Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2016 | Aug. 30, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,208,315 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2016 | Apr. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 215,012 | $ 191,279 |
Accounts receivable, net of allowance for doubtful accounts of $606 on July 31, 2016 and $680 on April 30, 2016 | 55,711 | 57,792 |
Inventories | 87,649 | 77,789 |
Prepaid expenses and other current assets | 6,119 | 4,307 |
Income tax receivable | 1,298 | 2,064 |
Total current assets | 365,789 | 333,231 |
Property, plant, and equipment, net | 145,254 | 135,405 |
Intangibles, net | 60,346 | 62,924 |
Goodwill | 76,357 | 76,357 |
Other assets | 6,937 | 11,586 |
Assets, Total | 654,683 | 619,503 |
Current liabilities: | ||
Accounts payable | 46,753 | 45,513 |
Accrued expenses | 30,252 | 28,447 |
Accrued payroll and incentives | 9,180 | 18,784 |
Accrued income taxes | 12,995 | 5,960 |
Accrued profit sharing | 15,018 | 11,459 |
Accrued warranty | 5,968 | 6,129 |
Current portion of notes payable | 6,300 | 6,300 |
Total current liabilities | 126,466 | 122,592 |
Deferred income taxes | 12,010 | 12,161 |
Notes payable, net of current portion | 165,205 | 166,564 |
Other non-current liabilities | 10,641 | 10,370 |
Total liabilities | 314,322 | 311,687 |
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, 71,714,635 shares issued and 56,152,013 shares outstanding on July 31, 2016 and 71,558,633 shares issued and 55,996,011 shares outstanding on April 30, 2016 | 72 | 72 |
Additional paid-in capital | 239,691 | 239,505 |
Retained earnings | 273,926 | 241,310 |
Accumulated other comprehensive (loss) | (1,005) | (748) |
Treasury stock, at cost (15,562,622 shares on July 31, 2016 and April 30, 2016) | (172,323) | (172,323) |
Total stockholders’ equity | 340,361 | 307,816 |
Liabilities and Equity, Total | $ 654,683 | $ 619,503 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2016 | Apr. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 606 | $ 680 |
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 | 71,714,635 | 71,558,633 |
Common stock, shares outstanding | 56,152,013 | 55,996,011 |
Treasury stock, shares | 15,562,622 | 15,562,622 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | ||
Income Statement [Abstract] | |||
Net sales | [1] | $ 206,951 | $ 147,763 |
Cost of sales | [1] | 119,382 | 88,893 |
Gross profit | [1] | 87,569 | 58,870 |
Operating expenses: | |||
Research and development | 2,152 | 2,396 | |
Selling and marketing | 9,195 | 9,219 | |
General and administrative | 23,698 | 17,438 | |
Total operating expenses | 35,045 | 29,053 | |
Operating income | [1] | 52,524 | 29,817 |
Other (expense)/income: | |||
Other (expense)/income, net | (6) | ||
Interest (expense)/income | (2,012) | (7,200) | |
Total other (expense)/income, net | (2,012) | (7,206) | |
Income from operations before income taxes | 50,512 | 22,611 | |
Income tax expense | [1] | 17,896 | 8,199 |
Net income | 32,616 | 14,412 | |
Comprehensive income/(loss): | |||
Change in unrealized loss on interest rate swap | (408) | (181) | |
Other comprehensive loss, before income taxes | (408) | (181) | |
Income tax benefit on other comprehensive loss | 151 | 65 | |
Other comprehensive loss, net of tax | (257) | (116) | |
Comprehensive income | $ 32,359 | $ 14,296 | |
Net income per share: | |||
Basic | $ 0.58 | $ 0.27 | |
Diluted | $ 0.57 | $ 0.26 | |
Weighted average number of common shares outstanding: | |||
Basic | 56,049 | 54,218 | |
Diluted | 56,883 | 55,477 | |
[1] | We allocate all of corporate overhead expenses except for interest and income taxes, such as general and administrative expenses and other corporate-level expenses, to both our firearm and outdoor products & accessories segments. |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Changes in Stockholders' Equity - 3 months ended Jul. 31, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance at Apr. 30, 2016 | $ 307,816 | $ 72 | $ 239,505 | $ 241,310 | $ (748) | $ (172,323) |
Balance (in shares) at Apr. 30, 2016 | 55,996,011 | 71,559,000 | ||||
Treasury stock, shares at Apr. 30, 2016 | 15,562,622 | 15,563,000 | ||||
Stock-based compensation | $ 1,792 | 1,792 | ||||
Excess tax benefit for stock-based compensation | 2,533 | 2,533 | ||||
Change in unrealized loss on interest rate swap, net of tax effect | (257) | (257) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (4,139) | (4,139) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 156,000 | |||||
Net income | 32,616 | 32,616 | ||||
Balance at Jul. 31, 2016 | $ 340,361 | $ 72 | $ 239,691 | $ 273,926 | $ (1,005) | $ (172,323) |
Balance (in shares) at Jul. 31, 2016 | 56,152,013 | 71,715,000 | ||||
Treasury stock, shares at Jul. 31, 2016 | 15,562,622 | 15,563,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 32,616 | $ 14,412 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,320 | 11,030 |
Loss on sale/disposition of assets | 14 | 63 |
Provision for losses on notes and accounts receivable | 37 | 15 |
Stock-based compensation expense | 1,792 | 1,545 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,044 | 3,730 |
Inventories | (9,860) | (13,191) |
Prepaid expenses and other current assets | (1,913) | (3,509) |
Income taxes | 7,801 | 669 |
Accounts payable | (240) | 2,592 |
Accrued payroll and incentives | (9,604) | 1,810 |
Accrued profit sharing | 3,559 | 1,747 |
Accrued expenses | 1,805 | (4,820) |
Accrued warranty | (161) | (246) |
Other assets | (145) | 698 |
Other non-current liabilities | 12 | 80 |
Net cash provided by operating activities | 38,077 | 16,625 |
Cash flows from investing activities: | ||
Refunds on machinery and equipment | 4,773 | 835 |
Receipts from note receivable | 21 | 21 |
Payments to acquire patents and software | (133) | (66) |
Payments to acquire property and equipment | (15,776) | (7,940) |
Net cash used in investing activities | (11,115) | (7,150) |
Cash flows from financing activities: | ||
Proceeds from loans and notes payable | 105,000 | |
Cash paid for debt issuance costs | (918) | |
Payments on capital lease obligation | (149) | (149) |
Payments on notes payable | (1,575) | (100,000) |
Proceeds from Economic Development Incentive Program | 101 | |
Proceeds from exercise of options to acquire common stock | 634 | |
Payment of employee withholding tax related to restricted stock units | (4,139) | (1,661) |
Excess tax benefit of stock-based compensation | 2,533 | 814 |
Net cash (used in)/provided by financing activities | (3,229) | 3,720 |
