stock, shares at Jul. 31, 2020 | 18,167,000 | |||||
Balance at Apr. 30, 2021 | $ 266,384 | $ 74 | 273,431 | 325,181 | 73 | $ (332,375) |
Balance (in shares) at Apr. 30, 2021 | 49,937,329 | 74,222,000 | ||||
Treasury stock, shares at Apr. 30, 2021 | 24,284,798 | 24,285,000 | ||||
Stock-based compensation | $ 1,452 | 1,452 | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (815) | (815) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | (76,000) | |||||
Repurchase of treasury stock | (40,000) | $ (40,000) | ||||
Repurchase of treasury stock, shares | (1,967,000) | |||||
Dividends issued | (3,844) | (3,844) | ||||
Net income | 76,882 | 76,882 | ||||
Balance at Jul. 31, 2021 | $ 300,059 | $ 74 | $ 274,068 | $ 398,219 | $ 73 | $ (372,375) |
Balance (in shares) at Jul. 31, 2021 | 48,046,090 | 74,298,000 | ||||
Treasury stock, shares at Jul. 31, 2021 | 26,252,218 | 26,252,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Cash flows from operating activities: | ||
Income from continuing operations | $ 76,882 | $ 43,301 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,466 | 8,244 |
Loss on sale/disposition of assets | 57 | 3 |
Provision for losses on notes and accounts receivable | (56) | 38 |
Stock-based compensation expense | 1,452 | 884 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 26,300 | 1,851 |
Inventories | (18,663) | 23,767 |
Prepaid expenses and other current assets | (96) | (973) |
Income taxes | 21,988 | 14,340 |
Accounts payable | (2,443) | 7,769 |
Accrued payroll and incentives | (9,114) | (1,664) |
Accrued profit sharing | 3,834 | 3,405 |
Accrued expenses and deferred revenue | 405 | (18,638) |
Accrued warranty | (297) | (175) |
Other assets | 1,677 | 796 |
Other non-current liabilities | (305) | (1,225) |
Cash provided by operating activities - continuing operations | 109,087 | 81,723 |
Cash provided by operating activities - discontinued operations | 0 | 2,507 |
Net cash provided by operating activities | 109,087 | 84,230 |
Cash flows from investing activities: | ||
Payments to acquire patents and software | (69) | (187) |
Proceeds from sale of property and equipment | 70 | 0 |
Payments to acquire property and equipment | (5,769) | (6,465) |
Cash used by investing activities - continuing operations | (5,768) | (6,652) |
Cash used by investing activities - discontinued operations | 0 | (995) |
Net cash used in investing activities | (5,768) | (7,647) |
Cash flows from financing activities: | ||
Payments on finance lease obligation | (264) | (238) |
Payments on notes and loans payable | 0 | (135,000) |
Payments to acquire treasury stock | (40,000) | 0 |
Dividend distribution | (3,844) | 0 |
Proceeds from exercise of options to acquire common stock | 0 | 268 |
Payment of employee withholding tax related to restricted stock units | (815) | (997) |
Cash used in financing activities - continuing operations | (44,923) | (135,967) |
Net cash used in by financing activities | (44,923) | (135,967) |
Net increase/(decrease) in cash and cash equivalents | 58,396 | (59,384) |
Cash and cash equivalents, beginning of period | 113,017 | 125,011 |
Cash and cash equivalents, end of period | 171,413 | 65,627 |
Supplemental disclosure of cash flow information Cash paid for: | ||
Interest | 538 | 1,556 |
Income taxes | 1,131 | 1,689 |
Supplemental Disclosure of Non-cash Investing and Financing Activities: | ||
Purchases of property and equipment included in accounts payable | 435 | 986 |
Receivable for exercise of options to acquire common stock | $ 0 | $ 1,250 |
Organization
Organization | 3 Months Ended |
Jul. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | (1) Organization: We are one of the world’s leading manufacturers and designers of firearms. We manufacture a wide array of handguns (including revolvers and pistols), long guns (including modern sporting rifles, bolt action rifles, and muzzleloaders), handcuffs, suppressors, and other firearm-related products for sale to a wide variety of customers, including firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and throughout the world. We sell our products under the Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech brands. We manufacture our products at our facilities in Springfield, Massachusetts; Houlton, Maine; and Deep River, Connecticut. We also sell our manufacturing services to other businesses to level-load our factories. We sell those services under our Smith & Wesson and Smith & Wesson Precision Components brands. On November 13, 2019, we announced that we were proceeding with a plan to spin-off our outdoor products and accessories business and create an independent publicly traded company to conduct that business, or the Separation. On August 24, 2020, or the Distribution Date, we completed the Separation. See also Note 3 — Discontinued Operations , for more information. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (2) Basis of Presentation: Interim Financial Information – The condensed consolidated balance sheet as of July 31, 2021, the condensed consolidated statements of income for the three months ended July 31, 2021 and 2020, the condensed consolidated statements of changes in stockholders’ equity for the three months ended July 31, 2021 and 2020, and the condensed consolidated statements of cash flows for the three months ended July 31, 2021 and 2020 have been prepared by us without audit. In our opinion, all adjustments, which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, changes in stockholders’ equity, and cash flows for the three months ended July 31, 2021 and for the periods presented, have been included. All intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2021 has been derived from our audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2021. The results of operations for the three months ended July 31, 2021 may not be indicative of the results that may be expected for the fiscal year ending April 30, 2022 , or any other period. In December 2019, the FASB issued ASU No. 2019-12, " Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," an update that amends and simplifies the accounting for income taxes by removing certain exceptions in the existing guidance and providing new guidance to reduce complexity in certain areas. The guidance went into effect at the start of this fiscal year ending April 30, 2022 with early adoption permitted. We have reviewed the amendments in this update and determined that there were no material changes or impacts on our condensed consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Jul. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | (3) Discontinued Operations: On November 13, 2019, we announced the Separation. On the Distribution Date, at 12:01 a.m. Eastern Time, the Separation of our wholly owned subsidiary, American Outdoor Brands, Inc., a Delaware corporation, or AOUT, from our company was completed. The Separation was treated as tax free for U.S federal income tax purposes and was achieved through the transfer of all the assets and legal entities, subject to any related liabilities, associated with our outdoor products and accessories business to AOUT, or the Transfer, and the distribution of 100 % of the AOUT outstanding capital stock to holders of our common stock, or the Distribution, as of the close of business on August 10, 2020, or the Record Date. In connection with the Distribution, our stockholders received one share of AOUT common stock for every four shares of our common stock held as of the close of business on the Record Date. Following the Distribution, AOUT became an independent, publicly traded company, and we retain no ownership interest in AOUT. For the three months ended July 31, 2020, we recorded $ 3.6 million in general and administrative expenses related to the Separation and there was no gain/(loss) recognized for the Separation. In connection with the Separation, we distributed $ 25.0 million in cash to AOUT. Our common stock continues to trade on the Nasdaq Global Select Market under the ticker symbol “SWBI,” and AOUT is now trading shares of common stock listed on the Nasdaq Global Select Market under the ticker symbol “AOUT.” The outdoor products and accessories business historical financial data is recorded as discontinued operations. Please refer to our Current Report on Form 8-K filed on August 26, 2020 for more information regarding the Separation. As a result of the Separation, we divested net assets of $ 260.4 million, which includes the $ 25.0 million cash distribution to AOUT, in the prior fiscal year. The results of AOUT were previously reported in our Outdoor Products & Accessories segment. The historical financial data of the outdoor products and accessories business through August 23, 2020 is recorded as discontinued operations in income from discontinued operations in the condensed consolidated financial statements. For the three months ended July 31, 2020, income from discontinued operations, net of tax was $ 5.1 million. In connection with the Separation, we entered into several agreements with AOUT that govern the relationship of the parties following the Separation, including a Separation and Distribution Agreement, a Tax Matters Agreement, a Transition Services Agreement, and an Employee Matters Agreement. Under the terms of the Transition Services Agreement, both companies agreed to provide each other certain transitional services, including information technology, information management, human resources, employee benefits administration, facilities, and other limited finance and accounting related services, for periods up to 24 months. Payments and operating expense reimbursements for transition services are recorded accordingly in our condensed consolidated financial statements based on the service provided. The following table summarizes the major line items for the outdoor products and accessories business that are included in income from discontinued operations, net of tax, in the condensed consolidated statements of income: For the Three Months Ended July 31, 2021 2020 (In thousands) Net revenues $ — $ 48,080 Cost of sales — 23,738 Operating expenses — 17,633 Other income, net — 84 Income from discontinued operations before — 6,793 Income tax expense — 1,709 Income from discontinued operations, net of tax $ — $ 5,084 |
Leases
Leases | 3 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Leases | (4) Leases: We lease certain of our real estate, machinery, equipment, and vehicles under non-cancelable operating lease agreements. We recognize expenses under our operating lease assets and liabilities at the commencement date based on the present value of lease payments over the lease term. Our leases do not provide an implicit interest rate. We use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Our lease agreements do not require material variable lease payments, residual value guarantees, or restrictive covenants. For operating leases, we recognize expense on a straight-line basis over the lease term. We record tenant improvement allowances as an offsetting adjustment included in our calculation of the respective right-of-use asset. Many of our leases include renewal options that enable us to extend the lease term. The execution of those renewal options is at our sole discretion and are reflected in the lease term when they are reasonably certain to be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term. The amounts of assets and liabilities related to our operating and financing leases as of July 31, 2021 were as follows (in thousands): Balance Sheet Caption July 31, 2021 Operating Leases Right-of-use assets $ 7,154 Accumulated amortization ( 2,631 ) Right-of-use assets, net Other assets $ 4,523 Current liabilities Accrued expenses and deferred revenue $ 1,349 Non-current liabilities Other non-current liabilities 3,344 Total operating lease liabilities $ 4,693 Finance Leases Right-of-use assets $ 40,986 Accumulated depreciation ( 4,757 ) Right-of-use assets, net Property, plant, and equipment, net $ 36,229 Current liabilities Accrued expenses and deferred revenue $ 1,101 Non-current liabilities Finance lease payable, net of current portion 38,509 Total finance lease liabilities $ 39,610 For the three months ended July 31, 2021, we recorded $ 371,000 of operating lease costs, of which $ 33,000 related to short-term leases that were not recorded as right-of-use assets. We recorded $ 525,000 of financing lease amortization and $ 497,000 of financing lease interest expense for the three months ended July 31, 2021. As of July 31, 2021, our weighted average lease term and weighted average discount rate for our operating leases was 3.9 years and 4.5 %, respectively. As of July 31, 2021, our weighted average lease term and weighted average discount rate for our financing leases were 17.2 years and 5.0 %, respectively, and consisted primarily of our national logistics facility located in Columbia, Missouri. The depreciable lives of right-of-use assets are limited by the lease term and are amortized on a straight-line basis over the life of the lease. With the completion of the Separation, we entered into a sublease whereby AOUT subleases from us 59.0 % of our national logistics facility under the same terms as the master lease. For the three months ended July 31, 2021, we recorded $ 501,000 of income related to this sublease agreement, which is recorded in other income in our condensed consolidated statements of income. The following table represents future expected undiscounted cashflows, based on the sublease agreement to AOUT, to be received on an annual basis for the next five years and thereafter, as of July 31, 2021 (in thousands): Fiscal Amount 2022 $ 1,401 2023 1,897 2024 1,930 2025 1,964 2026 1,998 Thereafter 26,514 Total future sublease receipts 35,704 Less amounts representing interest ( 13,024 ) Present value of sublease receipts $ 22,680 Future lease payments for all our operating and finance leases for succeeding fiscal years is as follows (in thousands): Operating Financing Total 2022 $ 1,179 $ 2,295 $ 3,474 2023 1,584 3,071 4,655 2024 1,576 3,125 4,701 2025 334 3,180 3,514 2026 311 3,235 3,546 Thereafter 404 45,548 45,952 Total future lease payments 5,388 60,454 65,842 Less amounts representing interest ( 695 ) ( 20,844 ) ( 21,539 ) Present value of lease payments 4,693 39,610 44,303 Less current maturities of lease liabilities ( 1,349 ) ( 1,101 ) ( 2,450 ) Long-term maturities of lease liabilities $ 3,344 $ 38,509 $ 41,853 For the three months ended July 31, 2021, the cash paid for amounts included in the measurement of the liabilities and the operating cash flows was $ 1.1 million. |
Notes, Loans Payable, and Finan
