Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2015 | Jun. 16, 2015 | Oct. 31, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SWHC | ||
Entity Registrant Name | Smith & Wesson Holding Corporation | ||
Entity Central Index Key | 1,092,796 | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 54,169,521 | ||
Entity Public Float | $ 423,395,323 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 42,222 | $ 68,860 | |
Accounts receivable, net of allowance for doubtful accounts of $722 on April 30, 2015 and $844 on April 30, 2014 | 55,280 | 55,890 | |
Inventories | 76,895 | 86,742 | |
Prepaid expenses and other current assets | 6,306 | 5,958 | |
Deferred income taxes | 16,373 | 17,094 | |
Income tax receivable | 4,627 | ||
Total current assets | 197,076 | 239,171 | |
Property, plant, and equipment, net | 133,844 | 120,440 | |
Intangibles, net | 73,768 | [1] | 3,425 |
Goodwill | 75,426 | ||
Other assets | 14,878 | 18,467 | |
Assets, Total | 494,992 | 381,503 | |
Current liabilities: | |||
Accounts payable | 32,360 | 37,688 | |
Accrued expenses | 19,021 | 17,107 | |
Accrued payroll | 7,556 | 15,816 | |
Accrued income taxes | 4,224 | ||
Accrued taxes other than income | 5,281 | 5,359 | |
Accrued profit sharing | 6,165 | 11,060 | |
Accrued warranty | 6,404 | 5,513 | |
Total current liabilities | 81,011 | 92,543 | |
Deferred income taxes | 33,905 | 11,418 | |
Notes payable | 175,000 | 100,000 | |
Other non-current liabilities | 10,706 | 10,719 | |
Total liabilities | $ 300,622 | $ 214,680 | |
Commitments and contingencies | |||
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, 69,625,081 shares issued and 54,062,459 shares outstanding on April 30, 2015 and 68,809,986 shares issued and 55,352,679 shares outstanding on April 30, 2014 | $ 70 | $ 69 | |
Additional paid-in capital | 219,198 | 211,225 | |
Retained earnings | 147,352 | 97,739 | |
Accumulated other comprehensive income | 73 | 73 | |
Treasury stock, at cost (15,562,622 shares on April 30, 2015 and 13,457,307 shares on April 30, 2014) | (172,323) | (142,283) | |
Total stockholders’ equity | 194,370 | 166,823 | |
Liabilities and Equity, Total | $ 494,992 | $ 381,503 | |
[1] | The primary increase in intangible assets over the prior year is as a result of the BTI Acquisition. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 722 | $ 844 |
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 | 69,625,081 | 68,809,986 |
Common stock, shares outstanding | 54,062,459 | 55,352,679 |
Treasury stock, shares | 15,562,622 | 13,457,307 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net sales | $ 551,862 | $ 626,620 | $ 587,514 |
Cost of sales | 356,936 | 367,515 | 369,442 |
Gross profit | 194,926 | 259,105 | 218,072 |
Operating expenses: | |||
Research and development | 6,943 | 5,648 | 4,790 |
Selling and marketing | 36,033 | 33,515 | 30,112 |
General and administrative | 62,322 | 68,954 | 50,336 |
Total operating expenses | 105,298 | 108,117 | 85,238 |
Operating income | 89,628 | 150,988 | 132,834 |
Other (expense)/income: | |||
Other (expense)/income, net | 39 | (2,154) | 39 |
Interest income | 395 | 149 | 814 |
Interest expense | (11,330) | (12,261) | (5,781) |
Total other (expense)/income, net | (10,896) | (14,266) | (4,928) |
Income from continuing operations before income taxes | 78,732 | 136,722 | 127,906 |
Income tax expense | 28,905 | 48,095 | 46,500 |
Income from continuing operations | 49,827 | 88,627 | 81,406 |
Discontinued operations: | |||
Loss from operations of discontinued security solutions division | (297) | (456) | (3,605) |
Income tax benefit | (83) | (1,134) | (912) |
(Loss)/income from discontinued operations | (214) | 678 | (2,693) |
Net income | $ 49,613 | $ 89,305 | $ 78,713 |
Net income per share: | |||
Basic - continuing operations | $ 0.92 | $ 1.51 | $ 1.25 |
Basic - total | 0.92 | 1.52 | 1.21 |
Diluted - continuing operations | 0.90 | 1.47 | 1.22 |
Diluted - total | $ 0.90 | $ 1.49 | $ 1.18 |
Weighted average number of common shares outstanding: | |||
Basic | 53,988 | 58,668 | 65,155 |
Diluted | 55,228 | 60,114 | 66,642 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings/(Accumulated Deficit) | Accumulated Other Comprehensive Income | Treasury Stock |
Balance at Apr. 30, 2012 | $ 112,844 | $ 67 | $ 189,379 | $ (70,279) | $ 73 | $ (6,396) |
Balance (in shares) at Apr. 30, 2012 | 66,512,000 | 1,200,000 | ||||
Exercise of employee stock options | $ 3,473 | $ 1 | 3,472 | |||
Exercise of employee stock options (in shares) | 847,042 | 847,000 | ||||
Repurchase of treasury stock | $ (20,000) | $ (20,000) | ||||
Repurchase of treasury stock (in shares) | 2,100,000 | |||||
Stock-based compensation | 4,118 | 4,118 | ||||
Excess tax benefit for stock-based compensation | 1,025 | 1,025 | ||||
Shares issued under employee stock purchase plan | 1,335 | 1,335 | ||||
Shares issued under employee stock purchase plan (in shares) | 185,000 | |||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (209) | (209) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 53,000 | |||||
Net income | 78,713 | 78,713 | ||||
Balance at Apr. 30, 2013 | 181,299 | $ 68 | 199,120 | 8,434 | 73 | $ (26,396) |
Balance (in shares) at Apr. 30, 2013 | 67,597,000 | 3,300,000 | ||||
Exercise of employee stock options | $ 1,999 | $ 1 | 1,998 | |||
Exercise of employee stock options (in shares) | 732,778 | 732,000 | ||||
Repurchase of treasury stock | $ (115,887) | $ (115,887) | ||||
Repurchase of treasury stock (in shares) | 10,158,000 | |||||
Stock-based compensation | 8,212 | 8,212 | ||||
Excess tax benefit for stock-based compensation | 2,647 | 2,647 | ||||
Shares issued under employee stock purchase plan | 1,316 | 1,316 | ||||
Shares issued under employee stock purchase plan (in shares) | 176,000 | |||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (2,068) | (2,068) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 305,000 | |||||
Net income | 89,305 | 89,305 | ||||
Balance at Apr. 30, 2014 | $ 166,823 | $ 69 | 211,225 | 97,739 | 73 | $ (142,283) |
Balance (in shares) at Apr. 30, 2014 | 55,352,679 | 68,810,000 | 13,458,000 | |||
Exercise of employee stock options | $ 1,814 | $ 1 | 1,813 | |||
Exercise of employee stock options (in shares) | 365,719 | 366,000 | ||||
Repurchase of treasury stock | $ (30,040) | $ (30,040) | ||||
Repurchase of treasury stock (in shares) | 2,105,315 | 2,105,000 | ||||
Stock-based compensation | $ 5,808 | 5,808 | ||||
Excess tax benefit for stock-based compensation | 771 | 771 | ||||
Shares issued under employee stock purchase plan | 1,289 | 1,289 | ||||
Shares issued under employee stock purchase plan (in shares) | 163,000 | |||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (1,708) | (1,708) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 286,000 | |||||
Net income | 49,613 | 49,613 | ||||
Balance at Apr. 30, 2015 | $ 194,370 | $ 70 | $ 219,198 | $ 147,352 | $ 73 | $ (172,323) |
Balance (in shares) at Apr. 30, 2015 | 54,062,459 | 69,625,000 | 15,563,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 49,613 | $ 89,305 | $ 78,713 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 30,893 | 21,704 | 16,730 |
Loss on sale of discontinued operations | 1,222 | ||
Loss on sale/disposition of assets | 267 | 150 | 315 |
Provision for/(recoveries of) losses on accounts receivable | 122 | (214) | 720 |
Change in disposal group assets and liabilities | (1,215) | ||
Deferred income taxes | 2,341 | (1,463) | 4,009 |
Stock-based compensation expense | 5,808 | 8,212 | 4,073 |
Changes in operating assets and liabilities (net effect of acquisitions): | |||
Accounts receivable | 10,983 | (9,588) | 1,505 |
Inventories | 25,662 | (23,744) | (7,702) |
Prepaid expenses and other current assets | (569) | (1,856) | (285) |
Income tax receivable/(payable) | 8,965 | (1,534) | (3,384) |
Accounts payable | (7,345) | 6,468 | 2,602 |
Accrued payroll | (9,525) | 2,720 | 3,489 |
Accrued taxes other than income | (86) | 10 | 1,079 |
Accrued profit sharing | (4,895) | 1,473 | 1,547 |
Accrued expenses | 1,447 | (477) | (5,125) |
Accrued warranty | 891 | (244) | 408 |
Other assets | (348) | (356) | (1,930) |
Other non-current liabilities | 583 | (360) | 1,327 |
Net cash provided by operating activities | 114,807 | 90,206 | 98,098 |
Cash flows from investing activities: | |||
Proceeds from sale of the net assets of SWSS LLC | 7,500 | ||
Refunds of/(payments for) deposits on machinery and equipment | 1,431 | (9,269) | |
Receipts from note receivable | 81 | 77 | 73 |
Payments to acquire patents and software | (392) | (243) | (102) |
Proceeds from sale of property and equipment | 264 | 101 | 1,040 |
Payments to acquire property and equipment | (28,199) | (53,282) | (41,421) |
Net cash used in investing activities | (186,057) | (62,616) | (32,910) |
Cash flows from financing activities: | |||
Proceeds from loans and notes payable | 175,000 | 101,584 | 1,753 |
Cash paid for debt issue costs | (2,558) | (3,791) | |
Payments on capital lease obligation | (596) | (596) | (600) |
Payments on notes payable | (100,000) | (45,143) | (8,195) |
Proceeds from Economic Development Incentive Program | 640 | 722 | |
Payments to acquire treasury stock | (30,040) | (115,887) | (20,000) |
Proceeds from exercise of options to acquire common stock, including employee stock purchase plan | 3,103 | 3,315 | 4,808 |
Payroll taxes paid as a result of restricted stock unit withholdings | (1,708) | (2,068) | (209) |
Excess tax benefit of stock-based compensation | 771 | 2,647 | 1,025 |
Net cash provided by/(used in) financing activities | 44,612 | (59,217) | (21,418) |
Net (decrease)/increase in cash and cash equivalents | (26,638) | (31,627) | 43,770 |
Cash and cash equivalents, beginning of period | 68,860 | 100,487 | 56,717 |
Cash and cash equivalents, end of period | 42,222 | 68,860 | 100,487 |
Supplemental disclosure of cash flow information Cash paid for: | |||
Interest | 8,617 | 7,688 | 5,295 |
Income taxes | 16,926 | $ 48,778 | $ 44,087 |
Tri Town Precision Plastics Inc | |||
Cash flows from investing activities: | |||
Payments to acquire business, net of cash acquired | (23,805) | ||
BTI Acquisition | |||
Cash flows from investing activities: | |||
Payments to acquire business, net of cash acquired | $ (135,437) |
Organization
Organization | 12 Months Ended |
Apr. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. Organization Organization — We are one of the world’s leading manufacturers of firearms. We manufacture a wide array of handguns (including revolvers and pistols), long guns (including modern sporting rifles, bolt action rifles, and single shot rifles), handcuffs, and firearm-related products and accessories for sale to a wide variety of customers, including gun 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 are one of the largest manufacturers of handguns, modern sporting rifles, and handcuffs in the United States and an active participant in the hunting rifle market. Beginning in 2015, we are now also a leading provider of shooting, reloading, gunsmithing, and gun cleaning supplies. We sell our products under the Smith & Wesson, M&P, Thompson/Center Arms, Caldwell Shooting Supplies, Wheeler Engineering, Tipton Gun Cleaning Supplies, Frankford Arsenal Reloading Tools, Lockdown Vault Accessories, Hooyman Premium Tree Saws, BOG-POD, and Golden Rod Moisture Control brands. We manufacture our firearm products at our facilities in Springfield, Massachusetts; Houlton, Maine; and Deep River, Connecticut; and we develop and market our accessories products at our facility in Columbia, Missouri. We plan to continue to capitalize on the goodwill developed through our historic 163 year old “Smith & Wesson” brand as well as our other well-known brands by expanding consumer awareness of the products we produce. On May 5, 2014, we acquired substantially all of the net assets of Tri-Town Precision Plastics, Inc., or TTPP, which we refer to as the DRP Acquisition. See Note 2 – Acquisitions below for more information regarding this transaction. On December 11, 2014, we acquired all of the issued and outstanding stock of Battenfeld Acquisition Company Inc., including its wholly owned subsidiary, Battenfeld Technologies, Inc., or BTI, which we refer to as the BTI Acquisition. See Note 2 – Acquisitions below for more information regarding this transaction. These acquisitions have been accounted for in accordance with ASC 805-20, Business Combinations, |
Acquisitions
Acquisitions | 12 Months Ended |
Apr. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions DRP Acquisition On May 5, 2014, we acquired substantially all of the net assets of TTPP for $22.8 million, plus a $1.0 million working capital adjustment, for a total purchase price of $23.8 million, utilizing cash on hand. TTPP was a provider of custom injection molding services, rapid prototyping, and tooling, and was a long-standing supplier of polymer frames and related components for a large number of our firearms, including nearly all of our M&P models. The DRP Acquisition of TTPP’s custom polymer injection molding capabilities was designed to vertically integrate a key component of our manufacturing operations and provide us with increased flexibility within our supply chain. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date, as well as measurement period adjustments (in thousands): May 5, 2014 Measurement (As Initially Period May 5, 2014 Reported) Adjustments (As Adjusted) Accounts receivable $ 2,614 $ 5 $ 2,619 Inventories 2,430 460 2,890 Total current assets 5,044 465 5,509 Property, plant, and equipment 4,243 155 4,398 Goodwill 15,183 (1,413 ) 13,770 Intangibles assets: Customer relationships — 840 840 Order backlog — 150 150 Other assets 8 — 8 Total assets acquired 24,478 197 24,675 Accounts payable 358 12 370 Accrued expenses 25 114 139 Accrued payroll — 361 361 Total liabilities assumed 383 487 870 $ 24,095 $ (290 ) $ 23,805 General and administrative costs include $440,000 and $471,000 of acquisition-related costs incurred during the years ended April 30, 2015 and 2014, respectively, related to the DRP Acquisition. The goodwill that was recorded relating to the DRP Acquisition results from expected synergies related to vertically integrating a key component of our manufacturing operations as well as increased flexibility within our supply chain. This goodwill will be deductible for tax purposes and amortized over 15 years and is included in our firearm segment. We amortize customer relationships in proportion to expected yearly revenue generated from the customer lists acquired or products to be sold. We amortize order backlog over the contract lives as they are executed. The following are the identifiable intangible assets acquired (in thousands) and their respective weighted average lives: Weighted Average Life Amount (In years) Customer relationships $ 840 3.3 Order backlog 150 1.0 $ 990 Pro forma results of operations assuming that this acquisition had occurred on May 1, 2013 are not required because of the immaterial impact on our consolidated financial statements for all periods presented. BTI Acquisition On December 11, 2014, we acquired all of the issued and outstanding stock of BTI for $130.5 million, plus a $3.1 million working capital adjustment, for a total purchase price of $133.6 million, pursuant to a Stock Purchase and Sale Agreement. The BTI Acquisition was financed using a combination of existing cash balances and cash from a $100.0 million draw on our line of credit, which was expanded to $125.0 million as a result of our partial exercise of the accordion feature on that line of credit. BTI, based in Columbia, Missouri, is a leading provider of hunting and shooting accessories, which develops, produces, and delivers innovative, high-quality products under several brands. On January 9, 2015, we acquired substantially all of the net assets of Hooyman LLC, a manufacturer of extendable tree saws designed for the hunting and outdoor industry, for $1.9 million utilizing cash on hand. We have relocated its operations to our Columbia, Missouri facility. The aggregate purchase price of these acquisitions, including the working capital adjustments, was $135.5 million. We are finalizing the valuation of the assets acquired and liabilities assumed. Therefore, the fair values set forth below are subject to further adjustments as we obtain additional information during the measurement period, which will not exceed 12 months from the acquisition date. Adjustments in the purchase price allocation may require a recasting of the amounts allocated to goodwill retroactive to the period in which the acquisition occurred. The following table summarizes the estimated allocation of the purchase price for BTI at the acquisition date, which includes the net assets from the Hooyman acquisition, as well as measurement period adjustments to date (in thousands): December 11, 2014 Measurement (As Initially Period December 11, 2014 Reported) Adjustments (As Adjusted) Cash $ 24 $ — $ 24 Accounts receivable 7,873 3 7,876 Inventories 12,819 107 12,926 Income tax receivable 393 (279 ) 114 Other current assets 563 — 563 Property, plant, and equipment 2,826 (318 ) 2,508 Intangibles 73,550 — 73,550 Goodwill 62,142 (486 ) 61,656 Total assets acquired 160,190 (973 ) 159,217 Accounts payable 1,647 2 1,649 Accrued expenses 326 1 327 Accrued payroll 904 — 904 Accrued taxes other than income 9 — 9 Deferred income taxes 21,128 (261 ) 20,867 Total liabilities assumed 24,014 (258 ) 23,756 $ 136,176 $ (715 ) $ 135,461 General and administrative costs include $1.7 million of acquisition-related costs incurred during the year ended April 30, 2015 related to the BTI Acquisition. The goodwill that was recorded relating to the BTI Acquisition results from our ability to expand our prescence in the firearm accessories market and leverage BTI’s broad portfolio of hunting and shooting accessories brands. Previously acquired goodwill of $12.0 million will be deductible for tax purposes over its remaining useful life. The remaining goodwill recorded as a result of the BTI Acquisition is not expected to be deductible for tax purposes. All of the goodwill recorded as result of the BTI Acquisition is allocated to our accessories segment. We amortize intangible assets in proportion to expected yearly revenue generated from the intangibles that were acquired. We amortize order backlog over the contract lives as they are executed. The following are the identifiable intangible assets acquired (in thousands) and their respective weighted average lives: Weighted Average Life Amount (In years) Developed technology $ 16,630 4.2 Customer relationships 25,680 4.4 Trade names 31,140 5.3 Order backlog 100 0.3 $ 73,550 Additionally, the following table reflects the unaudited pro forma results of operations assuming that the BTI Acquisition had occurred on May 1, 2013 (in thousands, except per share data): For the Year For the Year Ended Ended April 30, 2015 April 30, 2014 Net sales $ 582,875 $ 670,163 Income from continuing operations 53,388 85,460 Income per share - diluted 0.97 1.42 The unaudited pro forma income from continuing operations for the years ended April 30, 2015 and 2014 have been adjusted to reflect increased cost of goods sold from the fair value step-up in inventory, which is expensed over the first inventory cycle, and the amortization of intangibles and order backlog incurred as if the acquisition had occurred on May 1, 2013. The unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the actual results that would have been achieved had the BTI Acquisition occurred as of May 1, 2013 or the results that may be achieved in future periods. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. Significant Accounting Policies Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenue and expenses during the reporting periods. Our significant estimates include accruals for warranty, excess and obsolete inventory, allowance for doubtful accounts, and intangible asset valuation. Actual results could differ from those estimates. Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Smith & Wesson Holding Corporation and its wholly owned subsidiaries, including Smith & Wesson Corp., Thompson/Center Arms Company, LLC, Deep River Plastics, LLC, BTI, currently reported as our newly formed accessories division, and SWSS LLC, formerly Smith & Wesson Security Solutions, Inc., or SWSS, our former security solutions division. There was no variance in the fiscal year-end of our wholly owned subsidiary, Smith & Wesson Corp., and our reported fiscal year-end of April 30, 2015 and 2014. We had a two-day variance for our fiscal year-end of Smith & Wesson Corp. to our reported fiscal year-end in April 2013. The variance in fiscal 2013 did not create any material difference in the consolidated financial statements as presented. 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 at April 30, 2015 and 2014 and for the periods presented, have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. SWSS is being presented as discontinued operations in the consolidated statements of income for all periods presented. See Note 4 for additional information regarding these discontinued operations. Unless stated otherwise, any reference to the consolidated statements of income items in the notes to the consolidated financial statements refers to results from continuing operations. Fair Value of Financial Instruments — Unless otherwise indicated, the fair values of all reported assets and liabilities, which represent financial instruments not held for trading purposes, approximate the carrying values of such amounts because of their short-term nature or market rates of interest. Cash and Cash Equivalents — We consider all highly liquid investments purchased with original maturities of three months or less at the date of acquisition to be cash equivalents. We maintain our cash in bank deposit accounts that, at times, may exceed federally insured limits. We have not experienced any losses in such accounts. As of April 30, 2015, our accounts exceeded federally insured limits by $42.6 million. Trade Receivables — We extend credit to our domestic customers and some foreign distributors based on their financial condition. We sometimes offer discounts for early payment on invoices. When we believe the extension of credit is not advisable, we rely on either a prepayment or a letter of credit. We write off balances deemed uncollectible by us against our allowance for doubtful accounts. We estimate our allowance for doubtful accounts through current past due balances, knowledge of our customers’ financial situations, and past payment history. Concentrations of Credit Risk — Financial instruments that potentially subject us to concentration of credit risk consist principally of cash, cash equivalents, and trade receivables. We place our cash and cash equivalents in overnight U.S. government securities. Concentrations of credit risk with respect to trade receivables are limited by the large number of customers comprising our customer base and their geographic and business dispersion. We perform ongoing credit evaluations of our customers’ financial condition and generally do not require collateral. For our fiscal year ended April 30, 2015, we did not have any customers that accounted for more than 10% of net sales or 10% of accounts receivable as of April 30, 2015. However, one of our customers accounted for approximately 13.4% and 11.6% of our net sales for the fiscal years ended April 30, 2014 and 2013, respectively, as well as $11.7 million, or 20.1%, of accounts receivable as of April 30, 2014. Inventories — We value firearm inventories, consisting primarily of finished firearms, finished firearm components, as well as related products, as well as our accessories inventories, at the lower of cost, using the first-in, first-out, or FIFO method, or market. