Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2024 | Sep. 03, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
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 | 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 | 1852 Proffitt Springs Road | |
Entity Address, City or Town | Maryville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37801 | |
City Area Code | 800 | |
Local Phone Number | 331-0852 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 44,852,284 | |
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, 2024 | Apr. 30, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 35,515 | $ 60,839 |
Accounts receivable, net of allowances for credit losses of $5 on July 31, 2024 and $0 on April 30, 2024 | 47,762 | 59,071 |
Inventories | 189,814 | 160,500 |
Prepaid expenses and other current assets | 9,040 | 4,973 |
Income tax receivable | 3,183 | 2,495 |
Total current assets | 285,314 | 287,878 |
Property, plant, and equipment, net | 248,765 | 252,633 |
Intangibles, net | 2,526 | 2,598 |
Goodwill | 19,024 | 19,024 |
Deferred income taxes | 7,249 | 7,249 |
Other assets | 8,390 | 8,614 |
Total assets | 571,268 | 577,996 |
Current liabilities: | ||
Accounts payable | 29,453 | 41,831 |
Accrued expenses and deferred revenue | 27,887 | 26,811 |
Accrued payroll and incentives | 12,308 | 17,147 |
Accrued profit sharing | 9,098 | 9,098 |
Accrued warranty | 1,743 | 1,813 |
Total current liabilities | 80,489 | 96,700 |
Notes and loans payable (Note 4) | 69,903 | 39,880 |
Finance lease payable, net of current portion | 34,994 | 35,404 |
Other non-current liabilities | 7,896 | 7,852 |
Total liabilities | 193,282 | 179,836 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value, 100,000,000 shares authorized, 75,551,848 issued and 45,847,258 shares outstanding on July 31, 2024 and 75,395,490 shares issued and 45,561,569 shares outstanding on April 30, 2024 | 76 | 75 |
Additional paid-in capital | 290,790 | 289,994 |
Retained earnings | 532,647 | 540,660 |
Accumulated other comprehensive income | 73 | 73 |
Treasury stock, at cost (30,704,590 shares on July 31, 2024 and 29,833,921 shares on April 30, 2024) | (445,600) | (432,642) |
Total stockholders’ equity | 377,986 | 398,160 |
Total liabilities and stockholders' equity | $ 571,268 | $ 577,996 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Statement of Financial Position [Abstract] | ||
Allowances for credit losses | $ 5 | $ 0 |
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 | 75,551,848 | 75,395,490 |
Common stock, shares outstanding | 44,847,258 | 45,561,569 |
Treasury Stock, Common, Shares | 30,704,590 | 29,833,921 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 88,334 | $ 114,243 |
Cost of sales | 64,142 | 83,842 |
Gross profit | 24,192 | 30,401 |
Operating expenses: | ||
Research and development | 2,515 | 1,799 |
Selling, marketing, and distribution | 9,837 | 10,040 |
General and administrative | 13,702 | 14,213 |
Total operating expenses | 26,054 | 26,052 |
Operating (loss)/income | (1,862) | 4,349 |
Other income/(expense), net: | ||
Other (expense)/income, net | (6) | 47 |
Interest (expense)/income, net | (732) | 153 |
Total other (expense)/income, net | (738) | 200 |
(Loss)/income from operations before income taxes | (2,600) | 4,549 |
Income tax (benefit)/expense | (494) | 1,431 |
Net (loss)/income | $ (2,106) | $ 3,118 |
Net (loss)/income per share: | ||
Basic - net (loss)/income | $ (0.05) | $ 0.07 |
Diluted - net (loss)/income | $ (0.05) | $ 0.07 |
Weighted average number of common shares outstanding: | ||
Basic | 45,321 | 46,103 |
Diluted | 45,321 | 46,551 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Treasury Stock |
Balance at Apr. 30, 2023 | $ 384,623 | $ 75 | $ 283,666 | $ 523,184 | $ 73 | $ (422,375) |
Balance (in shares) at Apr. 30, 2023 | 75,029 | |||||
Treasury stock (in shares) at Apr. 30, 2023 | 29,040 | |||||
Stock-based compensation | 1,276 | 1,276 | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (766) | (766) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 155 | |||||
Dividends issued | (5,536) | (5,536) | ||||
Net income | 3,118 | 3,118 | ||||
Balance at Jul. 31, 2023 | 382,715 | $ 75 | 284,176 | 520,766 | 73 | $ (422,375) |
Balance (in shares) at Jul. 31, 2023 | 75,184 | |||||
Treasury stock (in shares) at Jul. 31, 2023 | 29,040 | |||||
Balance at Apr. 30, 2024 | $ 398,160 | $ 75 | 289,994 | 540,660 | 73 | $ (432,642) |
Balance (in shares) at Apr. 30, 2024 | 45,561,569 | 75,395 | ||||
Treasury stock (in shares) at Apr. 30, 2024 | 29,833,921 | 29,834 | ||||
Stock-based compensation | $ 1,854 | 1,854 | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (1,057) | $ 1 | (1,058) | |||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 157 | |||||
Repurchase of treasury stock | (12,958) | $ (12,958) | ||||
Repurchase of treasury stock, shares | 871 | |||||
Dividends issued | (5,886) | (5,886) | ||||
Unpaid dividends accrued | (21) | (21) | ||||
Net income | (2,106) | (2,106) | ||||
Balance at Jul. 31, 2024 | $ 377,986 | $ 76 | $ 290,790 | $ 532,647 | $ 73 | $ (445,600) |
Balance (in shares) at Jul. 31, 2024 | 44,847,258 | 75,552 | ||||
Treasury stock (in shares) at Jul. 31, 2024 | 30,704,590 | 30,705 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ (2,106) | $ 3,118 |
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | ||
Depreciation and amortization | 8,048 | 9,253 |
(Gain)/loss on sale/disposition of assets | (58) | 3 |
Provision for losses/(recoveries) on notes and accounts receivable | 5 | (6) |
Stock-based compensation expense | 1,854 | 1,276 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 11,305 | 26,995 |
Inventories | (29,315) | 6,363 |
Prepaid expenses and other current assets | (4,066) | (3,825) |
Income taxes | (688) | 915 |
Accounts payable | (11,740) | (1,838) |
Accrued payroll and incentives | (4,839) | 1,551 |
Accrued profit sharing | 0 | 768 |
Accrued expenses and deferred revenue | 586 | (4,135) |
Accrued warranty | (70) | 83 |
Other assets | 224 | 75 |
Other non-current liabilities | 45 | 34 |
Net cash (used in)/provided by operating activities | (30,815) | 40,630 |
Cash flows from investing activities: | ||
Payments to acquire patents and software | (21) | (33) |
Proceeds from sale of property and equipment | 58 | 23 |
Payments to acquire property and equipment | (4,702) | (32,057) |
Net cash used in investing activities | (4,665) | (32,067) |
Cash flows from financing activities: | ||
Proceeds from loans and notes payable | 30,000 | 0 |
Payments on finance lease obligation | (44) | (338) |
Payments to acquire treasury stock | (12,856) | 0 |
Dividend distribution | (5,886) | (5,536) |
Payment of employee withholding tax related to restricted stock units | (1,058) | (766) |
Net cash provided by/(used in) financing activities | 10,156 | (6,640) |
Net decrease in cash and cash equivalents | (25,324) | 1,923 |
Cash and cash equivalents, beginning of period | 60,839 | 53,556 |
Cash and cash equivalents, end of period | 35,515 | 55,479 |
Supplemental disclosure of cash flow information Cash paid for: | ||
Interest, net of amounts capitalized | 1,313 | 525 |
Income taxes | 361 | 494 |
Supplemental Disclosure of Non-cash Investing Activities: | ||
Purchases of property and equipment included in accounts payable | 1,824 | 17,144 |
Capital lease included in accrued expenses and finance lease payable | $ 570 | $ 734 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (2,106) | $ 3,118 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization
Organization | 3 Months Ended |
Jul. 31, 2024 | |