Notes, Loans Payable, and Financing Arrangements | 3 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes, Loans Payable, and Financing Arrangements | (5) Notes, Loans Payable, and Financing Arrangements: Credit Facilities — On August 24, 2020, we and certain of our subsidiaries entered into an amended and restated credit agreement, or the Amended and Restated Credit Agreement, with certain lenders; including TD Bank, N.A., as administrative agent; TD Securities (USA) LLC and Regions Bank, as joint lead arrangers and joint bookrunners; and Regions Bank, as syndication agent. The Amended and Restated Credit Agreement amended and restated our former credit agreement dated as of June 15, 2015. The Amended and Restated Credit Agreement is currently unsecured; however, should any Springing Lien Trigger Event (as defined in the Amended and Restated Credit Agreement) occur, we and certain of our subsidiaries would be required to enter into certain documents that create in favor of TD Bank, N.A., as administrative agent, and the lenders party to such documents a legal, valid, and enforceable first priority Lien on the Collateral described therein. The Amended and Restated Credit Agreement provides for a revolving line of credit of $ 100.0 million at any one time, or the Revolving Line. The Revolving Line bears interest at either the Base Rate or LIBOR rate, plus an applicable margin based on our consolidated leverage ratio. The 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 consolidated leverage ratio. Subject to the satisfaction of certain terms and conditions described in the 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 August 24, 2025 , or the date that is six months in advance of the earliest maturity of any Permitted Notes under the Amended and Restated Credit Agreement. As of July 31, 2021, we did no t have any borrowings outstanding on the Revolving Line. Had there been borrowings, they would have borne an interest rate of 1.59 %, which is equal to the LIBOR rate plus an applicable margin. The Amended and Restated Credit Agreement contains customary limitations, including limitations on indebtedness, liens, fundamental changes to business or organizational structure, investments, loans, advances, guarantees, and acquisitions, asset sales, dividends, stock repurchases, stock redemptions, and the redemption or prepayment of other debt, and transactions with affiliates. We are also subject to financial covenants, including a minimum consolidated fixed charge coverage ratio and a maximum consolidated leverage ratio. Letters of Credit – At July 31, 2021, we had outstanding letters of credit aggregating $ 2.7 million, which included a $ 1.5 million letter of credit to collateralize our captive insurance company. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (6) Fair Value Measurement: We follow the provisions of ASC 820-10, Fair Value Measurements and Disclosures Topic , or ASC 820-10, for our financial assets and liabilities. ASC 820-10 provides a framework for measuring fair value under GAAP and requires expanded disclosures regarding fair value measurements. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. Financial assets and liabilities recorded on the accompanying condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1 — Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access at the measurement date (examples include active exchange-traded equity securities, listed derivatives, and most U.S. Government and agency securities). Our cash and cash equivalents, which are measured at fair value on a recurring basis, totaled $ 171.4 million and $ 113.0 million as of July 31, 2021 and April 30, 2021, respectively. We utilized Level 1 of the value hierarchy to determine the fair values of these assets. Level 2 — Financial assets and liabilities whose values are based on quoted prices in markets in which trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 2 inputs include the following: quoted prices for identical or similar assets or liabilities in non-active markets (such as corporate and municipal bonds which trade infrequently); inputs other than quoted prices that are observable for substantially the full term of the asset or liability (such as interest rate and currency swaps); and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability (such as certain securities and derivatives). Level 3 — Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our judgments about the assumptions a market participant would use in pricing the asset or liability. We do no t have any Level 2 or Level 3 financial assets or liabilities as of July 31, 2021. |
Inventories
Inventories | 3 Months Ended |
Jul. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | (7) Inventories: The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or net realizable value, as of July 31, 2021 and April 30, 2021 (in thousands): July 31, 2021 April 30, 2021 Finished goods $ 28,419 $ 21,528 Finished parts 53,289 41,738 Work in process 6,878 7,918 Raw material 8,554 7,293 Total inventories $ 97,140 $ 78,477 |
Accrued Expenses and Deferred R
Accrued Expenses and Deferred Revenue | 3 Months Ended |
Jul. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Deferred Revenue | (8) Accrued Expenses and Deferred Revenue: The following table sets forth other accrued expenses as of July 31, 2021 and April 30, 2021 (in thousands): July 31, 2021 April 30, 2021 Accrued taxes other than income $ 10,722 $ 12,210 Accrued employee benefits 5,386 4,780 Accrued other 3,494 3,451 Accrued distributor incentives 3,446 2,414 Accrued professional fees 3,011 2,804 Accrued rebates and promotions 2,681 2,174 Deferred revenue 2,364 2,907 Current portion of operating lease obligation 1,349 1,309 Current portion of finance lease obligation 1,101 1,087 Total accrued expenses and deferred revenue $ 33,554 $ 33,136 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jul. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | (9) Stockholders’ Equity: Treasury Stock On March 2, 2021, our board of directors authorized the repurchase of up to $ 100.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions. During fiscal 2021, we repurchased 3,380,447 shares of our common stock for $ 60.0 million under this authorization. During the three months ended July 31, 2021, we completed this stock repurchase program by repurchasing 1,967,420 shares of our common stock for $ 40.0 million, utilizing cash on hand. On June 15, 2021, our board of directors authorized the repurchase of an additional $ 50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions, valid through August 2022. As of July 31, 2021, there were no purchases under this authorization. Earnings per Share The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended July 31, 2021 and 2020 (in thousands, except per share data): For the Three Months Ended 2021 2020 Net income Income from continuing operations $ 76,882 $ 43,301 Income from discontinued operations — 5,084 Net income $ 76,882 $ 48,385 Weighted average shares outstanding — Basic 48,394 55,494 Effect of dilutive stock awards 656 783 Weighted average shares outstanding — Diluted 49,050 56,277 Earnings per share — Basic Income from continuing operations $ 1.59 $ 0.78 Income from discontinued operations — $ 0.09 Net income $ 1.59 $ 0.87 Earnings per share — Diluted Income from continuing operations $ 1.57 $ 0.77 Income from discontinued operations — $ 0.09 Net income $ 1.57 $ 0.86 All of our outstanding restricted stock units, or RSUs, were included in the computation of diluted earnings per share for the three months ended July 31, 2021 and 2020. Incentive Stock and Employee Stock Purchase Plans In September 2013, our board of directors approved the 2013 Incentive Stock Plan under which employees and non-employees may be granted stock options, restricted stock awards, restricted stock units, stock appreciation rights, bonus stock and