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a detailed review of inventory components, past history, and expected future usage. Property, Plant, and Equipment — We record property, plant, and equipment, consisting of land, building, building improvements, machinery, equipment, software, hardware, furniture, and fixtures, at cost and depreciate them using the straight-line method over their estimated useful lives. We charge expenditures for maintenance and repairs to earnings as incurred, and we capitalize additions, renewals, and betterments. Upon the retirement or other disposition of property and equipment, we remove the related cost and accumulated depreciation from the respective accounts and include any gain or loss in operations. A summary of the estimated useful lives is as follows: Description Useful Life Building and improvements 10 to 40 years Software and hardware 3 to 7 years Machinery and equipment 2 to 10 years We include tooling, dies, and fixtures as part of machinery and equipment and depreciate them over a period not exceeding five years. Intangible Assets — We record intangible assets at cost or based on the fair value of assets acquired. Intangible assets consist of developed technology, customer relationships, trademarks, trade names, and patents. We amortize intangible assets over their estimated useful lives or in proportion to expected yearly revenue generated from the intangibles that were acquired. Revenue Recognition — We recognize revenue when the following four basic criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been provided; (3) the fee is fixed or determinable; and (4) collection is reasonably assured. Product sales account for most of our revenue. We recognize revenue from product sales when the earnings process is complete and the risks and rewards of ownership have transferred to the customer, which is generally upon shipment but could be delayed until the receipt of customer acceptance. We also provide tooling, forging, heat treating, finishing, plating, and engineering support services to customers; we recognize this revenue when accepted by the customer, if applicable, when no further contingencies or material performance obligations exist, and when collectability is reasonably assured, thereby earning us the right to receive and retain payments for services performed and billed. Segment Information — We have two reportable segments: one for our firearm division and a second for our accessories division. See Note 19 – Segment Reporting for more information regarding our segments. Research and Development — We engage in both internal and external research and development, or R&D, in order to remain competitive and to exploit possible untapped market opportunities. We approve prospective R&D projects after analysis of the cost and benefits associated with the potential product. Costs in R&D expense include, among other items, salaries, materials, utilities, and administrative costs. Earnings/(Loss) per Share — We calculate basic and diluted earnings/(loss) per common share in accordance with the provisions of ASC 260-10, . Basic earnings/(loss) per common share equals net income/(loss) divided by the weighted average number of common shares outstanding during the period. Diluted earnings/(loss) per common share equals net income/(loss) divided by the weighted average number of common shares outstanding during the period, including the effect of outstanding stock options and other stock-based instruments if their effect is dilutive. The following table provides a reconciliation of the net income/(loss) amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings/(loss) per common share (in thousands, except per share data): For the Year Ended April 30, 2015 2014 2013 Net income/(loss) Income from continuing operations $ 49,827 $ 88,627 $ 81,406 (Loss)/income from discontinued operations (214 ) 678 (2,693 ) Net income $ 49,613 $ 89,305 $ 78,713 Weighted average shares outstanding - Basic 53,988 58,668 65,155 Dilutive effect of stock option and award plans 1,240 1,446 1,487 Diluted shares outstanding 55,228 60,114 66,642 Earnings per share - Basic Income from continuing operations $ 0.92 $ 1.51 $ 1.25 (Loss)/income from discontinued operations $ (0.00 ) $ 0.01 $ (0.04 ) Net income $ 0.92 $ 1.52 $ 1.21 Earnings per share - Diluted Income from continuing operations $ 0.90 $ 1.47 $ 1.22 (Loss)/income from discontinued operations $ (0.00 ) $ 0.01 $ (0.04 ) Net income $ 0.90 $ 1.49 $ 1.18 For fiscal 2015, 2014, and 2013, 73,546, 77,622, and 246,635 shares of common stock, respectively, issuable upon the exercise of stock options were excluded from the computation of diluted income per share because the effect would be antidilutive. Valuation of Long-lived Tangible and Intangible Assets — We evaluate the recoverability of long-lived assets, or asset groups, whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. When such evaluations indicate that the related future undiscounted cash flows are not sufficient to recover the carrying values of the assets, such carrying values are reduced to fair value and this adjusted carrying value becomes the asset’s new cost basis. We determine fair value primarily using future anticipated cash flows that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, discounted using an interest rate commensurate with the risk involved. We have significant long-lived tangible and intangible assets, which are susceptible to valuation adjustments as a result of changes in various factors or conditions. The most significant long-lived tangible and intangible assets, other than goodwill, are property, plant, and equipment, developed technology, customer relationships, patents, trademarks, and trade names. We amortize all finite-lived intangible assets either on a straight-line basis or based upon patterns in which we expect to utilize the economic benefits of such assets. We initially determine the values of intangible assets by a risk-adjusted, discounted cash flow approach. We assess the potential impairment of identifiable intangible assets and fixed assets whenever events or changes in circumstances indicate that the carrying values may not be recoverable and at least annually. Factors we consider important, which could trigger an impairment of such assets, include the following: · significant underperformance relative to historical or projected future operating results; · significant changes in the manner or use of the assets or the strategy for our overall business; · significant negative industry or economic trends; · a significant decline in our stock price for a sustained period; and · a decline in our market capitalization below net book value. Future adverse changes in these or other unforeseeable factors could result in an impairment charge that could materially impact future results of operations and financial position in the reporting period identified. No impairment charges were recorded for continuing operations in fiscal 2015, 2014, or 2013 based on the review of long-lived assets. In accordance with ASC 350, Intangibles-Goodwill and Other, Segment Reporting Topic, We periodically review long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. We base each impairment test on a comparison of the undiscounted cash flows to the recorded carrying value for the asset. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. No impairment charges were taken for continuing operations in fiscal 2015, 2014, or 2013 based on the review of long-lived assets. We utilize an income approach, with discounted cash flows, to estimate the fair value of each reporting unit. We selected this method because we believe that it most appropriately measures our income producing assets. We considered using the market approach and the cost approach, but concluded that they were not appropriate in valuing our reporting units given the lack of relevant and available market comparisons. The income approach is based on the projected cash flows that are discounted to their present value using discount rates that consider the timing and risk of the forecasted cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the reporting unit’s expected long-term operating cash performance. This approach also mitigates the impact of the cyclical trends that occur in our industry. Fair value is estimated using internally-developed forecasts and assumptions. The discount rate used is the average estimated value of a market participant’s cost of capital and debt, derived using customary market metrics. Other significant assumptions include terminal value margin rates, future capital expenditures, and changes in future working capital requirements. We also compare and reconcile our overall fair value to our market capitalization. While there are inherent uncertainties related to the assumptions used and to our application of these assumptions to this analysis, we believe that the income approach provides a reasonable estimate of the fair value of our reporting units. The foregoing assumptions were consistent with our long-term performance, with limited exceptions. We believe that our future investments for capital expenditures as a percent of revenue will decline in future years because of our improved utilization resulting from lean initiatives, and we believe that days sales outstanding will decline with any increase in revenues. We also have assumed that our markets have not contracted for the long term through the current economic downturn; however, it may be a number of years before they fully recover. These assumptions could deviate materially from actual results. Significant judgments and estimates are involved in determining the useful lives of our long-lived assets, determining what reporting units exist, and assessing when events or circumstances would require an interim impairment analysis of goodwill or other long-lived assets to be performed. Changes in our organization or our management reporting structure, as well as other events and circumstances, including technological advances, increased competition, and changing economic or market conditions, could result in (a) shorter estimated useful lives, (b) additional reporting units, which may require alternative methods of estimating fair values or greater disaggregation or aggregation in our analysis by reporting unit, and (c) other changes in previous assumptions or estimates. A change in the weighted average cost of capital, for example, could materially change the valuation and, if increased, could cause an impairment. In turn, this could have an additional impact on our consolidated financial statements through accelerated amortization and impairment charges. Income Taxes — The provision for income taxes is based upon income reported in the accompanying consolidated financial statements. As required by ASC 740-10, , we record tax assets or liabilities for the temporary differences between the book value and tax bases in assets and liabilities. In assessing the realization of our deferred income tax assets, we consider whether it is more likely than not that the deferred income tax assets will be realized. The ultimate realization of our deferred income tax assets depends upon generating future taxable income during the periods in which our temporary differences become deductible and before our net operating loss carryforwards expire. We evaluate the recoverability of our deferred income tax assets by assessing the need for a valuation allowance on a quarterly basis. If we determine that it is more likely than not that our deferred income tax assets will not be recovered, we establish a valuation allowance against some or all of our deferred income tax assets. Recording a valuation allowance or reversing a valuation allowance could have a significant effect on our future results of operations and financial position. We measure these deferred taxes by applying tax rates expected to be in place when the deferred items become subject to income tax or deductible for income tax purposes. Warranty — We generally provide a limited one-year warranty and a lifetime service policy to the original purchaser of our new firearm products. We provide for estimated warranty obligations in the period in which we recognize the related revenue. We quantify and record an estimate for warranty-related costs based on our actual historical claims experience and current repair costs. We make adjustments to accruals as warranty claims data and historical experience warrant. Should we experience actual claims and repair costs that are higher than the estimated claims and repair costs used to calculate the provision, our operating results for the period or periods in which such returns or additional costs materialize would be adversely impacted. On August 22, 2013, we issued a safety alert related to all M&P Shield products manufactured prior to August 19, 2013. On June 13, 2013, we initiated a recall of all Thompson/Center Arms bolt action rifles manufactured since the products’ introduction in 2007. As of April 30, 2015, we had incurred $5.5 million in recall and safety alert costs, and we estimated the remaining cost to be $3.2 million, which is recorded in the accrued warranty balance. Warranty expense for the fiscal years ended April 30, 2015, 2014, and 2013 amounted to $4.3 million, $3.6 million, and $7.1 million, respectively. The following table sets forth the change in accrued warranties, a portion of which is recorded as a non-current liability, in the fiscal years ended April 30, 2015, 2014, and 2013 (in thousands): April 30, 2015 April 30, 2014 April 30, 2013 Beginning Balance $ 7,565 $ 8,423 $ 6,412 Warranties issued and adjustments to provisions 4,292 3,620 7,093 Warranty claims (3,204 ) (4,478 ) (5,082 ) Ending Balance $ 8,653 $ 7,565 $ 8,423 Sales and Promotional Related Expenses — We present product sales in our consolidated financial statements, net of customer promotional program costs that depend upon the volume of sales, which amounted to $6.9 million, $1.6 million, and $5.1 million for the fiscal years ended April 30, 2015, 2014, and 2013, respectively. We have a co-op advertising program at the retail level. We expensed costs amounting to $2.8 million, $1.9 million, and $1.5 million for fiscal 2015, 2014, and 2013, respectively, as selling and marketing expenses. Shipping and Handling — In the accompanying consolidated financial statements, we included amounts billed to customers for shipping and handling in net sales. We included our costs relating to shipping and handling charges, including inbound freight charges, internal transfer costs, and the other costs of our distribution network, in cost of goods sold. Insurance Reserves — We are self-insured through retentions or deductibles for the majority of our workers’ compensation, automobile, general liability, product liability, and group health insurance programs. Self-insurance amounts vary up to $3.0 million per occurrence. We record our liability for estimated premiums and incurred losses in the accompanying consolidated financial statements on an undiscounted basis. Recently Issued Accounting Standard — In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) , or ASU 2014-09. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for interim reporting periods beginning October 1, 2017. Early adoption is not permitted. We are currently evaluating the impact, if any, that ASU 2014-09 will have on our consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Apr. 30, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 4. Discontinued Operations During fiscal 2010, we acquired all of the outstanding capital stock of SWSS. During fiscal 2013, we committed to a plan to divest the assets, liabilities, and ongoing operations of our security solutions division. The operating results of SWSS relate primarily to legal fees associated with retained liabilities and are classified as discontinued operations. We present discontinued operations as a separate line in the consolidated statements of income for all periods presented. |
Notes Payable and Financing Arr
Notes Payable and Financing Arrangements | 12 Months Ended |
Apr. 30, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable and Financing Arrangements | 5. Notes Payable and Financing Arrangements Credit Facilities — On July 15, 2014, we entered into a $75.0 million unsecured credit facility. On November 25, 2014, we partially exercised the accordion feature of the credit facility to increase it by $50.0 million to $125.0 million in connection with the BTI Acquisition. On April 13, 2015, we exercised the remaining $50.0 million expansion under the accordion feature to increase the line of credit available to us to $175.0 million. The credit facility was scheduled to mature on December 15, 2016 and bore interest at a variable rate equal to LIBOR or prime, at our election, plus an applicable margin based on our consolidated leverage ratio. As of April 30, 2015, there were no borrowings outstanding. Had there been borrowings, they would have borne an interest rate of 4.00% per annum if we had selected the prime rate option and a range of 2.18% to 2.28% per annum if we had selected the LIBOR rate option. As discussed below, we entered into a new credit agreement, which consists of a revolving line of credit and term loan that replaced the $175.0 million credit facility. New Credit Facility – On June 15, 2015, we entered into a new unsecured credit facility with TD Bank, N.A. and other lenders, or the Lenders, which included a $175.0 million revolving line of credit, or the Revolving Line, and a $105.0 million term loan, or the Term Loan. The Revolving Line provides for availability until June 15, 2020 for general corporate purposes and borrowings bear interest at a variable rate equal to LIBOR or prime plus an applicable margin based on our consolidated leverage ratio, at our election. The Term Loan, which bears interest at a variable rate, was entered into for the purpose of redeeming the 5.875% Senior Notes due 2017, or the 5.875% Senior Notes. We are required to obtain interest rate protection through a swap contract covering not less than 75% of the aggregate outstanding principal balance. The Term Loan requires principal payments of 6.000% per annum paid quarterly. Any remaining outstanding amount on the maturity date of June 15, 2020 will be due in full. Concurrent with closing the Term Loan, the 5.875% Senior Notes were redeemed for a 2.9375% call premium, plus accrued and unpaid interest at the redemption date. As part of the redemption, in fiscal 2016, we wrote off $1.7 million of debt-issue costs related to the 5.875% Senior Notes. 9.5% Senior Notes — During fiscal 2011, we issued an aggregate of $50.0 million of 9.5% senior notes due 2016, or the 9.5% Senior Notes. During fiscal 2013, we repurchased a total of $6.4 million of these notes and, during the fiscal year ended April 30, 2014, retired the remaining notes, as described below. 5.875% Senior Notes — During fiscal 2014, we sold an aggregate of $47.1 million of 5.875% Senior Notes to various qualified institutional buyers in exchange for approximately $42.8 million of our then-outstanding 9.5% Senior Notes held by existing holders of such notes. We also issued an additional $52.9 million of new 5.875% Senior Notes for cash. The remaining $712,000 of 9.5% Senior Notes outstanding after the exchange noted above were extinguished via legal defeasance during fiscal 2014. The 5.875% Senior Notes were sold pursuant to the terms and conditions of an indenture, or the 5.875% Senior Notes Indenture, and exchange and purchase agreements. The 5.875% Senior Notes bore interest at a rate of 5.875% per annum payable on June 15 and December 15 of each year, beginning on December 15, 2013. We recorded $4.3 million of interest expense related to bond premium and $795,000 of debt issuance write-off costs relating to the exchange and defeasance of the 9.5% Senior notes during fiscal 2014. As discussed below, the 5.875% Senior Notes were redeemed on June 15, 2015 with proceeds from a term loan we entered into as part of our new credit facility. 5.000% Senior Notes – During fiscal 2015, we issued an aggregate of $75.0 million of 5.000% Senior Notes due 2018, or the 5.000% Senior Notes, to various institutional investors pursuant to the terms and conditions of an indenture, or the 5.000% Senior Notes Indenture, and collectively with the 5.875% Senior Notes Indenture, the Senior Notes Indentures, and purchase agreements. The 5.000% Senior Notes bear interest at a rate of 5.000% per annum payable on January 15 and July 15 of each year, beginning on January 15, 2015. We incurred $2.3 million of debt issuance costs related to the issuance of the 5.000% Senior Notes. At any time prior to July 15, 2016, we may, at our option (a) upon not less than 30 nor more than 60 days’ prior notice, redeem all or a portion of the 5.000% Senior Notes at the redemption price of 100% of the principal amount of the 5.000% Senior Notes, plus an applicable premium, plus accrued and unpaid interest as of the redemption date; or (b) redeem up to 35% of the aggregate principal amount of the 5.000% Senior Notes with the net cash proceeds of one or more equity offerings at a redemption price of 105.000% of the principal amount of the 5.000% Senior Notes, plus accrued and unpaid interest as of the redemption date; provided, that in the case of the foregoing clause, at least 65% of the aggregate original principal amount of the 5.000% Senior Notes remains outstanding, and the redemption occurs within 60 days after the closing of the equity offering. On and after July 15, 2016, we may, at our option, upon not less than 30 nor more than 60 days’ prior notice, redeem all or a portion of the 5.000% Senior Notes at a redemption price of (a) 102.500% of the principal amount of the 5.000% Senior Notes to be redeemed, if redeemed during the 12-month period beginning on July 15, 2016; or (b) 100% of the principal amount of the 5.000% Senior Notes to be redeemed, if redeemed during the 12-month period beginning on July 15, 2017, plus, in either case, accrued and unpaid interest on the 5.000% Senior Notes as of the applicable redemption date. Subject to certain restrictions and conditions, we may be required to make an offer to repurchase the 5.000% Senior Notes from the holders of the 5.000% Senior Notes in connection with a change of control or disposition of assets. If not redeemed by us or repaid pursuant to the holders’ right to require repurchase, the 5.000% Senior Notes mature on July 15, 2018. The 5.000% Senior Notes are general, unsecured obligations of our company. The 5.000% Senior Notes Indenture contains certain affirmative and negative covenants, including limitations on restricted payments (such as share repurchases, dividends, and early payment of indebtedness), limitations on indebtedness, limitations on the sale of assets, and limitations on liens. Payments that would otherwise be characterized as restricted payments are permitted under the 5.000% Senior Notes Indenture in an amount not to exceed 50% of our consolidated net income for the period from the issue date to the date of the restricted payment, provided that at the time of making such payments, (a) no default has occurred or would result from the making of such payments, and (b) we are able to satisfy the debt incurrence test under the 5.000% Senior Notes Indenture, or the 5.000% Senior Notes Lifetime Aggregate Limit. In addition, the 5.000% Senior Notes Indenture provides for other exceptions to the restricted payments covenant, each of which are independent of the 5.000% Senior Notes Lifetime Aggregate Limit. Among such exceptions are (i) the ability to make share repurchases each fiscal year in an amount not to exceed the lesser of (A) $50.0 million in any fiscal year or (B) 75.0% of our consolidated net income for the previous four consecutive published fiscal quarters prior to the date of the determination of such consolidated net income, and (ii) share repurchases over the life of the 5.000% Senior Notes in an aggregate amount not to exceed $75.0 million. The limitation on indebtedness in the Senior Notes Indentures is only applicable at such time that the consolidated coverage ratio (as set forth in the Senior Notes Indentures) for us and our restricted subsidiaries is less than 3.00 to 1.00. In general, as set forth in the Senior Notes Indentures, the consolidated coverage ratio is determined by comparing our prior four quarters’ consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) to our consolidated interest expense. The carrying value of our 5.875% Senior Notes and 5.000% Senior Notes as of April 30, 2015 approximates fair value in considering Level 2 inputs within the hierarchy. Debt Issuance Costs — We recorded, in other assets, $2.6 million and $3.8 million of debt issuance costs for the fiscal years ended April 30, 2015 and 2014, respectively. These costs are being amortized to expense over the life of the credit facility or the Senior Notes Indentures. In total, we amortized $1.5 million, $1.9 million, and $680,000 to interest expense for all debt issuance costs in fiscal 2015, 2014, and 2013, respectively, including write-offs related to extinguishment. As of April 30, 2015, our revolving credit facility contained financial covenants relating to maintaining maximum leverage and minimum debt service coverage. The Senior Notes Indentures contain a financial covenant relating to times interest earned. Letters of Credit — At April 30, 2015, we had outstanding letters of credit aggregating $1.0 million. |