Net increase in cash and cash equivalents | 23,733 | 13,195 |
Cash and cash equivalents, beginning of period | 191,279 | 42,222 |
Cash and cash equivalents, end of period | 215,012 | 55,417 |
Supplemental disclosure of cash flow information Cash paid for: | ||
Interest | 2,755 | 8,253 |
Income taxes | 7,685 | $ 6,816 |
Supplemental Disclosure of Non-cash Investing Activities: | ||
Purchases of property and equipment included in accounts payable | $ 3,484 |
Organization
Organization | 3 Months Ended |
Jul. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | (1) Organization: We are one of the world’s leading manufacturers of firearms and a provider of quality accessory products for the shooting, hunting, and rugged outdoor enthusiast. 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. We are also a leading provider of shooting, hunting, and outdoor accessories, including reloading, gunsmithing, gun cleaning supplies, tree saws, and vault accessories. 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 164 year old “Smith & Wesson” brand as well as our other well-known brands by expanding consumer awareness of the products we produce. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (2) Basis of Presentation: Interim Financial Information – The condensed consolidated balance sheet as of July 31, 2016, the condensed consolidated statements of income and comprehensive income for the three months ended July 31, 2016 and 2015, the condensed consolidated statement of changes in stockholders’ equity for the three months ended July 31, 2016, and the condensed consolidated statements of cash flows for the three months ended July 31, 2016 and 2015 have been prepared by us and are unaudited. 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 July 31, 2016 and for the periods presented, have been included. All significant intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2016 has been derived from our audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2016. The results of operations for the three months ended Recently Issued Accounting Standards – In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU 2014-09, Revenue from Contracts with Customers (Topic 606). 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. In August 2015, the FASB issued ASU 2015-14 that deferred the effective date for ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Additionally, in March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies the identification of performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients (Topic 606), which provides clarifying guidance in certain narrow areas and adds some practical expedients. The effective dates for these ASU’s is the same as the effective date for ASU No. 2014-09. We are currently evaluating the impact that these ASUs will have on our condensed consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory - Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Notes Payable
Notes Payable | 3 Months Ended |
Jul. 31, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable | (3) Notes Payable: Credit Facilities – On June 15, 2015, we entered into an unsecured credit facility, or the Credit Agreement, 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, of which $98.7 million remains outstanding as of July 31, 2016. The Revolving Line provides for availability until June 15, 2020 for general corporate purposes, with borrowings to bear interest at a variable rate equal to LIBOR or prime plus an applicable margin based on our consolidated leverage ratio, at our election. As of July 31, 2016, there were no borrowings outstanding on the Revolving Line. 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 1.98% to 2.20% per annum if we had selected the LIBOR rate option. The Term Loan, which bears variable interest at a variable rate, requires principal payments of $6.3 million per annum plus interest, payable quarterly. Any remaining outstanding amount on the maturity date of June 15, 2020 will be due in full. We incurred $1.0 million of debt issuance costs related to our credit facility, which are included in notes payable in the accompanying condensed consolidated balance sheet. We were required to obtain fixed interest rate protection on the Term Loan covering not less than 75% of the aggregate outstanding principal balance of the Term Loan. Accordingly, on June 18, 2015, we entered into an interest rate swap agreement, which expires on June 15, 2020, that covered 100% of the $105.0 million of floating rate debt. On July 6, 2015, we executed an interest rate swap pursuant to such agreement, which requires us to pay interest at a defined rate of 1.56% while receiving interest at a defined variable rate of one-month LIBOR (0.188%). This swap, when combined with the applicable margin based on our consolidated leverage ratio, effectively fixed our interest rate on the Term Loan, which is subject to change based on changes in our consolidated leverage ratio. As of July 31, 2016, our interest rate on the Term Loan is 3.06%. As of July 31, 2016, the interest rate swap was considered effective and had no effect on earnings. The fair value of the interest rate swap on July 31, 2016 was a liability of $1.7 million and was included in other long-term liabilities on our condensed consolidated balance sheet. We do not expect the interest rate swap to have any material effect on earnings within the next 12 months. 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 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. 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 5.000% Senior Notes Indenture is only applicable at such time that the consolidated coverage ratio (as set forth in the 5.000% Senior Notes Indenture) for us and our restricted subsidiaries is less than 3.00 to 1.00. In general, as set forth in the 5.000% Senior Notes Indenture, 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 Credit Agreement for our credit facility contains financial covenants relating to maintaining maximum leverage and minimum debt service coverage. The 5.000% Senior Notes Indenture contains a financial covenant relating to times interest earned. Letters of Credit – At July 31, 2016, we had outstanding letters of credit under our credit facility aggregating $1.0 million. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Jul. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (4) 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 condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1 — Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access at the measurement date (examples include active exchange-traded equity securities, listed derivatives, and most U.S. Government and agency securities). Our cash equivalents, which are measured at fair value on a recurring basis, totaled $215.0 million and $191.3 million as of July 31, 2016 and April 30, 2016, 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 that trade infrequently); · inputs other than quoted prices that are observable for substantially the full term of the asset or liability (such as interest rate and currency swaps); and · inputs that are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability (such as certain securities and derivatives). The fair value of our Term Loan is equal to the carrying value as of July 31, 2016, in considering Level 2 inputs within the hierarchy. The fair value of our 5.000% Senior Notes as of July 31, 2016 is approximate to the carrying value in considering Level 2 inputs within the hierarchy as the Senior Notes are not frequently traded. The fair value of the interest rate swap was estimated by a third party using inputs that are observable or that can be corroborated by observable market data, such as interest rate yield curves, and, therefore, is classified within Level 2 of the valuation hierarchy. For more information regarding the interest rate swap, refer to Note 3. 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. |
Inventories
Inventories | 3 Months Ended |
Jul. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | (5) Inventories: The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or market, as of July 31, 2016 and April 30, 2016 (in thousands): July 31, 2016 April 30, 2016 Finished goods $ 31,742 $ 26,574 Finished parts 36,730 32,804 Work in process 9,659 9,263 Raw material 9,518 9,148 Total inventories $ 87,649 $ 77,789 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Jul. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | (6) Intangible Assets: The following table presents a summary of intangible assets as of July 31, 2016 and April 30, 2016 (in thousands): July 31, 2016 April 30, 2016 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 28,560 $ (7,504 ) $ 21,056 $ 28,560 $ (6,423 ) $ 22,137 Developed technology 16,430 (3,394 ) 13,036 16,430 (2,890 ) 13,540 Patents, trademarks, and trade names 36,208 (10,388 ) 25,820 36,076 (9,262 ) 26,814 81,198 (21,286 ) 59,912 81,066 (18,575 ) 62,491 Patents in progress 434 — 434 433 — 433 $ 81,632 $ (21,286 ) $ 60,346 $ 81,499 $ (18,575 ) $ 62,924 We amortize intangible assets with determinable lives over a weighted-average period of approximately five years. The weighted-average periods of amortization by intangible asset class is approximately five years for customer relationships, six years for developed technology, and five years for patents, trademarks, and trade names. Amortization expense, excluding amortization of deferred financing costs, amounted to $2.7 million and $2.2 million for the three months ended July 31, 2016 and 2015, respectively. Estimated amortization expense of intangible assets for the remainder of fiscal 2017 and succeeding fiscal years is as follows: Fiscal Amount 2017 $ 7,969 2018 9,902 2019 8,676 2020 7,502 2021 6,508 Thereafter 19,355 Total $ 59,912 On an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired, we evaluate the fair value of the indefinite-lived intangible assets to determine if an impairment charge is required. We performed our most recent annual impairment review as of February 1, 2016. There were no events or changes in circumstances that would indicate the fair value of intangible assets was reduced to below its carrying value during the three months ended July 31, 2016, and therefore intangible assets were not tested for impairment. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jul. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | (7) Stockholders’ Equity: Treasury Stock During fiscal 2016, our board of directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions until June 23, 2017. As of July 31, 2016, we made no share repurchases under this stock repurchase program. Earnings per Share The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended July 31, 2016 and 2015 (in thousands, except per share data): For the Three Months Ended July 31, 2016 2015 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 32,616 56,049 $ 0.58 $ 14,412 54,218 $ 0.27 Effect of dilutive stock awards — 834 (0.01 ) — 1,259 (0.01 ) Diluted earnings $ 32,616 56,883 $ 0.57 $ 14,412 55,477 $ 0.26 All of our outstanding stock options and restricted stock units, or RSUs, were included in the computation of diluted earnings per share for the three months ended July 31, 2016 and 2015. Incentive Stock and Employee Stock Purchase Plans We have two stock plans: 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. 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 three months ended July 31, 2016 and 2015 were as follows: For the Three Months Ended July 31, 2016 2015 Weighted Weighted Average Average Shares Exercise Price Shares Exercise Price Options outstanding, beginning of year 389,360 $ 6.16 1,879,630 $ 6.37 Exercised during the period — — (132,599 ) 4.78 Options outstanding, end of period 389,360 $ 6.16 1,747,031 $ 6.49 Weighted average remaining contractual life 4.79 years 5.04 years Options exercisable, end of period 389,360 $ 6.16 1,745,865 $ 6.48 Weighted average remaining contractual life 4.79 years 5.04 years The aggregate intrinsic value of outstanding and exercisable stock options as of July 31, 2016 and 2015 was $9.1 million and $17.0 million, respectively. There were no stock options exercised for the three months ended July 31, 2016. The aggregate intrinsic value of the stock options exercised for the three months ended July 31, 2015 was $1.4 million. At July 31, 2016, there were no unrecognized compensation costs of outstanding options. On September 26, 2011, our stockholders approved our Employee Stock Purchase Plan, or ESPP. All options and rights to participate in our ESPP are nontransferable and subject to forfeiture in accordance with the terms of our ESPP. 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. 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 are 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. 