awards in lieu of obligations, performance awards, and dividend equivalents. We have an Employee Stock Purchase Plan, or the ESPP, in which each participant is granted an option to purchase our common stock on each subsequent exercise date during the offering period (as such terms are defined in the ESPP) in accordance with the terms of the ESPP. The total stock-based compensation expense, including stock options, purchases under our ESPP, service-based restricted stock units, or RSUs, and performance-based RSUs, or PSUs, was $ 1.5 million and $ 884,000 for the three months ended July 31, 2021 and 2020, respectively. Stock-based compensation expense is included in cost of sales, sales and marketing, research and development, and general and administrative expenses. We grant RSUs to employees and members of our Board of Directors. The awards are made at no cost to the recipient. An RSU represents the right to receive one share of our common stock and does not carry voting or dividend rights. Except in specific circumstances, RSU grants to employees vest over a period of four years with one -fourth of the units vesting on each anniversary of the grant date. We amortize the aggregate fair value of our RSU grants to compensation expense over the vesting period. We grant PSUs to our executive officers and certain management employees who are not executive officers. The PSUs vest, and the fair value of such PSUs will be recognized, over the corresponding three-year performance period. During the three months ended July 31, 2021, we granted an aggregate of 126,430 RSUs, including 49,277 RSUs to certain of our executive officers, 10,712 RSUs to our directors, and 66,441 RSUs to non-executive officer employees. During the three months ended July 31, 2021, we granted 73,913 PSUs to certain of our executive officers. Compensation expense related to grants of RSUs and PSUs was $ 1.3 million for the three months ended July 31, 2021. During the three months ended July 31, 2021, we cancelled 1,502 RSUs as a result of the service condition not being met. In connection with the vesting of RSUs, during the three months ended July 31, 2021, we delivered common stock to our employees and directors, including our executive officers, with a total market value of $ 2.2 million. In addition, in connection with a 2018 grant, we vested 86,400 market-condition PSUs to certain of our executive officers and a former executive officer, which resulted from achieving the maximum performance of 200.0 % of target for the original 43,200 PSUs granted. During the three months ended July 31, 2020, we granted an aggregate of 27,130 RSUs to non-executive officer employees. Compensation expense related to grants of RSUs and PSUs was $ 766,000 for the three months ended July 31, 2020. During the three months ended July 31, 2020, we canceled 63,700 PSUs as a result of the failure to satisfy the performance metric and 8,062 RSUs as a result of the service condition not being met. In connection with the vesting of RSUs, during the three months ended July 31, 2020, we delivered common stock to our employee and directors, including our executive officers, with a total market value of $ 2.9 million. A summary of activity for unvested RSUs and PSUs for the three months ended July 31, 2021 and 2020 is as follows: For the Three Months Ended July 31, 2021 2020 Weighted Weighted Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of period 995,879 $ 10.65 1,313,974 $ 11.54 Awarded 243,543 (a) 16.45 27,130 21.02 Vested ( 115,763 ) 13.42 ( 212,232 ) 15.76 Forfeited ( 1,502 ) 12.07 ( 71,762 ) 21.64 RSUs and PSUs outstanding, end of period 1,122,157 $ 11.62 1,057,110 $ 10.25 —————————— (a) Includes 43,200 PSUs vested in connection with achieving maximum performance targets for the 2018 grant. As of July 31, 2021, there was $ 4.7 million of unrecognized compensation expense related to unvested RSUs and PSUs. This expense is expected to be recognized over a weighted average remaining contractual term of 1.6 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) Commitments and Contingencies: Litigation In January 2018, Gemini Technologies, Incorporated, or Gemini, commenced an action against us in the U.S. District Court for the District of Idaho, or the District Court. The complaint alleges, among other things, that we breached the earn-out and other provisions of the Asset Purchase Agreement and ancillary agreements between the parties in connection with our acquisition of the Gemtech business from Gemini. The complaint seeks a declaratory judgment interpreting various terms of the Asset Purchase Agreement and damages in the sum of $ 18.6 million. In May 2018, the District Court dismissed the complaint on the grounds of forum non conveniens . In June 2018, Gemini appealed the decision dismissing its complaint to the U.S. Court of Appeals for the Ninth Circuit, or the Ninth Circuit. On July 24, 2019, the Ninth Circuit reversed the dismissal and remanded the case to the District Court to perform a traditional forum non conveniens analysis. On September 6, 2019, the parties stipulated that they do not contest that the venue is proper in the District of Idaho. On November 4, 2019, we filed an answer to Gemini’s complaint and a counterclaim against Gemini and its stockholders at the time of the signing of the Asset Purchase Agreement. Plaintiffs amended their complaint to add a claim of fraud in the inducement. We believe the claims asserted in the complaint have no merit, and we intend to aggressively defend this action. We are a defendant in five product liability cases and are aware of three other product liability claims, primarily alleging defective product design, defective manufacturing, or failure to provide adequate warnings. In addition, we are a co-defendant in a case filed on August 27, 1999 by the city of Gary, Indiana, or the City, against numerous firearm manufacturers, distributors, and dealers seeking to recover monetary damages, as well as injunctive relief, allegedly arising out of the misuse of firearms by third parties. In January 2018, the trial court granted defendants’ Motion for Judgment on the Pleadings, dismissing the case in its entirety. In February 2018, plaintiffs appealed the dismissal to the Indiana Court of Appeals. On May 23, 2019, the Indiana Court of Appeals issued a decision, which affirmed in part and reversed in part and remanded for further proceedings, the trial court’s dismissal of the City’s complaint. On July 8, 2019, defendants filed a Petition to Transfer jurisdiction to the Indiana Supreme Court. Briefing was completed in the Indiana Supreme Court on August 5, 2019. On November 26, 2019, the Indiana Supreme Court denied our petition to transfer. The case was returned to the trial court. In May 2018, we were named in an action related to the Parkland, Florida shooting, filed in the Circuit Court, Broward County, Florida, seeking a declaratory judgment that a Florida statute that provides firearm manufacturers and dealers immunity from liability when their legally manufactured and lawfully sold firearms are later used in criminal acts only applies to civil actions commenced by governmental agencies not private litigants. In August 2018, we moved to dismiss the complaint on the grounds that it seeks an impermissible advisory opinion. On December 6, 2018, the court granted defendants’ motion to dismiss without prejudice and granted plaintiffs leave to amend their complaint. On December 10, 2018, plaintiffs filed a Second Amended Complaint for