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, pistol caliber carbines, and lever action rifles), handcuffs, firearm 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 and Gemtech brands. We manufacture our products at our facilities in Springfield, Massachusetts; Houlton, Maine; Deep River, Connecticut; and Maryville, Tennessee. We also sell our manufacturing services to other businesses to attempt to level-load our factories. We sell those services under our Smith & Wesson and Smith & Wesson Precision Components brands. During fiscal 2024, we began manufacturing and distribution activities from our new Maryville facility. See Note 9 — Commitments and Contingencies and Note 10 — Restructuring for more information. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (2) Basis of Presentation: Interim Financial Information – The condensed consolidated balance sheet as of July 31, 2024, the condensed consolidated statements of operations for the three months ended July 31, 2024 and 2023, the condensed consolidated statements of changes in stockholders’ equity for the three months ended July 31, 2024 and 2023, and the condensed consolidated statements of cash flows for the three months ended July 31, 2024 and 2023 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, 2024 and for the periods presented, have been included. All intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2024 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 Fiscal 2024 Form 10-K. The results of operations for the three months ended July 31, 2024 may not be indicative of the results that may be expected for the fiscal year ending April 30, 2025 , or any other period. Recently Issued Accounting Standards – In November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update ("ASU") No. 2023-07, Improvements to Reportable Segment Disclosures, which requires incremental disclosures about an entity’s reportable segments but does not change the definition of a segment or the guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker and (2) included in the reported measure of segment profit or loss. The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources. This update is effective for fiscal years beginning after December 31, 2023, or fiscal 2025 for us, and should be adopted retrospectively unless impracticable. We are currently evaluating the impact, if any, that the adoption of this standard will have on financial disclosures. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, which requires entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes and provide more details about the reconciling items in some categories if items meet a quantitative threshold. Entities would have to provide qualitative disclosures about the new categories. The guidance will require all entities to disclose income taxes paid, net of refunds, disaggregated by federal (national), state, and foreign taxes for annual periods, and to disaggregate the information by jurisdiction based on a quantitative threshold. The guidance makes several other changes to the disclosure requirements. Entities are required to apply the guidance prospectively, with the option to apply it retrospectively. The guidance is effective for annual periods beginning after December 15, 2024, or fiscal 2026 for us. We are currently evaluating the impact, if any, that the adoption of this standard will have on financial disclosures. |
Leases
Leases | 3 Months Ended |
Jul. 31, 2024 | |
Leases [Abstract] | |
Leases | (3) Leases: We lease certain of our real estate, machinery, equipment, and photocopiers under non-cancelable operating and finance lease agreements. We recognize expenses for 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 or residual value guarantees, nor do they include restrictive covenants. For operating leases, we recognize expense on a straight-line basis over the lease term. Tenant improvement allowances are recorded 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 renewals 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, 2024 were as follows (in thousands): Balance Sheet Caption July 31, 2024 April 30, 2024 Operating Leases Right-of-use assets $ 6,430 $ 6,761 Accumulated amortization ( 5,411 ) ( 5,411 ) Right-of-use assets, net Other assets $ 1,019 $ 1,350 Current liabilities Accrued expenses and deferred revenue $ 687 $ 947 Non-current liabilities Other non-current liabilities 490 574 Total operating lease liabilities $ 1,177 $ 1,521 Finance Leases Right-of-use assets $ 41,631 $ 41,631 Accumulated depreciation ( 11,279 ) ( 11,713 ) Right-of-use assets, net Property, plant, and equipment, net $ 30,352 $ 29,918 Current liabilities Accrued expenses and deferred revenue $ 1,597 $ 1,564 Non-current liabilities Finance lease payable, net of current portion 34,994 35,404 Total finance lease liabilities $ 36,591 $ 36,968 During the three months ended July 31, 2024 , we recorded $ 324,000 of operating lease costs. We recorded $ 566,000 of finance lease amortization and $ 461,000 of financing lease interest expense for the three months ended July 31, 2024. As of July 31, 2024 , our weighted average lease term and weighted average discount rate for our operating leases was 2.2 years and 4.5 %, respectively. As of July 31, 2024 , our weighted average lease term and weighted average discount rate for our financing leases were 14.1 years and 5.0 %, respectively, and consisted primarily of the facility in Missouri from which we previously operated a distribution center, or the Missouri Distribution Center. The building associated with the Missouri Distribution Center is pledged to secure the amounts outstanding. 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. On October 26, 2017, we entered into (a) a lease agreement with Ryan Boone County, LLC, or the Original Missouri Landlord, concerning certain real property located in Boone County, Missouri on which we had, until recently, been operating the Missouri Distribution Center, or the Missouri Lease, and (b) a guaranty in favor of the Original Missouri Landlord, or the Guaranty. With the completion of the spin-off of our outdoor products and accessories business on August 24, 2020, or the Separation, we entered into a sublease whereby American Outdoor Brands, Inc., our former wholly owned subsidiary, or AOUT, subleased from us 59.0 % of the Missouri Distribution Center under the same terms as the Missouri Lease, or the Missouri Sublease. On July 16, 2022, we entered into an amendment to the Missouri Sublease, increasing the leased space to 64.7 % of the Missouri Distribution Center under the same terms as the Missouri Lease. On January 31, 2023, we entered into (i) an assignment and assumption agreement with AOUT, or the Assignment and Assumption Agreement, pursuant to which, on January 1, 2024 AOUT assumed all of our rights, entitlement, and obligations in, to, and under the Missouri Lease, and (ii) an amended and restated guaranty in favor of RCS-S&W Facility, LLC, as successor in interest to the Original Missouri Landlord, pursuant to which Smith & Wesson Sales Company was added as a guarantor, or the Amended and Restated Guaranty. We terminated the Missouri Sublease as of January 1, 2024. During the three months ended July 31, 2024, the finance lease liability relating to the Missouri Lease was reduced by $ 366,000 as a result of payments made by AOUT directly to the landlord. During the three months ended July 31, 2024 , we recognized $ 878,000 of related income, of which $ 424,000 was recorded in general and administrative expenses and $ 454,000 was recorded in interest expense, net, in our condensed consolidated statements of operations. On January 5, 2024, we entered into an amendment to the lease for our Deep River facility, pursuant to which we extended its term from May 4, 2024 to January 4, 2025. We intend to occupy the facility at least through the amended lease termination date. We do not currently believe there are any indications of impairment relating to assets being utilized at the Deep River facility. The following table represents future expected undiscounted cashflows, based on the Assignment and Assumption Agreement with AOUT, to be received on an annual basis for the next five years and thereafter, as of July 31, 2024 (in thousands): Fiscal Amount 2025 $ 2,392 2026 3,235 2027 3,292 2028 3,350 2029 3,408 Thereafter 35,498 Total future receipts 51,175 Less amounts representing interest ( 15,154 ) Present value of receipts $ 36,021 Future lease payments for all of our operating and finance leases for succeeding fiscal years is as follows (in thousands): Operating Financing Total 2025 $ 684 $ 2,540 $ 3,224 2026 301 3,433 3,734 2027 272 3,490 3,762 2028 125 3,424 3,549 2029 — 3,408 3,408 Thereafter — 35,499 35,499 Total future lease payments 1,382 51,794 53,176 Less amounts representing interest ( 205 ) ( 15,203 ) ( 15,408 ) Present value of lease payments 1,177 36,591 37,768 Less current maturities of lease liabilities ( 687 ) ( 1,597 ) ( 2,284 ) Long-term maturities of lease liabilities $ 490 $ 34,994 $ 35,484 During the three months ended July 31, 2024 , the cash paid for amounts included in the measurement of liabilities and operating cash flows was $ 393,000 . |
Notes, Loans Payable, and Finan
Notes, Loans Payable, and Financing Arrangements | 3 Months Ended |
Jul. 31, 2024 | |
Debt Disclosure [Abstract] | |
