Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2016 | Nov. 28, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 56,331,314 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2016 | Apr. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 73,896 | $ 191,279 |
Accounts receivable, net of allowance for doubtful accounts of $805 on October 31, 2016 and $680 on April 30, 2016 | 69,959 | 57,792 |
Inventories | 116,497 | 77,789 |
Prepaid expenses and other current assets | 7,360 | 4,307 |
Income tax receivable | 6,000 | 2,064 |
Total current assets | 273,712 | 333,231 |
Property, plant, and equipment, net | 151,499 | 135,405 |
Intangibles, net | 139,152 | 62,924 |
Goodwill | 157,250 | 76,357 |
Other assets | 6,643 | 11,586 |
Assets, Total | 728,256 | 619,503 |
Current liabilities: | ||
Accounts payable | 52,767 | 45,513 |
Accrued expenses | 33,627 | 28,447 |
Accrued payroll and incentives | 14,745 | 18,784 |
Accrued income taxes | 223 | 5,960 |
Accrued profit sharing | 6,760 | 11,459 |
Accrued warranty | 6,343 | 6,129 |
Current portion of notes payable | 6,300 | 6,300 |
Total current liabilities | 120,765 | 122,592 |
Deferred income taxes | 32,953 | 12,161 |
Notes payable, net of current portion | 188,323 | 166,564 |
Other non-current liabilities | 9,718 | 10,370 |
Total liabilities | 351,759 | 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, 71,839,096 shares issued and 56,276,463 shares outstanding on October 31, 2016 and 71,558,633 shares issued and 55,996,011 shares outstanding on April 30, 2016 | 72 | 72 |
Additional paid-in capital | 240,208 | 239,505 |
Retained earnings | 309,016 | 241,310 |
Accumulated other comprehensive loss | (476) | (748) |
Treasury stock, at cost (15,562,622 shares on October 31, 2016 and April 30, 2016) | (172,323) | (172,323) |
Total stockholders’ equity | 376,497 | 307,816 |
Liabilities and Equity, Total | $ 728,256 | $ 619,503 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2016 | Apr. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 805 | $ 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 | 71,839,096 | 71,558,633 |
Common stock, shares outstanding | 56,276,463 | 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 | 6 Months Ended | |||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | ||
Income Statement [Abstract] | |||||
Net sales | [1] | $ 233,528 | $ 143,242 | $ 440,479 | $ 291,005 |
Cost of sales | [1] | 135,923 | 87,027 | 255,305 | 175,920 |
Gross profit | [1] | 97,605 | 56,215 | 185,174 | 115,085 |
Operating expenses: | |||||
Research and development | 2,698 | 2,695 | 4,851 | 5,091 | |
Selling and marketing | 12,527 | 12,536 | 21,721 | 21,754 | |
General and administrative | 30,229 | 19,202 | 53,926 | 36,640 | |
Total operating expenses | 45,454 | 34,433 | 80,498 | 63,485 | |
Operating income | [1] | 52,151 | 21,782 | 104,676 | 51,600 |
Other (expense)/income: | |||||
Other (expense)/income | (30) | (5) | (30) | (12) | |
Interest (expense)/income | (2,175) | (2,296) | (4,188) | (9,496) | |
Total other (expense)/income | (2,205) | (2,301) | (4,218) | (9,508) | |
Income from operations before income taxes | 49,946 | 19,481 | 100,458 | 42,092 | |
Income tax expense | [1] | 17,463 | 7,015 | 32,752 | 15,214 |
Net income | 32,483 | 12,466 | 67,706 | 26,878 | |
Comprehensive income/(loss): | |||||
Change in unrealized income/(loss) on interest rate swap | 814 | (302) | 406 | (483) | |
Other comprehensive income/(loss), before income taxes | 814 | (302) | 406 | (483) | |
Income tax (expense)/benefit on other comprehensive income/(loss) | (285) | 112 | (134) | 177 | |
Other comprehensive income/(loss), net of tax | 529 | (190) | 272 | (306) | |
Comprehensive income | $ 33,012 | $ 12,276 | $ 67,978 | $ 26,572 | |
Net income per share: | |||||
Basic | $ 0.58 | $ 0.23 | $ 1.21 | $ 0.49 | |
Diluted | $ 0.57 | $ 0.22 | $ 1.18 | $ 0.48 | |
Weighted average number of common shares outstanding: | |||||
Basic | 56,231 | 54,447 | 56,140 | 54,333 | |
Diluted | 57,136 | 55,668 | 57,145 | 55,621 | |
[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 Firearms and Outdoor Products & Accessories segments. |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Changes in Stockholders' Equity - 6 months ended Oct. 31, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income/(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 | $ 3,918 | 3,918 | ||||
Shares issued under employee stock purchase plan | $ 948 | 948 | ||||
Shares issued under employee stock purchase plan (in shares) | 66,812 | 67,000 | ||||
Change in unrealized income on interest rate swap, net of tax effect | $ 272 | 272 | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (4,163) | (4,163) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 213,000 | |||||
Net income | 67,706 | 67,706 | ||||
Balance at Oct. 31, 2016 | $ 376,497 | $ 72 | $ 240,208 | $ 309,016 | $ (476) | $ (172,323) |
Balance (in shares) at Oct. 31, 2016 | 56,276,463 | 71,839,000 | ||||
Treasury stock, shares at Oct. 31, 2016 | 15,562,622 | 15,563,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2016 | Oct. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 67,706 | $ 26,878 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23,772 | 21,066 |
Loss on sale/disposition of assets | 104 | 19 |
Provision for/(recoveries of) losses on notes and accounts receivable | 308 | (72) |
Stock-based compensation expense | 3,918 | 3,247 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,538) | 5,199 |
Inventories | (14,349) | (24,002) |
Prepaid expenses and other current assets | (2,775) | (587) |
Income taxes | (9,676) | (10,700) |
Accounts payable | 1,111 | (1,022) |
Accrued payroll and incentives | (4,728) | 5,872 |
Accrued profit sharing | (4,699) | (2,513) |
Accrued expenses | 4,235 | 989 |
Accrued warranty | 116 | (184) |
Other assets | (183) | (156) |
Other non-current liabilities | 52 | (1,273) |
Net cash provided by operating activities | 61,374 | 22,761 |
Cash flows from investing activities: | ||
Acquisition of businesses, net of cash acquired | (178,059) | |
Refunds on machinery and equipment | 5,083 | 4,222 |
Receipts from note receivable | 43 | 41 |
Payments to acquire patents and software | (425) | (136) |
Proceeds from sale of property and equipment | 61 | |
Payments to acquire property and equipment | (23,312) | (18,352) |
Net cash used in investing activities | (196,670) | (14,164) |
Cash flows from financing activities: | ||
Proceeds from loans and notes payable | 50,000 | 105,000 |
Cash paid for debt issuance costs | (525) | (1,024) |
Payments on capital lease obligation | (298) | (298) |
Payments on notes payable | (28,150) | (101,575) |
Proceeds from Economic Development Incentive Program | 101 | |
Proceeds from exercise of options to acquire common stock, including employee stock purchase plan | 948 | 1,758 |
Payment of employee withholding tax related to restricted stock units | (4,163) | (1,690) |