Declaratory Relief. On December 13, 2018, defendants filed a Motion to Dismiss Plaintiffs’ Second Amended Complaint. On November 21, 2019, the court granted defendants’ motion to dismiss plaintiffs’ second amended complaint, with prejudice. On June 15, 2021, upon plaintiffs’ motion, the Fourth District Court of Appeal of the State of Florida, or the Court of Appeal, ruled that the Circuit Court’s November 21, 2019 order dismissing the case was not “final and appealable,” and ordered the Circuit Court to enter a final order of dismissal. On July 30, 2021, plaintiffs Frederic and Jennifer Guttenberg filed a notice of appeal to the Court of Appeal. We are a defendant in a putative class proceeding before the Ontario Superior Court of Justice in Toronto, Canada. The action was filed on December 16, 2019 . The action claims CAD$ 50 million in aggregate general damages, CAD$ 100 million in aggregate punitive damages, special damages in an unspecified amount, together with interest and legal costs. The named plaintiffs are two victims of a shooting that took place in Toronto on July 22, 2018 and their family members. One victim was shot and injured during the shooting. The other suffered unspecified injuries while fleeing the shooting. The plaintiffs are seeking to certify a claim on behalf of classes that include all persons who were killed or injured in the shooting and their immediate family members. The plaintiffs allege negligent design and public nuisance. The case has not been certified as a class action. On July 13, 2020, we filed a Notice of Motion for an order striking the claim and dismissing the action in its entirety. On February 11, 2021, the court granted our motion in part, and dismissed the plaintiffs’ claims in public nuisance and strict liability. The court declined to strike the negligent design claim, and ordered that the claim proceed to a certification motion. The certification motion is scheduled to be heard in March of 2022. On March 2, 2021, we filed a motion for leave to appeal the court’s refusal to strike the negligent design claim with the Divisional Court, Ontario Superior Court of Justice. No hearing date for that motion has yet been set. In May 2020, we were named in an action related to the Chabad of Poway synagogue shooting that took place on April 27, 2019. The complaint was filed in the Superior Court of the State of California, for the County of San Diego – Central, and asserts claims against us for product liability, unfair competition, negligence, and public nuisance. The plaintiffs allege they were present at the synagogue on the day of the incident and suffered physical and/or emotional injury. The plaintiffs seek compensatory and punitive damages, attorneys’ fees, and injunctive relief. On September 3, 2020, we filed a demurrer and motion to strike, seeking to dismiss plaintiffs’ complaint. The plaintiffs filed an opposition to our motion on December 18, 2020. Our reply to plaintiffs’ opposition was filed on January 15, 2021. On February 16, 2021, several law professors with First Amendment expertise filed an amicus brief in support of our demurrer. Plaintiffs responded to the law professors’ brief on March 8, 2021. On March 23, 2021, Public Citizen, a consumer advocacy organization, filed an amicus brief in response to the law professors’ amicus brief. We responded to Public Citizen’s brief on May 10, 2021. The hearing on our motion was held on June 8, 2021. On July 2, 2021, the court granted our motion in part, and reversed it in part, ruling that: (1) the PLCAA barred plaintiffs’ product liability action; (2) plaintiffs did not have standing to maintain an action under the Unfair Competition Law for personal injury related damages, but giving plaintiffs leave to amend to plead an economic injury; and (3) the PLCAA did not bar plaintiffs’ ordinary negligence and public nuisance actions because plaintiffs had alleged that we violated 18 U.S.C Section 922(b)(4), which generally prohibits the sale of fully automatic “machineguns.” On August 13, 2021, we filed a Petition for Writ of Mandate in the Court of Appeal of the State of California, Fourth Appellate District, Division One. We are a defendant in an action filed in the United States District Court for the District of Massachusetts. On August 4, 2021, the Mexican Government filed an action against several U.S.-based firearms manufacturers and a firearms distributor, claiming defendants design, market, distribute, and sell firearms in ways they know routinely arm the drug cartels in Mexico. Plaintiff alleges negligence, public nuisance, design defect, unjust enrichment and restitution, and violation of the Massachusetts Consumer Protection Act, and is seeking monetary damages and injunctive relief. We believe the claims asserted in the complaint have no merit, and we intend to aggressively defend this action. We believe that the various allegations as described above are unfounded, and, in addition, that any incident and any results from them or any injuries were due to negligence or misuse of the firearm by the claimant or a third party. John Pidcock, as trustee of the ASPC Creditor Trust (appointed under the plan of reorganization of AcuSport Corp., or AcuSport, as debtor in possession under chapter 11 of the U.S. Bankruptcy Code), is the plaintiff in two separate actions against us in the U.S. Bankruptcy Court for the Southern District of Ohio. The first seeks recovery of alleged preferential transfers received by us from AcuSport in the aggregate amount of $ 4.2 million. The second seeks turnover of goods allegedly owed to AcuSport by us under one or more of our promotional programs in the amount of $ 1.5 million. We have filed answers to both complaints denying all material allegations and asserting affirmative defenses. Mediation was held on December 10, 2020, and was unsuccessful in resolving these cases. A second mediation was held on June 23, 2021 and resulted in the settlement of all actions against us by the plaintiff. The final settlement agreement was signed by all parties in August 2021. We believe that the various allegations as described above are unfounded. In addition, from time to time, we are involved in lawsuits, claims, investigations, and proceedings, including commercial, environmental, premises, and employment matters, which arise in the ordinary course of business. The relief sought in individual cases primarily includes compensatory and, sometimes, punitive damages. Certain of the cases and claims seek unspecified compensatory or punitive damages. In others, compensatory damages sought may range from less than $ 75,000 to approximately $ 50.0 million. In our experience, initial demands do not generally bear a reasonable relationship to the facts and circumstances of a particular matter. We believe that our accruals for product liability cases and claims are a reasonable quantitative measure of the cost to us of product liability cases and claims. We are vigorously defending ourselves in the lawsuits to which we are subject. An unfavorable outcome or prolonged litigation could harm our business. Litigation of this nature also is expensive, time consuming, and diverts the time and attention of our management. We monitor the status of known claims and the related product liability accrual, which includes amounts for defense costs for asserted and unasserted claims. After consultation with litigation counsel and a review of the merit of each claim, we have concluded that we are unable to reasonably estimate the probability or the estimated range of reasonably possible losses related to material adverse judgments related to such claims and, therefore, we have not accrued for any such judgments. In the future, should we determine that a loss (or an additional loss in excess of our accrual) is at least reasonably possible and material, we would then disclose an estimate of the possible loss or range of loss, if such estimate could be made, or disclose that an estimate could not be made. We believe that we have provided adequate accruals for defense costs. We have recorded our liability for defense costs before consideration for reimbursement from insurance carriers. We have also recorded the amount due as reimbursement under existing policies from the insurance carriers as a receivable shown in other current assets and other assets. At this time, an estimated range of reasonably possible additional losses relating to unfavorable outcomes cannot be made. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jul. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | (11) Subsequent Events: Dividends On August 30, 2021 , our Board of Directors authorized a regular quarterly dividend for stockholders of $ 0.08 per share. The dividend will be for stockholders of record as of market close on September 14, 2021 and is payable on September 28, 2021 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information – The condensed consolidated balance sheet as of July 31, 2021, the condensed consolidated statements of income for the three months ended July 31, 2021 and 2020, the condensed consolidated statements of changes in stockholders’ equity for the three months ended July 31, 2021 and 2020, and the condensed consolidated statements of cash flows for the three months ended July 31, 2021 and 2020 have been prepared by us without audit. In our opinion, all adjustments, which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, changes in stockholders’ equity, and cash flows for the three months ended July 31, 2021 and for the periods presented, have been included. All intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2021 has been derived from our audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2021. The results of operations for the three months ended July 31, 2021 may not be indicative of the results that may be expected for the fiscal year ending April 30, 2022 , or any other period. |
Recently Issued Accounting Standards | In December 2019, the FASB issued ASU No. 2019-12, " Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," an update that amends and simplifies the accounting for income taxes by removing certain exceptions in the existing guidance and providing new guidance to reduce complexity in certain areas. The guidance went into effect at the start of this fiscal year ending April 30, 2022 with early adoption permitted. We have reviewed the amendments in this update and determined that there were no material changes or impacts on our condensed consolidated financial statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Results of Discontinued Operations | The following table summarizes the major line items for the outdoor products and accessories business that are included in income from discontinued operations, net of tax, in the condensed consolidated statements of income: For the Three Months Ended July 31, 2021 2020 (In thousands) Net revenues $ — $ 48,080 Cost of sales — 23,738 Operating expenses — 17,633 Other income, net — 84 Income from discontinued operations before — 6,793 Income tax expense — 1,709 Income from discontinued operations, net of tax $ — $ 5,084 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities Related to Operating and Financing Leases | The amounts of assets and liabilities related to our operating and financing leases as of July 31, 2021 were as follows (in thousands): Balance Sheet Caption July 31, 2021 Operating Leases Right-of-use assets $ 7,154 Accumulated amortization ( 2,631 ) Right-of-use assets, net Other assets $ 4,523 Current liabilities Accrued expenses and deferred revenue $ 1,349 Non-current liabilities Other non-current liabilities 3,344 Total operating lease liabilities $ 4,693 Finance Leases Right-of-use assets $ 40,986 Accumulated depreciation ( 4,757 ) Right-of-use assets, net Property, plant, and equipment, net $ 36,229 Current liabilities Accrued expenses and deferred revenue $ 1,101 Non-current liabilities Finance lease payable, net of current portion 38,509 Total finance lease liabilities $ 39,610 |
Summary of Future Expected Undiscounted Cash Flows | The following table represents future expected undiscounted cashflows, based on the sublease agreement to AOUT, to be received on an annual basis for the next five years and thereafter, as of July 31, 2021 (in thousands): Fiscal Amount 2022 $ 1,401 2023 1,897 2024 1,930 2025 1,964 2026 1,998 Thereafter 26,514 Total future sublease receipts 35,704 Less amounts representing interest ( 13,024 ) Present value of sublease receipts $ 22,680 |
Summary of Future Lease Payments for Operating and Finance Leases | Future lease payments for all our operating and finance leases for succeeding fiscal years is as follows (in thousands): Operating Financing Total 2022 $ 1,179 $ 2,295 $ 3,474 2023 1,584 3,071 4,655 2024 1,576 3,125 4,701 2025 334 3,180 3,514 2026 311 3,235 3,546 Thereafter 404 45,548 45,952 Total future lease payments 5,388 60,454 65,842 Less amounts representing interest ( 695 ) ( 20,844 ) ( 21,539 ) Present value of lease payments 4,693 39,610 44,303 Less current maturities of lease liabilities ( 1,349 ) ( 1,101 ) ( 2,450 ) Long-term maturities of lease liabilities $ 3,344 $ 38,509 $ 41,853 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or net realizable value, as of July 31, 2021 and April 30, 2021 (in thousands): July 31, 2021 April 30, 2021 Finished goods $ 28,419 $ 21,528 Finished parts 53,289 41,738 Work in process 6,878 7,918 Raw material 8,554 7,293 Total inventories $ 97,140 $ 78,477 |
Accrued Expenses and Deferred_2
Accrued Expenses and Deferred Revenue (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | The following table sets forth other accrued expenses as of July 31, 2021 and April 30, 2021 (in thousands): July 31, 2021 April 30, 2021 Accrued taxes other than income $ 10,722 $ 12,210 Accrued employee benefits 5,386 4,780 Accrued other 3,494 3,451 Accrued distributor incentives 3,446 2,414 Accrued professional fees 3,011 2,804 Accrued rebates and promotions 2,681 2,174 Deferred revenue 2,364 2,907 Current portion of operating lease obligation 1,349 1,309 Current portion of finance lease obligation 1,101 1,087 Total accrued expenses and deferred revenue $ 33,554 $ 33,136 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Equity [Abstract] | |
Reconciliation of Net Income Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings per Share | The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended July 31, 2021 and 2020 (in thousands, except per share data): For the Three Months Ended 2021 2020 Net income Income from continuing operations $ 76,882 $ 43,301 Income from discontinued operations — 5,084 Net income $ 76,882 $ 48,385 Weighted average shares outstanding — Basic 48,394 55,494 Effect of dilutive stock awards 656 783 Weighted average shares outstanding — Diluted 49,050 56,277 Earnings per share — Basic Income from continuing operations $ 1.59 $ 0.78 Income from discontinued operations — $ 0.09 Net income $ 1.59 $ 0.87 Earnings per share — Diluted Income from continuing operations $ 1.57 $ 0.77 Income from discontinued operations — $ 0.09 Net income $ 1.57 $ 0.86 |