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). The total stock-based compensation expense, including stock options, purchases under our ESPP, RSUs, and performance-based RSUs, or PSUs, was $1.8 million and $1.5 million for the three months ended July 31, 2016 and 2015, respectively. Stock-based compensation expense is included in cost of sales, sales and marketing, research and development, and general and administrative expenses. 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. We amortize the aggregate fair value of our RSU grants 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 certain other 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, using the risk-free interest rate, expected volatility, the correlation coefficient utilizing the same historical price data used to develop the volatility assumptions and dividend yield variables. The market-condition PSUs vest, and the fair value of such PSUs are 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 the fiscal 2014 PSUs, our stock must outperform the RUT by 10% in order for the target award to vest. For our fiscal 2016 and 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 2016 and 2015 PSUs equal to six times the grant-date value of each award. In certain circumstances 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 three months ended July 31, 2016, we granted an aggregate of 159,321 service-based RSUs; including 129,321 RSUs to non-executive officer employees and 30,000 RSUs to a newly hired executive officer. In addition, in connection with a 2013 grant, 118,500 market-condition PSUs vested (i.e. the target amount granted), which achieved 200.0% of the maximum award possible resulting in awards totaling 237,000 shares to certain of our executive officers. Compensation expense recognized related to grants of RSUs and PSUs was $1.6 million for the three months ended July 31, 2016. We delivered common stock to employees during the three months ended July 31, 2016 under vested RSUs and PSUs with a total market value of $10.1 million. During the three months ended July 31, 2015, we granted an aggregate of 163,984 service-based RSUs and 5,379 PSUs without market conditions to non-executive officer employees. In addition, in connection with a 2012 grant, 104,000 market-condition PSUs vested (i.e., the target amount granted), which achieved 173.3% of the maximum award possible resulting in awards totaling 180,231 shares to certain of our executive officers and a former executive officer. Compensation expense recognized related to grants of RSUs and PSUs was $1.4 million for the three months ended July 31, 2015. During the three months ended July 31, 2015, we cancelled 46,663 service-based RSUs and 19,250 market-condition PSUs as a result of the service period condition not being met. We delivered 274,143 shares of common stock to employees during the three months ended July 31, 2015 under vested RSUs and PSUs with a total market value of $4.5 million. A summary of activity in unvested RSUs and PSUs for the three months ended July 31, 2016 and 2015 is as follows: For the Three Months Ended July 31, 2016 2015 Weighted Weighted Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of year 1,215,753 $ 15.38 1,190,879 $ 12.45 Awarded 277,821 13.81 245,594 14.27 Vested (360,709 ) 11.50 (274,143 ) 10.53 Forfeited (9,695 ) 14.19 (65,913 ) 10.16 RSUs and PSUs outstanding, end of period 1,123,170 $ 16.25 1,096,417 $ 13.36 As of July 31, 2016, there was $10.2 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 1.9 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (8) Commitments and Contingencies: Litigation We are a defendant in four product liability cases and are aware of eight other product liability claims, which primarily allege 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 monetary damages, as well as injunctive relief, 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 $350,000. 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 a review of the merit of each claim, we have concluded that we are unable to reasonably estimate the probability or the estimated range of reasonably possible losses related to material adverse judgments related to such claims and, therefore, we have not accrued for any such judgments. To the extent that circumstances change and 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 for adequate reserves for defense costs. We have recorded our liability for defense costs before consideration for reimbursement from insurance carriers. We have also recorded the amounts due as reimbursement under existing policies from the insurance carriers as a receivable shown in other current assets and other assets. At this time, an estimated range of reasonably possible additional losses relating to unfavorable outcomes cannot be made. Environmental Remediation We are subject to numerous federal, state, and local laws that regulate the health and safety of our workforce as well as our environmental liability, including those regulations monitored by the Occupational Health and Safety Administration (OSHA), the National Fire Protection Association (NFPA), and the Department of Public Health (DPH). 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 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 the 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 July 31, 2016 and April 30, 2016, we had recorded a $694,000 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. We calculated the environmental reserve using undiscounted amounts based on independent environmental remediation reports obtained. 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 condensed 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. |
Segment Information