Excess tax benefit of stock-based compensation | 1,074 | |
Net cash provided by financing activities | 17,913 | 3,245 |
Net increase/(decrease) in cash and cash equivalents | (117,383) | 11,842 |
Cash and cash equivalents, beginning of period | 191,279 | 42,222 |
Cash and cash equivalents, end of period | 73,896 | 54,064 |
Supplemental disclosure of cash flow information Cash paid for: | ||
Interest | 3,802 | 9,271 |
Income taxes | 42,609 | $ 24,936 |
Supplemental Disclosure of Non-cash Investing Activities: | ||
Purchases of property and equipment included in accounts payable | $ 3,082 |
Organization
Organization | 6 Months Ended |
Oct. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | (1) Organization: We are one of the world’s leading providers of firearms and quality 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, and law enforcement and security agencies and officers in the United States and throughout the world. We are also a leading provider of outdoor products & accessories, including, reloading, gunsmithing, gun cleaning supplies, tree saws, laser sights, tactical lights, tools and knives, flashlights, soft goods, and vault accessories. We manufacture firearm components at our facilities in Springfield, Massachusetts; Houlton, Maine; and Deep River, Connecticut and develop, assemble, and market our firearm products in our Springfield, Massachusetts facility. We develop, source, market, and distribute our outdoor and accessories products at our facilities in Columbia, Missouri and Kingsport, Tennessee. We develop, market, and assemble our electro-optics products in our Wilsonville, Oregon facility. We sell our products under a variety of brands, including the Smith & Wesson ® ® TM ® ® ® ® ® ® TM ® ® ® ® ® TM On August 1, 2016, we acquired substantially all of the net assets of Taylor Brands, LLC, and on August 26, 2016 we acquired all of the issued and outstanding stock of Crimson Trace Corporation. See note 3 – Acquisitions |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Oct. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (2) Basis of Presentation: Interim Financial Information – The condensed consolidated balance sheet as of October 31, 2016, the condensed consolidated statements of income and comprehensive income for the three and six months ended October 31, 2016 and 2015, the condensed consolidated statement of changes in stockholders’ equity for the six months ended October 31, 2016, and the condensed consolidated statements of cash flows for the six months ended October 31, 2016 and 2015 have been prepared by us without audit. In our opinion, all adjustments, which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, changes in stockholders’ equity, and cash flows at October 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 six 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 Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients 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 |
Acquisitions
Acquisitions | 6 Months Ended |
Oct. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | (3) Acquisitions During the three months ended October 31, 2016, we acquired substantially all of the net assets of Taylor Brands, LLC as well as all of the issued and outstanding stock of Crimson Trace Corporation for an aggregate of $178.1 million, net of cash acquired, 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, and 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, security agencies, and military agencies around the globe. We are finalizing the valuations of the assets acquired and liabilities assumed related to both acquisitions. Therefore, the fair values set forth herein are subject to further adjustments as we obtain additional information during the respective measurement periods, which will not exceed 12 months from the date of each acquisition. The acquisitions will necessitate the use of this measurement period to adequately analyze and assess a number of factors used in establishing the asset and liability fair values as of each acquisition date, including the significant contractual and operational factors underlying the trade name, developed technology, and customer relationship intangible assets and the related tax impacts of any changes made. The following table summarizes the estimated preliminary allocation of the purchase price for these acquisitions. During the Three Months Ended October 31, 2016 Accounts receivable $ 8,937 Inventories 24,359 Other current assets 379 Property, plant, and equipment 6,851 Intangibles 84,100 Goodwill 80,893 Total assets acquired 205,519 Accounts payable 5,066 Accrued expenses 946 Accrued payroll 689 Accrued income taxes 3 Accrued warranty 98 Deferred income taxes 20,658 Total liabilities assumed 27,460 $ 178,059 Included in general and administrative costs are $3.2 million of acquisition-related costs incurred during the six months ended October 31, 2016. These acquisitions generated $18.6 million of revenue during the three and six months ended October 31, 2016. We amortize intangible assets in proportion to expected yearly revenue generated from the intangibles that we acquire. We amortize order backlog over the estimated life during which the backlog is fulfilled. The following are the identifiable intangible assets acquired (in thousands) and their respective weighted average lives: Weighted Average Amount Life (In years) Developed technology $ 3,000 4.1 Customer relationships 64,000 5.2 Trade names 15,900 4.9 Order backlog 1,100 0.3 Non-competition agreement 100 3.4 $ 84,100 Additionally, the following table reflects the unaudited pro forma results of operations assuming that the Taylor Brands, LLC and Crimson Trace Corporation acquisitions had occurred on May 1, 2015 (in thousands, except per share data): For the Three For the Three For the Six For the Six Months Ended Months Ended Months Ended Months Ended October 31, 2015 October 31, 2016 October 31, 2015 October, 2016 Net sales $ 167,011 $ 235,382 $ 327,803 $ 457,972 Income from operations 20,322 53,379 42,243 103,669 Net income per share - diluted 0.27 0.61 0.52 1.23 The unaudited pro forma income from operations for the three and six months ended October 31, 2016 and 2015 has 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 acquisitions had occurred on May 1, 2015. 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 Taylor Brands, LLC and Crimson Trace Corporation acquisitions occurred as of May 1, 2015 or the results that may be achieved in future periods. |
Goodwill
Goodwill | 6 Months Ended |
Oct. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | ( 4) Goodwill The changes in the carrying amount of goodwill for the six months period ended October 31, 2016 by reporting segment are as follows: Firearms Outdoor Products & Total Segment Accessories Segment Goodwill Balance as of April 30, 2016 $ 13,770 $ 62,587 $ 76,357 Adjustments — — — Balance as of July 31, 2016 13,770 62,587 76,357 Acquisitions — 80,893 80,893 Balance as of October 31, 2016 $ 13,770 $ 143,480 $ 157,250 Refer to Note 11 — Segment Information |