Notes, Loans Payable, and Financing Arrangements | (4) Notes and Loans Payable: 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 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 execute certain documents in favor of TD Bank, N.A., as administrative agent, and the lenders party to such documents would have 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 (as defined in the Amended and Restated Credit Agreement) or the SOFR 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 Adjusted Consolidated Leverage Ratio (as defined in the Amended and Restated Credit Agreement). 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 (as defined in the Amended and Restated Credit Agreement) under the Amended and Restated Credit Agreement. On April 28, 2023, we entered into an amendment to our existing credit agreement to, among other things, replace LIBOR with SOFR as the interest rate benchmark and amend the definition of “Consolidated Fixed Charge Coverage Ratio” to exclude unfinanced capital expenditures in connection with the Relocation. As of July 31, 2024 , we had $ 70.0 million of borrowings outstanding on the Revolving Line, bearing interest at an average rate of 7.19 %, which is equal to the SOFR 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. As of July 31, 2024, we were compliant with all required financial covenants. Letters of Credit — At July 31, 2024, 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, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (5) Fair Value Measurement: We follow the provisions of Accounting Standards Codification, or 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 (e.g., 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 $ 35.5 million and $ 60.8 million as of July 31, 2024 and April 30, 2024, respectively. The carrying value of our revolving line of credit approximated the fair value as of July 31, 2024. 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 did no t have any Level 2 or Level 3 financial assets or liabilities as of July 31, 2024 . |
Inventories
Inventories | 3 Months Ended |
Jul. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | (6) 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, 2024 and April 30, 2024 (in thousands): July 31, 2024 April 30, 2024 Finished goods $ 118,971 $ 83,337 Finished parts 51,168 56,282 Work in process 7,030 8,033 Raw material 12,645 12,848 Total inventories $ 189,814 $ 160,500 |
Accrued Expenses and Deferred R
Accrued Expenses and Deferred Revenue | 3 Months Ended |
Jul. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Deferred Revenue | (7) Accrued Expenses and Deferred Revenue: The following table sets forth other accrued expenses as of July 31, 2024 and April 30, 2024 (in thousands): July 31, 2024 April 30, 2024 Accrued other $ 6,464 $ 4,423 Accrued professional fees 4,882 4,925 Accrued taxes other than income 4,339 5,838 Accrued employee benefits 3,503 2,742 Accrued settlement 3,200 3,200 Accrued distributor incentives 1,824 1,687 Current portion of finance lease obligation 1,597 1,564 Accrued rebates and promotions 1,391 1,485 Current portion of operating lease obligation 687 947 Total accrued expenses and deferred revenue $ 27,887 $ 26,811 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jul. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | (8) Stockholders’ Equity: Treasury Stock 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. During fiscal 2024, we purchased 793,551 shares of our common stock for $ 10.2 million under this authorization. Through the three months ended July 31, 2024 , we repurchased 870,669 shares of our common stock for $ 12.9 million under this authorization. There were no common stock purchases through the three months ended July 31, 2023 , no r were there any unfulfilled authorizations. 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. 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, 2024 and 2023 (in thousands, except per share data): For the three months ended July 31, 2024 2023 Net Per Share Net Per Share Loss Shares Amount Income Shares Amount Basic earnings $ ( 2,106 ) 45,321 $ ( 0.05 ) $ 3,118 46,103 $ 0.07 Effect of dilutive stock awards — — — — 448 — Diluted earnings $ ( 2,106 ) 45,321 $ ( 0.05 ) $ 3,118 46,551 $ 0.07 For the three months ended July 31, 2024, there were no shares excluded from the computation of diluted earnings per share as a result of the net loss for the period. For the three months ended July 31, 2023, there were 12,167 shares excluded from the computation of diluted earnings because the effect would be antidilutive. Incentive Stock and Employee Stock Purchase Plans We have two stock incentive plans: the 2013 Incentive Stock Plan and the 2022 Incentive Stock Plan, or the Incentive Stock Plans, 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. No grants have been made under the 2013 Incentive Stock Plan since our stockholders approved the 2022 Incentive Stock Plan at our annual meeting of stockholders held in September 2022. All new grants are issued under the 2022 Incentive Stock Plan. We have an Employee Stock Purchase Plan, or the ESPP, under which each participant is granted an option to purchase our common stock at a discount 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 purchases under our ESPP and grants of RSUs and performance-based RSUs, or PSUs, under the Incentive Stock Plans, was $ 1.9 million and $ 1.3 million for the three months ended July 31, 2024 and 2023, respectively. We include stock-based compensation expense in cost of sales, sales, marketing, and distribution, research and development, and general and administrative expenses. We grant RSUs to employees and non-employee 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, from time to time, 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, 2024 , we granted an aggregate of 400,819 RSUs, including 257,937 RSUs to non-executive officer employees and 142,882 RSUs to our executive officers. During the three months ended July 31, 2024 , we granted 142,878 PSUs to certain of our executive officers. During the three months ended July 31, 2024 , we cancelled 63,469 PSUs as a result of the failure to satisfy the performance metrics and 10,575 RSUs as a result of the service conditions not being met. In connection with the vesting of RSUs, during the three months ended July 31, 2024 , we delivered common stock to our employees (including our executive officers), former employees, and directors, with a total market value of $ 3.6 million. During the three months ended July 31, 2023 , we granted an aggregate of 301,483 RSUs, including 175,916 RSUs to non-executive officer employees, 117,724 RSUs to our executive officers, and 7,843 RSUs to a new director. During the three months ended July 31, 2023 , we granted 176,583 PSUs to certain of our executive officers. During the three months ended July 31, 2023 , we cancelled 158,100 PSUs as a result of the failure to satisfy the performance metric and 5,420 RSUs as a result of the service conditions not being met. In connection with the vesting of RSUs, during the three months ended July 31, 2023 , we delivered common stock to our employees (including our executive officers), former employees, and directors, with a total market value of $ 2.0 million. In connection with a 2019 grant, which vested in fiscal 2023, we delivered market-condition PSUs to certain of our executive officers and a former executive officer with a total market value of $ 664,000 . A summary of activity for unvested RSUs and PSUs for the three months ended July 31, 2024 and 2023 is as follows: For the three months ended July 31, 2024 2023 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 1,000,347 $ 13.45 932,705 $ 13.14 Awarded 543,697 16.15 478,066 12.10 Released ( 220,525 ) 13.24 ( 217,975 ) 11.00 Forfeited ( 74,044 ) 19.51 ( 163,520 ) 10.49 RSUs and PSUs outstanding, end of period 1,249,475 14.30 1,029,276 13.53 As of July 31, 2024 , there was $ 8.9 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 1.9 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (9) 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 November 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. In September 2021, Gemini filed a motion for summary judgment seeking to dismiss our counterclaim. In June 2022, the District Court denied Gemini's motion for summary judgment. Gemini filed a second motion for summary judgment, and in August 2023, the District Court again denied Gemini’s motion. In November 2023, we entered into a settlement