Net Sales
Net Sales | 12 Months Ended |
Apr. 30, 2015 | |
Disclosure Net Sales [Abstract] | |
Net Sales | 6. Net Sales The following table sets forth the breakdown of net sales for the fiscal years ended April 30, 2015, 2014, and 2013, respectively (in thousands): For the Year Ended April 30, 2015 2014 2013 Handguns $ 395,500 $ 422,992 $ 324,627 Long Guns 90,178 155,311 179,187 Walther 506 5,651 41,646 Other Products & Services 45,038 42,666 42,054 Firearm Division 531,222 626,620 587,514 Accessories Division 20,640 — — Total Net Sales $ 551,862 $ 626,620 $ 587,514 All of our firearms are currently sold under our Smith & Wesson, M&P, and Thompson/Center Arms brands. In addition, through our Performance Center, we offer small, specialized, and enhanced models sold under the Smith & Wesson and M&P brands. Depending upon the product or service, our firearm customers include distributors; federal, state, and municipal law enforcement agencies and officers; government and military agencies; businesses; retailers; and consumers. We sell accessories under our Caldwell Shooting Supplies, Wheeler Engineering, Tipton Gun Cleaning Supplies, Frankford Arsenal Reloading Tools, Lockdown Vault Accessories, Hooyman Premium Tree Saws, BOG-POD, and Golden Rod Moisture Control brands. Our accessories customers are generally businesses, retailers, and consumers. We sell our products worldwide. The following table sets forth the breakdown of export net sales included in the above table. Our export net sales accounted for 4%, 3%, and 3% of total net sales for the fiscal years ended April 30, 2015, 2014, and 2013, respectively (in thousands): For the Year Ended April 30, Region 2015 2014 2013 Europe $ 8,164 $ 6,279 $ 2,979 Asia 1,463 1,766 6,319 Latin America 1,643 200 1,693 All others international 11,570 9,605 8,003 Total net international sales $ 22,840 $ 17,850 $ 18,994 We had no assets relating to our firearm business located outside the United States during any of the periods presented; we own tooling relating to our accessories business that is located at various suppliers in Asia. |
Advertising Costs
Advertising Costs | 12 Months Ended |
Apr. 30, 2015 | |
Marketing And Advertising Expense [Abstract] | |
Advertising Costs | 7. Advertising Costs We expense advertising costs, primarily consisting of magazine advertisements, printed materials, television advertisements, and our new retail sales associate rewards program, either as incurred or upon the first occurrence of the advertising. Advertising expense, included in selling and marketing expenses, for continuing operations for the fiscal years ended April 30, 2015, 2014, and 2013, amounted to $20.2 million, $19.5 million, and $15.1 million, respectively. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Apr. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment | 8. Property, Plant, and Equipment The following table summarizes property, plant, and equipment as of April 30, 2015 and 2014 (in thousands): April 30, 2015 April 30, 2014 Machinery and equipment $ 191,480 $ 156,030 Software and hardware 30,945 27,331 Building and improvements 19,946 12,187 Land and improvements 3,214 2,150 245,585 197,698 Less: Accumulated depreciation and amortization (116,663 ) (93,138 ) 128,922 104,560 Construction in progress 4,922 15,880 Total property, plant, and equipment, net $ 133,844 $ 120,440 Depreciation of tangible assets and amortization of software expense from continuing operations amounted to $24.8 million, $19.1 million, and $15.4 million for the fiscal years ended April 30, 2015, 2014, and 2013, respectively. The following table summarizes depreciation and amortization expense for continuing operations, which includes amortization of intangibles and debt financing costs, by line item for the fiscal years ended April 30, 2015, 2014, and 2013 (in thousands): For the Year Ended April 30, 2015 2014 2013 Cost of products and services sold $ 20,640 $ 16,505 $ 14,238 Research and development 403 325 116 Selling and marketing 255 207 247 General and administrative 8,134 2,720 1,449 Interest expense 1,461 1,947 680 Total depreciation and amortization $ 30,893 $ 21,704 $ 16,730 |
Inventories
Inventories | 12 Months Ended |
Apr. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 9. Inventories The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or market, as of April 30, 2015 and 2014 (in thousands): April 30, 2015 April 30, 2014 Finished goods $ 28,240 $ 26,523 Finished parts 34,269 47,109 Work in process 7,492 7,643 Raw material 6,894 5,467 Total inventories $ 76,895 $ 86,742 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Apr. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 10. Intangible Assets The following table presents a summary of intangible assets for the year ended April 30, 2015 and 2014 (in thousands): Weighted Average Weighted Average Life Life April 30, 2015 (a) (in years) April 30, 2014 (in years) Developed technology $ 16,630 5.2 $ — — Customer relationships 28,260 6.1 1,740 9.1 Patents, trademarks, and tradenames 36,378 5.3 4,986 5.5 81,268 6,726 Less: Accumulated amortization (7,950 ) (3,603 ) 73,318 3,123 Patents in progress 450 302 Total intangible assets, net $ 73,768 $ 3,425 (a) Amortization expense, excluding amortization of deferred financing costs, amounted to $4.6 million, $645,000, and $639,000 for the fiscal years ended April 30, 2015, 2014, and 2013, respectively. Expected For the Year Ended April 30, Amortization 2016 $ 11,341 2017 10,552 2018 9,798 2019 8,606 2020 7,448 Thereafter 25,573 Total expected amortization $ 73,318 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Apr. 30, 2015 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 11. Accrued Expenses The following table sets forth other accrued expenses as of April 30, 2015 and 2014 (in thousands): April 30, 2015 April 30, 2014 Accrued rebates and promotions $ 4,126 $ 2,633 Interest payable 3,362 2,194 Accrued employee benefits 3,065 2,148 Accrued professional fees 2,335 2,374 Accrued workers' compensation 833 916 Accrued distributor incentives 761 590 Accrued other 4,539 6,252 Total accrued expenses $ 19,021 $ 17,107 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Apr. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 12. Fair Value Measurement We follow the provisions of ASC 820-10, Fair Value Measurements and Disclosures Topic Financial assets and liabilities recorded on the accompanying 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 equivalents, which are measured at fair value on a recurring basis, totaled $42.1 million and $68.8 million as of April 30, 2015 and 2014, 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 (examples include 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). We currently do not have any Level 2 financial assets or liabilities other than our 5.875% Senior Notes and 5.000% Senior Notes as referenced in Note 5. 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 assumptions about the assumptions a market participant would use in pricing the asset or liability. We currently do not have any Level 3 financial assets or liabilities. |
Self-Insurance Reserves
Self-Insurance Reserves | 12 Months Ended |
Apr. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Self-Insurance Reserves | 13. Self-Insurance Reserves As of April 30, 2015 and 2014, we had reserves for workers’ compensation, product liability, municipal liability, and medical/dental costs totaling $9.6 million and $9.2 million, respectively, of which $6.2 million and $5.8 million, respectively, have been classified as non-current and have been included in other non-current liabilities. As of both April 30, 2015 and 2014, $3.4 million has been included in accrued expenses on the accompanying consolidated balance sheets. In addition, as of April 30, 2015 and 2014, $587,000 and $361,000 of workers’ compensation recoverable has been classified as an other asset. While we believe these reserves to be adequate, it is possible that the ultimate liabilities will exceed such estimates. Amounts charged to expense were $12.9 million, $10.7 million, and $12.2 million for the fiscal years ended April 30, 2015, 2014, and 2013, respectively. The following table is a summary of the activity in the workers’ compensation, product liability, municipal liability, and medical/dental reserves in the fiscal years ended April 30, 2015, 2014, and 2013 (in thousands): For the Year Ended April 30, 2015 2014 2013 Beginning balance $ 9,185 $ 9,570 $ 8,980 Additional provision charged to expense 12,925 10,721 12,201 Payments (12,500 ) (11,106 ) (11,611 ) Ending balance $ 9,610 $ 9,185 $ 9,570 It is our policy to provide an estimate for loss as a result of expected adverse findings or legal settlements on product liability, municipal liability, workers’ compensation, and other matters when such losses are probable and are reasonably estimable. It is also our policy to accrue for reasonable estimable legal costs associated with defending such litigation. While such estimates involve a range of possible costs, we determine, in consultation with litigation counsel, the most likely cost within such range on a case-by-case basis. We also record receivables from insurance carriers relating to these matters when their collection is probable. As of April 30, 2015 and 2014, we had accrued reserves for product and municipal litigation liabilities of $3.8 million and $3.9 million, respectively (of which $3.1 million and $2.8 million, respectively, were non-current), consisting entirely of expected legal defense costs. In addition, as of April 30, 2015 and 2014, we had recorded receivables from insurance carriers related to these liabilities of $1.9 million, nearly all of which has been classified as other assets with $25,000 classified as other current assets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 14. Stockholders’ Equity Treasury Stock During fiscal 2014, our board of directors authorized the repurchase of up to $115.0 million of our common stock, of which up to $75.0 million was authorized for purchase in a tender offer and the remainder of which could be repurchased in the open market or in privately negotiated transactions. During fiscal 2014, we repurchased 1,417,233 shares of our common stock pursuant to the tender offer that expired on July 23, 2013 for $15.6 million and 8,740,471 shares of our common stock in the open market for $99.4 million, in each case, utilizing cash on hand, completing our $115.0 million stock repurchase program. Fees and expenses incurred related to the tender offer and open market purchases in fiscal 2014 were $887,000 and were recorded in treasury stock. At the end of fiscal 2014, our board of directors authorized the repurchase of up to $30.0 million of our common stock, subject to certain conditions, in the open market or privately negotiated transactions, commencing no earlier than May 1, 2014. During fiscal 2015, we completed this stock repurchase program by repurchasing 2,105,315 shares of our common stock for $30.0 million, utilizing cash on hand. Fees and expenses incurred related to open market purchases in fiscal 2015 were $40,000 and were recorded in treasury stock. Incentive Stock and Employee Stock Purchase Plans We have two stock plans, or SPs: the 2004 Incentive Stock Plan and the 2013 Incentive Stock Plan. New grants under the 2004 Incentive Stock Plan have not been made since the approval of the 2013 Incentive Stock Plan at our September 23, 2013 annual meeting of stockholders. All new grants covering all participants are issued under the 2013 Incentive Stock Plan. The 2013 Incentive Stock Plan authorizes the issuance of 3,000,000 shares, plus any shares that were reserved and remained available for grant and delivery under the 2004 Incentive Stock Plan as of September 23, 2013, the effective date of the 2013 Incentive Stock Plan. The plan permits the grant of options to acquire common stock, restricted stock awards, RSUs, stock appreciation rights, bonus stock and awards in lieu of obligations, performance awards, and dividend equivalents. Our board of directors, or a committee established by our board, administers the SPs, selects recipients to whom awards are granted, and determines the grants to be awarded. Options granted under the SPs are exercisable at a price determined by our board or committee at the time of grant, but in no event, less than fair market value of our common stock on the date granted. Grants of options may be made to employees and directors without regard to any performance measures. All options issued pursuant to the SPs are generally nontransferable and subject to forfeiture. Unless terminated earlier by our board of directors, the 2013 Incentive Stock Plan will terminate at the earliest of (1) the tenth anniversary of the effective date of the 2013 Stock Plan, or (2) such time as no shares of common stock remain available for issuance under the plan and we have no further rights or obligations with respect to outstanding awards under the plan. The date of grant of an award is deemed to be the date upon which our board of directors or board committee authorizes the granting of such award. Except in specific circumstances, grants vest over a period of three or four years and are exercisable for a period of 10 years. The plan also permits the grant of awards to non-employees, which our board of directors has authorized in the past. The number of shares and weighted average exercise prices of options for the fiscal years ended April 30, 2015, 2014, and 2013 are as follows: For the Year Ended April 30, 2015 2014 2013 Weighted- Weighted- Weighted- Average Average Average Shares Exercise Price Shares Exercise Price Shares Exercise Price Options outstanding, beginning of year 2,258,349 $ 6.15 3,019,127 $ 5.31 3,988,164 $ 4.67 Granted during the period — — — — 3,500 11.02 Exercised during the period (365,719 ) 4.96 (732,778 ) 2.73 (847,042 ) 4.10 Canceled/forfeited during period (13,000 ) 7.98 (28,000 ) 5.59 (125,495 ) 3.87 Options outstanding, end of period 1,879,630 $ 6.37 2,258,349 $ 6.15 3,019,127 $ 5.31 Weighted average remaining contractual life 5.02 years 6.04 years 6.02 years Options exercisable, end of period 1,878,464 $ 6.36 1,873,494 $ 6.29 2,087,675 $ 5.38 Weighted average remaining contractual life 5.02 years 5.75 years 5.00 years As of April 30, 2015, there were 5,738,521 shares available for grant under the 2013 Incentive Stock Plan. We use our unissued share pool for all shares issued for options, restricted share awards, RSUs, PSUs, and Employee Stock Purchase Plan, or ESPP, issuances. The aggregate intrinsic value of outstanding options as of April 30, 2015, 2014, and 2013 was $16.1 million, $20.8 million, and $12.1 million, respectively. The aggregate intrinsic value of outstanding options that were exercisable as of April 30, 2015, 2014, and 2013 was $16.0 million, $17.0 million, and $8.7 million, respectively. The aggregate intrinsic value of the options exercised for the years ended April 30, 2015, 2014, and 2013 was $2.9 million, $7.3 million, and $5.1, respectively. At April 30, 2015, the total of unrecognized compensation cost of outstanding options was $1,000, which will be recognized over the remaining weighted average vesting period of 0.41 years. On September 26, 2011, our stockholders approved our 2011 ESPP, to replace our expired 2001 ESPP, which authorized the sale of up to 6,000,000 shares of our common stock to employees. All option and rights to participate in our ESPP are nontransferable and subject to forfeiture in accordance with our ESPP guidelines. Our current ESPP will be implemented in a series of successive offering periods, each with a maximum duration of 12 months. If the fair market value, or FMV, per share of our common stock on any purchase date is less than the FMV per share on the start date of a 12-month offering period, then that offering period will automatically terminate, and a new 12-month offering period will begin on the next business day. Each offering period will begin on April 1 or October 1, as applicable, immediately following the end of the previous offering period. Payroll deductions will be on an after-tax basis, in an amount of not less than 1% and not more than 20% (or such greater percentage as the committee appointed to administer our ESPP may establish from time to time before the first day of an offering period) of a participant’s compensation on each payroll date. The option exercise price per share will equal 85% of the lower of the FMV on the first day of the offering period or the FMV on the exercise date. The maximum number of shares that a participant may purchase during any purchase period is 12,500 shares, or a total of $25,000 in shares, based on the FMV on the first day of the offering period. Our ESPP will remain in effect until the earliest of (a) the exercise date that participants become entitled to purchase a number of shares greater than the number of reserved shares available for purchase under our ESPP, (b) such date as is determined by our Board of Directors in its discretion, or (c) March 31, 2022. In the event of certain corporate transactions, each option outstanding under our ESPP will be assumed or an equivalent option will be substituted by the successor corporation or a parent or subsidiary of such successor corporation. During fiscal 2015, 2014, and 2013, 161,456, 176,204, and 185,218 shares, respectively, were purchased under our ESPP. We measure the cost of employee services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. We calculate the fair value of our stock options issued to employees using the Black-Scholes model at the time the options were granted. That amount is then amortized over the vesting period of the option. With our ESPP, fair value is determined at the beginning of the purchase period and amortized over the term of each exercise period. The following assumptions were used in valuing our options and ESPP purchases during the years ended April 30, 2015, 2014, and 2013: For the Year Ended April 30, 2015 2014 2013 Stock option grants: Risk-free interest rate — — 0 0.31 % Expected term — — 5.84 - 7.84 years Expected volatility — — 70.0 % Dividend yield — — 0 % Employee Stock Purchase Plan: Risk-free interest rate 0.07% 0.08% 0.13 % Expected term 6 months 6 months 6 months Expected volatility 38.2% 41.9% 56.3 % Dividend yield 0% 0% 0 % We estimate expected volatility using historical volatility for the expected term. The fair value of each stock option or ESPP purchase was estimated on the date of the grant using the Black-Scholes option pricing model (using the risk-free interest rate, expected term, expected volatility, and dividend yield variables, as noted in the above table). The total stock-based compensation expense, including stock options, purchases under our ESPP, and RSU and PSU awards, was $5.8 million, $8.2 million, and $4.1 million, for fiscal years 2015, 2014, and 2013, respectively. The following table summarizes stock compensation expense for continuing operations by line item for the fiscal years ended April 30, 2015, 2014, and 2013 (in thousands): For the Year Ended April 30, 2015 2014 2013 Cost of sales $ 520 $ 332 $ 331 Research and development 139 74 39 Selling and marketing 379 225 92 General and administrative 4,770 7,581 3,611 Total stock-based compensation $ 5,808 $ 8,212 $ 4,073 We grant service-based RSUs to employees, consultants, and directors. The awards are made at no cost to the recipient. An RSU represents the right to acquire one share of our common stock and does not carry voting or dividend rights. Except in specific circumstances, RSU grants to employees generally vest over a period of three or four years with one-third or one-fourth of the units vesting, respectively, on each anniversary date of the grant date. The aggregate fair value of our RSU grants is amortized to compensation expense over the vesting period. We grant PSUs with market conditions to our executive officers, and we grant PSUs without market-conditions to our employees who are not executive officers. At the time of grant, we calculate the fair value of our market-condition PSUs using the Monte-Carlo simulation. We incorporate the following variables into the valuation model: For the Year Ended April 30, 2015 2014 2013 Grant date fair market value Smith & Wesson Holding Corporation $ 14.90 $ 15.21 $ 8.71 Russell 2000 Index $ 1,246.95 $ 1,120.83 $ 935.25 Volatility (a) Smith & Wesson Holding Corporation 44.51 % 49.85 % 49.28 % Russell 2000 Index 15.76 % 23.07 % 25.72 % Correlation coefficient (b) 0.32 0.46 0.47 Risk-free interest rate (c) 0.91 % 0.91 % 0.32 % Dividend yield (d) 0 % 0 % 0 % (a) Expected volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years. (b) The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions. (c) The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period. (d) We do not expect to pay dividends in the foreseeable future. The market-condition PSUs vest, and the fair value of such PSUs will be recognized, over the corresponding three-year performance period. Our market-condition PSUs have a maximum aggregate award equal to 200% of the target amount granted. The number of market-condition PSUs that may be earned depends upon the total stockholder return, or TSR, of our common stock compared with the TSR of the Russell 2000 Index, or RUT, over the three-year performance period. For our fiscal 2014 and 2013 PSUs, our stock must outperform the RUT by 10% in order for the target award to vest. For our fiscal 2015 PSUs, our stock must outperform the RUT by 5% in order for the target award to vest. In addition, there is a cap on the number of shares that can be earned under the fiscal 2015 PSUs equal to six times the grant-date value of each award. In certain circumstances beginning with the fiscal 2015 RSUs and PSUs, the vested awards will be delivered on the first anniversary of the applicable vesting date. We have applied a discount to the grant date fair value when determining the amount of compensation expense to be recorded for these RSUs and PSUs. During the year ended April 30, 2015, we granted 112,000 market-condition PSUs to certain of our executive officers. We also granted 554,933 service-based RSUs during the year ended April 30, 2015, including 125,000 RSUs to certain of our executive officers, 46,639 RSUs to our directors, and 379,433 RSUs to non-executive officer employees. In addition, in connection with a 2011 grant, we vested 46,600 market-condition PSUs (i.e., the target amount granted), which achieved the maximum aggregate award possible resulting in awards totaling 93,200 shares to certain of our executive officers and