Notes Payable
Notes Payable | 6 Months Ended |
Oct. 31, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable | (5) Notes Payable: Credit Facilities – On October 27, 2016, we and certain of our domestic subsidiaries entered into a second amendment to our existing unsecured credit agreement, or the Second Amendment, with TD Bank, N.A. and other lenders, or the Lenders. Among other things, the Second Amendment increases the revolving line of credit, or the Revolving Line, available from our lenders to $350.0 million, increases the option to expand the credit commitment to an additional $150.0 million, and extends the maturity of the Revolving Line from June 15, 2020 to October 27, 2021. Other than the changes described in the Second Amendment, we otherwise remain subject to the terms of the Credit Agreement, as described below. We incurred $525,000 of debt issuance costs related to this amendment and have recorded these costs in notes payable in the condensed consolidated balance sheet. On June 15, 2015, we entered into an unsecured credit facility, or the Credit Agreement, with the Lenders, which included a $175.0 million Revolving Line and a $105.0 million term loan, or the Term Loan, of which $97.1 million remains outstanding as of October 31, 2016. As described above, the Revolving Line provides for availability until October 27, 2021 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 October 31, 2016, we had $25.0 million of borrowings outstanding on the Revolving Line, which bore interest at 4.00%, at the prime rate plus an applicable margin. The Term Loan, which bears 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 for the Term Loan will be due in full. We incurred $1.0 million of debt issuance costs related to our new 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 October 31, 2016, our interest rate on the Term Loan is 3.06%. As of October 31, 2016, the interest rate swap was considered effective and had no effect on earnings. The fair value of the interest rate swap on October 31, 2016 was a liability of $883,000 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 October 31, 2016, we had outstanding letters of credit under our credit facility aggregating $1.0 million. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Oct. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (6) Fair Value Measurement: We follow the provisions of ASC 820-10, Fair Value Measurements and Disclosures Topic 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 $73.9 million and $191.3 million as of October 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 carrying value of our Term Loan approximates the fair value as of October 31, 2016, in considering Level 2 inputs within the hierarchy. The fair value of our 5.000% Senior Notes as of October 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 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. |
Inventories
Inventories | 6 Months Ended |
Oct. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | (7) Inventories: The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or market, as of October 31, 2016 and April 30, 2016 (in thousands): October 31, 2016 April 30, 2016 Finished goods $ 51,742 $ 26,574 Finished parts 40,762 32,804 Work in process 10,512 9,263 Raw material 13,481 9,148 Total inventories $ 116,497 $ 77,789 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Oct. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | (8) Intangible Assets: The following table presents a summary of intangible assets as of October 31, 2016 and April 30, 2016 (in thousands): October 31, 2016 April 30, 2016 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 92,660 $ (9,926 ) $ 82,734 $ 28,560 $ (6,423 ) $ 22,137 Developed technology 19,430 (4,030 ) 15,400 16,430 (2,890 ) 13,540 Patents, trademarks, and trade names 52,115 (12,048 ) 40,067 36,076 (9,262 ) 26,814 Backlog 1,100 (850 ) 250 — — — 165,305 (26,854 ) 138,451 81,066 (18,575 ) 62,491 Patents in progress 475 — 475 433 — 433 Total definite-lived intangible assets 165,780 (26,854 ) 138,926 81,499 (18,575 ) 62,924 Indefinite-lived intangible assets 226 — 226 — — — Total intangible assets $ 166,006 $ (26,854 ) $ 139,152 $ 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 $5.6 million and $2.8 million for the three months ended October 31, 2016 and 2015, respectively. Amortization expense, excluding amortization of deferred financing costs, amounted to $8.3 million and $5.1 million for the six months ended October 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 $ 10,881 2018 20,974 2019 20,939 2020 18,389 2021 15,855 Thereafter 51,413 Total $ 138,451 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 definite and 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 six months ended October 31, 2016, and therefore intangible assets were not tested for impairment. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Oct. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | (9) 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 October 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 and six months ended October 31, 2016 and 2015 (in thousands, except per share data): For the Three Months Ended October 31, 2016 2015 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 32,483 56,231 $ 0.58 $ 12,466 54,447 $ 0.23 Effect of dilutive stock awards — 905 (0.01 ) — 1,221 (0.01 ) Diluted earnings $ 32,483 57,136 $ 0.57 $ 12,466 55,668 $ 0.22 For the Six Months Ended October 31, 2016 2015 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 67,706 56,140 $ 1.21 $ 26,878 54,333 $ 0.49 Effect of dilutive stock awards — 1,005 (0.03 ) — 1,288 (0.01 ) Diluted earnings $ 67,706 57,145 $ 1.18 $ 26,878 55,621 $ 0.48 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 and six months ended October 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 six months ended October 31, 2016 and 2015 were as follows: For the Six Months Ended October 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 — — (182,498 ) 5.41 Options outstanding, end of period 389,360 $ 6.16 1,697,132 $ 6.47 Weighted average remaining contractual life 4.53 years 4.77 years Options exercisable, end of period 389,360 $ 6.16 1,697,132 $ 6.47 Weighted average remaining contractual life 4.53 years 4.77 years The aggregate intrinsic value of outstanding and exercisable stock options as of October 31, 2016 and 2015 was $7.9 million and $19.3 million, respectively. There were no stock options exercised for the six months ended October 31, 2016. The aggregate intrinsic value of the stock options exercised for the six months ended October 31, 2015 was $1.9 million. At October 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. During the six months ended October 31, 2016 and 2015, 66,812 and 92,249 shares were purchased under our ESPP, respectively. 