agreement with plaintiffs on the indemnity a nd counterclaims. On the same day, plaintiffs filed a motion for leave, seeking to file a second amended complaint. On January 31, 2024, the District Court allowed plaintiffs’ amended allegations of fraud, and denied without prejudice their motion to add punitive damages. On February 9, 2024, the District Court set a trial date for January 6, 2025. On August 7, 2024, the District Court issued a 45-day stay of the case and vacated the January 6, 2025 trial date. We believe the claims asserted in the complaint have no merit, and we intend to aggressively defend this action. We are a defendant in three product liability cases and are aware of eight 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 in August 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 Lake Superior Court, County of Lake, Indiana 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. In May 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. In July 2019, defendants filed a Petition to Transfer jurisdiction to the Indiana Supreme Court. In November 2019, the Indiana Supreme Court denied defendants' petition to transfer, and the case was returned to the trial court. Discovery is ongoing. On March 15, 2024, IC 34-12-3.5 was signed into law. This law purported to prohibit political subdivisions in Indiana from bringing certain legal actions against certain firearm industry members and to apply to actions or suits filed before, after, or on August 27, 1999. On March 18, 2024, defendants filed a joint motion for judgment on the pleadings based on the new law. On May 17, 2024, plaintiffs filed an opposition to defendants' motion for judgment on the pleadings. On August 12, 2024, the trial court denied defendants’ joint motion for judgment on the pleadings. We believe the claims asserted in the complaint are without merit and intend to aggressively defend this action. We are a defendant in a putative class proceeding before the Ontario Superior Court of Justice in Toronto, Canada that was filed in December 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 in July 2018 and their family members. One victim was shot and injured during the shooting. The other victim suffered unspecified injuries while fleeing the shooting. The plaintiffs sought 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. In July 2020, we filed a Notice of Motion for an order striking the claim and dismissing the action in its entirety. In February 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. In March 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. In July 2021, plaintiffs filed a motion to stay our motion for leave to appeal with the Divisional Court, on grounds that appeal is premature. In November 2021, the Divisional Court granted plaintiffs' motion, staying our motion for leave to appeal until 30 days after the decision on the balance of plaintiffs' certification motion. A hearing on plaintiffs’ certification motion was held in January 2024. On March 5, 2024, the court denied the plaintiffs' motion for class certification. Three appeals have been filed, all of which will be heard together in the Court of Appeal for Ontario: (1) our appeal from the dismissal of our motion to strike the negligent design claim; (2) the pl aintiffs’ appeal from the order striking out their public nuisance and strict liability claims; and, (3) the plaintiffs’ appeal from the order dismissing their certification motion. On August 6, 2024, we filed our motion regarding our appeal from the dismissal of our motion to strike the negligent design claim and plaintiffs filed their motion regarding their appeal from the order striking out their public nuisance and strict liability claims and their appeal from the order dismissing their certification motion. In May 2020, we were named in an action related to the Chabad of Poway synagogue shooting that took place in April 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. In September 2020, we filed a demurrer and motion to strike, seeking to dismiss plaintiffs’ complaint. In July 2021, the court granted our motion in part, and reversed it in part, ruling that (1) the Protection of Lawful Commerce in Arms Act 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 gave plaintiffs leave to amend to plead an economic injury; and (3) the Protection of Lawful Commerce in Arms Act 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.” In August 2021, we filed a Petition for Writ of Mandate in the Court of Appeal of the State of California, Fourth Appellate District, Division One. In September 2021, the Court of Appeal denied our appeal. In February 2022, the court consolidated the case with three related cases, in which we are not a party. In March 2022, the court granted our motion, dismissing plaintiffs’ Unfair Competition Law claim, without further leave to amend. Discovery is ongoing. On February 28, 2023, we filed a motion for summary judgment. On May 19, 2023, the court denied our motion for summary judgment without prejudice and allowed plaintiffs time for additional, limited discovery. A hearing on our renewed motion for summary judgment was held on August 16, 2024. Trial is scheduled for January 24, 2025. We are a defendant in an action filed in the U.S. District Court for the District of Massachusetts. In August 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, among other claims, negligence, public nuisance, design defect, unjust enrichment and restitution against all defendants and violation of the Massachusetts Consumer Protection Act against us alone, and is seeking monetary damages and injunctive relief. In November 2021, defendants filed motions to dismiss plaintiff's complaint. In September 2022, the district court granted defendants’ motions to dismiss. In October 2022, plaintiff filed a notice of appeal with the U.S. Court of Appeals for the First Circuit. On January 22, 2024, the First Circuit reversed the trial court’s dismissal of the case. On April 18, 2024, defendants filed a Petition for a Writ of Certiorari with the Supreme Court of the United States. A conference is scheduled before the U.S. Supreme Court on September 30, 2024. On August 7, 2024, the district court dismissed the case against six of the eight defendants in the suit excluding us based on personal jurisdiction grounds. The district court has scheduled a status conference for October 2, 2024. In September 2022, we were named as defendants in 12 nearly identical, separate actions related to a shooting in Highland Park, Illinois on July 4, 2022. The complaints were filed in the Circuit Court of the Nineteenth Judicial Circuit in Lake County, Illinois and assert claims against us for negligence and deceptive and unfair practices under the Illinois Consumer Fraud and Deceptive Business Practices Act. The plaintiffs allege they were present at a parade at the time of the incident and suffered physical and/or emotional injury. The plaintiffs seek compensatory damages, attorneys’ fees, and injunctive relief. We filed motions for removal of each case to the U.S. District Court for the Northern District of Illinois. In November 2022, we filed a motion to consolidate the cases for preliminary motion purposes. In December 2022, plaintiffs filed motions to remand the cases back to the state court. In September 2023, the court granted plaintiffs’ motion to remand. In October 2023, we filed a notice of appeal to the U.S. Court of Appeals for the Seventh Circuit. In March 2024, three new suits were filed in the Circuit Court of Lake County, Illinois. On April 8, 2024, the Seventh Circuit affirmed the remand decision. On May 10, 2024, plaintiffs filed a motion for attorneys’ fees incurred as a result of removal. On May 17, 2024, we filed an opposition to plaintiffs’ motion. No decision has been issued to date. In June and July 2024, the district court remanded the 12 separate actions to state court, with some plaintiffs amending their complaints to remove references to violations of federal law and asserting an additional claim against us for deceptive and unfair practices under the Illinois Consumer Fraud and Deceptive Business Practices Act. We were also named in 13 additional separate cases against us in the same state court during the same time period, largely raising similar allegations against us as in the initial and amended complaints. In December 2022, the City of Buffalo, New York filed a complaint in the Supreme Court of the State of New York, County of Erie, against numerous manufacturers, distributors, and retailers of firearms. Later in December 2022, the City of Rochester, New York filed an almost identical complaint in the Supreme Court of the State of New York, County of Monroe, against the same defendants. The complaints allege violation of New York General Business Law, public nuisance, and deceptive business practices in violation of NY General Business Laws. In January 2023, we filed notices of removal of the cases to the U.S. District Court for the Western District of New York. On March 24, 2023, defendants filed a motion to stay both cases pending a ruling by the U.S. Court of Appeals for the Second Circuit in the NSSF v. James case. On June 8, 2023, the court granted defendants’ motions to consolidate and to stay pending resolution of the NSSF v. James appeal. 