a former executive officer. Compensation expense recognized related to grants of RSUs and PSUs was $5.1 million for the fiscal year ended April 30, 2015. During the fiscal year ended April 30, 2015, we canceled 57,752 service-based RSUs and 41,250 PSUs without market-conditions as a result of the service period condition not being met and delivered 433,266 shares of common stock to current employees under vested RSUs and PSUs with a total market value of $5.4 million. During the fiscal year ended April 30, 2014, we granted 117,500 market-condition PSUs to certain of our executive officers. We also granted 565,556 service-based RSUs during the year ended April 30, 2014, including 351,400 RSUs to certain of our executive officers, 42,238 RSUs to our directors, 164,918 RSUs to non-executive officer employees, and 7,000 RSUs to consultants. In addition, we granted and vested 30,000 market-condition PSUs to an executive officer and a former executive officer in connection with a 2010 award that achieved the maximum aggregate award. Compensation expense recognized related to grants of RSUs and PSUs was $6.4 million for the fiscal year ended April 30, 2014. During the fiscal year ended April 30, 2014, we cancelled 17,316 service-based RSUs and 9,000 PSUs without market-conditions as a result of the service period condition not being met and delivered 457,851 shares of common stock to current employees under vested RSUs and PSUs with a total market value of $5.7 million. During the fiscal year ended April 30, 2013, we granted 152,000 market-condition PSUs to certain of our executive officers and 63,050 PSUs without market conditions to other employees. We also granted 320,279 service-based RSUs during the fiscal year ended April 30, 2013, including 250,250 RSUs to certain of our executive officers, 35,000 RSUs to our directors, 28,029 RSUs to non-executive officer employees, and 7,000 RSUs to consultants. Compensation expense recognized related to grants of RSUs and PSUs was $1.8 million for the fiscal year ended April 30, 2013. During the fiscal year ended April 30, 2013, we delivered 14,250 PSUs without market-conditions to employees with a total market value of $131,000 and we also delivered 69,637 shares of common stock to certain of our executive officers, employees, and consultants under vested RSUs with a total market value of $595,000. During the fiscal year ended April 30, 2013, we cancelled 16,996 service-based RSUs and 35,000 market-condition PSUs as a result of the service period condition not being met and 2,000 PSUs without a market-condition as a result of the performance condition not being met. The grant date fair value of RSUs and PSUs that vested in fiscal 2015, 2014, and 2013 was $4.0 million, $4.0 million, and $726,000, respectively. A summary of activity in unvested RSUs and PSUs for fiscal years 2015, 2014 and 2013 is as follows: For the Year Ended April 30, 2015 2014 2013 Weighted Weighted Weighted Total # of Average Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of year 1,015,475 $ 10.56 781,586 $ 8.42 384,140 $ 7.91 Awarded 709,672 11.82 718,056 11.87 535,329 9.43 Vested (433,266 ) 9.18 (457,851 ) 8.75 (83,887 ) 8.71 Forfeited (101,002 ) 11.93 (26,316 ) 8.88 (53,996 ) 6.14 RSUs and PSUs outstanding, end of year 1,190,879 $ 12.45 1,015,475 $ 10.56 781,586 $ 8.42 As of April 30, 2015, there was $7.0 million of unrecognized compensation cost related to unvested RSUs and PSUs. This cost is expected to be recognized over a weighted average remaining contractual term of 1.8 years. The aggregate intrinsic value of outstanding RSUs and PSUs as of April 30, 2015, 2014, and 2013 was $3.3 million, $7.1 million, and $491,000, respectively. |
Employer Sponsored Benefit Plan
Employer Sponsored Benefit Plans | 12 Months Ended |
Apr. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Employer Sponsored Benefit Plans | 15. Employer Sponsored Benefit Plans Contributory Defined Investment Plan — We offer two contributory defined investment plans covering substantially all employees, subject to service requirements. Employees may contribute up to 100% of their annual pay, depending on the plan. We generally make discretionary matching contributions of up to 50% of the first 6% of employee contributions to the plan. We contributed $2.3 million, $1.9 million, and $1.7 million for the fiscal years ended April 30, 2015, 2014, and 2013, respectively. Non-Contributory Profit Sharing Plan — We have a non-contributory profit sharing plan covering substantially all of our Springfield, Massachusetts and Houlton, Maine employees. Employees become eligible on May 1 following the completion of a full fiscal year of continuous service. Our contributions to the plan are discretionary. For fiscal 2015, we plan to contribute approximately $6.2 million, which has been recorded in general and administrative costs. We contributed $11.1 million and $9.6 million for the fiscal years ended April 30, 2014 and 2013, respectively. Contributions are funded after the fiscal year-end. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes We use an asset and liability approach for financial accounting and reporting of income taxes. Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured by applying enacted tax rates and laws to the taxable years in which differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Income tax expense from continuing operations consists of the following (in thousands): For the Year Ended April 30, 2015 2014 2013 Current: Federal $ 22,471 $ 43,470 $ 38,661 State 4,188 6,167 5,982 Total current 26,659 49,637 44,643 Deferred: Deferred federal 2,274 (1,352 ) 1,508 Deferred state (28 ) (190 ) 349 Total deferred 2,246 (1,542 ) 1,857 Total income tax expense $ 28,905 $ 48,095 $ 46,500 The following table presents a reconciliation of the provision for income taxes from continuing operations at statutory rates to the provision in the consolidated financial statements (in thousands): For the Year Ended April 30, 2015 2014 2013 Federal income taxes expected at 35% statutory rate $ 27,556 $ 47,853 $ 44,767 State income taxes, less federal income tax benefit 3,015 4,535 4,576 Employee Stock Purchase Plan 82 77 131 Business meals and entertainment 205 187 107 Domestic production activity deduction (2,462 ) (4,325 ) (3,708 ) Research and development tax credit (100 ) (100 ) (140 ) Change in uncertain tax positions — (265 ) 237 Other 609 133 530 Total income tax expense $ 28,905 $ 48,095 $ 46,500 Deferred tax assets (deferred tax liabilities) related to temporary differences are the following (in thousands): For the Years Ended April 30, 2015 2014 Current tax assets (liabilities): $ $ Inventories 9,587 8,088 Product liability 276 391 Accrued expenses, including compensation 2,934 5,991 Warranty reserve 2,449 2,114 Property taxes (122 ) (78 ) Promotions 1,497 925 Less valuation allowance (510 ) (508 ) Other 262 171 Net deferred tax asset — current $ 16,373 $ 17,094 Non-current tax assets (liabilities): Net operating loss carryforwards and tax credits $ 2,809 $ 2,633 Environmental reserves 258 238 Product liability 461 371 Workers' compensation 991 975 Warranty reserve 860 785 Stock-based compensation 4,429 4,280 State bonus depreciation 1,002 828 Property, plant, and equipment (25,612 ) (19,947 ) Intangible assets (17,083 ) 224 Transaction costs — 57 Pension 91 48 Less valuation allowance (2,111 ) (1,910 ) Net deferred tax liability — non-current $ (33,905 ) $ (11,418 ) Net deferred tax asset/(liability) — total $ (17,532 ) $ 5,676 We had federal net operating loss carryforwards amounting to $541,000 as of April 30, 2015, which expire in fiscal 2020. We obtained $8.2 million in additional loss carryforwards through our acquisition of SWSS on July 20, 2009, the majority of which was utilized in fiscal 2010. Utilization of the remaining losses is limited by Section 382 of the Internal Revenue Code to $108,000 in fiscal 2015 and for each taxable year thereafter. It is possible that future substantial changes in our ownership could occur that could result in additional ownership changes pursuant to Section 382 of the Internal Revenue Code. If such an ownership change were to occur, there could be an annual limitation on the remaining tax loss carryforward. There were $16.8 million and $16.2 million in state net operating loss carryforwards as of April 30, 2015 and 2014, respectively. The state net operating loss carryforwards will expire between April 30, 2016 and April 30, 2033. There were $3.0 million and $2.6 million of state tax credit carryforwards as of April 30, 2015 and 2014, respectively. The state tax credit carryforwards will expire between April 30, 2018 and April 30, 2025, or have no expiration date. As of April 30, 2015, valuation allowances of $700,000 and $1.9 million were provided on our deferred tax assets for those state net operating loss carryforward, and state tax credits, respectively, that we do not anticipate using prior to their expiration. As of April 30, 2014, valuation allowances of $686,000 and $1.7 million were provided on our deferred tax assets for those state net operating loss carryforwards and state tax credits, respectively, that we do not anticipate using prior to their expiration. The increase in the valuation allowance on our deferred tax assets for state net operating losses and credits and other state deferred tax assets related mainly to Massachusetts Investment Tax Credits. No valuation allowances were provided on our deferred federal income tax assets as of April 30, 2015 or 2014, as we believe that it is more likely than not that all such assets will be realized. Recording a valuation allowance or reversing a valuation allowance could have a significant effect on our future results of operations and financial position. Management is unaware of any recent or expected future changes in tax laws that would have a material impact on our financial statements. At April 30, 2015 and 2014, we had gross tax-effected unrecognized tax benefits of $91,000 and $84,000, respectively, of which the entire amounts, if recognized, would favorably impact the effective tax rate. Included in the unrecognized tax benefits at April 30, 2015 and 2014, we have $23,000 and $15,000, respectively, of accrued interest and penalties related to uncertain tax positions, which have been recorded in non-current liabilities. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): April 30, 2015 2014 Beginning balance $ 84 $ 1,091 Interest, penalties, and impact of state deductions on federal taxes 7 (212 ) Lapse of statute of limitations — (795 ) Ending balance $ 91 $ 84 All of our unrecognized tax benefits has been classified as current income tax liabilities and are recorded in other current liabilities because a payment of cash is anticipated within one year of the balance sheet date or the statute will expire within one year of the balance sheet date. With limited exception, we are subject to U.S. federal, state, and local, or non-U.S. income tax audits by tax authorities for fiscal years subsequent to April 30, 2011. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Litigation We are a defendant in eight product liability cases and are aware of approximately nine 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 against numerous firearm manufacturers, distributors, and dealers seeking to recover damages allegedly arising out of the misuse of firearms by third parties. We believe that the various allegations as described above are unfounded, and, in addition, that any accident and any results from them were due to negligence or misuse of the firearm by the claimant or a third party. In addition, we are involved in lawsuits, claims, investigations, and proceedings, including commercial, environmental, 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 $1.5 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, as described below, 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 and 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 the 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 reserves for defense costs. For the fiscal years ended April 30, 2015, 2014, and 2013, we paid $252,000, $1.0 million, and $758,000, respectively, in defense and administrative costs relative to product liability and municipal litigation. In addition, we spent an aggregate of $177,000, $460,000, and $42,000, respectively, in those fiscal years in settlement fees related to product liability cases. 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. In fiscal 2015, 2014, and 2013 we recorded expense of $183,000, $533,000, and $805,000 respectively, to recognize changes in our product liability and municipal litigation liability. At this time, an estimated range of reasonably possible additional losses relating to unfavorable outcomes cannot be made. Environmental Remediation We are subject to numerous federal, state, and local laws that regulate both the health and safety of our workforce as well as our environmental liability, including, but not limited to, those regulations monitored by the Occupational Health and Safety Administration, (OSHA), the National Fire Protection Association, and the Department of Public Health. Though not exhaustive, examples of applicable regulations include confined space safety, walking and working surfaces, machine guarding, and life safety. We are required to comply with regulations that mitigate any release into the environment. These laws have required, and are expected to continue to require, us to make significant expenditures of both a capital and expense nature. Several of the more significant federal laws applicable to our operations include the Clean Air Act, the Clean Water Act, the Comprehensive Environmental Response, Compensation and Liability Act, or CERCLA, and the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. We have in place programs and personnel to monitor compliance with various federal, state, and local environmental regulations. In the normal course of our manufacturing operations, we are subject to governmental proceedings and orders pertaining to waste disposal, air emissions, and water discharges into the environment. We fund our environmental costs through cash flows from operations. We believe that we are in compliance with applicable environmental regulations in all material respects. We are required to remediate hazardous waste at our facilities. Currently, we own a designated site in Springfield, Massachusetts that contains two release areas, which are the focus of remediation projects as part of the Massachusetts Contingency Plan, or MCP. The MCP provides a structured environment for the voluntary remediation of regulated releases. We may be required to remove hazardous waste or remediate the alleged effects of hazardous substances on the environment associated with past disposal practices at sites not owned by us. We have received notice that we are a potentially responsible party from the Environmental Protection Agency and/or individual states under CERCLA or a state equivalent at two sites. As of April 30, 2015 and 2014, respectively, we had recorded $675,000 and $623,000 of the environmental reserve in non-current liabilities. We have calculated the net present value of the environmental reserve to be equal to the carrying value of the liability recorded on our books. Our estimate of these costs is based upon currently enacted laws and regulations, currently available facts, experience in remediation efforts, existing technology, and the ability of other potentially responsible parties or contractually liable parties to pay the allocated portions of any environmental obligations. When the available information is sufficient to estimate the amount of liability, that estimate has been used, when the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range has been used. We may not have insurance coverage for our environmental remediation costs. We have not recognized any gains from probable recoveries or other gain contingencies. The environmental reserve was calculated using undiscounted amounts based on independent environmental remediation reports obtained. On May 5, 2014, we acquired substantially all of the net assets of TTPP. Under the asset purchase agreement, the former stockholder of TTPP indemnified us for losses arising from, among other things, environmental conditions related to its manufacturing activities. Of the purchase price, $3.0 million was placed in an escrow account, of which $2.8 million remains available. A portion of this escrow account will be applied to environmental remediation at the manufacturing site in Deep River, Connecticut. It is not presently possible to estimate the ultimate amount of all remediation costs and potential uses of the escrow. We believe the likelihood of environmental remediation costs exceeding the amount available in escrow to be remote. Based on information known to us, we do not expect current environmental regulations or environmental proceedings and claims to have a material adverse effect on our consolidated financial position, results of operations, or cash flows. However, it is not possible to predict with certainty the impact on us of future environmental compliance requirements or of the cost of resolution of future environmental health and safety proceedings and claims, in part because the scope of the remedies that may be required is not certain, liability under federal environmental laws is joint and several in nature, and environmental laws and regulations are subject to modification and changes in interpretation. There can be no assurance that additional or changing environmental regulation will not become more burdensome in the future and that any such development would not have a material adverse effect on our company. Contracts Employment Agreements — We have employment, severance, and change of control agreements with certain officers and managers. Other Agreements — We have distribution agreements with various third parties in the ordinary course of business. In fiscal 2011, we were awarded a $6.0 million refundable tax credit from the Massachusetts Economic Assistance Coordinating Council under the Economic Development Incentive Program, or EDIP. This credit was granted by the Commonwealth of Massachusetts in consideration of our restructuring plan to move the production of our hunting products from New Hampshire to Massachusetts. Through the end of fiscal 2015, we recorded a total of $6.0 million in tax credits, including recording a receivable of $117,000 in fiscal 2015, because of our compliance with the written EDIP Investment Analysis Plan. We will be required to file an EDIP Annual Report through 2017 to demonstrate that all conditions related to the award have been met. We believe the likelihood that we will not comply with the EDIP Investment Analysis Plan to be remote. Rental Leases We lease office and/or manufacturing space in Scottsdale, Arizona; Rochester, New Hampshire; Deep River, Connecticut; and Columbia, Missouri under operating leases which expire on February 28, 2018; September 30, 2015; May 4, 2024; and April 30, 2023, respectively. We also lease machinery, photocopiers, and vehicles for our national sales force with various expiration dates. As of April 30, 2015, the lease commitments were as follows (in thousands): For the Year Ended April 30, Amount 2016 $ 2,446 2017 1,975 2018 1,919 2019 1,780 2020 1,764 Thereafter 5,910 $ 15,794 Rent expense in the fiscal years ended April 30, 2015, 2014, and 2013 was $3.3 million, $2.2 million, and $2.2 million, respectively. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Apr. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 18. Quarterly Financial Information (Unaudited) The following table summarizes quarterly financial results in fiscal 2015 and 2014. In our opinion, all adjustments necessary to present fairly the information for such quarters have been reflected (in thousands, except per share data): For the Year Ended April 30, 2015 First Second Third Fourth Full Quarter Quarter Quarter Quarter Year Net sales $ 131,869 $ 108,446 $ 130,550 $ 180,997 $ 551,862 Gross profit 49,118 34,840 43,824 67,144 194,926 Income from continuing operations, net of tax 14,618 5,091 8,178 21,940 49,827 Loss from discontinued operations, net of tax (62 ) (41 ) (57 ) (54 ) (214 ) Net income $ 14,556 $ 5,050 $ 8,121 $ 21,886 $ 49,613 Per common share Basic - continuing operations $ 0.27 $ 0.10 $ 0.15 $ 0.41 $ 0.92 Diluted - continuing operations $ 0.26 $ 0.09 $ 0.15 $ 0.40 $ 0.90 Basic - total $ 0.27 $ 0.09 $ 0.15 $ 0.41 $ 0.92 Diluted - total $ 0.26 $ 0.09 $ 0.15 $ 0.40 $ 0.90 Market price (low-high) $ 12.32-17.28 $ 9.03-13.43 $ 9.22-12.68 $ 12.16-15.30 $ 9.03-17.28 For the Year Ended April 30, 2014 First Second Third Fourth Full Quarter Quarter Quarter Quarter Year Net sales $ 171,020 $ 139,294 $ 145,881 $ 170,425 $ 626,620 Gross profit 72,773 57,937 58,651 69,744 259,105 Income from continuing operations, net of tax 26,526 17,145 20,057 24,899 88,627 Income/(loss) from discontinued operations, net of tax (49 ) (158 ) 728 157 678 Net income $ 26,477 $ 16,987 $ 20,785 $ 25,056 $ 89,305 Per common share Basic - continuing operations $ 0.41 $ 0.29 $ 0.36 $ 0.45 $ 1.51 Diluted - continuing operations $ 0.40 $ 0.28 $ 0.35 $ 0.44 $ 1.47 Basic - total $ 0.41 $ 0.28 $ 0.37 $ 0.45 $ 1.52 Diluted - total $ 0.40 $ 0.28 $ 0.36 $ 0.44 $ 1.49 Market price (low-high) $ 8.53-11.96 $ 10.25-13.38 $ 10.76-15.56 $ 11.31-15.70 $ 8.53-15.70 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Apr. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 19. Segment Reporting Subsequent to the BTI Acquisition, we began reporting our results of operations in two segments: firearms and accessories. The firearm segment has been determined to be a single operating segment and reporting segment based on management’s reliance on production metrics such as gross margin per unit produced, units produced per day, incoming orders per day, and revenue produced by trade channel, all of which are particular to the firearm segment. We evaluate our accessories products by a measurement of incoming orders per day, sales by customers, and gross margin by product line. The firearm segment consists of products and services manufactured and sold from our Springfield, Massachusetts; Houlton, Maine; and Deep River, Connecticut facilities, which includes firearms, handcuffs, and other related products sold through a distribution chain and direct sales to consumers and international, state, and federal governments. The accessories segment consists of hunting and shooting accessories developed and marketed from our Columbia, Missouri facility. Operating costs are reported based on the activities performed within each segment. Segment assets are those directly used in or clearly allocable to an operating segment’s operations. Total assets for our firearm segment as of April 30, 2015 were $345.3 million. Included in the assets of our firearm segment are intangible assets totaling $3.7 million; property, plant, and equipment totaling $131.3 million; and goodwill totaling $13.8 million. Total assets for our accessories segment as of April 30, 2015 were $149.7 million. Included in the assets of our accessories segment are intangible assets totaling $70.1 million; property, plant, and equipment totaling $2.5 million; and goodwill totaling $61.7 million. Results by business segment are presented in the following table for the year ended April 30, 2015 (in thousands): For the Year Ended April 30, 2015 Firearm Accessories (a) Total Net sales $ 531,222 $ 20,640 $ 551,862 Cost of sales 342,663 14,273 (b) 356,936 Gross margin 188,559 6,367 194,926 Operating income/(loss) 92,532 (2,904 ) (b) 89,628 Income tax expense/(benefit) 30,038 (1,133 ) 28,905 _________________ (a) Results of operations for the year ended April 30, 2015 include activity for the period subsequent to the BTI Acquisition. We operated under one segment in the prior year, thus no comparative segment information is being presented. Due to the timing of the BTI Acquisition, the segment data above includes all corporate overhead expenses in our firearm segment until we determine our allocation methodology for corporate overhead expenses. (b) Amount includes $4.2 million of additional cost of sales from the fair value step-up in inventory at the date of the BTI Acquisition and $3.6 million related to amortization of intangible assets recorded in general and administrative expenses as a result of the BTI Acquisition. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events As discussed in Note 5, on June 15, 2015, we entered into a new unsecured credit facility, which consists of a $175.0 million revolving line of credit and a $105.0 million term loan, which both mature on June 15, 2020. We used the proceeds from the term loan to redeem the entire $100.0 million outstanding principal balance of our 5.875% Senior Notes, plus accrued and unpaid interest to the redemption date. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Apr. 30, 2015 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | SCHEDULE II SMITH & WESSON HOLDING CORPORATION AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS For the Years Ended April 30, 2015, 2014, and 2013 Additions Charged to Charged to Balance at Costs and Other Balance at May 1, Expenses Accounts Deductions April 30, 2015 Allowance for doubtful accounts $ 844 $ (122 ) $ 127 (1) $ (127 ) $ 722 Inventory reserve 12,383 4,493 702 (1) (1,139 ) 16,439 Deferred tax valuation allowance 2,418 203 — — 2,621 2014 Allowance for doubtful accounts $ 1,128 $ (214 ) $ — $ (70 ) $ 844 Inventory reserve 9,121 4,102 — (840 ) 12,383 Deferred tax valuation allowance 2,458 (40 ) — — 2,418 2013 Allowance for doubtful accounts $ 1,058 $ 720 $ — $ (650 ) $ 1,128 Inventory reserve 6,965 2,603 — (447 ) 9,121 Deferred tax valuation allowance 2,127 331 — — 2,458 (1) Increase in 2015 valuation accounts represents acquired balances related to the DRP and BTI Acquisitions in fiscal 2015. |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenue and expenses during the reporting periods. Our significant estimates include accruals for warranty, excess and obsolete inventory, allowance for doubtful accounts, and intangible asset valuation. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Smith & Wesson Holding Corporation and its wholly owned subsidiaries, including Smith & Wesson Corp., Thompson/Center Arms Company, LLC, Deep River Plastics, LLC, BTI, currently reported as our newly formed accessories division, and SWSS LLC, formerly Smith & Wesson Security Solutions, Inc., or SWSS, our former security solutions division. There was no variance in the fiscal year-end of our wholly owned subsidiary, Smith & Wesson Corp., and our reported fiscal year-end of April 30, 2015 and 2014. We had a two-day variance for our fiscal year-end of Smith & Wesson Corp. to our reported fiscal year-end in April 2013. The variance in fiscal 2013 did not create any material difference in the consolidated financial statements as presented. 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 at April 30, 2015 and 2014 and for the periods presented, have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. SWSS is being presented as discontinued operations in the consolidated statements of income for all periods presented. See Note 4 for additional information regarding these discontinued operations. Unless stated otherwise, any reference to the consolidated statements of income items in the notes to the consolidated financial statements refers to results from continuing operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — Unless otherwise indicated, the fair values of all reported assets and liabilities, which represent financial instruments not held for trading purposes, approximate the carrying values of such amounts because of their short-term nature or market rates of interest. |
Cash and Cash Equivalents | Cash and Cash Equivalents — We consider all highly liquid investments purchased with original maturities of three months or less at the date of acquisition to be cash equivalents. We maintain our cash in bank deposit accounts that, at times, may exceed federally insured limits. We have not experienced any losses in such accounts. As of April 30, 2015, our accounts exceeded federally insured limits by $42.6 million. |
Trade Receivables | Trade Receivables — We extend credit to our domestic customers and some foreign distributors based on their financial condition. We sometimes offer discounts for early payment on invoices. When we believe the extension of credit is not advisable, we rely on either a prepayment or a letter of credit. We write off balances deemed uncollectible by us against our allowance for doubtful accounts. We estimate our allowance for doubtful accounts through current past due balances, knowledge of our customers’ financial situations, and past payment history. |
Concentrations of Credit Risk | Concentrations of Credit Risk — Financial instruments that potentially subject us to concentration of credit risk consist principally of cash, cash equivalents, and trade receivables. We place our cash and cash equivalents in overnight U.S. government securities. Concentrations of credit risk with respect to trade receivables are limited by the large number of customers comprising our customer base and their geographic and business dispersion. We perform ongoing credit evaluations of our customers’ financial condition and generally do not require collateral. For our fiscal year ended April 30, 2015, we did not have any customers that accounted for more than 10% of net sales or 10% of accounts receivable as of April 30, 2015. However, one of our customers accounted for approximately 13.4% and 11.6% of our net sales for the fiscal years ended April 30, 2014 and 2013, respectively, as well as $11.7 million, or 20.1%, of accounts receivable as of April 30, 2014. |
Inventories | Inventories — We value firearm inventories, consisting primarily of finished firearms, finished firearm components, as well as related products, as well as our accessories inventories, at the lower of cost, using the first-in, first-out, or FIFO method, or market. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a detailed review of inventory components, past history, and expected future usage. |
Property, Plant, and Equipment | Property, Plant, and Equipment — We record property, plant, and equipment, consisting of land, building, building improvements, machinery, equipment, software, hardware, furniture, and fixtures, at cost and depreciate them using the straight-line method over their estimated useful lives. We charge expenditures for maintenance and repairs to earnings as incurred, and we capitalize additions, renewals, and betterments. Upon the retirement or other disposition of property and equipment, we remove the related cost and accumulated depreciation from the respective accounts and include any gain or loss in operations. A summary of the estimated useful lives is as follows: Description Useful Life Building and improvements 10 to 40 years Software and hardware 3 to 7 years Machinery and equipment 2 to 10 years We include tooling, dies, and fixtures as part of machinery and equipment and depreciate them over a period not exceeding five years. |
Intangible Assets | Intangible Assets — We record intangible assets at cost or based on the fair value of assets acquired. Intangible assets consist of developed technology, customer relationships, trademarks, trade names, and patents. We amortize intangible assets over their estimated useful lives or in proportion to expected yearly revenue generated from the intangibles that were acquired. |
Revenue Recognition | Revenue Recognition — We recognize revenue when the following four basic criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been provided; (3) the fee is fixed or determinable; and (4) collection is reasonably assured. Product sales account for most of our revenue. We recognize revenue from product sales when the earnings process is complete and the risks and rewards of ownership have transferred to the customer, which is generally upon shipment but could be delayed until the receipt of customer acceptance. We also provide tooling, forging, heat treating, finishing, plating, and engineering support services to customers; we recognize this revenue when accepted by the customer, if applicable, when no further contingencies or material performance obligations exist, and when collectability is reasonably assured, thereby earning us the right to receive and retain payments for services performed and billed. |
Segment Information | Segment Information — We have two reportable segments: one for our firearm division and a second for our accessories division. See Note 19 – Segment Reporting for more information regarding our segments. |
Research and Development | Research and Development — We engage in both internal and external research and development , or R&D, in order to remain competitive and to exploit possible untapped market opportunities. We approve prospective R&D projects after analysis of the cost and benefits associated with the potential product. Costs in R&D expense include, among other items, salaries, materials, utilities, and administrative costs. |
Earnings/(Loss) per Share | Earnings/(Loss) per Share — We calculate basic and diluted earnings/(loss) per common share in accordance with the provisions of ASC 260-10, . Basic earnings/(loss) per common share equals net income/(loss) divided by the weighted average number of common shares outstanding during the period. Diluted earnings/(loss) per common share equals net income/(loss) divided by the weighted average number of common shares outstanding during the period, including the effect of outstanding stock options and other stock-based instruments if their effect is dilutive. The following table provides a reconciliation of the net income/(loss) amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings/(loss) per common share (in thousands, except per share data): For the Year Ended April 30, 2015 2014 2013 Net income/(loss) Income from continuing operations $ 49,827 $ 88,627 $ 81,406 (Loss)/income from discontinued operations (214 ) 678 (2,693 ) Net income $ 49,613 $ 89,305 $ 78,713 Weighted average shares outstanding - Basic 53,988 58,668 65,155 Dilutive effect of stock option and award plans 1,240 1,446 1,487 Diluted shares outstanding 55,228 60,114 66,642 Earnings per share - Basic Income from continuing operations $ 0.92 $ 1.51 $ 1.25 (Loss)/income from discontinued operations $ (0.00 ) $ 0.01 $ (0.04 ) Net income $ 0.92 $ 1.52 $ 1.21 Earnings per share - Diluted Income from continuing operations $ 0.90 $ 1.47 $ 1.22 (Loss)/income from discontinued operations $ (0.00 ) $ 0.01 $ (0.04 ) Net income $ 0.90 $ 1.49 $ 1.18 For fiscal 2015, 2014, and 2013, 73,546, 77,622, and 246,635 shares of common stock, respectively, issuable upon the exercise of stock options were excluded from the computation of diluted income per share because the effect would be antidilutive. |
Valuation of Long-lived Tangible and Intangible Assets | Valuation of Long-lived Tangible and Intangible Assets — We evaluate the recoverability of long-lived assets, or asset groups, whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. When such evaluations indicate that the related future undiscounted cash flows are not sufficient to recover the carrying values of the assets, such carrying values are reduced to fair value and this adjusted carrying value becomes the asset’s new cost basis. We determine fair value primarily using future anticipated cash flows that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, discounted using an interest rate commensurate with the risk involved. We have significant long-lived tangible and intangible assets, which are susceptible to valuation adjustments as a result of changes in various factors or conditions. The most significant long-lived tangible and intangible assets, other than goodwill, are property, plant, and equipment, developed technology, customer relationships, patents, trademarks, and trade names. We amortize all finite-lived intangible assets either on a straight-line basis or based upon patterns in which we expect to utilize the economic benefits of such assets. We initially determine the values of intangible assets by a risk-adjusted, discounted cash flow approach. We assess the potential impairment of identifiable intangible assets and fixed assets whenever events or changes in circumstances indicate that the carrying values may not be recoverable and at least annually. Factors we consider important, which could trigger an impairment of such assets, include the following: · significant underperformance relative to historical or projected future operating results; · significant changes in the manner or use of the assets or the strategy for our overall business; · significant negative industry or economic trends; · a significant decline in our stock price for a sustained period; and · a decline in our market capitalization below net book value. Future adverse changes in these or other unforeseeable factors could result in an impairment charge that could materially impact future results of operations and financial position in the reporting period identified. No impairment charges were recorded for continuing operations in fiscal 2015, 2014, or 2013 based on the review of long-lived assets. In accordance with ASC 350, Intangibles-Goodwill and Other, Segment Reporting Topic, We periodically review long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. We base each impairment test on a comparison of the undiscounted cash flows to the recorded carrying value for the asset. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. No impairment charges were taken for continuing operations in fiscal 2015, 2014, or 2013 based on the review of long-lived assets. We utilize an income approach, with discounted cash flows, to estimate the fair value of each reporting unit. We selected this method because we believe that it most appropriately measures our income producing assets. We considered using the market approach and the cost approach, but concluded that they were not appropriate in valuing our reporting units given the lack of relevant and available market comparisons. The income approach is based on the projected cash flows that are discounted to their present value using discount rates that consider the timing and risk of the forecasted cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the reporting unit’s expected long-term operating cash performance. This approach also mitigates the impact of the cyclical trends that occur in our industry. Fair value is estimated using internally-developed forecasts and assumptions. The discount rate used is the average estimated value of a market participant’s cost of capital and debt, derived using customary market metrics. Other significant assumptions include terminal value margin rates, future capital expenditures, and changes in future working capital requirements. We also compare and reconcile our overall fair value to our market capitalization. While there are inherent uncertainties related to the assumptions used and to our application of these assumptions to this analysis, we believe that the income approach provides a reasonable estimate of the fair value of our reporting units. The foregoing assumptions were consistent with our long-term performance, with limited exceptions. We believe that our future investments for capital expenditures as a percent of revenue will decline in future years because of our improved utilization resulting from lean initiatives, and we believe that days sales outstanding will decline with any increase in revenues. We also have assumed that our markets have not contracted for the long term through the current economic downturn; however, it may be a number of years before they fully recover. These assumptions could deviate materially from actual results. Significant judgments and estimates are involved in determining the useful lives of our long-lived assets, determining what reporting units exist, and assessing when events or circumstances would require an interim impairment analysis of goodwill or other long-lived assets to be performed. Changes in our organization or our management reporting structure, as well as other events and circumstances, including technological advances, increased competition, and changing economic or market conditions, could result in (a) shorter estimated useful lives, (b) additional reporting units, which may require alternative methods of estimating fair values or greater disaggregation or aggregation in our analysis by reporting unit, and (c) other changes in previous assumptions or estimates. A change in the weighted average cost of capital, for example, could materially change the valuation and, if increased, could cause an impairment. In turn, this could have an additional impact on our consolidated financial statements through accelerated amortization and impairment charges. |
Income Taxes | Income Taxes — The provision for income taxes is based upon income reported in the accompanying consolidated financial statements. As required by ASC 740-10, , we record tax assets or liabilities for the temporary differences between the book value and tax bases in assets and liabilities. In assessing the realization of our deferred income tax assets, we consider whether it is more likely than not that the deferred income tax assets will be realized. The ultimate realization of our deferred income tax assets depends upon generating future taxable income during the periods in which our temporary differences become deductible and before our net operating loss carryforwards expire. We evaluate the recoverability of our deferred income tax assets by assessing the need for a valuation allowance on a quarterly basis. If we determine that it is more likely than not that our deferred income tax assets will not be recovered, we establish a valuation allowance against some or all of our deferred income tax assets. Recording a valuation allowance or reversing a valuation allowance could have a significant effect on our future results of operations and financial position. We measure these deferred taxes by applying tax rates expected to be in place when the deferred items become subject to income tax or deductible for income tax purposes. |
Warranty | Warranty — We generally provide a limited one-year warranty and a lifetime service policy to the original purchaser of our new firearm products. We provide for estimated warranty obligations in the period in which we recognize the related revenue. We quantify and record an estimate for warranty-related costs based on our actual historical claims experience and current repair costs. We make adjustments to accruals as warranty claims data and historical experience warrant. Should we experience actual claims and repair costs that are higher than the estimated claims and repair costs used to calculate the provision, our operating results for the period or periods in which such returns or additional costs materialize would be adversely impacted. On August 22, 2013, we issued a safety alert related to all M&P Shield products manufactured prior to August 19, 2013. On June 13, 2013, we initiated a recall of all Thompson/Center Arms bolt action rifles manufactured since the products’ introduction in 2007. As of April 30, 2015, we had incurred $5.5 million in recall and safety alert costs, and we estimated the remaining cost to be $3.2 million, which is recorded in the accrued warranty balance. Warranty expense for the fiscal years ended April 30, 2015, 2014, and 2013 amounted to $4.3 million, $3.6 million, and $7.1 million, respectively. The following table sets forth the change in accrued warranties, a portion of which is recorded as a non-current liability, in the fiscal years ended April 30, 2015, 2014, and 2013 (in thousands): April 30, 2015 April 30, 2014 April 30, 2013 Beginning Balance $ 7,565 $ 8,423 $ 6,412 Warranties issued and adjustments to provisions 4,292 3,620 7,093 Warranty claims (3,204 ) (4,478 ) (5,082 ) Ending Balance $ 8,653 $ 7,565 $ 8,423 |
Sales and Promotional Related Expenses | Sales and Promotional Related Expenses — We present product sales in our consolidated financial statements, net of customer promotional program costs that depend upon the volume of sales, which amounted to $ 6.9 million, $1.6 million, and $5.1 million for the fiscal years ended April 30, 2015, 2014, and 2013, respectively. We have a co-op advertising program at the retail level. We expensed costs amounting to $2.8 million, $1.9 million, and $1.5 million for fiscal 2015, 2014, and 2013, respectively, as selling and marketing expenses. |
Shipping and Handling | Shipping and Handling — In the accompanying consolidated financial statements, we included amounts billed to customers for shipping and handling in net sales. We included our costs relating to shipping and handling charges, including inbound freight charges, internal transfer costs, and the other costs of our distribution network, in cost of goods sold. |
Insurance Reserves | Insurance Reserves — We are self-insured through retentions or deductibles for the majority of our workers’ compensation, automobile, general liability, product liability, and group health insurance programs. Self-insurance amounts vary up to $ 3.0 million per occurrence. We record our liability for estimated premiums and incurred losses in the accompanying consolidated financial statements on an undiscounted basis. |
Recently Issued Accounting Standards | Recently Issued Accounting Standard — In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) , or ASU 2014-09. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for interim reporting periods beginning October 1, 2017. Early adoption is not permitted. We are currently evaluating the impact, if any, that ASU 2014-09 will have on our consolidated financial statements. |
Fair Value Measurements and Disclosures Topic | We follow the provisions of ASC 820-10, Fair Value Measurements and Disclosures Topic Financial assets and liabilities recorded on the accompanying 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 equivalents, which are measured at fair value on a recurring basis, totaled $42.1 million and $68.8 million as of April 30, 2015 and 2014, 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 (examples include 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). We currently do not have any Level 2 financial assets or liabilities other than our 5.875% Senior Notes and 5.000% Senior Notes as referenced in Note 5. 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 assumptions about the assumptions a market participant would use in pricing the asset or liability. We currently do not have any Level 3 financial assets or liabilities. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
DRP Acquisition | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date, as well as measurement period adjustments (in thousands): May 5, 2014 Measurement (As Initially Period May 5, 2014 Reported) Adjustments (As Adjusted) Accounts receivable $ 2,614 $ 5 $ 2,619 Inventories 2,430 460 2,890 Total current assets 5,044 465 5,509 Property, plant, and equipment 4,243 155 4,398 Goodwill 15,183 (1,413 ) 13,770 Intangibles assets: Customer relationships — 840 840 Order backlog — 150 150 Other assets 8 — 8 Total assets acquired 24,478 197 24,675 Accounts payable 358 12 370 Accrued expenses 25 114 139 Accrued payroll — 361 361 Total liabilities assumed 383 487 870 $ 24,095 $ (290 ) $ 23,805 |
Identifiable Intangible Assets Acquired and Respective Weighted Average Lives | The following are the identifiable intangible assets acquired (in thousands) and their respective weighted average lives: Weighted Average Life Amount (In years) Customer relationships $ 840 3.3 Order backlog 150 1.0 $ 990 |