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 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 $3.9 million and $3.2 million for the six months ended October 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. A 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 six months ended October 31, 2016, we granted an aggregate of 225,634 service-based RSUs, including 170,738 RSUs to non-executive officer employees; 24,896 RSUs to our directors; 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 $3.6 million for the six months ended October 31, 2016. During the six months ended October 31, 2016, we cancelled 15,006 service-based RSUs as a result of the service condition not being met. We delivered common stock to employees during the six months ended October 31, 2016 under vested RSUs and PSUs with a total market value of $10.2 million. During the six months ended October 31, 2015, we granted an aggregate of 198,471 service-based RSUs and 5,379 PSUs without market conditions; 36,379 RSUs to our directors; and 162,092 RSUs and 5,379 PSUs 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 $3.0 million for the six months ended October 31, 2015. We delivered common stock to employees during the six months ended October 31, 2015 under vested RSUs and PSUs with a total market value of $5.3 million. A summary of activity in unvested RSUs and PSUs for the six months ended October 31, 2016 and 2015 is as follows: For the Six Months Ended October 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 344,134 16.94 280,081 14.78 Vested (363,702 ) 11.53 (320,950 ) 10.44 Forfeited (15,006 ) 15.99 (72,123 ) 10.36 RSUs and PSUs outstanding, end of period 1,181,179 $ 17.02 1,077,887 $ 13.61 As of October 31, 2016, there was $9.7 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 1.7 years. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) Commitments and Contingencies: Litigation We are a defendant in seven product liability cases and are aware of five 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 October 31, 2016 and April 30, 2016, respectively, we had recorded a $717,700 and $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 | 6 Months Ended |
Oct. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | (11) Segment Information: We report our results of operations in two segments: (1) Firearms and (2) Outdoor Products & Accessories & Accessories The Firearms segment includes our firearm components, which we manufacture at our facilities in Springfield, Massachusetts; Houlton, Maine; and Deep River, Connecticut and our firearm products, which we develop, assemble, and market in our Springfield, Massachusetts facility. 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 October 31, 2016 and April 30, 2016 (in thousands As of October 31, 2016 As of April 30, 2016 Firearms Outdoor Products & Accessories Total Firearms Outdoor Products & Accessories Total Total assets $ 369,009 $ 359,247 $ 728,256 $ 458,053 $ 161,450 $ 619,503 Property, plant, and equipment, net 138,609 12,890 151,499 132,274 3,131 135,405 Intangibles, net 2,881 136,271 139,152 2,903 60,021 62,924 Goodwill 13,770 143,480 157,250 13,770 62,587 76,357 Results by business segment are presented in the following tables for the three months ended October 31, 2016 and 2015 (in thousands): For the Three Months Ended October 31, 2016 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 194,475 $ 39,053 $ — $ — $ 233,528 Intersegment revenue 932 3,301 — (4,233 ) — Total net sales 195,407 42,354 $ — (4,233 ) 233,528 Cost of sales 113,981 25,163 — (3,221 ) 135,923 Gross margin 81,426 17,191 — (1,012 ) 97,605 Operating income/(loss) 52,255 (391 ) (11,858 ) 12,145 52,151 Income tax expense/(benefit) 20,797 673 (4,007 ) — 17,463 For the Three Months Ended October 31, 2015 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 123,503 (b) $ 19,739 (b) $ — $ — $ 143,242 Intersegment revenue — 561 — (561 ) — Total net sales 123,503 20,300 — (561 ) 143,242 Cost of sales 77,142 (b) 9,958 (b) — (73 ) 87,027 Gross margin 46,361 10,342 — (488 ) 56,215 Operating income/(loss) 20,286 1,345 (4,116 ) 4,267 21,782 Income tax expense/(benefit) 8,510 320 (1,815 ) — 7,015 Results by business segment are presented in the following tables for the six months ended October 31, 2016 and 2015 (in thousands): For the Six Months Ended October 31, 2016 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 386,875 $ 53,604 $ — $ — $ 440,479 Intersegment revenue 1,726 3,363 — (5,089 ) — Total net sales 388,601 56,967 — (5,089 ) 440,479 Cost of sales 226,351 33,037 — (4,083 ) 255,305 Gross margin 162,250 23,930 — (1,006 ) 185,174 Operating income/(loss) 106,672 (3,275 ) (22,781 ) 24,060 104,676 Income tax expense/(benefit) 40,763 (384 ) (7,627 ) — 32,752 For the Six Months Ended October 31, 2015 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 253,758 (c) $ 37,247 (c) $ — $ — $ 291,005 Intersegment revenue — 643 — (643 ) — Total net sales 253,758 37,890 — (643 ) 291,005 Cost of sales 155,934 (c) 20,092 (c) — (106 ) 175,920 Gross margin 97,824 17,798 — (537 ) 115,085 Operating income/(loss) 48,958 2,469 (8,182 ) 8,355 51,600 Income tax expense/(benefit) 20,382 532 (5,700 ) — 15,214 _______________ (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 Firearms 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 $1.4 million and $867,000 of revenue and cost of sales, respectively, from the Firearms segment to the Outdoor Products & Accessories segment for the three months ended October 31, 2015. (c) As a result of the transition mentioned above, we have reclassified $5.6 million and $4.5 million of revenue and cost of sales, respectively, from the Firearms segment to the Outdoor Products & Accessories segment for the six months ended October 31, 2015. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Oct. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | (12) Subsequent : On November 18, 2016, we acquired substantially all of the net assets of Ultimate Survival Technologies, Inc., or UST, for $32.3 million subject to certain adjustments, utilizing cash on hand. In addition, up to $2.0 million may be delivered over a period of two years, contingent upon the financial performance of the acquired business. UST, based in Jacksonville, Florida, is a provider of high quality survival and camping equipment, including LED lights, patented all-weather fire starters, unbreakable signal mirrors, premium outdoor cutting tools, first aid kits, survival kits, and camp kitchen products. The preliminary purchase price allocation has not been completed for this acquisition as of the date of the filing of this Form 10-Q. We recorded $415,000 in general and administrative expenses for acquisition-related expenses during the three and six months ended October 31, 2016 in connection with this acquisition. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Oct. 31, 2016 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information – The condensed consolidated bal ance sheet as of October 31, 2016, the condensed consolidated statements of income and comprehensive income for the three and six months ended October 31, 2016 and 2015, the condensed consolidated statement of changes in stockholders’ equity for the six months ended October 31, 2016, and the condensed consolidated statements of cash flows for the six months ended October 31, 2016 and 2015 have been prepared by us without audit. In our opinion, all adjustments, which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, changes in stockholders’ equity, and cash flows at October 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 six 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 Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients 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 |