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. In March 2022, two plaintiffs, on behalf of a proposed class of current and former employees and temporary workers who worked at our Springfield facility from November 2018 to the present, filed a claim alleging non-payment of wages and overtime in violation of the Massachusetts Wage Act and Massachusetts Fair Wage Act. The parties have reached a settlement agreement, which was preliminarily approved by the court on March 15, 2024. A hearing seeking final approval of the settlement is scheduled for September 17, 2024. 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 were also involved in a putative stockholder derivative lawsuit filed on December 5, 2023 in the Eighth Judicial District Court, Clark County, Nevada. The action was brought by plaintiffs seeking to act on our behalf against our directors and certain of our executive officers. The complaint alleged breach of fiduciary duties by knowingly allowing us to become exposed to significant liability for intentionally violating federal, state, and local laws through our manufacturing, marketing, and sale of “AR-15 style rifles." The derivative plaintiffs sought damages on our behalf from the individual defendants, as well as reforms and improvements to our compliance procedures and governance policies. On March 19, 2024, the court granted our motion to require security pursuant to Nevada law. On May 6, 2024, the court dismissed plaintiffs’ action without prejudice for failing to post a bond pursuant to the court’s order. On June 28, 2024, plaintiffs filed a motion to retax costs, arguing that we are not entitled to costs based on the court’s order of dismissal. On July 9, 2024, we filed a motion for attorneys’ fees and costs. On July 10 and 11, 2024, plaintiffs filed a notice of appeal of the order of dismissal without prejudice and case appeal statement, respectively. On July 25, 2024, plaintiffs filed a notice of posting of bond on appeal. On August 9, 2024, we filed an opposition to plaintiffs’ motion to retax costs. 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. At this time, an estimated range of reasonably possible additional losses relating to unfavorable outcomes cannot be made. Commitments On September 30, 2021, we announced our plan to move our headquarters and significant elements of our operations to Maryville, Tennessee in 2023, or the Relocation. In connection with the Relocation, we entered into a project agreement, or the Project Agreement, with The Industrial Development Board of Blount County and the cities of Alcoa and Maryville, Tennessee, a public, nonprofit corporation organized and existing under the laws of the state of Tennessee, or the IDB. Pursuant to the Project Agreement, we represented to the IDB that we intend to incur, or cause to be incurred, no less than $120.0 million in aggregate capital expenditures on or before December 31, 2025, create no less than 620 new jobs, and sustain an average hourly wage of at least $ 25.97 at the facility. Further, pursuant to the Project Agreement, we are required to, among other things, (A) execute a facility lease and an equipment lease with the IDB; (B) cause the construction of the new facility at our sole cost and expense to commence on or before May 31, 2022; (C) incur, or cause to be incurred, aggregate capital expenditures in connection with the construction and equipping of the new facility in an aggregate amount of not less than $ 120.0 million on or before December 31, 2025; (D) cause the construction of the new facility to be substantially completed and for a certificate of occupancy to be issued therefore on or before December 31, 2023; (E) provide the IDB with a written report certified by one of our authorized officers, not later than January 31 of each year during the period between January 31, 2024 and January 31, 2031; and (F) make certain payments to IDB in the event that our actual capital expenditures, number of employees, or average hourly wage of such employees are less than our projections. On February 2, 2023, we entered into a design-build agreement with The Christman Company, or Christman, related to the construction of our Maryville facility, or the Construction Contract. The Construction Contract has an effective date of September 13, 2021 and incorporates the arrangements under which we and Christman have been proceeding. Pursuant to the Construction Contract, Christman is obligated to deliver certain services, including, among others, design phase services and construction phase services, and we are obligated to pay Christman for services performed. The parties to the Construction Contract agreed that Christman will perform and complete the Work (as defined therein) on a cost-plus basis for a guaranteed maximum price of $ 114.5 million, including contingencies. When adding the cost of machinery and equipment, we expect to spend between $ 160.0 million and $ 170.0 million through the end of fiscal 2025. Through July 31, 2024, we had incurred $ 157.0 million of capital expenditures related to the Relocation. The Construction Contract includes terms that are customary for contracts of this type, including with respect to indemnification and insurance. The Construction Contract lists certain contract milestones and guaranteed completion dates, and we will be entitled to liquidated damages under certain circumstances. Each party to the Construction Contract is entitled to terminate the Construction Contract under certain circumstances. During the quarter ended July 31, 2023, we determined that we would have no use for certain distribution equipment in our Missouri Distribution Center and could not fully recover the net book value of such equipment. Therefore, we recorded an impairment of $ 2.0 million during that quarter. In connection with the Assignment and Assumption Agreement, we vacated the Missouri Distribution Center effective January 1, 2024 and sold assets we could no longer utilize to AOUT at their remaining net book value of $ 2.9 million, relocating all remaining assets to our Maryville facility. In addition, we relocated a portion of our plastic injection molding operations to the Maryville facility. As of July 31, 2024, the plastic injection molding machinery and equipment was being utilized in our Deep River facility, had been relocated to the Maryville facility, or had been disposed. We do not believe there are any indications of impairment relating to assets being utilized at the Deep River facility. |
Restructuring
Restructuring | 3 Months Ended |