BTI Acquisition | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated allocation of the purchase price for BTI at the acquisition date, which includes the net assets from the Hooyman acquisition, as well as measurement period adjustments to date (in thousands): December 11, 2014 Measurement (As Initially Period December 11, 2014 Reported) Adjustments (As Adjusted) Cash $ 24 $ — $ 24 Accounts receivable 7,873 3 7,876 Inventories 12,819 107 12,926 Income tax receivable 393 (279 ) 114 Other current assets 563 — 563 Property, plant, and equipment 2,826 (318 ) 2,508 Intangibles 73,550 — 73,550 Goodwill 62,142 (486 ) 61,656 Total assets acquired 160,190 (973 ) 159,217 Accounts payable 1,647 2 1,649 Accrued expenses 326 1 327 Accrued payroll 904 — 904 Accrued taxes other than income 9 — 9 Deferred income taxes 21,128 (261 ) 20,867 Total liabilities assumed 24,014 (258 ) 23,756 $ 136,176 $ (715 ) $ 135,461 |
Identifiable Intangible Assets Acquired and Respective Weighted Average Lives | The following are the identifiable intangible assets acquired (in thousands) and their respective weighted average lives: Weighted Average Life Amount (In years) Developed technology $ 16,630 4.2 Customer relationships 25,680 4.4 Trade names 31,140 5.3 Order backlog 100 0.3 $ 73,550 |
Unaudited Pro Forma Results of Operations | Additionally, the following table reflects the unaudited pro forma results of operations assuming that the BTI Acquisition had occurred on May 1, 2013 (in thousands, except per share data): For the Year For the Year Ended Ended April 30, 2015 April 30, 2014 Net sales $ 582,875 $ 670,163 Income from continuing operations 53,388 85,460 Income per share - diluted 0.97 1.42 |
Significant Accounting Polici30
Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives | A summary of the estimated useful lives is as follows: Description Useful Life Building and improvements 10 to 40 years Software and hardware 3 to 7 years Machinery and equipment 2 to 10 years |
Reconciliation of Net Income (Loss) Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings (Loss) per Common Share | The following table provides a reconciliation of the net income/(loss) amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings/(loss) per common share (in thousands, except per share data): For the Year Ended April 30, 2015 2014 2013 Net income/(loss) Income from continuing operations $ 49,827 $ 88,627 $ 81,406 (Loss)/income from discontinued operations (214 ) 678 (2,693 ) Net income $ 49,613 $ 89,305 $ 78,713 Weighted average shares outstanding - Basic 53,988 58,668 65,155 Dilutive effect of stock option and award plans 1,240 1,446 1,487 Diluted shares outstanding 55,228 60,114 66,642 Earnings per share - Basic Income from continuing operations $ 0.92 $ 1.51 $ 1.25 (Loss)/income from discontinued operations $ (0.00 ) $ 0.01 $ (0.04 ) Net income $ 0.92 $ 1.52 $ 1.21 Earnings per share - Diluted Income from continuing operations $ 0.90 $ 1.47 $ 1.22 (Loss)/income from discontinued operations $ (0.00 ) $ 0.01 $ (0.04 ) Net income $ 0.90 $ 1.49 $ 1.18 |
Change in Accrued Warranties Recorded as Non-Current Liability | The following table sets forth the change in accrued warranties, a portion of which is recorded as a non-current liability, in the fiscal years ended April 30, 2015, 2014, and 2013 (in thousands): April 30, 2015 April 30, 2014 April 30, 2013 Beginning Balance $ 7,565 $ 8,423 $ 6,412 Warranties issued and adjustments to provisions 4,292 3,620 7,093 Warranty claims (3,204 ) (4,478 ) (5,082 ) Ending Balance $ 8,653 $ 7,565 $ 8,423 |
Net Sales (Tables)
Net Sales (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Accounting Policies [Abstract] | |
Breakdown of Net Sales | The following table sets forth the breakdown of net sales for the fiscal years ended April 30, 2015, 2014, and 2013, respectively (in thousands): For the Year Ended April 30, 2015 2014 2013 Handguns $ 395,500 $ 422,992 $ 324,627 Long Guns 90,178 155,311 179,187 Walther 506 5,651 41,646 Other Products & Services 45,038 42,666 42,054 Firearm Division 531,222 626,620 587,514 Accessories Division 20,640 — — Total Net Sales $ 551,862 $ 626,620 $ 587,514 |
Breakdown of Export Sales | We sell our products worldwide. The following table sets forth the breakdown of export net sales included in the above table. Our export net sales accounted for 4%, 3%, and 3% of total net sales for the fiscal years ended April 30, 2015, 2014, and 2013, respectively (in thousands): For the Year Ended April 30, Region 2015 2014 2013 Europe $ 8,164 $ 6,279 $ 2,979 Asia 1,463 1,766 6,319 Latin America 1,643 200 1,693 All others international 11,570 9,605 8,003 Total net international sales $ 22,840 $ 17,850 $ 18,994 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment | The following table summarizes property, plant, and equipment as of April 30, 2015 and 2014 (in thousands): April 30, 2015 April 30, 2014 Machinery and equipment $ 191,480 $ 156,030 Software and hardware 30,945 27,331 Building and improvements 19,946 12,187 Land and improvements 3,214 2,150 245,585 197,698 Less: Accumulated depreciation and amortization (116,663 ) (93,138 ) 128,922 104,560 Construction in progress 4,922 15,880 Total property, plant, and equipment, net $ 133,844 $ 120,440 |
Summary of Depreciation and Amortization Expense for Continuing Operations | The following table summarizes depreciation and amortization expense for continuing operations, which includes amortization of intangibles and debt financing costs, by line item for the fiscal years ended April 30, 2015, 2014, and 2013 (in thousands): For the Year Ended April 30, 2015 2014 2013 Cost of products and services sold $ 20,640 $ 16,505 $ 14,238 Research and development 403 325 116 Selling and marketing 255 207 247 General and administrative 8,134 2,720 1,449 Interest expense 1,461 1,947 680 Total depreciation and amortization $ 30,893 $ 21,704 $ 16,730 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or market, as of April 30, 2015 and 2014 (in thousands): April 30, 2015 April 30, 2014 Finished goods $ 28,240 $ 26,523 Finished parts 34,269 47,109 Work in process 7,492 7,643 Raw material 6,894 5,467 Total inventories $ 76,895 $ 86,742 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | The following table presents a summary of intangible assets for the year ended April 30, 2015 and 2014 (in thousands): Weighted Average Weighted Average Life Life April 30, 2015 (a) (in years) April 30, 2014 (in years) Developed technology $ 16,630 5.2 $ — — Customer relationships 28,260 6.1 1,740 9.1 Patents, trademarks, and tradenames 36,378 5.3 4,986 5.5 81,268 6,726 Less: Accumulated amortization (7,950 ) (3,603 ) 73,318 3,123 Patents in progress 450 302 Total intangible assets, net $ 73,768 $ 3,425 (a) |
Schedule of future expected amortization expense | Expected For the Year Ended April 30, Amortization 2016 $ 11,341 2017 10,552 2018 9,798 2019 8,606 2020 7,448 Thereafter 25,573 Total expected amortization $ 73,318 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | The following table sets forth other accrued expenses as of April 30, 2015 and 2014 (in thousands): April 30, 2015 April 30, 2014 Accrued rebates and promotions $ 4,126 $ 2,633 Interest payable 3,362 2,194 Accrued employee benefits 3,065 2,148 Accrued professional fees 2,335 2,374 Accrued workers' compensation 833 916 Accrued distributor incentives 761 590 Accrued other 4,539 6,252 Total accrued expenses $ 19,021 $ 17,107 |
Self-Insurance Reserves (Tables
Self-Insurance Reserves (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Other Liabilities | The following table is a summary of the activity in the workers’ compensation, product liability, municipal liability, and medical/dental reserves in the fiscal years ended April 30, 2015, 2014, and 2013 (in thousands): For the Year Ended April 30, 2015 2014 2013 Beginning balance $ 9,185 $ 9,570 $ 8,980 Additional provision charged to expense 12,925 10,721 12,201 Payments (12,500 ) (11,106 ) (11,611 ) Ending balance $ 9,610 $ 9,185 $ 9,570 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Equity [Abstract] | |
Share Based Compensation Stock Options Activity | The number of shares and weighted average exercise prices of options for the fiscal years ended April 30, 2015, 2014, and 2013 are as follows: For the Year Ended April 30, 2015 2014 2013 Weighted- Weighted- Weighted- Average Average Average Shares Exercise Price Shares Exercise Price Shares Exercise Price Options outstanding, beginning of year 2,258,349 $ 6.15 3,019,127 $ 5.31 3,988,164 $ 4.67 Granted during the period — — — — 3,500 11.02 Exercised during the period (365,719 ) 4.96 (732,778 ) 2.73 (847,042 ) 4.10 Canceled/forfeited during period (13,000 ) 7.98 (28,000 ) 5.59 (125,495 ) 3.87 Options outstanding, end of period 1,879,630 $ 6.37 2,258,349 $ 6.15 3,019,127 $ 5.31 Weighted average remaining contractual life 5.02 years 6.04 years 6.02 years Options exercisable, end of period 1,878,464 $ 6.36 1,873,494 $ 6.29 2,087,675 $ 5.38 Weighted average remaining contractual life 5.02 years 5.75 years 5.00 years |
Schedule of Assumptions used in Valuing Options and ESPP Purchases | The following assumptions were used in valuing our options and ESPP purchases during the years ended April 30, 2015, 2014, and 2013: For the Year Ended April 30, 2015 2014 2013 Stock option grants: Risk-free interest rate — — 0 0.31 % Expected term — — 5.84 - 7.84 years Expected volatility — — 70.0 % Dividend yield — — 0 % Employee Stock Purchase Plan: Risk-free interest rate 0.07% 0.08% 0.13 % Expected term 6 months 6 months 6 months Expected volatility 38.2% 41.9% 56.3 % Dividend yield 0% 0% 0 % |
Summary of Stock Compensation Expense for Continuing Operations | The following table summarizes stock compensation expense for continuing operations by line item for the fiscal years ended April 30, 2015, 2014, and 2013 (in thousands): For the Year Ended April 30, 2015 2014 2013 Cost of sales $ 520 $ 332 $ 331 Research and development 139 74 39 Selling and marketing 379 225 92 General and administrative 4,770 7,581 3,611 Total stock-based compensation $ 5,808 $ 8,212 $ 4,073 |
Share Based Payment Award Performance Shares Valuation Assumptions | We incorporate the following variables into the valuation model: For the Year Ended April 30, 2015 2014 2013 Grant date fair market value Smith & Wesson Holding Corporation $ 14.90 $ 15.21 $ 8.71 Russell 2000 Index $ 1,246.95 $ 1,120.83 $ 935.25 Volatility (a) Smith & Wesson Holding Corporation 44.51 % 49.85 % 49.28 % Russell 2000 Index 15.76 % 23.07 % 25.72 % Correlation coefficient (b) 0.32 0.46 0.47 Risk-free interest rate (c) 0.91 % 0.91 % 0.32 % Dividend yield (d) 0 % 0 % 0 % (a) Expected volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years. (b) The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions. (c) The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period. (d) We do not expect to pay dividends in the foreseeable future. |
Summary of Activity in Unvested RSUs and PSUs | A summary of activity in unvested RSUs and PSUs for fiscal years 2015, 2014 and 2013 is as follows: For the Year Ended April 30, 2015 2014 2013 Weighted Weighted Weighted Total # of Average Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of year 1,015,475 $ 10.56 781,586 $ 8.42 384,140 $ 7.91 Awarded 709,672 11.82 718,056 11.87 535,329 9.43 Vested (433,266 ) 9.18 (457,851 ) 8.75 (83,887 ) 8.71 Forfeited (101,002 ) 11.93 (26,316 ) 8.88 (53,996 ) 6.14 RSUs and PSUs outstanding, end of year 1,190,879 $ 12.45 1,015,475 $ 10.56 781,586 $ 8.42 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense from Continuing Operations | Income tax expense from continuing operations consists of the following (in thousands): For the Year Ended April 30, 2015 2014 2013 Current: Federal $ 22,471 $ 43,470 $ 38,661 State 4,188 6,167 5,982 Total current 26,659 49,637 44,643 Deferred: Deferred federal 2,274 (1,352 ) 1,508 Deferred state (28 ) (190 ) 349 Total deferred 2,246 (1,542 ) 1,857 Total income tax expense $ 28,905 $ 48,095 $ 46,500 |
Reconciliation of Provision for Income Taxes from Continuing Operations | The following table presents a reconciliation of the provision for income taxes from continuing operations at statutory rates to the provision in the consolidated financial statements (in thousands): For the Year Ended April 30, 2015 2014 2013 Federal income taxes expected at 35% statutory rate $ 27,556 $ 47,853 $ 44,767 State income taxes, less federal income tax benefit 3,015 4,535 4,576 Employee Stock Purchase Plan 82 77 131 Business meals and entertainment 205 187 107 Domestic production activity deduction (2,462 ) (4,325 ) (3,708 ) Research and development tax credit (100 ) (100 ) (140 ) Change in uncertain tax positions — (265 ) 237 Other 609 133 530 Total income tax expense $ 28,905 $ 48,095 $ 46,500 |
Deferred Tax Assets (Deferred Tax Liabilities) Related to Temporary Differences | Deferred tax assets (deferred tax liabilities) related to temporary differences are the following (in thousands): For the Years Ended April 30, 2015 2014 Current tax assets (liabilities): $ $ Inventories 9,587 8,088 Product liability 276 391 Accrued expenses, including compensation 2,934 5,991 Warranty reserve 2,449 2,114 Property taxes (122 ) (78 ) Promotions 1,497 925 Less valuation allowance (510 ) (508 ) Other 262 171 Net deferred tax asset — current $ 16,373 $ 17,094 Non-current tax assets (liabilities): Net operating loss carryforwards and tax credits $ 2,809 $ 2,633 Environmental reserves 258 238 Product liability 461 371 Workers' compensation 991 975 Warranty reserve 860 785 Stock-based compensation 4,429 4,280 State bonus depreciation 1,002 828 Property, plant, and equipment (25,612 ) (19,947 ) Intangible assets (17,083 ) 224 Transaction costs — 57 Pension 91 48 Less valuation allowance (2,111 ) (1,910 ) Net deferred tax liability — non-current $ (33,905 ) $ (11,418 ) Net deferred tax asset/(liability) — total $ (17,532 ) $ 5,676 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): April 30, 2015 2014 Beginning balance $ 84 $ 1,091 Interest, penalties, and impact of state deductions on federal taxes 7 (212 ) Lapse of statute of limitations — (795 ) Ending balance $ 91 $ 84 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Lease Commitments | As of April 30, 2015, the lease commitments were as follows (in thousands): For the Year Ended April 30, Amount 2016 $ 2,446 2017 1,975 2018 1,919 2019 1,780 2020 1,764 Thereafter 5,910 $ 15,794 |
Quarterly Financial Informati40
Quarterly Financial Information (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following table summarizes quarterly financial results in fiscal 2015 and 2014. In our opinion, all adjustments necessary to present fairly the information for such quarters have been reflected (in thousands, except per share data): For the Year Ended April 30, 2015 First Second Third Fourth Full Quarter Quarter Quarter Quarter Year Net sales $ 131,869 $ 108,446 $ 130,550 $ 180,997 $ 551,862 Gross profit 49,118 34,840 43,824 67,144 194,926 Income from continuing operations, net of tax 14,618 5,091 8,178 21,940 49,827 Loss from discontinued operations, net of tax (62 ) (41 ) (57 ) (54 ) (214 ) Net income $ 14,556 $ 5,050 $ 8,121 $ 21,886 $ 49,613 Per common share Basic - continuing operations $ 0.27 $ 0.10 $ 0.15 $ 0.41 $ 0.92 Diluted - continuing operations $ 0.26 $ 0.09 $ 0.15 $ 0.40 $ 0.90 Basic - total $ 0.27 $ 0.09 $ 0.15 $ 0.41 $ 0.92 Diluted - total $ 0.26 $ 0.09 $ 0.15 $ 0.40 $ 0.90 Market price (low-high) $ 12.32-17.28 $ 9.03-13.43 $ 9.22-12.68 $ 12.16-15.30 $ 9.03-17.28 For the Year Ended April 30, 2014 First Second Third Fourth Full Quarter Quarter Quarter Quarter Year Net sales $ 171,020 $ 139,294 $ 145,881 $ 170,425 $ 626,620 Gross profit 72,773 57,937 58,651 69,744 259,105 Income from continuing operations, net of tax 26,526 17,145 20,057 24,899 88,627 Income/(loss) from discontinued operations, net of tax (49 ) (158 ) 728 157 678 Net income $ 26,477 $ 16,987 $ 20,785 $ 25,056 $ 89,305 Per common share Basic - continuing operations $ 0.41 $ 0.29 $ 0.36 $ 0.45 $ 1.51 Diluted - continuing operations $ 0.40 $ 0.28 $ 0.35 $ 0.44 $ 1.47 Basic - total $ 0.41 $ 0.28 $ 0.37 $ 0.45 $ 1.52 Diluted - total $ 0.40 $ 0.28 $ 0.36 $ 0.44 $ 1.49 Market price (low-high) $ 8.53-11.96 $ 10.25-13.38 $ 10.76-15.56 $ 11.31-15.70 $ 8.53-15.70 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Apr. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Results by Business Segment | Results by business segment are presented in the following table for the year ended April 30, 2015 (in thousands): For the Year Ended April 30, 2015 Firearm Accessories (a) Total Net sales $ 531,222 $ 20,640 $ 551,862 Cost of sales 342,663 14,273 (b) 356,936 Gross margin 188,559 6,367 194,926 Operating income/(loss) 92,532 (2,904 ) (b) 89,628 Income tax expense/(benefit) 30,038 (1,133 ) 28,905 _________________ (a) Results of operations for the year ended April 30, 2015 include activity for the period subsequent to the BTI Acquisition. We operated under one segment in the prior year, thus no comparative segment information is being presented. Due to the timing of the BTI Acquisition, the segment data above includes all corporate overhead expenses in our firearm segment until we determine our allocation methodology for corporate overhead expenses. (b) Amount includes $4.2 million of additional cost of sales from the fair value step-up in inventory at the date of the BTI Acquisition and $3.6 million related to amortization of intangible assets recorded in general and administrative expenses as a result of the BTI Acquisition. |
Organization - Additional Infor
Organization - Additional Information (Detail) | 12 Months Ended |
Apr. 30, 2015 | |
BTI Acquisition | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Business acquisition agreement date | Dec. 11, 2014 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Jan. 09, 2015 | Dec. 11, 2014 | May. 05, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Nov. 25, 2014 |
Business Acquisition [Line Items] | ||||||
Goodwill deductible for tax purpose | $ 12,000,000 | |||||
DRP Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business, excluding working capital adjustment | $ 22,800,000 | |||||
Working capital adjustment | 1,000,000 | |||||
Payments to acquire business, net of cash acquired | $ 23,800,000 | |||||
Business combination, acquisition-related costs | $ 440,000 | $ 471,000 | ||||
Goodwill amortization period for tax purpose | 15 years | |||||
BTI Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business, excluding working capital adjustment | $ 130,500,000 | |||||
Working capital adjustment | 3,100,000 | |||||
Payments to acquire business, net of cash acquired | $ 135,437,000 | |||||
Business combination, acquisition-related costs | $ 1,700,000 | |||||
Acquisition payment made through line of credit | 100,000,000 | |||||
BTI Acquisition | Amended Unsecured Revolving Credit Facility | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition payment made through line of credit | $ 125,000,000 | |||||
B T I Acquisition Excluding Hooyman Llc | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business, net of cash acquired | $ 133,600,000 | |||||
Hooyman LLC | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business, net of cash acquired | $ 1,900,000 |
Acquisitions - Estimated Fair V
Acquisitions - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | May. 05, 2014 |
Business Acquisition [Line Items] | ||
Goodwill | $ 75,426 | |
DRP Acquisition | ||
Business Acquisition [Line Items] | ||
Accounts receivable | $ 2,619 | |
Inventories | 2,890 | |
Total current assets | 5,509 | |
Property, plant, and equipment | 4,398 | |
Goodwill | $ 13,800 | 13,770 |
Intangibles assets: | ||
Other assets | 8 | |
Total assets acquired | 24,675 | |
Accounts payable | 370 | |
Total liabilities assumed | 870 | |
Net assets acquired | 23,805 | |
DRP Acquisition | Customer relationships | ||
Intangibles assets: | ||
Other non current assets | 840 | |
DRP Acquisition | Order Backlog | ||
Intangibles assets: | ||
Other non current assets | 150 | |
DRP Acquisition | As Initially Reported | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 2,614 | |
Inventories | 2,430 | |
Total current assets | 5,044 | |
Property, plant, and equipment | 4,243 | |
Goodwill | 15,183 | |
Intangibles assets: | ||
Other assets | 8 | |
Total assets acquired | 24,478 | |
Accounts payable | 358 | |
Total liabilities assumed | 383 | |
Net assets acquired | 24,095 | |
DRP Acquisition | Measurement Period Adjustments | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 5 | |
Inventories | 460 | |
Total current assets | 465 | |
Property, plant, and equipment | 155 | |
Goodwill | (1,413) | |
Intangibles assets: | ||
Total assets acquired | 197 | |
Accounts payable | 12 | |
Total liabilities assumed | 487 | |
Net assets acquired | (290) | |
DRP Acquisition | Measurement Period Adjustments | Customer relationships | ||
Intangibles assets: | ||
Other non current assets | 840 | |
DRP Acquisition | Measurement Period Adjustments | Order Backlog | ||
Intangibles assets: | ||
Other non current assets | 150 | |
DRP Acquisition | Accrued Expense | ||
Intangibles assets: | ||
Accrued expenses and payroll | 139 | |
DRP Acquisition | Accrued Expense | As Initially Reported | ||
Intangibles assets: | ||
Accrued expenses and payroll | 25 | |
DRP Acquisition | Accrued Expense | Measurement Period Adjustments | ||
Intangibles assets: | ||
Accrued expenses and payroll | 114 | |
DRP Acquisition | Accrued Payroll | ||
Intangibles assets: | ||
Accrued expenses and payroll | 361 | |
DRP Acquisition | Accrued Payroll | Measurement Period Adjustments | ||
Intangibles assets: | ||
Accrued expenses and payroll | $ 361 |
Acquisitions - Identifiable Int
Acquisitions - Identifiable Intangible Assets Acquired and Respective Weighted Average Lives (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | |||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 81,268 | [1] | $ 6,726 | |
Developed technology | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | [1] | $ 16,630 | ||
Weighted average life | 5 years 2 months 12 days | |||
Customer relationships | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 28,260 | [1] | $ 1,740 | |
Weighted average life | 6 years 1 month 6 days | 9 years 1 month 6 days | ||
DRP Acquisition | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 990 | |||
DRP Acquisition | Customer relationships | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 840 | |||
Weighted average life | 3 years 3 months 18 days | |||
DRP Acquisition | Order Backlog | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 150 | |||
Weighted average life | 1 year | |||
BTI Acquisition | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 73,550 | |||
BTI Acquisition | Developed technology | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 16,630 | |||
Weighted average life | 4 years 2 months 12 days | |||
BTI Acquisition | Customer relationships | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 25,680 | |||
Weighted average life | 4 years 4 months 24 days | |||
BTI Acquisition | Trade names | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 31,140 | |||
Weighted average life | 5 years 3 months 18 days | |||
BTI Acquisition | Order Backlog | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 100 | |||
Weighted average life | 3 months 18 days | |||
[1] | The primary increase in intangible assets over the prior year is as a result of the BTI Acquisition. |
Acquisitions - Summary of Busin
Acquisitions - Summary of Business Acquisitions Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Dec. 11, 2014 |
Business Acquisition [Line Items] | ||
Goodwill | $ 75,426 | |
BTI Acquisition | ||
Business Acquisition [Line Items] | ||
Cash | $ 24 | |
Accounts receivable | 7,876 | |
Inventories | 12,926 | |
Income tax receivable | 114 | |
Other current assets | 563 | |
Property, plant, and equipment | 2,508 | |
Intangibles | 73,550 | |
Goodwill | $ 61,600 | 61,656 |
Total assets acquired | 159,217 | |