Acquisitions (Tables)
Acquisitions (Tables) - Taylor Brands, LLC and Crimson Trace Corporation | 6 Months Ended |
Oct. 31, 2016 | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated preliminary allocation of the purchase price for these acquisitions. During the Three Months Ended October 31, 2016 Accounts receivable $ 8,937 Inventories 24,359 Other current assets 379 Property, plant, and equipment 6,851 Intangibles 84,100 Goodwill 80,893 Total assets acquired 205,519 Accounts payable 5,066 Accrued expenses 946 Accrued payroll 689 Accrued income taxes 3 Accrued warranty 98 Deferred income taxes 20,658 Total liabilities assumed 27,460 $ 178,059 |
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 Amount Life (In years) Developed technology $ 3,000 4.1 Customer relationships 64,000 5.2 Trade names 15,900 4.9 Order backlog 1,100 0.3 Non-competition agreement 100 3.4 $ 84,100 |
Unaudited Pro Forma Results of Operations | Additionally, the following table reflects the unaudited pro forma results of operations assuming that the Taylor Brands, LLC and Crimson Trace Corporation acquisitions had occurred on May 1, 2015 (in thousands, except per share data): For the Three For the Three For the Six For the Six Months Ended Months Ended Months Ended Months Ended October 31, 2015 October 31, 2016 October 31, 2015 October, 2016 Net sales $ 167,011 $ 235,382 $ 327,803 $ 457,972 Income from operations 20,322 53,379 42,243 103,669 Net income per share - diluted 0.27 0.61 0.52 1.23 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Oct. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the six months period ended October 31, 2016 by reporting segment are as follows: Firearms Outdoor Products & Total Segment Accessories Segment Goodwill Balance as of April 30, 2016 $ 13,770 $ 62,587 $ 76,357 Adjustments — — — Balance as of July 31, 2016 13,770 62,587 76,357 Acquisitions — 80,893 80,893 Balance as of October 31, 2016 $ 13,770 $ 143,480 $ 157,250 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Oct. 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 October 31, 2016 and April 30, 2016 (in thousands): October 31, 2016 April 30, 2016 Finished goods $ 51,742 $ 26,574 Finished parts 40,762 32,804 Work in process 10,512 9,263 Raw material 13,481 9,148 Total inventories $ 116,497 $ 77,789 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Oct. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table presents a summary of intangible assets as of October 31, 2016 and April 30, 2016 (in thousands): October 31, 2016 April 30, 2016 Gross Gross Carrying Accumulated Net Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 92,660 $ (9,926 ) $ 82,734 $ 28,560 $ (6,423 ) $ 22,137 Developed technology 19,430 (4,030 ) 15,400 16,430 (2,890 ) 13,540 Patents, trademarks, and trade names 52,115 (12,048 ) 40,067 36,076 (9,262 ) 26,814 Backlog 1,100 (850 ) 250 — — — 165,305 (26,854 ) 138,451 81,066 (18,575 ) 62,491 Patents in progress 475 — 475 433 — 433 Total definite-lived intangible assets 165,780 (26,854 ) 138,926 81,499 (18,575 ) 62,924 Indefinite-lived intangible assets 226 — 226 — — — Total intangible assets $ 166,006 $ (26,854 ) $ 139,152 $ 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 $ 10,881 2018 20,974 2019 20,939 2020 18,389 2021 15,855 Thereafter 51,413 Total $ 138,451 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Oct. 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 and six months ended October 31, 2016 and 2015 (in thousands, except per share data): For the Three Months Ended October 31, 2016 2015 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 32,483 56,231 $ 0.58 $ 12,466 54,447 $ 0.23 Effect of dilutive stock awards — 905 (0.01 ) — 1,221 (0.01 ) Diluted earnings $ 32,483 57,136 $ 0.57 $ 12,466 55,668 $ 0.22 For the Six Months Ended October 31, 2016 2015 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 67,706 56,140 $ 1.21 $ 26,878 54,333 $ 0.49 Effect of dilutive stock awards — 1,005 (0.03 ) — 1,288 (0.01 ) Diluted earnings $ 67,706 57,145 $ 1.18 $ 26,878 55,621 $ 0.48 |
Share Based Compensation Stock Options Activity | The number of shares and weighted average exercise prices of options for the six months ended October 31, 2016 and 2015 were as follows: For the Six Months Ended October 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 — — (182,498 ) 5.41 Options outstanding, end of period 389,360 $ 6.16 1,697,132 $ 6.47 Weighted average remaining contractual life 4.53 years 4.77 years Options exercisable, end of period 389,360 $ 6.16 1,697,132 $ 6.47 Weighted average remaining contractual life 4.53 years 4.77 years |
Summary of Activity in Unvested RSUs and PSUs | A summary of activity in unvested RSUs and PSUs for the six months ended October 31, 2016 and 2015 is as follows: For the Six Months Ended October 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 344,134 16.94 280,081 14.78 Vested (363,702 ) 11.53 (320,950 ) 10.44 Forfeited (15,006 ) 15.99 (72,123 ) 10.36 RSUs and PSUs outstanding, end of period 1,181,179 $ 17.02 1,077,887 $ 13.61 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Oct. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Assets by Business Segment | Assets by business segment are presented in the following table as of October 31, 2016 and April 30, 2016 (in thousands As of October 31, 2016 As of April 30, 2016 Firearms Outdoor Products & Accessories Total Firearms Outdoor Products & Accessories Total Total assets $ 369,009 $ 359,247 $ 728,256 $ 458,053 $ 161,450 $ 619,503 Property, plant, and equipment, net 138,609 12,890 151,499 132,274 3,131 135,405 Intangibles, net 2,881 136,271 139,152 2,903 60,021 62,924 Goodwill 13,770 143,480 157,250 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 October 31, 2016 and 2015 (in thousands): For the Three Months Ended October 31, 2016 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 194,475 $ 39,053 $ — $ — $ 233,528 Intersegment revenue 932 3,301 — (4,233 ) — Total net sales 195,407 42,354 $ — (4,233 ) 233,528 Cost of sales 113,981 25,163 — (3,221 ) 135,923 Gross margin 81,426 17,191 — (1,012 ) 97,605 Operating income/(loss) 52,255 (391 ) (11,858 ) 12,145 52,151 Income tax expense/(benefit) 20,797 673 (4,007 ) — 17,463 For the Three Months Ended October 31, 2015 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 123,503 (b) $ 19,739 (b) $ — $ — $ 143,242 Intersegment revenue — 561 — (561 ) — Total net sales 123,503 20,300 — (561 ) 143,242 Cost of sales 77,142 (b) 9,958 (b) — (73 ) 87,027 Gross margin 46,361 10,342 — (488 ) 56,215 Operating income/(loss) 20,286 1,345 (4,116 ) 4,267 21,782 Income tax expense/(benefit) 8,510 320 (1,815 ) — 7,015 Results by business segment are presented in the following tables for the six months ended October 31, 2016 and 2015 (in thousands): For the Six Months Ended October 31, 2016 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 386,875 $ 53,604 $ — $ — $ 440,479 Intersegment revenue 1,726 3,363 — (5,089 ) — Total net sales 388,601 56,967 — (5,089 ) 440,479 Cost of sales 226,351 33,037 — (4,083 ) 255,305 Gross margin 162,250 23,930 — (1,006 ) 185,174 Operating income/(loss) 106,672 (3,275 ) (22,781 ) 24,060 104,676 Income tax expense/(benefit) 40,763 (384 ) (7,627 ) — 32,752 For the Six Months Ended October 31, 2015 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 253,758 (c) $ 37,247 (c) $ — $ — $ 291,005 Intersegment revenue — 643 — (643 ) — Total net sales 253,758 37,890 — (643 ) 291,005 Cost of sales 155,934 (c) 20,092 (c) — (106 ) 175,920 Gross margin 97,824 17,798 — (537 ) 115,085 Operating income/(loss) 48,958 2,469 (8,182 ) 8,355 51,600 Income tax expense/(benefit) 20,382 532 (5,700 ) — 15,214 _______________ (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 Firearms 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 $1.4 million and $867,000 of revenue and cost of sales, respectively, from the Firearms segment to the Outdoor Products & Accessories segment for the three months ended October 31, 2015. (c) As a result of the transition mentioned above, we have reclassified $5.6 million and $4.5 million of revenue and cost of sales, respectively, from the Firearms segment to the Outdoor Products & Accessories segment for the six months ended October 31, 2015. |
Organization - Additional Infor
Organization - Additional Information (Detail) | 6 Months Ended |
Oct. 31, 2016 | |
Taylor Brands, LLC | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Business acquisition agreement date | Aug. 1, 2016 |
Crimson Trace Corporation | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Business acquisition agreement date | Aug. 26, 2016 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | ||
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 178,059 | ||||
Net sales | [1] | $ 233,528 | $ 143,242 | 440,479 | $ 291,005 |
Taylor Brands, LLC and Crimson Trace Corporation | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | 178,100 | ||||
Business combination, acquisition-related costs | 3,200 | ||||
Net sales | $ 18,600 | $ 18,600 | |||
[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 Firearms and Outdoor Products & Accessories segments. |
Acquisitions - Estimated Fair V
Acquisitions - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 157,250 | $ 76,357 | $ 76,357 |
Taylor Brands, LLC and Crimson Trace Corporation | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 8,937 | ||
Inventories | 24,359 | ||
Other current assets | 379 | ||
Property, plant, and equipment | 6,851 | ||
Intangibles | 84,100 | ||
Goodwill | 80,893 | ||
Total assets acquired | 205,519 | ||
Accounts payable | 5,066 | ||
Accrued expenses | 946 | ||
Accrued payroll | 689 | ||
Accrued income taxes | 3 | ||
Accrued warranty | 98 | ||
Deferred income taxes | 20,658 | ||
Total liabilities assumed | 27,460 | ||
Net assets acquired | $ 178,059 |
Acquisitions - Identifiable Int
Acquisitions - Identifiable Intangible Assets Acquired and Respective Weighted Average Lives (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2016 | Apr. 30, 2016 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 165,780 | $ 81,499 |
Weighted Average Life | 5 years | |
Developed technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 19,430 | 16,430 |
Weighted Average Life | 6 years | |
Customer relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 92,660 | $ 28,560 |
Weighted Average Life | 5 years | |
Order backlog | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 1,100 | |
Taylor Brands, LLC and Crimson Trace Corporation | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | 84,100 | |
Taylor Brands, LLC and Crimson Trace Corporation | Developed technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 3,000 | |
Weighted Average Life | 4 years 1 month 6 days | |
Taylor Brands, LLC and Crimson Trace Corporation | Customer relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 64,000 | |
Weighted Average Life | 5 years 2 months 12 days | |
Taylor Brands, LLC and Crimson Trace Corporation | Trade names | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 15,900 | |
Weighted Average Life | 4 years 10 months 24 days | |
Taylor Brands, LLC and Crimson Trace Corporation | Order backlog | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 1,100 | |
Weighted Average Life | 3 months 18 days | |
Taylor Brands, LLC and Crimson Trace Corporation | Non-competition agreement | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 100 | |
Weighted Average Life | 3 years 4 months 24 days |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Results of Operations (Detail) - Taylor Brands, LLC and Crimson Trace Corporation - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
Business Acquisition [Line Items] | ||||
Net sales | $ 235,382 | $ 167,011 | $ 457,972 | $ 327,803 |
Income from operations | $ 53,379 | $ 20,322 | $ 103,669 | $ 42,243 |
Net income per share - diluted | $ 0.61 | $ 0.27 | $ 1.23 | $ 0.52 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Oct. 31, 2016USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 76,357 |
Acquisitions | 80,893 |
Ending Balance | 157,250 |
Firearms Segment | |
Goodwill [Line Items] | |
Beginning Balance | 13,770 |
Ending Balance | 13,770 |
Outdoor Products & Accessories Segment | |
Goodwill [Line Items] | |
Beginning Balance | 62,587 |
Acquisitions | 80,893 |
Ending Balance | $ 143,480 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - USD ($) | 6 Months Ended | |||||
Oct. 31, 2016 | Oct. 27, 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 October 27, 2021 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 | $ 883,000 | |||||
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] | ||||||
Debt Issuance Cost | $ 1,000,000 | |||||
Outstanding debt | 97,100,000 | $ 105,000,000 | ||||
Principal payments per annum | $ 6,300,000 | |||||
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 | 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 | |||||