Jul. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | (10) Restructuring: As a result of the Relocation, $ 1.3 million and $ 3.9 million of net restructuring charges were recorded in the three months ended July 31, 2024 and 2023, respectively. The following table summarizes net restructuring charges by line item for the three months ended July 31, 2024 and 2023 (in thousands): For the Three Months Ended July 31, 2024 2023 Net sales $ ( 1,659 ) $ — Cost of sales 2,841 903 Selling, marketing, and distribution 58 2,195 General and administrative 67 814 Total restructuring charges, net $ 1,307 $ 3,912 The components of the net restructuring charges recorded in our condensed consolidated statements of operations were as follows (in thousands): For the Three Months Ended July 31, 2024 2023 Severance and employee-related benefits (a) $ ( 308 ) $ 931 Relocation (a) 61 237 Consulting services 135 210 Employee relations 52 456 Office rent and equipment — 2,078 Deep River facility (b) 1,367 — Total restructuring charges, net $ 1,307 $ 3,912 a) Recorded in accrued payroll and incentives . b) As part of the Relocation, w e relocated a portion of our plastic injection molding operations from the Deep River facility to our Maryville facility. The amount presented for the three months ended July 31, 2024 r epresents net sales, cost of sales, and operating expenses for the Deep River operations, to the extent not already included in the other categories of restructuring charges within this schedule. The following table summarizes the activity in the severance and employee-related benefits and relocation accruals for the three months ended July 31, 2024 (in thousands): Severance and employee-related benefits Relocation Total (a) Accrual at April 30, 2024 $ 5,527 $ 828 $ 6,355 Charges ( 308 ) 61 ( 247 ) Cash payments and settlements ( 898 ) ( 229 ) ( 1,127 ) Accrual at July 31, 2024 $ 4,321 $ 660 $ 4,981 a) Recorded in accrued payroll and incentives. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jul. 31, 2024 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information – The condensed consolidated balance sheet as of July 31, 2024, the condensed consolidated statements of operations for the three months ended July 31, 2024 and 2023, the condensed consolidated statements of changes in stockholders’ equity for the three months ended July 31, 2024 and 2023, and the condensed consolidated statements of cash flows for the three months ended July 31, 2024 and 2023 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, 2024 and for the periods presented, have been included. All intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2024 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 Fiscal 2024 Form 10-K. The results of operations for the three months ended July 31, 2024 may not be indicative of the results that may be expected for the fiscal year ending April 30, 2025 , or any other period. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards – In November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update ("ASU") No. 2023-07, Improvements to Reportable Segment Disclosures, which requires incremental disclosures about an entity’s reportable segments but does not change the definition of a segment or the guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker and (2) included in the reported measure of segment profit or loss. The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources. This update is effective for fiscal years beginning after December 31, 2023, or fiscal 2025 for us, and should be adopted retrospectively unless impracticable. We are currently evaluating the impact, if any, that the adoption of this standard will have on financial disclosures. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, which requires entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes and provide more details about the reconciling items in some categories if items meet a quantitative threshold. Entities would have to provide qualitative disclosures about the new categories. The guidance will require all entities to disclose income taxes paid, net of refunds, disaggregated by federal (national), state, and foreign taxes for annual periods, and to disaggregate the information by jurisdiction based on a quantitative threshold. The guidance makes several other changes to the disclosure requirements. Entities are required to apply the guidance prospectively, with the option to apply it retrospectively. The guidance is effective for annual periods beginning after December 15, 2024, or fiscal 2026 for us. We are currently evaluating the impact, if any, that the adoption of this standard will have on financial disclosures. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
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, 2024 were as follows (in thousands): Balance Sheet Caption July 31, 2024 April 30, 2024 Operating Leases Right-of-use assets $ 6,430 $ 6,761 Accumulated amortization ( 5,411 ) ( 5,411 ) Right-of-use assets, net Other assets $ 1,019 $ 1,350 Current liabilities Accrued expenses and deferred revenue $ 687 $ 947 Non-current liabilities Other non-current liabilities 490 574 Total operating lease liabilities $ 1,177 $ 1,521 Finance Leases Right-of-use assets $ 41,631 $ 41,631 Accumulated depreciation ( 11,279 ) ( 11,713 ) Right-of-use assets, net Property, plant, and equipment, net $ 30,352 $ 29,918 Current liabilities Accrued expenses and deferred revenue $ 1,597 $ 1,564 Non-current liabilities Finance lease payable, net of current portion 34,994 35,404 Total finance lease liabilities $ 36,591 $ 36,968 |
Summary of Future Expected Undiscounted Cash Flows | The following table represents future expected undiscounted cashflows, based on the Assignment and Assumption Agreement with AOUT, to be received on an annual basis for the next five years and thereafter, as of July 31, 2024 (in thousands): Fiscal Amount 2025 $ 2,392 2026 3,235 2027 3,292 2028 3,350 2029 3,408 Thereafter 35,498 Total future receipts 51,175 Less amounts representing interest ( 15,154 ) Present value of receipts $ 36,021 |
Summary of Future Lease Payments for Operating and Finance Leases | Future lease payments for all of our operating and finance leases for succeeding fiscal years is as follows (in thousands): Operating Financing Total 2025 $ 684 $ 2,540 $ 3,224 2026 301 3,433 3,734 2027 272 3,490 3,762 2028 125 3,424 3,549 2029 — 3,408 3,408 Thereafter — 35,499 35,499 Total future lease payments 1,382 51,794 53,176 Less amounts representing interest ( 205 ) ( 15,203 ) ( 15,408 ) Present value of lease payments 1,177 36,591 37,768 Less current maturities of lease liabilities ( 687 ) ( 1,597 ) ( 2,284 ) Long-term maturities of lease liabilities $ 490 $ 34,994 $ 35,484 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
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, 2024 and April 30, 2024 (in thousands): July 31, 2024 April 30, 2024 Finished goods $ 118,971 $ 83,337 Finished parts 51,168 56,282 Work in process 7,030 8,033 Raw material 12,645 12,848 Total inventories $ 189,814 $ 160,500 |
Accrued Expenses and Deferred_2
Accrued Expenses and Deferred Revenue (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | The following table sets forth other accrued expenses as of July 31, 2024 and April 30, 2024 (in thousands): July 31, 2024 April 30, 2024 Accrued other $ 6,464 $ 4,423 Accrued professional fees 4,882 4,925 Accrued taxes other than income 4,339 5,838 Accrued employee benefits 3,503 2,742 Accrued settlement 3,200 3,200 Accrued distributor incentives 1,824 1,687 Current portion of finance lease obligation 1,597 1,564 Accrued rebates and promotions 1,391 1,485 Current portion of operating lease obligation 687 947 Total accrued expenses and deferred revenue $ 27,887 $ 26,811 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
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, 2024 and 2023 (in thousands, except per share data): For the three months ended July 31, 2024 2023 Net Per Share Net Per Share Loss Shares Amount Income Shares Amount Basic earnings $ ( 2,106 ) 45,321 $ ( 0.05 ) $ 3,118 46,103 $ 0.07 Effect of dilutive stock awards — — — — 448 — Diluted earnings $ ( 2,106 ) 45,321 $ ( 0.05 ) $ 3,118 46,551 $ 0.07 |
Summary of Activity for Unvested RSUs and PSUs | A summary of activity for unvested RSUs and PSUs for the three months ended July 31, 2024 and 2023 is as follows: For the three months ended July 31, 2024 2023 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 1,000,347 $ 13.45 932,705 $ 13.14 Awarded 543,697 16.15 478,066 12.10 Released ( 220,525 ) 13.24 ( 217,975 ) 11.00 Forfeited ( 74,044 ) 19.51 ( 163,520 ) 10.49 RSUs and PSUs outstanding, end of period 1,249,475 14.30 1,029,276 13.53 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Components of restructuring charges | The following table summarizes net restructuring charges by line item for the three months ended July 31, 2024 and 2023 (in thousands): For the Three Months Ended July 31, 2024 2023 Net sales $ ( 1,659 ) $ — Cost of sales 2,841 903 Selling, marketing, and distribution 58 2,195 General and administrative 67 814 Total restructuring charges, net $ 1,307 $ 3,912 The components of the net restructuring charges recorded in our condensed consolidated statements of operations were as follows (in thousands): For the Three Months Ended July 31, 2024 2023 Severance and employee-related benefits (a) $ ( 308 ) $ 931 Relocation (a) 61 237 Consulting services 135 210 Employee relations 52 456 Office rent and equipment — 2,078 Deep River facility (b) 1,367 — Total restructuring charges, net $ 1,307 $ 3,912 a) Recorded in accrued payroll and incentives . b) As part of the Relocation, w e relocated a portion of our plastic injection molding operations from the Deep River facility to our Maryville facility. The amount presented for the three months ended July 31, 2024 r epresents net sales, cost of sales, and operating expenses for the Deep River operations, to the extent not already included in the other categories of restructuring charges within this schedule. |