Accounts payable | 1,649 | |
Accrued expenses | 327 | |
Accrued payroll | 904 | |
Accrued taxes other than income | 9 | |
Deferred income taxes | 20,867 | |
Total liabilities assumed | 23,756 | |
Net assets acquired | 135,461 | |
BTI Acquisition | As Initially Reported | ||
Business Acquisition [Line Items] | ||
Cash | 24 | |
Accounts receivable | 7,873 | |
Inventories | 12,819 | |
Income tax receivable | 393 | |
Other current assets | 563 | |
Property, plant, and equipment | 2,826 | |
Intangibles | 73,550 | |
Goodwill | 62,142 | |
Total assets acquired | 160,190 | |
Accounts payable | 1,647 | |
Accrued expenses | 326 | |
Accrued payroll | 904 | |
Accrued taxes other than income | 9 | |
Deferred income taxes | 21,128 | |
Total liabilities assumed | 24,014 | |
Net assets acquired | 136,176 | |
BTI Acquisition | Measurement Period Adjustments | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 3 | |
Inventories | 107 | |
Income tax receivable | (279) | |
Property, plant, and equipment | (318) | |
Goodwill | (486) | |
Total assets acquired | (973) | |
Accounts payable | 2 | |
Accrued expenses | 1 | |
Deferred income taxes | (261) | |
Total liabilities assumed | (258) | |
Net assets acquired | $ (715) |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Results of Operations (Detail) - BTI Acquisition - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Business Acquisition [Line Items] | ||
Net sales | $ 582,875 | $ 670,163 |
Income from continuing operations | $ 53,388 | $ 85,460 |
Income per share - diluted | $ 0.97 | $ 1.42 |
Significant Accounting Polici48
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||
Apr. 30, 2015USD ($)SegmentFacilityshares | Apr. 30, 2014USD ($)shares | Apr. 30, 2013USD ($)shares | Dec. 11, 2014USD ($) | May. 05, 2014USD ($) | |
Product Information [Line Items] | |||||
Accounts exceeded by Federal insured limits | $ 42,600,000 | ||||
Maximum maturity period of all highly liquid investments to be considered cash equivalents | 3 months | ||||
Number of reportable segments | Segment | 2 | ||||
Number of reporting units | Facility | 2 | ||||
Goodwill | $ 75,426,000 | ||||
Asset impairment charges | 0 | $ 0 | $ 0 | ||
Recall cost and safety alert costs | 5,500,000 | ||||
Remaining cost related to recall and safety alert costs | 3,200,000 | ||||
Warranty expense | 4,300,000 | 3,600,000 | 7,100,000 | ||
Customer promotional program costs | 6,900,000 | 1,600,000 | 5,100,000 | ||
Selling and marketing expenses | 2,800,000 | $ 1,900,000 | $ 1,500,000 | ||
Self Insurance | |||||
Product Information [Line Items] | |||||
Maximum amount of self-insurance per occurrence | 3,000,000 | ||||
DRP Acquisition | |||||
Product Information [Line Items] | |||||
Goodwill | 13,800,000 | $ 13,770,000 | |||
BTI Acquisition | |||||
Product Information [Line Items] | |||||
Goodwill | $ 61,600,000 | $ 61,656,000 | |||
2011 ESPP | |||||
Product Information [Line Items] | |||||
Number of common stock issuable with antidilutive effect | shares | 73,546 | 77,622 | 246,635 | ||
Other Capitalized Property Plant and Equipment | Maximum | |||||
Product Information [Line Items] | |||||
Estimated useful life | 5 years | ||||
Customer One | |||||
Product Information [Line Items] | |||||
Accounts receivable | $ 11,700,000 | ||||
Customer One | Sales, net | |||||
Product Information [Line Items] | |||||
Concentration of risk, percentage | 13.40% | 11.60% | |||
Customer One | Accounts Receivable | |||||
Product Information [Line Items] | |||||
Concentration of risk, percentage | 20.10% |
Summary of Estimated Useful Liv
Summary of Estimated Useful Lives (Detail) | 12 Months Ended |
Apr. 30, 2015 | |
Building and improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 10 years |
Building and improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 40 years |
Software and hardware | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 3 years |
Software and hardware | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 7 years |
Machinery and equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 2 years |
Machinery and equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 10 years |
Reconciliation of Net Income (L
Reconciliation of Net Income (Loss) Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings (Loss) per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Net income/(loss) | |||||||||||
Income from continuing operations | $ 21,940 | $ 8,178 | $ 5,091 | $ 14,618 | $ 24,899 | $ 20,057 | $ 17,145 | $ 26,526 | $ 49,827 | $ 88,627 | $ 81,406 |
(Loss)/income from discontinued operations | (54) | (57) | (41) | (62) | 157 | 728 | (158) | (49) | (214) | 678 | (2,693) |
Net income | $ 21,886 | $ 8,121 | $ 5,050 | $ 14,556 | $ 25,056 | $ 20,785 | $ 16,987 | $ 26,477 | $ 49,613 | $ 89,305 | $ 78,713 |
Weighted average shares outstanding - Basic | 53,988 | 58,668 | 65,155 | ||||||||
Dilutive effect of stock option and award plans | 1,240 | 1,446 | 1,487 | ||||||||
Diluted shares outstanding | 55,228 | 60,114 | 66,642 | ||||||||
Earnings per share - Basic | |||||||||||
Income from continuing operations | $ 0.41 | $ 0.15 | $ 0.10 | $ 0.27 | $ 0.45 | $ 0.36 | $ 0.29 | $ 0.41 | $ 0.92 | $ 1.51 | $ 1.25 |
(Loss)/income from discontinued operations | 0 | 0.01 | (0.04) | ||||||||
Net income | 0.41 | 0.15 | 0.09 | 0.27 | 0.45 | 0.37 | 0.28 | 0.41 | 0.92 | 1.52 | 1.21 |
Earnings per share - Diluted | |||||||||||
Income from continuing operations | 0.40 | 0.15 | 0.09 | 0.26 | 0.44 | 0.35 | 0.28 | 0.40 | 0.90 | 1.47 | 1.22 |
(Loss)/income from discontinued operations | 0 | 0.01 | (0.04) | ||||||||
Net income | $ 0.40 | $ 0.15 | $ 0.09 | $ 0.26 | $ 0.44 | $ 0.36 | $ 0.28 | $ 0.40 | $ 0.90 | $ 1.49 | $ 1.18 |
Change in Accrued Warranty (Det
Change in Accrued Warranty (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Accounting Policies [Abstract] | |||
Beginning Balance | $ 7,565 | $ 8,423 | $ 6,412 |
Warranties issued and adjustments to provisions | 4,292 | 3,620 | 7,093 |
Warranty claims | (3,204) | (4,478) | (5,082) |
Ending Balance | $ 8,653 | $ 7,565 | $ 8,423 |
Notes Payable and Financing A52
Notes Payable and Financing Arrangements - Additional Information (Detail) - USD ($) | Jun. 15, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 13, 2015 | Dec. 11, 2014 | Nov. 25, 2014 | Jul. 15, 2014 | Apr. 30, 2011 |
Debt Instrument [Line Items] | ||||||||||
Credit facility, maturity | Jun. 15, 2020 | |||||||||
Interest description of revolving line of credit | The Revolving Line provides for availability until June 15, 2020 for general corporate purposes and borrowings bear interest at a variable rate equal to LIBOR or prime plus an applicable margin based on our consolidated leverage ratio, at our election. | |||||||||
Interest expense | $ 11,330,000 | $ 12,261,000 | $ 5,781,000 | |||||||
Debt Instrument Maturity Date | Jun. 15, 2020 | |||||||||
Maximum consolidated coverage ratio | 300.00% | |||||||||
Minimum consolidated coverage ratio | 100.00% | |||||||||
Amortization to interest expense for all debt issuance costs | $ 1,500,000 | 1,900,000 | 680,000 | |||||||
Outstanding letters of credit | 1,000,000 | |||||||||
Other assets | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs | $ 2,600,000 | 3,800,000 | ||||||||
5.875% Senior notes due 2017 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes issued | $ 47,100,000 | |||||||||
Debt instrument, interest rate | 5.875% | 5.875% | ||||||||
5.875% Senior notes due 2017 | Scenario, Forecast | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance write-off costs | $ 1,700,000 | |||||||||
9.5% Senior notes due 2016 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes issued | $ 50,000,000 | |||||||||
Debt instrument, interest rate | 9.50% | |||||||||
Debt instrument, maturity year | 2,016 | |||||||||
Payment for repurchase of Senior Notes | $ 6,400,000 | |||||||||
Value of convertible notes exchanged for senior notes | $ 42,800,000 | |||||||||
Value of Senior Notes extinguished via legal defeasance | 712,000 | |||||||||
5.000% Senior Notes due 2018 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notes issued | $ 75,000,000 | |||||||||
Debt instrument, interest rate | 5.00% | |||||||||
Debt issuance costs | $ 2,300,000 | |||||||||
Debt Instrument Maturity Date | Jul. 15, 2018 | |||||||||
Senior Notes Indenture, maximum number of shares allowed for repurchase as a percentage of Consolidated net income for previous four consecutive published fiscal quarters | 75.00% | |||||||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Description of redemption for senior notes | (a) upon not less than 30 nor more than 60 days’ prior notice, redeem all or a portion of the 5.000% Senior Notes at the redemption price of 100% of the principal amount of the 5.000% Senior Notes, plus an applicable premium, plus accrued and unpaid interest as of the redemption date; or (b) redeem up to 35% of the aggregate principal amount of the 5.000% Senior Notes with the net cash proceeds of one or more equity offerings at a redemption price of 105.000% of the principal amount of the 5.000% Senior Notes, plus accrued and unpaid interest as of the redemption date; provided, that in the case of the foregoing clause, at least 65% of the aggregate original principal amount of the 5.000% Senior Notes remains outstanding, and the redemption occurs within 60 days after the closing of the equity offering. | |||||||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period One | Debt Instrument Redemption Scenario One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price of senior notes | 100.00% | |||||||||
Percentage of redeem notes | 65.00% | |||||||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period One | Debt Instrument Redemption Scenario Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price of senior notes | 105.00% | |||||||||
Percentage of redeem notes | 35.00% | |||||||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Description of redemption for senior notes | upon not less than 30 nor more than 60 days’ prior notice, redeem all or a portion of the 5.000% Senior Notes at a redemption price of (a) 102.500% of the principal amount of the 5.000% Senior Notes to be redeemed, if redeemed during the 12-month period beginning on July 15, 2016; or (b) 100% of the principal amount of the 5.000% Senior Notes to be redeemed, if redeemed during the 12-month period beginning on July 15, 2017, plus, in either case, accrued and unpaid interest on the 5.000% Senior Notes as of the applicable redemption date. | |||||||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period Two | Debt Instrument Redemption Scenario One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price of senior notes | 102.50% | |||||||||
5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period Two | Debt Instrument Redemption Scenario Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price of senior notes | 100.00% | |||||||||
Extinguished Indebtedness | 9.5% Senior notes due 2016 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance write-off costs | $ 795,000 | |||||||||
Debt instrument, interest rate | 9.50% | |||||||||
Interest expense | $ 4,300,000 | |||||||||
Additional Debt | 5.875% Senior notes due 2017 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from issuance of Senior Notes | $ 52,900,000 | |||||||||
Subsequent Events | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility, maturity | Jun. 15, 2020 | |||||||||
Percentage of interest rate protection on term loan | 75.00% | |||||||||
Percentage of call premium | 2.9375% | |||||||||
Subsequent Events | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding debt | $ 105,000,000 | |||||||||
Percentage of principal payment on term loan | 6.00% | |||||||||
Minimum | 5.000% Senior Notes due 2018 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Notes Indenture, number of shares allowed for repurchase | $ 50,000,000 | |||||||||
Minimum | 5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notice period of senior notes | 30 days | |||||||||
Minimum | 5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notice period of senior notes | 30 days | |||||||||
Maximum | 5.000% Senior Notes due 2018 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Notes Indenture, number of shares allowed for repurchase | $ 75,000,000 | |||||||||
Maximum | 5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notice period of senior notes | 60 days | |||||||||
Maximum | 5.000% Senior Notes due 2018 | Debt Instrument, Redemption, Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notice period of senior notes | 60 days | |||||||||
Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility | $ 75,000,000 | |||||||||
Unsecured Revolving Credit Facility | Subsequent Events | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 175,000,000 | |||||||||
Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility | $ 125,000,000 | |||||||||
Line of credit facility increments | $ 50,000,000 | |||||||||
Line of credit facility, borrowing capacity | $ 175,000,000 | |||||||||
Credit facility, maturity | Dec. 15, 2016 | |||||||||
Interest description of revolving line of credit | Variable rate equal to LIBOR or prime, at our election, plus an applicable margin based on our consolidated leverage ratio. | |||||||||
Borrowings outstanding | $ 0 | |||||||||
Credit Facilities | Prime Rate Option | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate on borrowings | 4.00% | |||||||||
Credit Facilities | LIBOR Rate Option | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate on borrowings | 2.18% | |||||||||
Credit Facilities | LIBOR Rate Option | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate on borrowings | 2.28% | |||||||||
BTI Acquisition | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility | $ 100,000,000 | |||||||||
BTI Acquisition | Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility increments | $ 50,000,000 |
Breakdown of Net sale (Detail)
Breakdown of Net sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||||
Total Net Sales | $ 180,997 | $ 130,550 | $ 108,446 | $ 131,869 | $ 170,425 | $ 145,881 | $ 139,294 | $ 171,020 | $ 551,862 | $ 626,620 | $ 587,514 | |
Firearms | ||||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||||
Total Net Sales | 531,222 | 626,620 | 587,514 | |||||||||
Firearms | Handguns | ||||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||||
Total Net Sales | 395,500 | 422,992 | 324,627 | |||||||||
Firearms | Long Guns | ||||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||||
Total Net Sales | 90,178 | 155,311 | 179,187 | |||||||||
Firearms | Walther | ||||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||||
Total Net Sales | 506 | 5,651 | 41,646 | |||||||||
Firearms | Other products and services | ||||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||||
Total Net Sales | 45,038 | $ 42,666 | $ 42,054 | |||||||||
Accessories | ||||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||||
Total Net Sales | [1] | $ 20,640 | ||||||||||
[1] | Results of operations for the year ended April 30, 2015 include activity for the period subsequent to the BTI Acquisition. We operated under one segment in the prior year, thus no comparative segment information is being presented. Due to the timing of the BTI Acquisition, the segment data above includes all corporate overhead expenses in our firearm segment until we determine our allocation methodology for corporate overhead expenses. |
Net Sales - Additional Informat
Net Sales - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Segment Reporting Information [Line Items] | |||
Export sales as percentage of revenue | 4.00% | 3.00% | 3.00% |
Total assets | $ 494,992,000 | $ 381,503,000 | |
Firearms | |||
Segment Reporting Information [Line Items] | |||
Total assets | 345,300,000 | ||
Total International | Firearms | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 0 | $ 0 | $ 0 |
Breakdown of Export Sales (Deta
Breakdown of Export Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Concentration Risk [Line Items] | |||||||||||
Net sales | $ 180,997 | $ 130,550 | $ 108,446 | $ 131,869 | $ 170,425 | $ 145,881 | $ 139,294 | $ 171,020 | $ 551,862 | $ 626,620 | $ 587,514 |
Europe | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net sales | 8,164 | 6,279 | 2,979 | ||||||||
Asia | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net sales | 1,463 | 1,766 | 6,319 | ||||||||
Latin America | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net sales | 1,643 | 200 | 1,693 | ||||||||
All others international | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net sales | 11,570 | 9,605 | 8,003 | ||||||||
Total International | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net sales | $ 22,840 | $ 17,850 | $ 18,994 |
Advertising Costs - Additional
Advertising Costs - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Selling and Marketing Expense | |||
Advertising Costs [Line Items] | |||
Advertising expense for continuing operations | $ 20.2 | $ 19.5 | $ 15.1 |
Summary of Property Plant and E
Summary of Property Plant and Equipment (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Property Plant And Equipment [Abstract] | ||
Machinery and equipment | $ 191,480 | $ 156,030 |
Software and hardware | 30,945 | 27,331 |
Building and improvements | 19,946 | 12,187 |
Land and improvements | 3,214 | 2,150 |
Property plant and equipment gross | 245,585 | 197,698 |
Less: Accumulated depreciation and amortization | (116,663) | (93,138) |
Property plant and equipment before construction in progress | 128,922 | 104,560 |
Construction in progress | 4,922 | 15,880 |
Total property, plant, and equipment, net | $ 133,844 | $ 120,440 |
Property Plant and Equipment -
Property Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense from continuing operations | $ 30,893 | $ 21,704 | $ 16,730 |
Software | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense from continuing operations | $ 24,800 | $ 19,100 | $ 15,400 |
Summary of Depreciation and Amo
Summary of Depreciation and Amortization Expense for Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Depreciation and Other Amortization Expenses [Line Items] | |||
Depreciation and amortization | $ 30,893 | $ 21,704 | $ 16,730 |
Cost of products and services sold | |||
Depreciation and Other Amortization Expenses [Line Items] | |||
Depreciation and amortization | 20,640 | 16,505 | 14,238 |
Research and development | |||
Depreciation and Other Amortization Expenses [Line Items] | |||
Depreciation and amortization | 403 | 325 | 116 |
Selling and marketing | |||
Depreciation and Other Amortization Expenses [Line Items] | |||
Depreciation and amortization | 255 | 207 | 247 |
General and administrative | |||
Depreciation and Other Amortization Expenses [Line Items] | |||
Depreciation and amortization | 8,134 | 2,720 | 1,449 |
Interest expense | |||
Depreciation and Other Amortization Expenses [Line Items] | |||
Depreciation and amortization | $ 1,461 | $ 1,947 | $ 680 |
Summary of Inventories (Detail)
Summary of Inventories (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 28,240 | $ 26,523 |
Finished parts | 34,269 | 47,109 |
Work in process | 7,492 | 7,643 |
Raw material | 6,894 | 5,467 |
Total inventories | $ 76,895 | $ 86,742 |
Summary of Intangible Assets (D
Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | |||
Finite-Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 81,268 | [1] | $ 6,726 | |
Less: Accumulated amortization | (7,950) | [1] | (3,603) | |
Finite lived intangible assets, net | 73,318 | [1] | 3,123 | |
Total intangible assets, net | 73,768 | [1] | $ 3,425 | |
Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | [1] | $ 16,630 | ||
Weighted average life | 5 years 2 months 12 days | |||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 28,260 | [1] | $ 1,740 | |
Weighted average life | 6 years 1 month 6 days | 9 years 1 month 6 days | ||
Patents, trademarks, and tradenames | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 36,378 | [1] | $ 4,986 | |
Weighted average life | 5 years 3 months 18 days | 5 years 6 months | ||
Patents in progress | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $ 450 | [1] | $ 302 | |
[1] | The primary increase in intangible assets over the prior year is as a result of the BTI Acquisition. |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense of intangible assets | $ 4,600,000 | $ 645,000 | $ 639,000 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Future Expected Amortization Expense (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite lived intangible assets, net | $ 73,318 | [1] | $ 3,123 |
Accessories | |||
Finite-Lived Intangible Assets [Line Items] | |||
2,016 | 11,341 | ||
2,017 | 10,552 | ||
2,018 | 9,798 | ||
2,019 | 8,606 | ||
2,020 | 7,448 | ||
Thereafter | 25,573 | ||
Finite lived intangible assets, net | $ 73,318 | ||
[1] | The primary increase in intangible assets over the prior year is as a result of the BTI Acquisition. |
Summary of Accrued Expenses (De
Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Payables And Accruals [Abstract] | ||
Accrued rebates and promotions | $ 4,126 | $ 2,633 |
Interest payable | 3,362 | 2,194 |
Accrued employee benefits | 3,065 | 2,148 |
Accrued professional fees | 2,335 | 2,374 |
Accrued workers' compensation | 833 | 916 |
Accrued distributor incentives | 761 | 590 |
Accrued other | 4,539 | 6,252 |
Total accrued expenses | $ 19,021 | $ 17,107 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | Apr. 30, 2015 | Apr. 30, 2014 |
5.875% Senior notes due 2017 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt instrument, interest rate | 5.875% | 5.875% |
5.000% Senior Notes due 2018 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt instrument, interest rate | 5.00% | |
(Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 42.1 | $ 68.8 |
Self-Insurance Reserves - Addit
Self-Insurance Reserves - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | |
Commitments And Contingencies Disclosure [Abstract] | ||||
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs | $ 9,610,000 | $ 9,185,000 | $ 9,570,000 | $ 8,980,000 |
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs, Non-current portion | 6,200,000 | 5,800,000 | ||
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs, included in accrued expenses | 3,400,000 | 3,400,000 | ||
Workers' compensation receivable classified as an other asset | 587,000 | 361,000 | ||
Amounts charged to expense | 12,925,000 | 10,721,000 | $ 12,201,000 | |
Accrued reserves for product and municipal litigation liabilities | 3,800,000 | 3,900,000 | ||
Accrued reserves for product and municipal litigation liabilities, Non-current portion | 3,100,000 | 2,800,000 | ||
Receivables from insurance carriers, included in other assets | 1,900,000 | 1,900,000 | ||
Receivables from insurance carriers, included in other current assets | $ 25,000 | $ 25,000 |
Summary of Other Liabilities (D
Summary of Other Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Beginning balance | $ 9,185 | $ 9,570 | $ 8,980 |
Amounts charged to expense | 12,925 | 10,721 | 12,201 |
Payments | (12,500) | (11,106) | (11,611) |
Ending balance | $ 9,610 | $ 9,185 | $ 9,570 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 12 Months Ended | |||||
Apr. 30, 2015USD ($)OptionPlanshares | Apr. 30, 2014USD ($)shares | Apr. 30, 2013USD ($)shares | May. 01, 2014USD ($) | Sep. 23, 2013shares | Sep. 26, 2011shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase authorization | $ | $ 115,000,000 | $ 30,000,000 | ||||
Repurchasing shares | 2,105,315 | |||||
Repurchase shares value | $ | $ 30,040,000 | 115,887,000 | $ 20,000,000 | |||
Fees and expenses incurred related to tender offer and open market purchases | $ | $ 40,000 | 887,000 | ||||
Number of stock option plans | OptionPlan | 2 | |||||
Intrinsic value of stock outstanding | $ | $ 16,100,000 | 20,800,000 | 12,100,000 | |||
Intrinsic value of stock exercisable | $ | 16,000,000 | 17,000,000 | 8,700,000 | |||
Intrinsic value of stock exercised | $ | 2,900,000 | 7,300,000 | 5,100,000 | |||
Unrecognized compensation cost of outstanding options | $ | 1,000 | |||||