Summary of Activity for Unvested RSUs and PSUs | A summary of activity for unvested RSUs and PSUs for the three months ended July 31, 2021 and 2020 is as follows: For the Three Months Ended July 31, 2021 2020 Weighted Weighted Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of period 995,879 $ 10.65 1,313,974 $ 11.54 Awarded 243,543 (a) 16.45 27,130 21.02 Vested ( 115,763 ) 13.42 ( 212,232 ) 15.76 Forfeited ( 1,502 ) 12.07 ( 71,762 ) 21.64 RSUs and PSUs outstanding, end of period 1,122,157 $ 11.62 1,057,110 $ 10.25 —————————— (a) Includes 43,200 PSUs vested in connection with achieving maximum performance targets for the 2018 grant. |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Aug. 24, 2020 | Aug. 10, 2020 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Reverse stock split description | one share of AOUT common stock for every four shares of our common | |||
Business separation expenses | $ 3,600 | |||
Income/(loss) from discontinued operations, net of tax | $ 5,084 | |||
Outdoor Products and Accessories Business | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Income/(loss) from discontinued operations, net of tax | 5,100 | |||
American Outdoor Brands Inc. | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Stockholders ownership percentage | 0.00% | 100.00% | ||
Gain/(loss) recognized on Separation | 0 | |||
Cash distributed for Separation | 25,000 | |||
Divested net assets | $ 260,400 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Major Business Line Items Included in Discontinued Operations in Condensed Consolidation Statements of Income/(Loss) and Comprehensive Income/(Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Income from discontinued operations before income taxes | $ 5,084 | |
Income from discontinued operations, net of tax | 5,084 | |
Outdoor Products and Accessories Business | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Income from discontinued operations, net of tax | 5,100 | |
Spin-off | Outdoor Products and Accessories Business | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net revenues | 0 | 48,080 |
Cost of sales | 0 | 23,738 |
Operating expenses | 0 | 17,633 |
Other income, net | 0 | 84 |
Income from discontinued operations before income taxes | 0 | 6,793 |
Income tax expense | 0 | 1,709 |
Income from discontinued operations, net of tax | $ 0 | $ 5,084 |
Leases - Schedule of Assets and
Leases - Schedule of Assets and Liabilities Related to Operating and Financing Leases (Detail) - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 |
Operating Leases | ||
Right-of-use assets | $ 7,154 | |
Accumulated amortization | (2,631) | |
Right-of-use assets, net | $ 4,523 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | |
Current liabilities | $ 1,349 | $ 1,309 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and deferred revenue | |
Non-current liabilities | $ 3,344 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | |
Total operating lease liabilities | $ 4,693 | |
Finance Leases | ||
Right-of-use assets | 40,986 | |
Accumulated depreciation | (4,757) | |
Right-of-use assets, net | $ 36,229 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant, and equipment, net | |
Current liabilities | $ 1,101 | 1,087 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and deferred revenue | |
Non-current liabilities | $ 38,509 | $ 38,786 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Non-current liabilities | |
Total finance lease liabilities | $ 39,610 |
Leases - Additional Information
Leases - Additional Information (Detail) | 3 Months Ended |
Jul. 31, 2021USD ($) | |
Lessee Lease Description [Line Items] | |
Operating lease cost | $ 371,000 |
Short-term operating lease costs | 33,000 |
Financing lease Amortization | 525,000 |
Financing lease interest expense | $ 497,000 |
Operating leases, weighted average lease term | 3 years 10 months 24 days |
Operating leases, weighted average discount rate | 4.50% |
Financing leases, weighted average lease term | 17 years 2 months 12 days |
Financing leases, weighted average discount rate | 5.00% |
Cash paid for amounts included in measurement of liabilities and operating cash flows | $ 1,100,000 |
National Logistics Facility | |
Lessee Lease Description [Line Items] | |
Percentage of sublease | 59.00% |
National Logistics Facility | Other Income/(Expense) | |
Lessee Lease Description [Line Items] | |
Income related to sublease agreement | $ 501,000 |
Leases - Summary of Future Expe
Leases - Summary of Future Expected Undiscounted Cash Flows (Details) $ in Thousands | Jul. 31, 2021USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2022 | $ 1,401 |
2023 | 1,897 |
2024 | 1,930 |
2025 | 1,964 |
2026 | 1,998 |
Thereafter | 26,514 |
Total future sublease receipts | 35,704 |
Less amounts representing interest | 13,024 |
Present value of sublease receipts | $ 22,680 |
Leases - Summary of Future Leas
Leases - Summary of Future Lease Payments for Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 |
Operating and Finance Lease liabilities payments | ||
2022 | $ 3,474 | |
2023 | 4,655 | |
2024 | 4,701 | |
2025 | 3,514 | |
2026 | 3,546 | |
Thereafter | 45,952 | |
Total future lease payments | 65,842 | |
Less amounts representing interest | (21,539) | |
Present value of lease payments | 44,303 | |
Less current maturities of lease liabilities | (2,450) | |
Long-term maturities of lease liabilities | 41,853 | |
Operating Leases | ||
2022 | 1,179 | |
2023 | 1,584 | |
2024 | 1,576 | |
2025 | 334 | |
2026 | 311 | |
Thereafter | 404 | |
Total future lease payments | 5,388 | |
Less amounts representing interest | (695) | |
Total operating lease liabilities | 4,693 | |
Less current maturities of lease liabilities | (1,349) | $ (1,309) |
Long-term maturities of lease liabilities | 3,344 | |
Financing Leases | ||
2022 | 2,295 | |
2023 | 3,071 | |
2024 | 3,125 | |
2025 | 3,180 | |
2026 | 3,235 | |
Thereafter | 45,548 | |
Total future lease payments | 60,454 | |
Less amounts representing interest | (20,844) | |
Total finance lease liabilities | 39,610 | |
Less current maturities of lease liabilities | (1,101) | (1,087) |
Long-term maturities of lease liabilities | $ 38,509 | $ 38,786 |
Notes, Loans Payable, and Fin_2
Notes, Loans Payable, and Financing Arrangements - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 24, 2020 | Jul. 31, 2021 |
Maximum | ||
Debt Instrument [Line Items] | ||
Swingline Loan | $ 5,000 | |
Swingline Loan | ||
Debt Instrument [Line Items] | ||
Interest description of revolving line of credit | 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 consolidated leverage ratio. | |
Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, borrowing capacity | 100,000 | |
Interest description of revolving line of credit | The Revolving Line bears interest at either the Base Rate or LIBOR rate, plus an applicable margin based on our consolidated leverage ratio. | |
Credit facility additional borrowing capacity option to increase maximum borrowing capacity | $ 50,000 | |
Credit facility, maturity | Aug. 24, 2025 | |
Credit Facilities | ||
Debt Instrument [Line Items] | ||
Borrowings outstanding | $ 0 | |
Outstanding letters of credit | 2,700 | |
Credit Facilities | Self Insurance | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | $ 1,500 | |
Credit Facilities | LIBOR Rate | ||
Debt Instrument [Line Items] | ||
Interest rate on borrowings | 1.59% |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