Schedule of Severance and employee related benefit and Relocation accruals | The following table summarizes the activity in the severance and employee-related benefits and relocation accruals for the three months ended July 31, 2024 (in thousands): Severance and employee-related benefits Relocation Total (a) Accrual at April 30, 2024 $ 5,527 $ 828 $ 6,355 Charges ( 308 ) 61 ( 247 ) Cash payments and settlements ( 898 ) ( 229 ) ( 1,127 ) Accrual at July 31, 2024 $ 4,321 $ 660 $ 4,981 a) Recorded in accrued payroll and incentives. |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Income/(loss) from discontinued operations, net of tax | $ 0 | $ 0 |
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, 2024 | Jul. 31, 2023 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Income from discontinued operations, net of tax | $ 0 | $ 0 |
Leases - Schedule of Assets and
Leases - Schedule of Assets and Liabilities Related to Operating and Financing Leases (Detail) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Operating Leases | ||
Right-of-use assets | $ 6,430 | $ 6,761 |
Accumulated amortization | (5,411) | (5,411) |
Right-of-use assets, net | $ 1,019 | $ 1,350 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Current liabilities | $ 687 | $ 947 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and deferred revenue | Accrued expenses and deferred revenue |
Non-current liabilities | $ 490 | $ 574 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Total operating lease liabilities | $ 1,177 | $ 1,521 |
Finance Leases | ||
Right-of-use assets | 41,631 | 41,631 |
Accumulated depreciation | (11,279) | (11,713) |
Right-of-use assets, net | $ 30,352 | $ 29,918 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant, and equipment, net | Property, plant, and equipment, net |
Current liabilities | $ 1,597 | $ 1,564 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and deferred revenue | Accrued expenses and deferred revenue |
Non-current liabilities | $ 34,994 | $ 35,404 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Non-current liabilities | Non-current liabilities |
Total finance lease liabilities | $ 36,591 | $ 36,968 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jul. 16, 2022 | Jul. 31, 2024 | |
Lessee Lease Description [Line Items] | ||
Operating lease cost | $ 324,000 | |
Financing lease Amortization | 566,000 | |
Financing lease interest expense | $ 461,000 | |
Operating leases, weighted average lease term | 2 years 2 months 12 days | |
Operating leases, weighted average discount rate | 4.50% | |
Financing leases, weighted average lease term | 14 years 1 month 6 days | |
Financing leases, weighted average discount rate | 5% | |
Percentage of sublease | 64.70% | |
Income related to sublease agreement | $ 366,000 | |
Cash paid for amounts included in measurement of liabilities and operating cash flows | 393,000 | |
Other Nonoperating Income Expense Member | ||
Lessee Lease Description [Line Items] | ||
Income related to sublease agreement | 878,000 | |
General and administrative | ||
Lessee Lease Description [Line Items] | ||
Income related to sublease agreement | 424,000 | |
Interest Expense | ||
Lessee Lease Description [Line Items] | ||
Income related to sublease agreement | $ 454,000 | |
National Logistics Facility Member | ||
Lessee Lease Description [Line Items] | ||
Percentage of sublease | 59% |
Leases - Summary of Future Expe
Leases - Summary of Future Expected Undiscounted Cash Flows (Details) $ in Thousands | Jul. 31, 2024 USD ($) |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity [Abstract] | |
2025 | $ 2,392 |
2026 | 3,235 |
2027 | 3,292 |
2028 | 3,350 |
2029 | 3,408 |
Thereafter | 35,498 |
Total future receipts | 51,175 |
Less amounts representing interest | (15,154) |
Present value of sublease receipts | $ 36,021 |
Leases - Summary of Future Leas
Leases - Summary of Future Lease Payments for Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Operating And Finance Lease Liabilities Payments Due [Abstract] | ||
2025 | $ 3,224 | |
2026 | 3,734 | |
2027 | 3,762 | |
2028 | 3,549 | |
2029 | 3,408 | |
Thereafter | 35,499 | |
Total future lease payments | 53,176 | |
Less amounts representing interest | (15,408) | |
Present value of lease payments | 37,768 | |
Less current maturities of lease liabilities | (2,284) | |
Long-term maturities of lease liabilities | 35,484 | |
Operating Leases | ||
2025 | 684 | |
2026 | 301 | |
2027 | 272 | |
2028 | 125 | |
2029 | 0 | |
Thereafter | 0 | |
Total future lease payments | 1,382 | |
Less amounts representing interest | (205) | |
Present value of lease payments | 1,177 | $ 1,521 |
Less current maturities of lease liabilities | (687) | (947) |
Long-term maturities of lease liabilities | 490 | 574 |
Financing Leases | ||
2025 | 2,540 | |
2026 | 3,433 | |
2027 | 3,490 | |
2028 | 3,424 | |
2029 | 3,408 | |
Thereafter | 35,499 | |
Total future lease payments | 51,794 | |
Less amounts representing interest | (15,203) | |
Present value of lease payments | 36,591 | 36,968 |
Less current maturities of lease liabilities | (1,597) | (1,564) |
Finance Lease, Liability, Noncurrent | $ 34,994 | $ 35,404 |
Notes, Loans Payable, and Fin_2
Notes, Loans Payable, and Financing Arrangements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 24, 2020 | Jul. 31, 2024 | |
Maximum | ||
Debt Instrument [Line Items] | ||
Swingline Loan | $ 5 | |
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 Adjusted Consolidated Leverage Ratio (as defined in the Amended and Restated Credit Agreement). | |
Credit facility additional borrowing capacity option to increase maximum borrowing capacity | 50 | |
Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, borrowing capacity | $ 100 | |
Interest description of revolving line of credit | the Revolving Line. The Revolving Line bears interest at either the Base Rate (as defined in the Amended and Restated Credit Agreement) or the SOFR rate, plus an applicable margin based on our consolidated leverage ratio. | |
Credit facility, maturity | Aug. 24, 2025 | |
Credit Facilities | ||
Debt Instrument [Line Items] | ||
Borrowings outstanding | $ 70 | |
Interest rate on borrowings | 7.19% | |
Outstanding letters of credit | $ 2.7 | |
Credit Facilities | Self Insurance | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | $ 1.5 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | Jul. 31, 2024 | Apr. 30, 2023 |
(Level 1) | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 35,500,000 | $ 60,800,000 |
(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, 2024 | Apr. 30, 2024 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 118,971 | $ 83,337 |
Finished parts | 51,168 | 56,282 |
Work in process | 7,030 | 8,033 |
Raw material | 12,645 | 12,848 |
Total inventories | $ 189,814 | $ 160,500 |
Accrued Expenses and Deferred_3
Accrued Expenses and Deferred Revenue - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Payables and Accruals [Abstract] | ||
Accrued other | $ 6,464 | $ 4,423 |
Accrued professional fees | 4,882 | 4,925 |
Accrued taxes other than income | 4,339 | 5,838 |
Accrued employee benefits | 3,503 | 2,742 |
Accrued settlement | 3,200 | 3,200 |
Accrued distributor incentives | 1,824 | 1,687 |
Current portion of finance lease obligation | 1,597 | 1,564 |
Accrued rebates and promotions | 1,391 | 1,485 |
Current portion of operating lease obligation | 687 | 947 |
Total accrued expenses and deferred revenue | $ 27,887 | $ 26,811 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2024 | Jul. 31, 2023 | Apr. 30, 2024 | Sep. 05, 2024 | Sep. 19, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 1,900,000 | $ 1,300,000 | |||
Performance period | 3 years | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Antidilutive shares excluded from computation of diluted earnings per share | 0 | 12,167 | |||
Vesting period | 4 years | ||||
Vesting, percentage | 0.25% | ||||
Stock units, awarded | 400,819 | 301,483 | |||
Stock units, forfeited | 10,575 | 5,420 | |||