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% | |||||
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 | $ 25,000,000 | |||||
Outstanding letters of credit | $ 1,000,000 | |||||
Credit Facilities | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest on borrowings | 4.00% | |||||
Second Amendment | Unsecured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, borrowing capacity | $ 350,000,000 | |||||
Credit facility additional borrowing capacity option to increase maximum borrowing capacity | 150,000,000 | |||||
Credit facility, maturity | Oct. 27, 2021 | |||||
Debt Issuance Cost | $ 525,000 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | Oct. 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 | $ 73.9 | $ 191.3 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Oct. 31, 2016 | Apr. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 51,742 | $ 26,574 |
Finished parts | 40,762 | 32,804 |
Work in process | 10,512 | 9,263 |
Raw material | 13,481 | 9,148 |
Total inventories | $ 116,497 | $ 77,789 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Oct. 31, 2016 | Apr. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | $ 165,780 | $ 81,499 |
Total definite-lived intangible assets, Accumulated Amortization | (26,854) | (18,575) |
Total definite-lived intangible assets, Net Carrying Amount | 138,926 | 62,924 |
Indefinite-lived intangible assets, Net Carrying Amount | 226 | |
Total Intangible assets, Gross Carrying Amount | 166,006 | 81,499 |
Total Intangible assets, Net Carrying Amount | 139,152 | 62,924 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 92,660 | 28,560 |
Total definite-lived intangible assets, Accumulated Amortization | (9,926) | (6,423) |
Total definite-lived intangible assets, Net Carrying Amount | 82,734 | 22,137 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 19,430 | 16,430 |
Total definite-lived intangible assets, Accumulated Amortization | (4,030) | (2,890) |
Total definite-lived intangible assets, Net Carrying Amount | 15,400 | 13,540 |
Patents, trademarks, and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 52,115 | 36,076 |
Total definite-lived intangible assets, Accumulated Amortization | (12,048) | (9,262) |
Total definite-lived intangible assets, Net Carrying Amount | 40,067 | 26,814 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 1,100 | |
Total definite-lived intangible assets, Accumulated Amortization | (850) | |
Total definite-lived intangible assets, Net Carrying Amount | 250 | |
Definite-lived intangible assets excluding patents in progress | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 165,305 | 81,066 |
Total definite-lived intangible assets, Accumulated Amortization | (26,854) | (18,575) |
Total definite-lived intangible assets, Net Carrying Amount | 138,451 | 62,491 |
Patents in progress | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 475 | 433 |
Total definite-lived intangible assets, Net Carrying Amount | $ 475 | $ 433 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 5.6 | $ 2.8 | $ 8.3 | $ 5.1 |
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 | Oct. 31, 2016 | Apr. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Net Carrying Amount | $ 138,926 | $ 62,924 |
Accessories | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,017 | 10,881 | |
2,018 | 20,974 | |
2,019 | 20,939 | |
2,020 | 18,389 | |
2,021 | 15,855 | |
Thereafter | 51,413 | |
Total definite-lived intangible assets, Net Carrying Amount | $ 138,451 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 6 Months Ended | 12 Months Ended | |||
Oct. 31, 2016USD ($)OptionPlanshares | Oct. 31, 2015USD ($)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 | $ | $ 7,900,000 | $ 19,300,000 | |||
Intrinsic value of stock exercisable | $ | 7,900,000 | 19,300,000 | |||
Intrinsic value of stock exercised | $ | 0 | $ 1,900,000 | |||
Unrecognized compensation cost of outstanding options | $ | $ 0 | ||||
Shares issued under employee stock purchase plan | 66,812 | 92,249 | |||
Stock-based compensation expense | $ | $ 3,900,000 | $ 3,200,000 | |||
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 | 225,634 | ||||
Stock units, forfeited | 15,006 | ||||
RSUs | Without Market Conditions | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 198,471 | ||||
RSUs | Non-Executive Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 170,738 | ||||
RSUs | Non-Executive Employees | Without Market Conditions | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 162,092 | ||||
RSUs | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 24,896 | ||||
RSUs | Director | Without Market Conditions | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 36,379 | ||||
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% | |||
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 | $ | $ 3,600,000 | $ 3,000,000 | |||
Stock units, awarded | 344,134 | 280,081 | |||
Stock units, vested | 363,702 | 320,950 | |||
Stock units, forfeited | 15,006 | 72,123 | |||
Value of shares issued for vested awards | $ | $ 10,200,000 | $ 5,300,000 | |||
Weighted average remaining contractual term | 1 year 8 months 12 days | ||||
Unrecognized compensation cost related to unvested RSUs and PSUs | $ | $ 9,700,000 | ||||
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 | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 32,483 | $ 12,466 | $ 67,706 | $ 26,878 |
Basic earnings, Shares | 56,231 | 54,447 | 56,140 | 54,333 |
Effect of dilutive stock awards, Shares | 905 | 1,221 | 1,005 | 1,288 |
Diluted earnings, Shares | 57,136 | 55,668 | 57,145 | 55,621 |
Basic earnings, Per Share Amount | $ 0.58 | $ 0.23 | $ 1.21 | $ 0.49 |
Effect of dilutive stock awards, Per Share Amount | (0.01) | (0.01) | (0.03) | (0.01) |
Diluted earnings, Per Share Amount | $ 0.57 | $ 0.22 | $ 1.18 | $ 0.48 |
Stockholders' Equity - Share Ba
Stockholders' Equity - Share Based Compensation Stock Options Activity (Detail) - $ / shares | 6 Months Ended | |
Oct. 31, 2016 | Oct. 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 | (182,498) | |
Options outstanding, end of period, Shares | 389,360 | 1,697,132 |
Weighted average remaining contractual life | 4 years 6 months 11 days | 4 years 9 months 7 days |
Options exercisable, end of period, Shares | 389,360 | 1,697,132 |
Weighted average remaining contractual life | 4 years 6 months 11 days | 4 years 9 months 7 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 | 5.41 | |
Options outstanding, end of period, Weighted-Average Exercise Price | 6.16 | 6.47 |
Options exercisable, end of period, Weighted-Average Exercise Price | $ 6.16 | $ 6.47 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activity in Unvested RSUs and PSUs (Detail) - RSUs and PSUs - $ / shares | 6 Months Ended | |
Oct. 31, 2016 | Oct. 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 | 344,134 | 280,081 |