Segment Information | 3 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | (9) Segment Information: We report our results of operations in two segments: firearms and outdoor products & accessories & accessories 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 outdoor products & accessories Segment assets are those directly used in or clearly allocable to an operating segment’s operations. Assets by business segment are presented in the following table as of July 31, 2016 and April 30, 2016 (in thousands As of July 31, 2016 As of April 30, 2016 Firearms Outdoor Products & Accessories Total Firearms Outdoor Products & Accessories Total Total assets $ 496,934 $ 157,749 $ 654,683 $ 458,053 $ 161,450 $ 619,503 Property, plant, and equipment, net 140,983 4,271 145,254 132,274 3,131 135,405 Intangibles, net 2,812 57,534 60,346 2,903 60,021 62,924 Goodwill 13,770 62,587 76,357 13,770 62,587 76,357 Results by business segment are presented in the following tables for the three months ended July 31, 2016 and 2015 (in thousands): For the Three Months Ended July 31, 2016 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 192,400 $ 14,551 $ — $ — $ 206,951 Intersegment revenue 794 62 — (856 ) — Total net sales 193,194 14,613 — (856 ) 206,951 Cost of sales 112,370 7,874 — (862 ) 119,382 Gross margin 80,824 6,739 — 6 87,569 Operating income/(loss) 54,416 (2,885 ) (11,659 ) 12,652 52,524 Income tax expense/(benefit) 20,831 (1,025 ) (1,910 ) — 17,896 For the Three Months Ended July 31, 2015 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 130,255 (b) $ 17,508 (b) $ — $ — $ 147,763 Intersegment revenue — 81 — (81 ) — Total net sales 130,255 17,589 — (81 ) 147,763 Cost of sales 78,792 (b) 10,134 (b) — (33 ) 88,893 Gross margin 51,463 7,455 — (48 ) 58,870 Operating income/(loss) 28,670 1,075 (4,065 ) 4,137 29,817 Income tax expense/(benefit) 11,873 211 (3,885 ) — 8,199 _______________ (a) We allocate all of corporate overhead expenses except for interest and income taxes, such as general and administrative expenses and other corporate-level expenses, to both our firearm and outdoor products & accessories segments. (b) Effective October 1, 2015, our Thompson/Center accessories were transitioned from our firearms segment into our outdoor products & accessories segment. As a result of this transition, we have reclassified $4.2 million and $3.6 million of revenue and cost of sales, respectively, from the firearms segment to the outdoor products & accessories segment for the three months ended July 31, 2015. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jul. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | (10) Subsequent : In August 2016, we acquired substantially all of the net assets of Taylor Brands, LLC and all of the issued and outstanding stock of Crimson Trace Corporation for an aggregate of $180.0 million subject to certain adjustments, utilizing cash on hand. Taylor Brands LLC, based in Kingsport, Tennessee, is a designer and distributor of high quality knives, specialty tools, accessories, and a licensee of our wholly owned subsidiary, Smith & Wesson Corp. Crimson Trace Corporation, based in Wilsonville, Oregon, is a leading provider of laser sight and tactical light products for consumers, law enforcement and security agencies and officers, and military agencies around the globe. The preliminary purchase price allocation has not been completed for these acquisitions as of the date of the filing of this Form 10-Q. We recorded $1.3 million in general and administrative expenses for acquisition-related expenses during the three months ended July 31, 2016 in connection with these acquisitions. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information – The condensed consolidated balance sheet as of July 31, 2016, the condensed consolidated statements of income and comprehensive income for the three months ended July 31, 2016 and 2015, the condensed consolidated statement of changes in stockholders’ equity for the three months ended July 31, 2016, and the condensed consolidated statements of cash flows for the three months ended July 31, 2016 and 2015 have been prepared by us and are unaudited. 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 July 31, 2016 and for the periods presented, have been included. All significant intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2016 has been derived from our audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2016. The results of operations for the three months ended |
Recently Issued Accounting Standards | Recently Issued Accounting Standards – In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU 2014-09, Revenue from Contracts with Customers (Topic 606). 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. In August 2015, the FASB issued ASU 2015-14 that deferred the effective date for ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Additionally, in March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies the identification of performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients (Topic 606), which provides clarifying guidance in certain narrow areas and adds some practical expedients. The effective dates for these ASU’s is the same as the effective date for ASU No. 2014-09. We are currently evaluating the impact that these ASUs will have on our condensed consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory - Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
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 July 31, 2016 and April 30, 2016 (in thousands): July 31, 2016 April 30, 2016 Finished goods $ 31,742 $ 26,574 Finished parts 36,730 32,804 Work in process 9,659 9,263 Raw material 9,518 9,148 Total inventories $ 87,649 $ 77,789 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table presents a summary of intangible assets as of July 31, 2016 and April 30, 2016 (in thousands): July 31, 2016 April 30, 2016 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 28,560 $ (7,504 ) $ 21,056 $ 28,560 $ (6,423 ) $ 22,137 Developed technology 16,430 (3,394 ) 13,036 16,430 (2,890 ) 13,540 Patents, trademarks, and trade names 36,208 (10,388 ) 25,820 36,076 (9,262 ) 26,814 81,198 (21,286 ) 59,912 81,066 (18,575 ) 62,491 Patents in progress 434 — 434 433 — 433 $ 81,632 $ (21,286 ) $ 60,346 $ 81,499 $ (18,575 ) $ 62,924 |
Schedule of Future Expected Amortization Expense | Estimated amortization expense of intangible assets for the remainder of fiscal 2017 and succeeding fiscal years is as follows: Fiscal Amount 2017 $ 7,969 2018 9,902 2019 8,676 2020 7,502 2021 6,508 Thereafter 19,355 Total $ 59,912 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Equity [Abstract] | |
Reconciliation of Net Income Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings per Share | The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended July 31, 2016 and 2015 (in thousands, except per share data): For the Three Months Ended July 31, 2016 2015 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 32,616 56,049 $ 0.58 $ 14,412 54,218 $ 0.27 Effect of dilutive stock awards — 834 (0.01 ) — 1,259 (0.01 ) Diluted earnings $ 32,616 56,883 $ 0.57 $ 14,412 55,477 $ 0.26 |