(Level 1) | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 171,400,000 | $ 113,000,000 |
(Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | |
Financial liabilities | 0 | |
(Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | |
Financial liabilities | $ 0 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 28,419 | $ 21,528 |
Finished parts | 53,289 | 41,738 |
Work in process | 6,878 | 7,918 |
Raw material | 8,554 | 7,293 |
Total inventories | $ 97,140 | $ 78,477 |
Accrued Expenses and Deferred_3
Accrued Expenses and Deferred Revenue - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 |
Payables And Accruals [Abstract] | ||
Accrued taxes other than income | $ 10,722 | $ 12,210 |
Accrued employee benefits | 5,386 | 4,780 |
Accrued other | 3,494 | 3,451 |
Accrued distributor incentives | 3,446 | 2,414 |
Accrued professional fees | 3,011 | 2,804 |
Accrued rebates and promotions | 2,681 | 2,174 |
Deferred revenue | 2,364 | 2,907 |
Current portion of operating lease obligation | 1,349 | 1,309 |
Current portion of finance lease obligation | 1,101 | 1,087 |
Total accrued expenses and deferred revenue | $ 33,554 | $ 33,136 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2021 | Jun. 15, 2021 | Mar. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 1,500,000 | $ 884,000 | |||
Performance period | 3 years | ||||
Weighted average remaining contractual term | 1 year 7 months 6 days | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Vesting, percentage | 25.00% | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period | 126,430 | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Total Fair Value | $ 2,200,000 | $ 2,900,000 | |||
Stock units, forfeited | 1,502 | 8,062 | |||
RSUs | Non-Executive Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period | 66,441 | 27,130 | |||
RSUs | Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period | 10,712 | ||||
RSUs | Executive Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period | 49,277 | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, forfeited | 63,700 | ||||
Performance Shares | Executive Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period | 73,913 | ||||
RSUs and PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 766,000 | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period | 243,543,000 | 27,130,000 | |||
Stock units, forfeited | 1,502,000 | 71,762,000 | |||
Unrecognized compensation expense related to unvested RSUs and PSUs | $ 4,700,000 | ||||
Weighted average remaining contractual term | 1 year 7 months 6 days | ||||
RSUs and PSUs | Employees And Consultants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 1,300,000 | ||||
2013 Incentive Stock Plan | Market Condition PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period | 43,200,000 | ||||
Awards vested | 86,400 | ||||
Percentage of awards granted in excess of target amount | 200.00% | ||||
Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase authorization | $ 0 | ||||
Options exercised during the period, shares | 191,000 | ||||
Share Repurchase Transactions One [Member] | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of common stock | 1,967,420 | 3,380,447 | |||
Number of shares repurchased, value | $ 60,000,000 | ||||
Cash on hand utilized for repurchase of shares | $ 40,000,000 | ||||
Share Repurchase Transactions One [Member] | Common Stock | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase authorization | $ 100,000,000 | ||||
Share Repurchase Transactions Two [Member] | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase authorization | $ 50,000,000 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Net Income Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Net income | ||
Income from continuing operations | $ 76,882 | $ 43,301 |
Income from discontinued operations | 5,084 | |
Net income | $ 76,882 | $ 48,385 |
Weighted average shares outstanding — Basic | 48,394 | 55,494 |
Effect of dilutive stock awards | 656 | 783 |
Weighted average shares outstanding — Diluted | 49,050 | 56,277 |
Earnings per share - Basic | ||
Income from continuing operations | $ 1.59 | $ 0.78 |
Income from discontinued operations | 0.09 | |
Net income | 1.59 | 0.87 |
Earnings per share - Diluted | ||
Income from continuing operations | 1.57 | 0.77 |
Income from discontinued operations | 0.09 | |
Net income | $ 1.57 | $ 0.86 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activity for Unvested RSUs and PSUs (Detail) - RSUs and PSUs - $ / shares shares in Thousands | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Summary of activity in unvested restricted stock units and performance share units | ||
Restricted Stock Units, RSUs and PSUs outstanding, beginning of period | 995,879 | 1,313,974 |
Restricted Stock Units, Awarded | 243,543 | 27,130 |
Restricted Stock Units, Vested | (115,763) | (212,232) |
Restricted Stock Units, Forfeited | (1,502) | (71,762) |
Restricted Stock Units, RSUs and PSUs outstanding, end of period | 1,122,157 | 1,057,110 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, beginning of period | $ 10.65 | $ 11.54 |
Weighted Average Grant Date Fair Value, Awarded | 16.45 | 21.02 |
Weighted Average Grant Date Fair Value, Vested | 13.42 | 15.76 |
Weighted Average Grant Date Fair Value, Forfeited | 12.07 | 21.64 |
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, end of period | $ 11.62 | $ 10.25 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Activity for Unvested RSUs and PSUs (Parenthetical) (Detail) shares in Thousands | 3 Months Ended |
Jul. 31, 2021shares | |
Market Condition PSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
PSU Vested | 43,200 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2018USD ($) | Jul. 31, 2021USD ($)PlaintiffClaimCase | Jul. 31, 2021CAD ($)PlaintiffClaimCase | |
Schedule Of Commitments And Contingencies [Line Items] | |||
Number of Product liability cases | Case | 5 | 5 | |
Number of Other product liability claims | Claim | 3 | 3 | |
Minimum | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Compensatory damages sought | $ 75,000 | ||
Maximum | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Compensatory damages sought | $ 50,000,000 | ||
Putative Class | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Date of actions filed | December 16, 2019 | December 16, 2019 | |
Number of plaintiffs | Plaintiff | 2 | 2 | |
Putative Class | General Damages | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Aggregate damages claims | $ 50 | ||
Putative Class | Compensatory or Punitive Damages | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Aggregate damages claims | $ 100 | ||
John Pidcock | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Number of plaintiffs | Plaintiff | 2 | 2 | |
John Pidcock | Preferential Transfers | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Compensatory damages sought | $ 4,200,000 | ||
John Pidcock | Turnover of Goods | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Compensatory damages sought | $ 1,500,000 | ||
Gemini Technologies, Incorporated | Smith & Wesson Corp | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Compensatory damages sought | $ 18,600,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | 3 Months Ended |
Jul. 31, 2021$ / shares | |
Subsequent Events [Abstract] | |
Dividends payable, date declared | Aug. 30, 2021 |
Dividends payable, amount per share | $ 0.08 |
Dividends payable, nature | regular quarterly dividend |
Dividends payable, date of record | Sep. 14, 2021 |
Dividends payable, date to be paid | Sep. 28, 2021 |