Stock-based compensation expense | $ | $ 5,808,000 | $ 8,212,000 | $ 4,073,000 | |||
Performance period | 3 years | |||||
Percentage of maximum aggregate award granted | 200.00% | |||||
Percentage of stock outperform in order for target award to be earned | 5.00% | 10.00% | 10.00% | |||
Grant date fair value of vested RSUs and PSUs | $ | $ 4,000,000 | $ 4,000,000 | $ 726,000 | |||
2011 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Option exercise price per share as a percentage of fair market value | 85.00% | |||||
Number of shares an employee may purchase under the stock purchase plan | 12,500 | |||||
Fair market value of shares an employee may purchase under the stock purchase plan | $ | $ 25,000 | |||||
Shares issued under employee stock purchase plan (in shares) | 161,456 | 176,204 | 185,218 | |||
2011 ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average remaining contractual term | 4 months 28 days | |||||
PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Awarded | 152,000 | |||||
Stock Units, Vested | 2,000 | |||||
Stock Units, Forfeited | 41,250 | 9,000 | 35,000 | |||
PSUs | Without Market Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Awarded | 14,250 | |||||
PSUs | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Awarded | 112,000 | 117,500 | 63,050 | |||
Stock Units, Vested | 30,000 | |||||
PSUs | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Awarded | 320,279 | |||||
Stock Units, Vested | 93,200 | |||||
PSUs | Employees | Without Market Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Awarded | 131,000 | |||||
PSUs | Employees And Consultants | Without Market Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Awarded | 69,637 | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Awarded | 554,933 | 565,556 | ||||
Stock Units, Forfeited | 57,752 | 17,316 | 16,996 | |||
RSUs | Without Market Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Vested | 595,000 | |||||
RSUs | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Awarded | 125,000 | 351,400 | 250,250 | |||
RSUs | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Awarded | 46,639 | 42,238 | 35,000 | |||
RSUs | Non-Executive Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Awarded | 379,433 | 164,918 | 28,029 | |||
RSUs | Consultant | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Awarded | 46,600 | 7,000 | 7,000 | |||
RSUs and PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average remaining contractual term | 1 year 9 months 18 days | |||||
Stock Units, Awarded | 709,672 | 718,056 | 535,329 | |||
Stock Units, Vested | 433,266 | 457,851 | 83,887 | |||
Stock-based compensation expense | $ | $ 6,400,000 | $ 1,800,000 | ||||
Stock Units, Forfeited | 101,002 | 26,316 | 53,996 | |||
Grant date fair value of vested RSUs and PSUs | $ | $ 5,400,000 | $ 5,700,000 | ||||
Unrecognized compensation cost related to unvested RSUs and PSUs | $ | 7,000,000 | |||||
Aggregate intrinsic value of outstanding RSUs and PSUs | $ | $ 3,300,000 | $ 7,100,000 | $ 491,000 | |||
RSUs and PSUs | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Units, Vested | 433,266 | 457,851 | ||||
RSUs and PSUs | Employees And Consultants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ | $ 5,100,000 | |||||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payroll deduction of participant's compensation | 1.00% | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payroll deduction of participant's compensation | 20.00% | |||||
Maximum | 2011 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved under employee stock purchase plan | 6,000,000 | |||||
2013 Incentive Stock Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized of common stock | 3,000,000 | |||||
Period of award vested exercisable | 10 years | |||||
Shares available for grant under incentive stock option | 5,738,521 | |||||
2013 Incentive Stock Plan | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period to award vested and calculate volatility rate | 3 years | |||||
2013 Incentive Stock Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period to award vested and calculate volatility rate | 4 years | |||||
Tender Offer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase authorization | $ | $ 75,000,000 | |||||
Repurchasing shares | 1,417,233 | |||||
Repurchase shares value | $ | $ 15,600,000 | |||||
Open Market | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Repurchasing shares | 8,740,471 | |||||
Repurchase shares value | $ | $ 99,400,000 |
Share Based Compensation Stock
Share Based Compensation Stock Options Activity (Detail) - $ / shares | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Number of shares and weighted average exercise prices | |||
Options outstanding, beginning of year, Shares | 2,258,349 | 3,019,127 | 3,988,164 |
Granted during period, Shares | 3,500 | ||
Exercised during period, Shares | (365,719) | (732,778) | (847,042) |
Canceled/forfeited during period, Shares | (13,000) | (28,000) | (125,495) |
Options outstanding, end of period, Shares | 1,879,630 | 2,258,349 | 3,019,127 |
Weighted average remaining contractual life | 5 years 7 days | 6 years 15 days | 6 years 7 days |
Options exercisable, end of period, Shares | 1,878,464 | 1,873,494 | 2,087,675 |
Weighted average remaining contractual life | 5 years 7 days | 5 years 9 months | 5 years |
Weighted-Average Exercise Price | |||
Options outstanding, beginning of year, Weighted-Average Exercise Price | $ 6.15 | $ 5.31 | $ 4.67 |
Granted during period, Weighted-Average Exercise Price | 11.02 | ||
Exercised during period, Weighted-Average Exercise Price | 4.96 | 2.73 | 4.10 |
Canceled/forfeited during period, Weighted-Average Exercise Price | 7.98 | 5.59 | 3.87 |
Options outstanding, end of period, Weighted-Average Exercise Price | 6.37 | 6.15 | 5.31 |
Options exercisable, end of period, Weighted-Average Exercise Price | $ 6.36 | $ 6.29 | $ 5.38 |
Share Based Payment Award Emplo
Share Based Payment Award Employee Stock Purchase Plan Valuation Assumptions (Detail) | 12 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | [1] | 0.91% | 0.91% | 0.32% |
Dividend yield | [2] | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.07% | 0.08% | 0.13% | |
Expected term | 6 months | 6 months | 6 months | |
Expected volatility | 38.20% | 41.90% | 56.30% | |
Dividend yield | 0.00% | 0.00% | 0.00% | |
Stock Option Grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.31% | |||
Expected volatility | 70.00% | |||
Dividend yield | 0.00% | |||
Stock Option Grants | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 5 years 10 months 2 days | |||
Stock Option Grants | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 7 years 10 months 2 days | |||
[1] | The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period. | |||
[2] | We do not expect to pay dividends in the foreseeable future. |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Compensation Expense for Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 5,808 | $ 8,212 | $ 4,073 |
Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 520 | 332 | 331 |
Selling and Marketing Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 139 | 74 | 39 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 379 | 225 | 92 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4,770 | $ 7,581 | $ 3,611 |
Share Based Payment Award Perfo
Share Based Payment Award Performance Shares Valuation Assumptions (Detail) | 12 Months Ended | |||
Apr. 30, 2015CorrelationCoefficient$ / shares | Apr. 30, 2014CorrelationCoefficient$ / shares | Apr. 30, 2013CorrelationCoefficient$ / shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Correlation coefficient | CorrelationCoefficient | [1] | 0.32 | 0.46 | 0.47 |
Risk-free interest rate | [2] | 0.91% | 0.91% | 0.32% |
Dividend yield | [3] | 0.00% | 0.00% | 0.00% |
Smith & Wesson Holding Corporation | PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair market value | $ 14.90 | $ 15.21 | $ 8.71 | |
Volatility | [4] | 44.51% | 49.85% | 49.28% |
Russell 2000 Index | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair market value | $ 1,246.95 | $ 1,120.83 | $ 935.25 | |
Volatility | [4] | 15.76% | 23.07% | 25.72% |
[1] | The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions. | |||
[2] | The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period. | |||
[3] | We do not expect to pay dividends in the foreseeable future. | |||
[4] | Expected volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years |
Share Based Payment Award Per73
Share Based Payment Award Performance Shares Valuation Assumptions (Parenthetical) (Detail) | 12 Months Ended |
Apr. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Zero-coupon U.S. Treasury bill performance period | 3 years |
U.S. Treasury Bill | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Zero-coupon U.S. Treasury bill performance period | 3 years |
Summary of Activity in Unvested
Summary of Activity in Unvested RSUs and PSUs (Detail) - RSUs and PSUs - $ / shares | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Summary of activity in unvested restricted stock units and performance share units | |||
Restricted Stock Units, RSUs and PSUs outstanding, beginning of year | 1,015,475 | 781,586 | 384,140 |
Restricted Stock Units, Awarded | 709,672 | 718,056 | 535,329 |
Restricted Stock Units, Vested | (433,266) | (457,851) | (83,887) |
Restricted Stock Units, Forfeited | (101,002) | (26,316) | (53,996) |
Restricted Stock Units, RSUs and PSUs outstanding, end of period | 1,190,879 | 1,015,475 | 781,586 |
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 year | $ 10.56 | $ 8.42 | $ 7.91 |
Weighted Average Grant Date Fair Value, Awarded | 11.82 | 11.87 | 9.43 |
Weighted Average Grant Date Fair Value, Vested | 9.18 | 8.75 | 8.71 |
Weighted Average Grant Date Fair Value, Forfeited | 11.93 | 8.88 | 6.14 |
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, end of period | $ 12.45 | $ 10.56 | $ 8.42 |
Employer Sponsored Benefit Pl75
Employer Sponsored Benefit Plans - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Apr. 30, 2015USD ($)InvestmentPlan | Apr. 30, 2014USD ($) | Apr. 30, 2013USD ($) | |
Contributory Defined Investment Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Number of contributory defined investment plan | InvestmentPlan | 2 | ||
Defined contribution plan, employee contribution percentage | 100.00% | ||
Defined contribution plan, matching contribution percentage | 6.00% | ||
Deferred compensation plan description | We offer two contributory defined investment plans covering substantially all employees, subject to service requirements. Employees may contribute up to 100% of their annual pay, depending on the plan. We generally make discretionary matching contributions of up to 50% of the first 6% of employee contributions to the plan. | ||
Employer contribution to defined benefit plan | $ 2.3 | $ 1.9 | $ 1.7 |
Contributory Defined Investment Plan | Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, matching contribution percentage of match | 50.00% | ||
Non-Contributory Profit Sharing Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan service period | 1 year | ||
Employer contribution to defined benefit plan | $ 11.1 | $ 9.6 | |
Defined contribution plan expected contribution | $ 6.2 |
Income Tax Expense from Continu
Income Tax Expense from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Current: | |||
Federal | $ 22,471 | $ 43,470 | $ 38,661 |
State | 4,188 | 6,167 | 5,982 |
Total current | 26,659 | 49,637 | 44,643 |
Deferred: | |||
Deferred federal | 2,274 | (1,352) | 1,508 |
Deferred state | (28) | (190) | 349 |
Total deferred | 2,246 | (1,542) | 1,857 |
Total income tax expense | $ 28,905 | $ 48,095 | $ 46,500 |
Reconciliation of Provision for
Reconciliation of Provision for Income Taxes from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes expected at 35% statutory rate | $ 27,556 | $ 47,853 | $ 44,767 |
State income taxes, less federal income tax benefit | 3,015 | 4,535 | 4,576 |
Employee Stock Purchase Plan | 82 | 77 | 131 |
Business meals and entertainment | 205 | 187 | 107 |
Domestic production activity deduction | (2,462) | (4,325) | (3,708) |
Research and development tax credit | (100) | (100) | (140) |
Change in uncertain tax positions | (265) | 237 | |
Other | 609 | 133 | 530 |
Total income tax expense | $ 28,905 | $ 48,095 | $ 46,500 |
Reconciliation of Provision f78
Reconciliation of Provision for Income Taxes from Continuing Operations (Parenthetical) (Detail) | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes, expected statutory rate | 35.00% | 35.00% | 35.00% |
Deferred Tax Assets (Deferred T
Deferred Tax Assets (Deferred Tax Liabilities) Related to Temporary Differences (Detail) - USD ($) $ in Thousands | Apr. 30, 2015 | Apr. 30, 2014 |
Deferred tax assets (liabilities): | ||
Net deferred tax asset — current | $ 16,373 | $ 17,094 |
Net deferred tax liability — non-current | (33,905) | (11,418) |
Net deferred tax asset/(liability) — total | (17,532) | 5,676 |
Current | ||
Deferred tax assets (liabilities): | ||
Inventories | 9,587 | 8,088 |
Product liability | 276 | 391 |
Accrued expenses, including compensation | 2,934 | 5,991 |
Warranty reserve | 2,449 | 2,114 |
Property taxes | (122) | (78) |
Promotions | 1,497 | 925 |
Less valuation allowance | (510) | (508) |
Other | 262 | 171 |
Net deferred tax asset — current | 16,373 | 17,094 |
Non Current | ||
Deferred tax assets (liabilities): | ||
Net operating loss carryforwards and tax credits | 2,809 | 2,633 |
Environmental reserves | 258 | 238 |
Product liability | 461 | 371 |
Workers' compensation | 991 | 975 |
Warranty reserve | 860 | 785 |
Stock-based compensation | 4,429 | 4,280 |
State bonus depreciation | 1,002 | 828 |
Property taxes | (25,612) | (19,947) |
Intangible assets | (17,083) | 224 |
Transaction costs | 57 | |
Pension | 91 | 48 |
Less valuation allowance | (2,111) | (1,910) |
Net deferred tax liability — non-current | $ (33,905) | $ (11,418) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Income Tax [Line Items] | |||
Gross tax-effected unrecognized tax benefits | $ 91,000 | $ 84,000 | $ 1,091,000 |
Accrued interest and penalties related to uncertain tax positions | 23,000 | 15,000 | |
Smith And Wesson Security Solutions Inc | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | $ 8,200,000 | ||
Acquisition date | Jul. 20, 2009 | ||
Operating carryforward limited in year one | $ 108,000 | ||
Operating carryforward limited in each year thereafter | 108,000 | ||
Federal | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | $ 541,000 | ||
Operating loss carry forwards expiration year | 2,020 | ||
Valuation allowance deferred federal income tax assets | $ 0 | 0 | |
State | |||
Income Tax [Line Items] | |||
Net operating loss carryforwards | 16,800,000 | 16,200,000 | |
Tax credit carryforwards | 3,000,000 | 2,600,000 | |
Valuation allowances for net operating loss carryforward | 700,000 | 686,000 | |
Valuation allowances for tax credits | $ 1,900,000 | $ 1,700,000 | |
State | Minimum | |||
Income Tax [Line Items] | |||
Operating loss carry forwards expiration dates | Apr. 30, 2016 | ||
State tax credit carryforwards expire date | Apr. 30, 2018 | ||
State | Maximum | |||
Income Tax [Line Items] | |||
Operating loss carry forwards expiration dates | Apr. 30, 2033 | ||
State tax credit carryforwards expire date | Apr. 30, 2025 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) | 12 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 84,000 | $ 1,091,000 |
Interest, penalties, and impact of state deductions on federal taxes | 7,000 | (212,000) |
Lapse of statute of limitations | (795,000) | |
Ending balance | $ 91,000 | $ 84,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | ||||
Apr. 30, 2015USD ($)CaseClaim | Apr. 30, 2014USD ($) | Apr. 30, 2013USD ($) | Apr. 30, 2011USD ($) | May. 05, 2014USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | |||||
Number of Product liability cases | Case | 8 | ||||
Number of Other product liability claims | Claim | 9 | ||||
Defense and administrative costs | $ 252,000 | $ 1,000,000 | $ 758,000 | ||
Settlement fees related to product liability cases | 177,000 | 460,000 | 42,000 | ||
Expense related to changes in product liability and municipal litigation liability | 183,000 | 533,000 | 805,000 | ||
Environmental reserve in non-current liabilities | 675,000 | 623,000 | |||
Refundable tax credit award | $ 6,000,000 | ||||
Total tax credits earned | 6,000,000 | ||||
Tax credit receivable recorded | 117,000 | ||||
Rent expense | $ 3,300,000 | $ 2,200,000 | $ 2,200,000 | ||
Scottsdale | Arizona | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Lease Expiration Date | Feb. 28, 2018 | ||||
Rochester | New Hampshire | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Lease Expiration Date | Sep. 30, 2015 | ||||
Deep River | Connecticut | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Lease Expiration Date | May 4, 2024 | ||||
Columbia | Missouri | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Lease Expiration Date | Apr. 30, 2023 | ||||
Tri Town Precision Plastics Inc | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Amount placed in escrow | $ 3,000,000 | ||||
Escrow deposit, remaining amount | $ 2,800,000 | ||||
Potential Lower Limit | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Compensatory damages sought | $ 75,000 | ||||
Maximum | |||||
Schedule Of Commitments And Contingencies [Line Items] | |||||
Compensatory damages sought | $ 1,500,000 |
Lease Commitments (Detail)
Lease Commitments (Detail) $ in Thousands | Apr. 30, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,016 | $ 2,446 |
2,017 | 1,975 |
2,018 | 1,919 |
2,019 | 1,780 |
2,020 | 1,764 |
Thereafter | 5,910 |
Operating Leases, Future Minimum Payments Due, Total | $ 15,794 |
Quarterly Financial Informati84
Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 180,997 | $ 130,550 | $ 108,446 | $ 131,869 | $ 170,425 | $ 145,881 | $ 139,294 | $ 171,020 | $ 551,862 | $ 626,620 | $ 587,514 |
Gross profit | 67,144 | 43,824 | 34,840 | 49,118 | 69,744 | 58,651 | 57,937 | 72,773 | 194,926 | 259,105 | 218,072 |
Income from continuing operations, net of tax | 21,940 | 8,178 | 5,091 | 14,618 | 24,899 | 20,057 | 17,145 | 26,526 | 49,827 | 88,627 | 81,406 |
Income/(loss) from discontinued operations, net of tax | (54) | (57) | (41) | (62) | 157 | 728 | (158) | (49) | (214) | 678 | (2,693) |
Net income | $ 21,886 | $ 8,121 | $ 5,050 | $ 14,556 | $ 25,056 | $ 20,785 | $ 16,987 | $ 26,477 | $ 49,613 | $ 89,305 | $ 78,713 |
Per common share | |||||||||||
Basic - continuing operations | $ 0.41 | $ 0.15 | $ 0.10 | $ 0.27 | $ 0.45 | $ 0.36 | $ 0.29 | $ 0.41 | $ 0.92 | $ 1.51 | $ 1.25 |
Diluted - continuing operations | 0.40 | 0.15 | 0.09 | 0.26 | 0.44 | 0.35 | 0.28 | 0.40 | 0.90 | 1.47 | 1.22 |
Basic - total | 0.41 | 0.15 | 0.09 | 0.27 | 0.45 | 0.37 | 0.28 | 0.41 | 0.92 | 1.52 | 1.21 |
Diluted - total | 0.40 | 0.15 | 0.09 | 0.26 | 0.44 | 0.36 | 0.28 | 0.40 | 0.90 | 1.49 | $ 1.18 |
Market price low | 12.16 | 9.22 | 9.03 | 12.32 | 11.31 | 10.76 | 10.25 | 8.53 | 9.03 | 8.53 | |
Market price high | $ 15.30 | $ 12.68 | $ 13.43 | $ 17.28 | $ 15.70 | $ 15.56 | $ 13.38 | $ 11.96 | $ 17.28 | $ 15.70 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Apr. 30, 2015USD ($)Segment | Apr. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Property, plant, and equipment, net | $ 133,844 | $ 120,440 |
Goodwill | 75,426 | |
Total assets | $ 494,992 | $ 381,503 |
Firearms | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 1 | |
Intangible assets | $ 3,700 | |
Property, plant, and equipment, net | 131,300 | |
Goodwill | 13,800 | |
Total assets | $ 345,300 | |
Accessories | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 1 | |
Intangible assets | $ 70,100 | |
Property, plant, and equipment, net | 2,500 | |
Goodwill | 61,700 | |
Total assets | $ 149,700 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Results by Business Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 180,997 | $ 130,550 | $ 108,446 | $ 131,869 | $ 170,425 | $ 145,881 | $ 139,294 | $ 171,020 | $ 551,862 | $ 626,620 | $ 587,514 | |
Cost of sales | 356,936 | 367,515 | 369,442 | |||||||||
Gross profit | $ 67,144 | $ 43,824 | $ 34,840 | $ 49,118 | $ 69,744 | $ 58,651 | $ 57,937 | $ 72,773 | 194,926 | 259,105 | 218,072 | |
Operating income/(loss) | 89,628 | 150,988 | 132,834 | |||||||||
Income tax expense/(benefit) | 28,905 | 48,095 | 46,500 | |||||||||
Firearms | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 531,222 | $ 626,620 | $ 587,514 | |||||||||
Cost of sales | 342,663 | |||||||||||
Gross profit | 188,559 | |||||||||||
Operating income/(loss) | 92,532 | |||||||||||
Income tax expense/(benefit) | 30,038 | |||||||||||
Accessories | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [1] | 20,640 | ||||||||||
Cost of sales | [1],[2] | 14,273 | ||||||||||
Gross profit | [1] | 6,367 | ||||||||||
Operating income/(loss) | [1],[2] | (2,904) | ||||||||||
Income tax expense/(benefit) | [1] | $ (1,133) | ||||||||||
[1] | Results of operations for the year ended April 30, 2015 include activity for the period subsequent to the BTI Acquisition. We operated under one segment in the prior year, thus no comparative segment information is being presented. Due to the timing of the BTI Acquisition, the segment data above includes all corporate overhead expenses in our firearm segment until we determine our allocation methodology for corporate overhead expenses. | |||||||||||
[2] | Amount includes $4.2 million of additional cost of sales from the fair value step-up in inventory at the date of the BTI Acquisition and $3.6 million related to amortization of intangible assets recorded in general and administrative expenses as a result of the BTI Acquisition. |
Segment Reporting - Schedule 87
Segment Reporting - Schedule of Results by Business Segment (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Segment Reporting Information [Line Items] | |||
Amortization of intangible assets | $ 4,600,000 | $ 645,000 | $ 639,000 |
BTI Acquisition | |||
Segment Reporting Information [Line Items] | |||
Additional cost of goods sold from the fair value | 4,200,000 | ||
Amortization of intangible assets | $ 3,600,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Jun. 15, 2015 | Apr. 30, 2015 |
Subsequent Event [Line Items] | ||
Credit facility, maturity | Jun. 15, 2020 | |
Debt Instrument Maturity Date | Jun. 15, 2020 | |
Subsequent Events | ||
Subsequent Event [Line Items] | ||
Credit facility, maturity | Jun. 15, 2020 | |
Subsequent Events | Term Loan | ||
Subsequent Event [Line Items] | ||
Outstanding debt | $ 105,000,000 | |
Subsequent Events | 5.875% Senior Notes Plus Accrued and Unpaid Interest to Redemption Date | ||
Subsequent Event [Line Items] | ||
Outstanding debt | $ 100,000,000 | |
Debt instrument, interest rate | 5.875% | |
Subsequent Events | Unsecured Revolving Credit Facility | ||
Subsequent Event [Line Items] | ||
Line of credit facility, borrowing capacity | $ 175,000,000 |
Schedule II-Valuation and Qua89
Schedule II-Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | ||
Allowance for doubtful accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning Balance | $ 844 | $ 1,128 | $ 1,058 | |
Charged to Costs and Expenses | (122) | (214) | 720 | |
Charged to Other Accounts | [1] | 127 | ||
Deductions | (127) | (70) | (650) | |
Ending Balance | 722 | 844 | 1,128 | |
Inventory reserve | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning Balance | 12,383 | 9,121 | 6,965 | |
Charged to Costs and Expenses | 4,493 | 4,102 | 2,603 | |
Charged to Other Accounts | [1] | 702 | ||
Deductions | (1,139) | (840) | (447) | |
Ending Balance | 16,439 | 12,383 | 9,121 | |
Deferred tax valuation allowance | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Beginning Balance | 2,418 | 2,458 | 2,127 | |
Charged to Costs and Expenses | 203 | (40) | 331 | |
Ending Balance | $ 2,621 | $ 2,418 | $ 2,458 | |
[1] | Increase in 2015 valuation accounts represents acquired balances related to the DRP and BTI Acquisitions in fiscal 2015. |