Share Based Compensation Stock Options Activity | The number of shares and weighted average exercise prices of options for the three months ended July 31, 2016 and 2015 were as follows: For the Three Months Ended July 31, 2016 2015 Weighted Weighted Average Average Shares Exercise Price Shares Exercise Price Options outstanding, beginning of year 389,360 $ 6.16 1,879,630 $ 6.37 Exercised during the period — — (132,599 ) 4.78 Options outstanding, end of period 389,360 $ 6.16 1,747,031 $ 6.49 Weighted average remaining contractual life 4.79 years 5.04 years Options exercisable, end of period 389,360 $ 6.16 1,745,865 $ 6.48 Weighted average remaining contractual life 4.79 years 5.04 years |
Summary of Activity in Unvested RSUs and PSUs | A summary of activity in unvested RSUs and PSUs for the three months ended July 31, 2016 and 2015 is as follows: For the Three Months Ended July 31, 2016 2015 Weighted Weighted Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of year 1,215,753 $ 15.38 1,190,879 $ 12.45 Awarded 277,821 13.81 245,594 14.27 Vested (360,709 ) 11.50 (274,143 ) 10.53 Forfeited (9,695 ) 14.19 (65,913 ) 10.16 RSUs and PSUs outstanding, end of period 1,123,170 $ 16.25 1,096,417 $ 13.36 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Assets by Business Segment | Assets by business segment are presented in the following table as of July 31, 2016 and April 30, 2016 (in thousands As of July 31, 2016 As of April 30, 2016 Firearms Outdoor Products & Accessories Total Firearms Outdoor Products & Accessories Total Total assets $ 496,934 $ 157,749 $ 654,683 $ 458,053 $ 161,450 $ 619,503 Property, plant, and equipment, net 140,983 4,271 145,254 132,274 3,131 135,405 Intangibles, net 2,812 57,534 60,346 2,903 60,021 62,924 Goodwill 13,770 62,587 76,357 13,770 62,587 76,357 |
Schedule of Results by Business Segment | Results by business segment are presented in the following tables for the three months ended July 31, 2016 and 2015 (in thousands): For the Three Months Ended July 31, 2016 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 192,400 $ 14,551 $ — $ — $ 206,951 Intersegment revenue 794 62 — (856 ) — Total net sales 193,194 14,613 — (856 ) 206,951 Cost of sales 112,370 7,874 — (862 ) 119,382 Gross margin 80,824 6,739 — 6 87,569 Operating income/(loss) 54,416 (2,885 ) (11,659 ) 12,652 52,524 Income tax expense/(benefit) 20,831 (1,025 ) (1,910 ) — 17,896 For the Three Months Ended July 31, 2015 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 130,255 (b) $ 17,508 (b) $ — $ — $ 147,763 Intersegment revenue — 81 — (81 ) — Total net sales 130,255 17,589 — (81 ) 147,763 Cost of sales 78,792 (b) 10,134 (b) — (33 ) 88,893 Gross margin 51,463 7,455 — (48 ) 58,870 Operating income/(loss) 28,670 1,075 (4,065 ) 4,137 29,817 Income tax expense/(benefit) 11,873 211 (3,885 ) — 8,199 _______________ (a) We allocate all of corporate overhead expenses except for interest and income taxes, such as general and administrative expenses and other corporate-level expenses, to both our firearm and outdoor products & accessories segments. (b) Effective October 1, 2015, our Thompson/Center accessories were transitioned from our firearms segment into our outdoor products & accessories segment. As a result of this transition, we have reclassified $4.2 million and $3.6 million of revenue and cost of sales, respectively, from the firearms segment to the outdoor products & accessories segment for the three months ended July 31, 2015. |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - USD ($) | 3 Months Ended | ||||
Jul. 31, 2016 | Jul. 06, 2015 | Jun. 18, 2015 | Jun. 15, 2015 | Apr. 30, 2015 | |
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, with borrowings to bear interest at a variable rate equal to LIBOR or prime plus an applicable margin based on our consolidated leverage ratio, at our election. | ||||
Percentage of interest rate protection on term loan | 75.00% | ||||
Fair value of the interest rate swap liability | $ 1,700,000 | ||||
Senior Notes Indenture, number of shares allowed for repurchase | $ 50,000,000 | ||||
Maximum consolidated coverage ratio | 300.00% | ||||
Minimum consolidated coverage ratio | 100.00% | ||||
Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Percentage of floating rate debt covered | 100.00% | ||||
Derivative, Notional Amount | $ 105,000,000 | ||||
Derivative, Maturity Date | Jun. 15, 2020 | ||||
Derivative, Fixed Interest Rate | 1.56% | ||||
Derivative, Variable Interest Rate Of one-month LIBOR | 0.188% | ||||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 98,700,000 | $ 105,000,000 | |||
Principal payments per annum | 6,300,000 | ||||
Debt Issuance Cost | $ 1,000,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.06% | ||||
5.000% Senior Notes due 2018 | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Cost | $ 2,300,000 | ||||
Notes issued | $ 75,000,000 | ||||
Debt instrument, interest rate | 5.00% | 5.00% | |||
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 | ||||
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 Scenario One | |||||
Debt Instrument [Line Items] | |||||
Redemption price of senior notes | 102.50% | ||||
5.000% Senior Notes due 2018 | Debt Instrument Redemption Scenario Two | |||||
Debt Instrument [Line Items] | |||||
Redemption price of senior notes | 100.00% | ||||
5.000% Senior Notes due 2018 | Minimum | |||||
Debt Instrument [Line Items] | |||||
Notice period of senior notes | 30 days | ||||
Senior Notes Indenture, number of shares allowed for repurchase | $ 50,000,000 | ||||
5.000% Senior Notes due 2018 | Maximum | |||||
Debt Instrument [Line Items] | |||||
Notice period of senior notes | 60 days | ||||
Senior Notes Indenture, number of shares allowed for repurchase | $ 75,000,000 | ||||
Unsecured Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, borrowing capacity | $ 175,000,000 | ||||
Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Borrowings outstanding | 0 | ||||
Outstanding letters of credit | $ 1,000,000 | ||||
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 | 1.98% | ||||
Credit Facilities | LIBOR Rate Option | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate on borrowings | 2.20% |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | Jul. 31, 2016 | Apr. 30, 2016 | Apr. 30, 2015 |
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% | 5.00% | |
(Level 1) | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Cash equivalents | $ 215 | $ 191.3 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jul. 31, 2016 | Apr. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 31,742 | $ 26,574 |
Finished parts | 36,730 | 32,804 |
Work in process | 9,659 | 9,263 |
Raw material | 9,518 | 9,148 |