RSUs | Non-Executive Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 257,937 | 175,916 | |||
RSUs | Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 7,843 | ||||
RSUs | Executive Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 142,882 | 117,724 | |||
Grant date fair value of vested RSUs and PSUs | $ 2,000,000 | ||||
Performance Shares | Executive Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 142,878 | 176,583 | |||
Grant date fair value of vested RSUs and PSUs | $ 3,600,000 | $ 664,000 | |||
RSUs and PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 543,697 | 478,066 | |||
Stock units, forfeited | 74,044 | 163,520 | |||
Unrecognized compensation expense related to unvested RSUs and PSUs | $ 8,900,000 | ||||
Weighted average remaining contractual term | 1 year 10 months 24 days | ||||
Service based PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, forfeited | 63,469 | 158,100 | |||
Share Repurchase Transactions Two [Member] | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase authorization | $ 50,000,000 | ||||
Repurchase of common stock | 870,669 | 0 | 793,551 | ||
Number of shares repurchased, value | $ 12,900,000 | $ 0 | $ 10,200,000 | ||
Share Repurchase Transactions Two [Member] | Common Stock | Subsequent Event | |||||
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, 2024 | Jul. 31, 2023 | |
Net income | ||
Income from continuing operations | $ (2,106) | $ 3,118 |
Income from discontinued operations | 0 | 0 |
Net (loss)/income | $ (2,106) | $ 3,118 |
Weighted average shares outstanding — Basic | 45,321 | 46,103 |
Effect of dilutive stock awards | 0 | 448 |
Weighted average shares outstanding — Diluted | 45,321 | 46,551 |
Earnings per share - Basic | ||
Net income | $ (0.05) | $ 0.07 |
Earnings per share - Diluted | ||
Net income | (0.05) | 0.07 |
Earnings Per Share - Effect of Dilutive Stock Awards | ||
Effect of dilutive stock awards | $ 0 | $ 0 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activity for Unvested RSUs and PSUs (Detail) - RSUs and PSUs - $ / shares | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Summary of activity in unvested restricted stock units and performance share units | ||
Restricted Stock Units, RSUs and PSUs outstanding, beginning of period | 1,000,347 | 932,705 |
Restricted Stock Units, Awarded | 543,697 | 478,066 |
Restricted Stock Units, Vested | (220,525) | (217,975) |
Restricted Stock Units, Forfeited | (74,044) | (163,520) |
Restricted Stock Units, RSUs and PSUs outstanding, end of period | 1,249,475 | 1,029,276 |
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 | $ 13.45 | $ 13.14 |
Weighted Average Grant Date Fair Value, Awarded | 16.15 | 12.1 |
Weighted Average Grant Date Fair Value, Vested | 13.24 | 11 |
Weighted Average Grant Date Fair Value, Forfeited | 19.51 | 10.49 |
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, end of period | $ 14.3 | $ 13.53 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | |||
Sep. 30, 2021 USD ($) | Jan. 31, 2018 USD ($) | Jul. 31, 2024 USD ($) Claim Plaintiff | Jul. 31, 2023 USD ($) | Feb. 02, 2023 USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | |||||
Compensatory damages sought | $ 18,600,000 | ||||
Number of Product liability cases | Claim | 3 | ||||
Number Of Other Product Liability Claims | Claim | 8 | ||||
Year Of Other Product Liability Claim | December 2019 | ||||
Aggregate estimated capital expenditure | $ 120,000,000 | ||||
Cost of machinery and equipment | 160,000,000 | ||||
Cost of machinery and equipment, fisal year | 170,000,000 | ||||
Capital expenditures incurred | $ 157,000,000 | ||||
Construction Contract Cost | $ 114,500,000 | ||||
IDB | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Terms of commitment | County and the cities of Alcoa and Maryville, Tennessee, a public, nonprofit corporation organized and existing under the laws of the state of Tennessee, or the IDB. Pursuant to the Project Agreement, we represented to the IDB that we intend to incur, or cause to be incurred, no less than $120.0 million in aggregate capital expenditures on or before December 31, 2025, create no less than 620 new jobs, and sustain an average hourly wage of at least $25.97 at the facility. Further, pursuant to the Project Agreement, we are required to, among other things, (A) execute a facility lease and an equipment lease with the IDB; (B) cause the construction of the new facility at our sole cost and expense to commence on or before May 31, 2022; (C) incur, or cause to be incurred, aggregate capital expenditures in connection with the construction and equipping of the new facility in an aggregate amount of not less than $120.0 million on or before December 31, 2025; (D) cause the construction of the new facility to be substantially completed and for a certificate of occupancy to be issued therefore on or before December 31, 2023; (E) provide the IDB with a written report certified by one of our authorized officers, not later than January 31 of each year during the period between January 31, 2024 and January 31, 2031; and (F) make certain payments to IDB in the event that our actual capital expenditures, number of employees, or average hourly wage of such employees are less than our projections. | ||||
Average hourly wage | $ 25.97 | ||||
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] | |||||
Number of plaintiffs | Plaintiff | 2 | ||||
Putative Class | General Damages | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Aggregate damages claims | $ 50,000,000 | ||||
Putative Class | Compensatory or Punitive Damages | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Aggregate damages claims | $ 100,000,000 | ||||
Equipment [Member] | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Asset impairment charges | $ 2,000,000 | ||||
Remaining net book value | $ 2,900,000 |
Restructuring (Additional Infor
Restructuring (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 1,307 | $ 3,912 |
Cost of Goods Sold [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 2,841 | $ 903 |
Restructuring - Components of R
Restructuring - Components of Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | ||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | $ 1,307 | $ 3,912 | |
Net sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | (1,659) | 0 | |
cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 2,841 | 903 | |
Selling, marketing, and distribution | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 58 | 2,195 | |
General and administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 67 | 814 | |
Severance and Employee-Related Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | [1] | (308) | 931 |
Relocation | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | [1] | 61 | 237 |
Consulting Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 135 | 210 | |
Employee Relations | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 52 | 456 | |
Office Rent and Equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 0 | 2,078 | |
Deep River facility | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | [2] | $ 1,367 | $ 0 |
[1] Recorded in accrued payroll and incentives As part of the Relocation, w e relocated a portion of our plastic injection molding operations from the Deep River facility to our Maryville facility. The amount presented for the three months ended July 31, 2024 r epresents net sales, cost of sales, and operating expenses for the Deep River operations, to the extent not already included in the other categories of restructuring charges within this schedule. |
Restructuring - Components of_2
Restructuring - Components of Restructuring Charges (Paranthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Net sales | $ 88,334 | $ 114,243 |
Restructuring - Restructuring a
Restructuring - Restructuring and relocation accrual (Details) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrual, Beginning Balance | $ 6,355 | [1] |
Charges | (247) | [1] |
Cash payments and settlements | (1,127) | [1] |
Accrual, Ending Balance | 4,981 | [1] |
Severance and employee relateds benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrual, Beginning Balance | 5,527 | |
Charges | (308) | |
Cash payments and settlements | (898) | |
Accrual, Ending Balance | 4,321 | |
Relocation | ||
Restructuring Cost and Reserve [Line Items] | ||
Accrual, Beginning Balance | 828 | |
Charges | 61 | |
Cash payments and settlements | (229) | |
Accrual, Ending Balance | $ 660 | |
[1] Recorded in accrued payroll and incentives. |