Restricted Stock Units, Vested | (363,702) | (320,950) |
Restricted Stock Units, Forfeited | (15,006) | (72,123) |
Restricted Stock Units, RSUs and PSUs outstanding, end of period | 1,181,179 | 1,077,887 |
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 | 16.94 | 14.78 |
Weighted Average Grant Date Fair Value, Vested | 11.53 | 10.44 |
Weighted Average Grant Date Fair Value, Forfeited | 15.99 | 10.36 |
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, end of period | $ 17.02 | $ 13.61 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 6 Months Ended | |
Oct. 31, 2016USD ($)CaseClaim | Apr. 30, 2016USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | ||
Number of Product liability cases | Case | 7 | |
Number of Other product liability claims | Claim | 5 | |
Environmental reserve in non-current liabilities | $ 717,700 | $ 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) | 6 Months Ended |
Oct. 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 Segment | |
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 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 728,256 | $ 619,503 | |
Property, plant, and equipment, net | 151,499 | 135,405 | |
Intangibles, net | 139,152 | 62,924 | |
Goodwill | 157,250 | $ 76,357 | 76,357 |
Firearms Division | |||
Segment Reporting Information [Line Items] | |||
Total assets | 369,009 | 458,053 | |
Property, plant, and equipment, net | 138,609 | 132,274 | |
Intangibles, net | 2,881 | 2,903 | |
Goodwill | 13,770 | 13,770 | 13,770 |
Outdoor Products & Accessories | |||
Segment Reporting Information [Line Items] | |||
Total assets | 359,247 | 161,450 | |
Property, plant, and equipment, net | 12,890 | 3,131 | |
Intangibles, net | 136,271 | 60,021 | |
Goodwill | $ 143,480 | $ 62,587 | $ 62,587 |
Segment Information - Schedul45
Segment Information - Schedule of Results by Business Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | ||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | [1] | $ 233,528 | $ 143,242 | $ 440,479 | $ 291,005 | ||
Cost of sales | [1] | 135,923 | 87,027 | 255,305 | 175,920 | ||
Gross margin | [1] | 97,605 | 56,215 | 185,174 | 115,085 | ||
Operating income/(loss) | [1] | 52,151 | 21,782 | 104,676 | 51,600 | ||
Income tax expense/(benefit) | [1] | 17,463 | 7,015 | 32,752 | 15,214 | ||
Intersegment Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | [1] | (4,233) | (561) | (5,089) | (643) | ||
Cost of sales | [1] | (3,221) | (73) | (4,083) | (106) | ||
Gross margin | [1] | (1,012) | (488) | (1,006) | (537) | ||
Operating income/(loss) | [1] | 12,145 | 4,267 | 24,060 | 8,355 | ||
Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | [1] | 233,528 | 143,242 | 440,479 | 291,005 | ||
Corporate | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating income/(loss) | [1] | (11,858) | (4,116) | (22,781) | (8,182) | ||
Income tax expense/(benefit) | [1] | (4,007) | (1,815) | (7,627) | (5,700) | ||
Firearms Division | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | [1] | 194,475 | 123,503 | [2] | 386,875 | 253,758 | [3] |
Firearms Division | Intersegment Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | [1] | 932 | 1,726 | ||||
Firearms Division | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | [1] | 195,407 | 123,503 | 388,601 | 253,758 | ||
Cost of sales | [1] | 113,981 | 77,142 | [2] | 226,351 | 155,934 | [3] |
Gross margin | [1] | 81,426 | 46,361 | 162,250 | 97,824 | ||
Operating income/(loss) | [1] | 52,255 | 20,286 | 106,672 | 48,958 | ||
Income tax expense/(benefit) | [1] | 20,797 | 8,510 | 40,763 | 20,382 | ||
Outdoor Products & Accessories | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | [1] | 39,053 | 19,739 | [2] | 53,604 | 37,247 | [3] |
Outdoor Products & Accessories | Intersegment Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | [1] | 3,301 | 561 | 3,363 | 643 | ||
Outdoor Products & Accessories | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | [1] | 42,354 | 20,300 | 56,967 | 37,890 | ||
Cost of sales | [1] | 25,163 | 9,958 | [2] | 33,037 | 20,092 | [3] |
Gross margin | [1] | 17,191 | 10,342 | 23,930 | 17,798 | ||
Operating income/(loss) | [1] | (391) | 1,345 | (3,275) | 2,469 | ||
Income tax expense/(benefit) | [1] | $ 673 | $ 320 | $ (384) | $ 532 | ||
[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 Firearms 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 $1.4 million and $867,000 of revenue and cost of sales, respectively, from the Firearms segment to the Outdoor Products & Accessories segment for the three months ended October 31, 2015. | ||||||
[3] | As a result of the transition mentioned above, we have reclassified $5.6 million and $4.5 million of revenue and cost of sales, respectively, from the Firearms segment to the Outdoor Products & Accessories segment for the six months ended October 31, 2015. |
Segment Information - Schedul46
Segment Information - Schedule of Results by Business Segment (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | ||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | [1] | $ 233,528,000 | $ 143,242,000 | $ 440,479,000 | $ 291,005,000 | ||
Cost of sales | [1] | 135,923,000 | 87,027,000 | 255,305,000 | 175,920,000 | ||
Outdoor Products & Accessories | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | [1] | $ 39,053,000 | 19,739,000 | [2] | $ 53,604,000 | 37,247,000 | [3] |
Transition Reclassified | Outdoor Products & Accessories | |||||||
Segment Reporting Information [Line Items] | |||||||
Total net sales | 1,400,000 | 5,600,000 | |||||
Cost of sales | $ 867,000 | $ 4,500,000 | |||||
[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 Firearms 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 $1.4 million and $867,000 of revenue and cost of sales, respectively, from the Firearms segment to the Outdoor Products & Accessories segment for the three months ended October 31, 2015. | ||||||
[3] | As a result of the transition mentioned above, we have reclassified $5.6 million and $4.5 million of revenue and cost of sales, respectively, from the Firearms segment to the Outdoor Products & Accessories segment for the six months ended October 31, 2015. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Nov. 18, 2016 | Oct. 31, 2016 | Oct. 31, 2016 |
Subsequent Event [Line Items] | |||
Payments to acquire business, net of cash acquired | $ 178,059,000 | ||
Ultimate Survival Technologies, Inc. | |||
Subsequent Event [Line Items] | |||
Business combination, acquisition-related costs | $ 415,000 | $ 415,000 | |
Ultimate Survival Technologies, Inc. | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Payments to acquire business, net of cash acquired | $ 32,300,000 | ||
Business combination, contingent consideration payable performance period | 2 years | ||
Ultimate Survival Technologies, Inc. | Subsequent Event | Maximum | |||
Subsequent Event [Line Items] | |||
Contingent consideration payable upon financial performance of acquired business | $ 2,000,000 |