Total inventories | $ 87,649 | $ 77,789 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Jul. 31, 2016 | Apr. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Gross Carrying Amount | $ 81,198 | $ 81,066 |
Finite lived intangible assets, Accumulated Amortization | (21,286) | (18,575) |
Finite lived intangible assets, Net Carrying Amount | 59,912 | 62,491 |
Intangible assets, Gross Carrying Amount | 81,632 | 81,499 |
Intangible assets, Net Carrying Amount | 60,346 | 62,924 |
Patents in progress | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deposits on patents | 434 | 433 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Gross Carrying Amount | 28,560 | 28,560 |
Finite lived intangible assets, Accumulated Amortization | (7,504) | (6,423) |
Finite lived intangible assets, Net Carrying Amount | 21,056 | 22,137 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Gross Carrying Amount | 16,430 | 16,430 |
Finite lived intangible assets, Accumulated Amortization | (3,394) | (2,890) |
Finite lived intangible assets, Net Carrying Amount | 13,036 | 13,540 |
Patents, trademarks, and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Gross Carrying Amount | 36,208 | 36,076 |
Finite lived intangible assets, Accumulated Amortization | (10,388) | (9,262) |
Finite lived intangible assets, Net Carrying Amount | $ 25,820 | $ 26,814 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense of intangible assets | $ 2.7 | $ 2.2 |
Weighted-average period for amortization of intangible assets | 5 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average period for amortization of intangible assets | 5 years | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average period for amortization of intangible assets | 6 years | |
Patents, trademarks, and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average period for amortization of intangible assets | 5 years |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Future Expected Amortization Expense (Detail) - USD ($) $ in Thousands | Jul. 31, 2016 | Apr. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets, Net Carrying Amount | $ 59,912 | $ 62,491 |
Accessories | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,017 | 7,969 | |
2,018 | 9,902 | |
2,019 | 8,676 | |
2,020 | 7,502 | |
2,021 | 6,508 | |
Thereafter | 19,355 | |
Finite lived intangible assets, Net Carrying Amount | $ 59,912 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2016USD ($)OptionPlanshares | Jul. 31, 2015USD ($)shares | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase authorization | $ | $ 50,000,000 | ||||
Repurchase of common stock | 0 | ||||
Number of stock option plans | OptionPlan | 2 | ||||
Intrinsic value of stock outstanding | $ | $ 9,100,000 | $ 17,000,000 | |||
Intrinsic value of stock exercisable | $ | 9,100,000 | 17,000,000 | |||
Intrinsic value of stock exercised | $ | 0 | 1,400,000 | |||
Unrecognized compensation cost of outstanding options | $ | 0 | ||||
Stock-based compensation expense | $ | $ 1,800,000 | $ 1,500,000 | |||
Performance period | 3 years | ||||
Percentage of maximum aggregate award granted | 200.00% | ||||
Percentage of stock outperform in order for target award to vest | 5.00% | 5.00% | 10.00% | ||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 159,321 | ||||
Stock Units, Forfeited | 46,663 | ||||
RSUs | Non-Executive Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 129,321 | ||||
RSUs | Non-Executive Employees | Without Market Conditions | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 163,984 | ||||
RSUs | Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 30,000 | ||||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 118,500 | 104,000 | |||
Share based payment award percentage of award achieved | 200.00% | 173.30% | |||
Stock Units, Forfeited | 19,250 | ||||
PSUs | Non-Executive Employees | Without Market Conditions | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 5,379 | ||||
PSUs | Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, vested | 237,000 | 180,231 | |||
RSUs and PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ | $ 1,600,000 | $ 1,400,000 | |||
Stock units, awarded | 277,821 | 245,594 | |||
Stock units, vested | 360,709 | 274,143 | |||
Value of shares issued for vested awards | $ | $ 10,100,000 | $ 4,500,000 | |||
Stock Units, Forfeited | 9,695 | 65,913 | |||
Weighted average remaining contractual term | 1 year 10 months 24 days | ||||
Unrecognized compensation cost related to unvested RSUs and PSUs | $ | $ 10,200,000 | ||||
RSUs and PSUs | Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, vested | 274,143 | ||||
2013 Incentive Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period of award vested exercisable | 10 years | ||||
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 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Net Income Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income | $ 32,616 | $ 14,412 |
Basic earnings, Shares | 56,049 | 54,218 |
Effect of dilutive stock awards, Shares | 834 | 1,259 |
Diluted earnings, Shares | 56,883 | 55,477 |
Basic earnings, Per Share Amount | $ 0.58 | $ 0.27 |
Effect of dilutive stock awards, Per Share Amount | (0.01) | (0.01) |
Diluted earnings, Per Share Amount | $ 0.57 | $ 0.26 |
Stockholders' Equity - Share Ba
Stockholders' Equity - Share Based Compensation Stock Options Activity (Detail) - $ / shares | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Number of shares and weighted average exercise prices | ||
Options outstanding, beginning of year, Shares | 389,360 | 1,879,630 |
Exercised during the period, Shares | (132,599) | |
Options outstanding, end of period, Shares | 389,360 | 1,747,031 |
Weighted average remaining contractual life | 4 years 9 months 15 days | 5 years 15 days |
Options exercisable, end of period, Shares | 389,360 | 1,745,865 |
Weighted average remaining contractual life | 4 years 9 months 15 days | 5 years 15 days |
Weighted-Average Exercise Price | ||
Options outstanding, beginning of year, Weighted-Average Exercise Price | $ 6.16 | $ 6.37 |
Exercised during period, Weighted-Average Exercise Price | 4.78 | |
Options outstanding, end of period, Weighted-Average Exercise Price | 6.16 | 6.49 |
Options exercisable, end of period, Weighted-Average Exercise Price | $ 6.16 | $ 6.48 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activity in Unvested RSUs and PSUs (Detail) - RSUs and PSUs - $ / shares | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Summary of activity in unvested restricted stock units and performance share units | ||
Restricted Stock Units, RSUs and PSUs outstanding, beginning of year | 1,215,753 | 1,190,879 |
Restricted Stock Units, Awarded | 277,821 | 245,594 |
Restricted Stock Units, Vested | (360,709) | (274,143) |
Restricted Stock Units, Forfeited | (9,695) | (65,913) |
Restricted Stock Units, RSUs and PSUs outstanding, end of period | 1,123,170 | 1,096,417 |
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 | $ 15.38 | $ 12.45 |
Weighted Average Grant Date Fair Value, Awarded | 13.81 | 14.27 |
Weighted Average Grant Date Fair Value, Vested | 11.50 | 10.53 |
Weighted Average Grant Date Fair Value, Forfeited | 14.19 | 10.16 |
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, end of period | $ 16.25 | $ 13.36 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | |
Jul. 31, 2016USD ($)CaseClaim | Apr. 30, 2016USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | ||
Number of Product liability cases | Case | 5 | |
Number of Other product liability claims | Claim | 8 | |
Environmental reserve in non-current liabilities | $ 694,000 | $ 694,000 |
Minimum | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Compensatory damages sought | 75,000 | |
Maximum | ||
Schedule Of Commitments And Contingencies [Line Items] | ||
Compensatory damages sought | $ 350,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Jul. 31, 2016Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
Firearms Division | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
Outdoor Products & Accessories Division | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
Segment Information - Schedule
Segment Information - Schedule of Assets by Business Segment (Detail) - USD ($) $ in Thousands | Jul. 31, 2016 | Apr. 30, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 654,683 | $ 619,503 |
Property, plant, and equipment, net | 145,254 | 135,405 |
Intangibles, net | 60,346 | 62,924 |
Goodwill | 76,357 | 76,357 |
Firearms Division | ||
Segment Reporting Information [Line Items] | ||
Total assets | 496,934 | 458,053 |
Property, plant, and equipment, net | 140,983 | 132,274 |
Intangibles, net | 2,812 | 2,903 |
Goodwill | 13,770 | 13,770 |
Outdoor Products & Accessories | ||
Segment Reporting Information [Line Items] | ||
Total assets | 157,749 | 161,450 |
Property, plant, and equipment, net | 4,271 | 3,131 |
Intangibles, net | 57,534 | 60,021 |
Goodwill | $ 62,587 | $ 62,587 |
Segment Information - Schedul35
Segment Information - Schedule of Results by Business Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | |||
Segment Reporting Information [Line Items] | ||||
Total net sales | [1] | $ 206,951 | $ 147,763 | |
Cost of sales | [1] | 119,382 | 88,893 | |
Gross margin | [1] | 87,569 | 58,870 | |
Operating income/(loss) | [1] | 52,524 | 29,817 | |
Income tax expense/(benefit) | [1] | 17,896 | 8,199 | |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | [1] | (856) | (81) | |
Cost of sales | [1] | (862) | (33) | |
Gross margin | [1] | 6 | (48) | |
Operating income/(loss) | [1] | 12,652 | 4,137 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | [1] | 206,951 | 147,763 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income/(loss) | [1] | (11,659) | (4,065) | |
Income tax expense/(benefit) | [1] | (1,910) | (3,885) | |
Firearms Division | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | [1] | 192,400 | 130,255 | [2] |
Firearms Division | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | [1] | 794 | ||
Firearms Division | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | [1] | 193,194 | 130,255 | |
Cost of sales | [1] | 112,370 | 78,792 | [2] |
Gross margin | [1] | 80,824 | 51,463 | |
Operating income/(loss) | [1] | 54,416 | 28,670 | |
Income tax expense/(benefit) | [1] | 20,831 | 11,873 | |
Outdoor Products & Accessories | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | [1] | 14,551 | 17,508 | [2] |
Outdoor Products & Accessories | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | [1] | 62 | 81 | |
Outdoor Products & Accessories | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | [1] | 14,613 | 17,589 | |
Cost of sales | [1] | 7,874 | 10,134 | [2] |
Gross margin | [1] | 6,739 | 7,455 | |
Operating income/(loss) | [1] | (2,885) | 1,075 | |
Income tax expense/(benefit) | [1] | $ (1,025) | $ 211 | |
[1] | We allocate all of corporate overhead expenses except for interest and income taxes, such as general and administrative expenses and other corporate-level expenses, to both our firearm and outdoor products & accessories segments. | |||
[2] | Effective October 1, 2015, our Thompson/Center accessories were transitioned from our firearms segment into our outdoor products & accessories segment. As a result of this transition, we have reclassified $4.2 million and $3.6 million of revenue and cost of sales, respectively, from the firearms segment to the outdoor products & accessories segment for the three months ended July 31, 2015. |
Segment Information - Schedul36
Segment Information - Schedule of Results by Business Segment (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | |||
Segment Reporting Information [Line Items] | ||||
Total net sales | [1] | $ 206,951 | $ 147,763 | |
Cost of sales | [1] | 119,382 | 88,893 | |
Outdoor Products & Accessories | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | [1] | $ 14,551 | 17,508 | [2] |
Transition Reclassified | Outdoor Products & Accessories | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 4,200 | |||
Cost of sales | $ 3,600 | |||
[1] | We allocate all of corporate overhead expenses except for interest and income taxes, such as general and administrative expenses and other corporate-level expenses, to both our firearm and outdoor products & accessories segments. | |||
[2] | Effective October 1, 2015, our Thompson/Center accessories were transitioned from our firearms segment into our outdoor products & accessories segment. As a result of this transition, we have reclassified $4.2 million and $3.6 million of revenue and cost of sales, respectively, from the firearms segment to the outdoor products & accessories segment for the three months ended July 31, 2015. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Taylor Brands, LLC and Crimson Trace Corporation - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Aug. 31, 2016 | Jul. 31, 2016 | |
Subsequent Event [Line Items] | ||
Business combination, acquisition-related costs | $ 1.3 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Payments to acquire business, net of cash acquired | $ 180 |